China's Economic Conditions
Abstract
Since the initiation of economic reforms 30 years ago, China has become one of the world's fastest-growing economies. From 1979 to 2008, China's real GDP grew at an average annual rate of nearly 10%, and it grew 13% in 2007. However, the current global economic crisis has hit China hard -- real GDP growth slowed to 9% in 2008, and many analysts predict a greater slowdown in 2009. Millions of workers have reportedly already lost their jobs. This is of great concern to the Chinese government, which views healthy economic growth as critical to maintaining social stability. China also faces a number of other challenges to its economic growth and stability, including pervasive government corruption, an inefficient banking system, overdependence on exports and fixed investment for growth, the lack of rule of law, severe pollution, and widening income disparities. The Chinese government has indicated that it intends to create a "harmonious society" over the coming years that would promote more balanced economic growth and address a number of economic and social issues. The severity of the current global economic crisis has induced the Chinese government to seek means to quickly promote greater domestic demand. In November, the government announced plans to implement a $586 billion economic stimulus package, largely aimed at infrastructure projects. Trade and foreign investment play a major role in China's booming economy. It is estimated that in 2008 China was the world's second largest merchandise exporter and the third largest importer. That year foreign direct investment (FDI) in China totaled $92 billion, making it the third largest global destination for FDI. China's economy and its economic policies are of major concern to many U.S. policy makers. U.S. consumers, exporters, and investors have greatly benefited from China's rapid economic and trade growth. But the surge in U.S. imports of Chinese products has put competitive pressures on various U.S. industries.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 05, 2009
- Accession Number
- ADA496304
Entities
People
- Wayne M. Morrison
Organizations
- Library of Congress