China's Economic Conditions
Abstract
Since the initiation of economic reforms in 1979, China has become one of the world's fastest-growing economies. From 1979 to 2007 China s real gross domestic product (GDP) grew at an average annual rate of 9.8%. Real GDP grew 11.4% in 2007 (the fastest annual growth since 1994). While China is expected to continue to enjoy rapid economic growth in the years ahead and could become the world s largest economy within a decade or so, it faces a number of challenges, including widespread corruption, an inefficient banking system, over-dependence on exports and fixed investment for growth, pollution, widening income disparities, and growing inflationary pressures. The Chinese government has indicated that it intends, over the coming years, to create a harmonious society that would promote more balanced economic growth and address a number of economic and social issues. Trade and foreign investment continues to play a major role in China s booming economy. From 2004 to 2007, the value of total Chinese merchandise trade nearly doubled. In 2007, China s exports (at $1,218 billion) exceeded U.S. exports (1,162 billion) for the first time. China s imports were $956 billion and its trade surplus was $262 billion (a historic high). Well over half of China s trade is conducted by foreign firms operating in China. The combination of large trade surpluses, foreign direct investment flows, and large-scale purchases of foreign currency have helped make China the world s largest holder of foreign exchange reserves at $1.5 trillion at the end 2007.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 11, 2008
- Accession Number
- ADA486039
Entities
People
- Wayne M. Morrison
Organizations
- Library of Congress