China has banned ‘Avatar 2D’. Govt has reported that they are going to support 3D version, which will be running in all movie theaters. Even though reason put ahead to support 3d version, country has planned privately to save market for local movies which will be released in current week. This is how China secure its own business and market.
This is the protectionist measure taken by China for local entertainment industry. Economist Paul Krugman predicted at new year eve ,’ Year 2010 will be china’s year. It is going to become global financial and trade power.’ To sustain self economic growth, trade policies are are bluntly kept protectionist and predatory. It not loss, country will try to protect growth rate at any cost. Few notable points about government policies by China.
- Current exchange rate shows, 6.8 yuan equals 1 US dollar.
- China restricts private foreign investors getting into china. It avoids inflow of dollars into country. On the other side, this policy blocks the job availability for growing population. So, this will raise unemployment rate.
- Country always try to conserve trade surplus. Chinese products are dominating world market due to this policy.
China is expected to keep growth rate of 8.8 % in 2010, which is much faster than world economy, which expands 2.4% .