The Economy of China

Unofficial records demonstrated how vast and powerful the economy of China has been in the past two millennia. According to the Financial Times, China has the largest economy in the world during 18 of the past 20 centuries. As of 2006, its GDP is $10.21 trillion based on purchasing parity next to US. In terms of exchange-rate terms, it is fourth with a nominal GDP of $3.42 trillion by the end of 2007, following the US, Japan and Germany.

The average economic growth of China is at 10% between the periods of 1990 and 2004 which is the highest in the world. According to the UN World Food Program, China fed 20% of the world’s population in 2003. It is noted to mention it holds the top spot in producing farm products despite the fact that only 15% of its total area is appropriate for agriculture. 48% of China’s GDP is attributed to its industrial and construction sectors. China contributes roughly 8% of total manufacturing production in the world. Major industry players in China come from mining and processing, textiles, consumer products, automobiles, aluminum, steel, armaments, and telecommunications.

China’s general economic plan is highlighted in its Three Step Development Strategy which begun in 1987. Step 1 – to the double the 1980 GNP; Step 2 - to quadruple the 1980 GNP before the end of the 20th century, was achieved in 1995; and Step 3 – raise per-capita GNP to a level of medium-sized developed countries by 2050. There are also other economic policies to further China’s development such as the “five-year-plan” tactic which begun in 1953 and the regional development strategies aimed at preventing widening inequalities in comparatively poorer regions of China.