Economic Growth of China

Economic reforms were started in China in 1970.

•· It phased out collectivized agriculture,

•· liberalized prices,

•· increased autonomy of state enterprises,

•· developed stock markets,

•· diversified banking system

These reforms were implementing gradually and carefully. These caused the rapid growth non-state enterprises and influx of foreign trade and investments. In 2008, direct foreign investments rose to $108 billion.

After years of having an economy linked to the dollar, in 2005 it changed this policy having exchange rate reference based of several currencies. This expanded its economic stability base. Now, its economy is second to USA as the biggest in the world.

The Chinese government due to its rapid economic developments has to address the following:

•· strengthening social welfare of its citizens;

•· sustain job growth for millions of local migrant workers;

•· reducing corruptions and other economic crimes;

•· environmental damages caused by rapid industrialization.

It is also aiming to increase its domestic consumption to make it less dependent on foreign exports for its GDP growth.

GDP (purchasing power parity):

$8.767 trillion (2009 est.)

$8.088 trillion (2008 est.)

$7.42 trillion (2007 est.)
GDP (official exchange rate):
$4.758 trillion (2009 est.)
GDP - real growth rate:
8.4% (2009 est.) 9% (2008 est.) 13% (2007 est.)
GDP - per capita (PPP):
$6,500 (2009 est.) $6,100 (2008 est.) $5,600 (2007 est.)

GDP - composition by sector:
agriculture: 10.9%
industry: 48.6%
services: 40.5% (2009 est.)

Labor force:
812.7 million (2009 est.)
Labor force - by occupation:
agriculture: 39.5%
industry: 27.2%
services: 33.2% (2006 est.)
Unemployment rate:
4.3% (September 2009 est.) 4.2% (2008 est.)
Population below poverty line:
2.8% (2006 est.)
Budget:
revenues: $972.3 billion
expenditures: $1.137 trillion (2009 est.)
Public debt:
18.2% of GDP (2009 est.) 15.6% of GDP (2008 est.)
Industrial production growth rate:
8.1% (2009 est.)
Imports - partners:
Japan 13.3%, South Korea 9.9%, US 7.2%, Germany 4.9% (2008)

Reserves of foreign exchange and gold:
$2.206 trillion (31 December 2009 est.) $1.955 trillion (31 December 2008 est.)
Debt - external:
$347.1 billion (31 December 2009 est.) $400.6 billion (31 December 2008 est.)