• The People's Republic of China is the fourth largest economy in the world. By the end of 2008, China is predicted (measured by means of the exchange rate) to overtake Germany as the third largest economy, and to overtake Japan, the second, by 2020.[3] It would then overtake the United States by 2040 thus becoming the world's largest economy.[4]
Its economic output for 2006 was $2.68 trillion USD.[1] As of 2005, 70% of China's GDP is in the denominated non-public [private] sector. The smaller public sector is dominated by about 200 large state-owned enterprises concentrated mostly in utilities, heavy industries, and energy resources. [2]
The government has emphasized the importance of raising personal income and consumption and introducing new management systems to help increase productivity. The government also has focused on foreign trade as a major vehicle for economic growth.
Current GDP per capita rearched a peak growth of 175% in the 90’s. Prosperity still remains concentrated in the coastal and southern provinces (Pan-Pearl River Delta, Bejing, Shanghai) and efforts have been made in recent years to expand the prosperity to the inner provinces and the industrial Northeast rust belt.
The changes introduced since 1993, have brought output and prices acceleration, investment increase, and economic expansion, all of these fueled by the introduction of Special Economic Zones (SEZs) and the influx of foreign capital. These areas have become the axis of development for the country.
China ranks third worldwide in factory output, with main industries covering iron and steel, coal, machinery, armament, textiles and apparel, petroleum, cement, chemicals, footwear, toys, food processing, automobiles, consumer electronics, telecommunications and information technology.
Regarding services, China ranks seventh worldwide. High power and telecom density ensure this sector remain on high-growth trajectory in the long-term.
Regarding environmental issues, China has strengthened its environmental legislation and made rem arkable progress in alleviating environmental deterioration. During the 10th 5-Year Plan, the PRC plans to reduce total emissions by 10%. Beijing in particular has invested heavily in pollution control as part of its successful campaign to win the competition to host the 2008 Olympic Games. China is an active participant in the climate change talks and other multilateral environmental negotiations.
(Text based in [5]) |