Economy Of China - China Information

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Economy Of China
China Information - Country Guides

Economy overview	In late 1978 the Chinese leadership began moving the economy from a sluggish, inefficient, Soviet-style centrally planned economy to a more market-oriented system. Whereas the system operates within a political framework of strict Communist control, the economic influence of non-state organizations and individual citizens has been steadily increasing. The authorities switched to a system of household and village responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprises in services and light manufacturing, and opened the economy to increased foreign trade and investment. The result has been a quadrupling of GDP since 1978. Measured on a purchasing power parity (PPP) basis, China in 2003 stood as the second-largest economy in the world after the US, although in per capita terms the country is still poor. Agriculture and industry have posted major gains especially in coastal areas near Hong Kong, opposite Taiwan, and in Shanghai, where foreign investment has helped spur output of both domestic and export goods. The leadership, however, often has experienced - as a result of its hybrid system - the worst results of socialism (bureaucracy and lassitude) and of capitalism (growing income disparities and rising unemployment). China thus has periodically backtracked, retightening central controls at intervals. The government has struggled to (a) sustain adequate jobs growth for tens of millions of workers laid off from state-owned enterprises, migrants, and new entrants to the work force; (b) reduce corruption and other economic crimes; and (c) keep afloat the large state-owned enterprises, many of which had been shielded from competition by subsidies and had been losing the ability to pay full wages and pensions. From 80 to 120 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time, low-paying jobs. Popular resistance, changes in central policy, and loss of authority by rural cadres have weakened China's population control program, which is essential to maintaining long-term growth in living standards. Another long-term threat to growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. China continues to lose arable land because of erosion and economic development. Beijing says it will intensify efforts to stimulate growth through spending on infrastructure - such as water supply and power grids - and poverty relief and through rural tax reform. Accession to the World Trade Organization helps strengthen its ability to maintain strong growth rates but at the same time puts additional pressure on the hybrid system of strong political controls and growing market influences. China has benefited from a huge expansion in computer internet use. Foreign investment remains a strong element in China's remarkable economic growth. Growing shortages of electric power and raw materials will hold back the expansion of industrial output in 2004.
GDP	purchasing power parity - $6.449 trillion (2004 est.)
GDP - real growth rate	9.1% (official data) (2004 est.)
GDP - per capita	purchasing power parity - $5,000 (2004 est.)
GDP - composition by sector	agriculture: 14.8% industry and construction: 52.9% services: 32.3% (2004 est.)
Investment gross fixed	43.4% of GDP (2004 est.)
Population below poverty line	10% (2001 est.)
Household income or consumption by percentage share	lowest 10%: 2.4% highest 10%: 30.4% (1998)
Distribution of family income - Gini index	40 (2001)
Inflation rate consumer prices	1.2% (2004 est.)
Labor force	778.1 million (2004 est.)
Labor force by occupation	agriculture 50%, industry 22%, services 28% (2001 est.)
Unemployment rate	10.1% urban unemployment roughly 10%; substantial unemployment and underemployment in rural areas (2004 est.)
Budget	revenues: $265.8 billion expenditures: $300.2 billion, including capital expenditures of $na (2004 est.)
Public debt	30.1% of GDP (2004 est.)
Agriculture products	rice, wheat, potatoes, sorghum, peanuts, tea, millet, barley, cotton, oilseed, pork, fish
Industries	iron and steel, coal, machine building, armaments, textiles and apparel, petroleum, cement, chemical fertilizers, footwear, toys, food processing, automobiles, consumer electronics, telecommunications
Industrial production growth rate	30.4% (2004 est.)
Electricity production	1.42 trillion kWh (2001)
Electricity production by source	fossil fuel: 80.2% hydro: 18.5% other: 0.1% (2001) nuclear: 1.2%
Electricity consumption	1.312 trillion kWh (2001)
Electricity exports	10.3 billion kWh (2001)
Electricity imports	1.8 billion kWh (2001)
Oil production	3.3 million bbl/day (2004 est.)
Oil consumption	4.57 million bbl/day (2001 est.)
Oil exports	151,200 bbl/day (2001)
Oil imports	1.207 million bbl/day (2001)
Oil proved reserves	26.75 billion bbl (2004)
Natural gas production	30.3 billion cu m (2001 est.)
Natural gas consumption	27.4 billion cu m (2001 est.)
Natural gas exports	0 cu m (2001 est.)
Natural gas imports	0 cu m (2001 est.)
Natural gas proved reserves	1.29 trillion cu m (2004)
Current account balance	$31.17 billion (2004 est.)
Exports	$436.1 billion f.o.b. (2004 est.)
Exports commodities	machinery and equipment, textiles and clothing, footwear, toys and sporting goods, mineral fuels
Exports partners	US 21.1%, Hong Kong 17.4%, Japan 13.6%, South Korea 4.6%, Germany 4% (2003)
Imports	$397.4 billion f.o.b. (2003 est.)
Imports commodities	machinery and equipment, mineral fuels, plastics, iron and steel, chemicals
Imports partners	Japan 18%, Taiwan 11.9%, South Korea 10.4%, US 8.2%, Germany 5.9% (2003)
Reserves of foreign exchange gold	$412.7 billion (2004 est.)
Debt external	$197.8 billion (2004 est.)
Economic aid recipient	NA
Currency	yuan (CNY) note:: also referred to as the renminbi (rmb)
Currency code	CNY
Exchange rates	yuan per US dollar - 8.277 (2003), 8.277 (2002), 8.2771 (2001), 8.2785 (2000), 8.2783 (1999)
Fiscal year	calendar year

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Economy Of ChinaChina Information - Country Guides

Economy Of China
China Information - Country Guides