You will hear an interview discussing China’s current economic situation.

You will hear an interview discussing China’s current economic situation.
For each question(23-30), mark one letter(A, B or C)for the correct answer.
After you have listened once, replay the recording.
You have 45 seconds to read through the questions.
[Pause]
Now listen, and mark A, B or C.
Woman: After founding the People’s Republic, China spent the first 30 years building a planned economy and the next 30 years reforming it. Then, when will China’s economy be likely to exceed that of United States?
Man: Angus Maddison. a British economist, predicted this will happen in 2015. counting the GDP in purchasing power parity(PPP): PricewaterhouseCoopers allows an extra 10 years. But whomever you listen to, China is said to be on the way to becoming the biggest economy within 30 years.
Woman: Since the Second World War, the former Soviet Union, West Germany and Japan have each once been seen in this light. None of them, however, turned out to overtake the United States. Could China shatter these predictions?
Man: In my opinion, the key lies in a modernized and strengthened manufacturing sector. And the starting point is proper consolidation of the industry.
Woman: Then, how to get proper consolidation of the industry?
Man: Two forces, withering external demand and growing production costs, have already been pushing consolidation of China’s manufacturing sector.
Woman: But dependency on export seems too important for the Chinese manufacturing sector to break with.
Man: You know, the conventional gauge, the export-GDP ratio, might have exaggerated the extent of export dependence, because export figures are gross, while the GDP is incremental. A better measure would be export deliveries against overall sales by the industrial sector. In 2004, export deliveries peaked at 20 percent of total sales and dropped to 16.5 percent by November 2008.
Woman: What about the competition within the industry?
Man: Competition within the industry, as well as normalization of the input price, has been elevating production costs. According to the National Statistical Bureau, the number of manufacturers almost doubled between 1998 and 2006, making the marketplace much more crowded, although sales increased fivefold during the same period. As competition heats up in the margins, managers might also have to bid farewell to artificially depressed input prices in the wake of the 2008 fuel pricing reform. Prices of land, commodities, interest and exchange rates may all rise, swelling production costs.
Woman: What’s the impact from the current global financial crisis and economic recession?
Man: The current global financial crisis and economic recession have accelerated the process of consolidation. As a result, the industry will mature as weak companies are washed out and robust ones remain. The companies that survive will benefit from economy of scale and stronger pricing power.
Woman: What are China’s comparative advantages now?
Man: In the meantime, China will continue to energize growth of the manufacturing sector. Such advantages include, first of all, inexpensive labour. At present, China’s average labour cost is no more than 5 percent of that of the United States. In light of the experiences of South Korea and Taiwan, this ratio is expected to grow beyond 25 percent but not exceed 50 percent during the next 30 years.
Secondly, China has developed an extended industry chain, a major plus for Chinese exporters in competition with their foreign rivals. A recent survey indicated that only 40 percent of Chinese manufacturers outsource overseas, compared to Germany’s 47 percent and India’s 67 percent. Finally, China’s enormous potential in the consumer market lays a solid foundation for long term growth of its manufacturing sector.
Woman: Could you predict the bottom of the current slump?
Man: The current slump may soon hit bottom as companies take the opportunity to consolidate and expand rapidly.
Chinese manufacturers are also beginning to shift their target markets from overseas to domestic consumers. As China’s GDP per capita approaches $3,000, we are likely to see a boom in domestic consumption, creating a huge demand shared by an emerging service sector and an empowered manufacturing sector.