With an increasing annual growth that is consistently outpacing the united states.
china is on its way to becoming the world's largest economy
this country now moved up to second place after being placed at sixth position in 2000.
here's a breakdown of the country's economic evolution
the history of china's economy has been very stagnant and poor
this was due to slow and poor economic reforms and trade liberalization
china in the past has maintained poor policies
which were centrally controlled vastly inefficient and isolated from the global economy
these factors contributed to china's low GDP growth rate
it has a GDP per capita level similar to Zambia
lower than two-thirds of the African average GDP rate since 1978
when china began to broaden and reform its economy
the annual GDP growth rate has accelerated to almost 10 %
with an estimated growth of 6.3 percent.
this country has managed to lift more people out of poverty than any other country
recently the china u.s trade war resulted in the u.s attempt to slow china's growth rate but
china's good economic strategies resulted in ranking them at second place
the Chinese century in today's world many people call this century the Chinese century
more than 800 million people living in the country have been lifted out of poverty
there have also been significant changes in other sectors of the country
including access to education health and other services
these factors have contributed to elevating the population's human development index
or hdi positioning it at 85 out of 189 countries and territories
china's economy is a developing market-oriented mixed economy by nature
it is dominated by state-owned enterprises and mixed ownership enterprises
the Chinese economic sector is open to foreign businesses in their system
described as a socialist market economy
this country is a member of big trade organizations
such as the world trade organization or wto g20 shanghai corporation organization or
seo an Asian pacific economic corporation or apec
china became one of the world's manufacturing hubs
which specialize in labour-intensive and export-led production of goods
these goods are cheap goods and slowly and gradually increase product complexity
in a nutshell china's well-planned growth strategy helped them to move
forward and sell cheap products to the world
According to the world bank china has 17.39 of the global economy
making it second next to the united states this data shows that china
has penetrated the world's market very efficiently
Chinese consumers are spending more on lifestyle
services while also moving from mass to premium segments
the nationals mostly prefer a balanced and happy life primary drivers of the Chinese economy
china has the second largest economy globally with a gross domestic product of 414.3 trillion
behind the u.s GDP of $21.4 trillion by 2019.
if we represent the economy in purchasing power parity or ppp
china is edging out America as one of the largest
economies with a ppp of more than 23.5 trillion dollars
the industrial growth of china just like other developing industries
china's first step was to build up its heavy industry
china is considered one of the leaders in manufacturing and produces
almost half of the world's steel around 45 of the global steel production is accounted for by china
contributing 15 to the global steel share
china's mining industry extracts coal iron ore oil gold and salts
this country is moving towards renewable energy resources
and plans to increase its natural gas use in the coming years t
manufacturing revenue is one of the primary sources
besides its large textile manufacturing sector
the economy also supplies machinery food processing
transportation devices cement and electronics
this sector accounts for almost 48 percent of china's GDP
the Chinese software and it industry grew by over 14.2 from 2018 to 2019
generating massive revenues of approximately 940 billion dollars the agriculture sector
china is the world's largest producer and consumer of agricultural products
with 300 million Chinese farm workers working on plots of land roughly
American farms food crops are grown on almost all arable land
china produces abundant rice in the world and
wheat, corn, tobacco, soybeans, potatoes, sorghum, peanuts, tea,
millet, barley, oil, seed, pork and fish
the automotive industry
china is one of the largest and finest automobile producers manufacturing millions of vehicles
the annual production of china's vehicle
production is more than 30 million units per year and
accounted for almost 30 % of the worldwide vehicle production
This percentage exceeds that of the European union or the united states and japan combined
four automotive manufacturers including saic motor, dongfeng faw and chang
dominate the industry and penetrate international markets
china is now also looking to selling and making electric cars worldwide
china's service industry is characterized by state operated shops rationing and regulated prices
china offers very cheap labor services to other
countries encouraging other countries to invest in manufacturing companies
such as apple have set their assembling plants in china
because of their cheap labor rates the wholesale and retail trade has expanded very quickly
with numerous shopping malls retail shops
restaurant chains and other hotels public administration
remains the primary service component while tourism also plays an essential
and significant role in employment and is a significant source of foreign exchange
almost 2.6% of gdp comes from this sector recent scenario in 202.
china's economy is expected to slow following a strong rebound
In the first half of 2021 china's economy slowed dramatically in the second half of the year
real GDP growth is expected to reach 8 % this year before slowing to 5.1 % in 2022
the slowdown is due to a combination of less favorable base effects
diminishing export support and the government's ongoing deleveraging efforts
even though growth is expected to slow next year
we believe momentum will pick up aided by a more accommodating fiscal policy
china's economic outlook has become more vulnerable the domestic covet 19 outbreaks
including the new omicron variant could result in more enormous economic disruptions
another risk is a severe and prolonged downturn in the highly leveraged property sector but
western analysts are optimistic that xi jinping
is up to managing the crisis so that's how china's economy works
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