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Economy of the People's Republic of China
| Rank | |
| Currency | Renminbi (RMB); Unit: Yuan (CNY) |
| Labour force | 813.5 million |
| Export goods | |
| Import goods | electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals |
1.The People's Republic of China is the world's second largest economy after the United States. It is the world's fastest-growing major economy, with average growth rates of 10% for the past 30 years. China is also the largest exporter and second largest importer of goods in the world. Its top six trade partners (US, Japan, Hong Kong, South Korea, Taiwan, Germany) form over 50% of China's total international trade.
2. In the 1949 revolution, China's economic system was officially made into a communist system. Since the wide-ranging reforms of the 1980s and afterwards, many scholars assert that China can be defined as one of the leading examples of state capitalism today. Since 1978 hundreds of millions have been lifted out of poverty: However, about 11% of people still lived on less than $1 a day (purchasing power parity-adjusted).
3.The two most important sectors of the economy have traditionally been agriculture and industry, which together employ more than 70 percent of the labor force and produce more than 60 percent of GDP. The two sectors have differed in many respects. Technology, labor productivity, and incomes have advanced much more rapidly in industry than in agriculture. The disparities between the two sectors have combined to form an economic-cultural-social gap between the rural and urban areas, which is a major division in Chinese society.
4. China is the world's largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton. Its mineral resources are probably among the richest in the world but are only partially developed. The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship, whilst retaining state domination of the economy.
5. Wayne M. Morrison of the Congressional Research Service wrote in 2009 that "Despite the relatively positive outlook for its economy, China faces a number of difficult challenges that, if not addressed, could undermine its future economic growth and stability. These include pervasive government corruption, an inefficient banking system, over-dependence on exports and fixed investment for growth, the lack of rule of law, severe pollution, and widening income disparities."
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