CHINA

Economy of China



Economy of China

Introduction

The economy of the People's Republic of China is the second largest in the world, surpassed only by the United States. Its gross domestic product (GDP) is estimated in nominal U.S. $ 7.3 trillion (as of 2011), while its purchasing power in 2011 was estimated at just over $ 11.3 trillion, more than any other country in the world , with the sole exception of the United States .

China is the nation with the highest economic growth in 25 years in the world, with an average GDP growth of around 10% per year. The per capita income in China has grown by about 8% per year average over the past 30 years and on average another 15 to 25 years of export, which has drastically reduced poverty in the country, but this rapid growth has brought great inequalities in income distribution. The per capita income of the country is classified as the median low compared to world standards, and is about 3180 dollars per person (nominal, 104th on a list of 178 countries / economies), and 5943 dollars per person (PPP, 97th in a list of 178 countries / economies) in 2008, according to the International Monetary Fund (IMF) (Cheng, 2003).

Despite being the third or fourth largest country in land mass in the world, China is highly poor in natural resources, and, despite having about 20% of the world population living within its borders, its role within the world economy was relatively low for more than a century. However, since late 1978, the Chinese government reformed the country's economy, which changed from a centrally planned economy with Soviet base, which was quite closed to international trade to a market economy, which has a private sector rapidly growing and it plays a key role in the global economy.

Since they were introduced, these reforms have helped millions of people escape poverty, whose index shrank from 53% in 1981 to only 8% in 2001. The Chinese government calls its economic system of “socialism with Chinese characteristics, "but what that really means is disputed. Some view it as a mixed economy, others consider it as capitalism. Although some have said that only a third of the economy is controlled by the state, the sectors that are state-controlled are the largest and most important industries in the country (Bachman, 1991).

Estimates vary on the percentage composition of the private sector in GDP. According to OECD, the Chinese private sector dominates 59.9% of GDP. The public sector is dominated by 159 state enterprises under the control of the central government in important sectors such as industry utilities, heavy industries, and energy resources. These state enterprises own and control tens of thousands of subordinate enterprises. Governments of cities, communities and small towns also control state-owned or collective to your local.

Progression of the Economy

Since the late 2000s and early 2010s, economic reforms began initially with the change of labor in agriculture to a system of household responsibility, in order to exit the system of ...