Some Facts About China’s Economy
July 3rd, 2010 Posted in Global Economy
China Economy Facts
China is one of the most fascinating countries on Earth. It has existed in one form or another for 5,000 years, has influenced the world immensely and even today it is a dominate country on Earth. While in the 20thcentury China was a developing nation, these days it is not only developed, but it may be the superpower of the 21st century.
At this moment, China’s economy is the third largest in the world, just behind the United States and Japan. With a GDP of $4.91 trillion, it is fast becoming the biggest economy on the planet and it has the second highest net-worth behind the United States with $8.77 trillion. In addition, China has the fastest growing major economy on the planet, with a 10 percent growth rate over the past 30 years on average per year. China may be a huge economy, but its per capita income is only $3,677, which puts it 97th in the world. That will change as time goes on though because China is the second-largest trading nation in the world, and the largest exporter, while also being the second largest importer.
The growth of China’s economy has also helped its citizens come out of poverty. The level of poverty in China fell from 53 percent in 1981, to 2.5 percent in 2005. That being said, 10 percent of the population, or over 100 million people, still live in extreme poverty. The infant mortality rate has also fallen as China has grown in economic power, falling roughly 39 percent between 1990 and 2005. Maternal mortality also fell by 41 percent in that same period, while the access to telephones increased by 94-fold to 57.1 percent of the population having telephones.
China has a lot of trade going through its borders, and its currency is highly traded on the world’s markets. Currently, the foreign exchange reserves have risen dramatically. In 1999, foreign exchange reserves in China stood at $155 billion, and by 2000 that had gone up $10 billion. In 2005 it had risen to $800 billion. By the end of 2006, that had gone up to $1 trillion, and by 2008 it was nearly $2 trillion. In 2008 as well, China replaced Japan as the largest foreign holder of U.S. treasury securities with $585 billion. This was the first time that had ever happened.
The two biggest sectors of the Chinese economy are agriculture and industry, both of which employ roughly a total of 70 percent of the labour force and account for roughly 60 percent of the GDP production in the country.
For many, the sudden emergence of China took them by surprise. The country has risen fast and very strongly in the past few years, becoming a country that is going to be very powerful in the 21st century. As time goes on, more and more people will be looking at China, rather than the United States, as the main driver of the entire world’s economy.
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