The economic structure of China

A car manufacturing plant in China

Since the late 1970s, China has moved from a centralized, centrally planned system to a more market-oriented economy, which is one of the largest in the world. In 2010, China became the largest exporter in the world.

The reforms started with collectivized agriculture and spread through progressive price liberalization, financial decentralization, increased autonomy of state enterprises, creation of a banking system diversification, the development of stock markets, the rapid growth of the private sector and increased openness to foreign trade. and investment.

China has introduced reforms gradually. In recent years, China has resumed its support to state-owned enterprises in sectors that it considers important for economic security, with the clear goal of pioneering global competition.

Economic restructuring and improved efficiency have contributed to a more than tenfold increase in China's GDP. Measured on the basis of purchasing power parity (PPP), this indicator became in 2010 the second largest in the world after the United States, surpbading Japan in 2001.

The dollar value of the volume of agricultural and industrial production in China already exceeds that of the United States; China ranks second behind the United States for the total value of the services sector that it produces. However, per capita income remains below the world average.

The Chinese government faces many economic difficulties, including:

• Reduce the high domestic savings rate and, as a result, weak domestic demand.

• Support appropriate job growth for tens of millions of migrants and the creation of new jobs.

• Reduce corruption and other economic crimes; and

• The damage to the environment and the increase in social inequalities are linked to the rapid transformation of the economy. Economic development was progressing much faster in the coastal areas than in the interior of the country and about 200 million rural workers and their children had settled in the cities to find work.

The consequence of the one-child policy is that China is now one of the fastest growing countries in the world. Environmental degradation, in particular air pollution, soil erosion and the continuing decline in the groundwater horizon, particularly in the north, is another long-term problem.

China continues to lose arable land due to erosion and economic development. The Chinese government is seeking to add the ability to generate energy from sources other than coal and oil, focusing on the development of nuclear and alternative energy.

In 2009, the global economic crisis brought down China's export demand for the first time in many years, but China quickly regained growth of about 10% a year, surpbading all other major industrialized countries. China's economy appears to be growing at a steady pace in 2011-2016, mainly because of the incentive policies implemented by the regime during the global financial crisis.

The government's promises in the twelfth Five-Year Plan, adopted in March 2011, aim to continue the transformation of the economy and underscore the need to increase domestic consumption in order to make the economy less export-dependent in the future. However, China will likely make only isolated progress in achieving these goals.

China at the beginning of the 21st century is a space and a nuclear energy. The construction of a market economy is carried out in China under the leadership of the Communist Party on the basis of five-year plans.

The economy maintains its multi-structure. With a high proportion of foreign investment, nearly 80% of all foreign investors in the PRC economy are ethnic Chinese (huaqiao) living abroad. By 2020, China is expected, according to the plans of the CCP, to catch up with the United States in terms of total GDP income.

To promote structural change, China is developing its own education system by teaching students abroad (particularly in the United States and Japan), by encouraging the importation of technologies for the development of advanced science and technology sectors. the economy such as software, new materials, telecommunications, biotechnology and the environment. Health care.

In China, there are more than 384 million Internet users, and the country is also the world's leader in the number of mobile phone users (487.3 million of users in April 2007). The Chinese Silicon Valley was established in Haidian District, north of Beijing.

The intensification of production also has side effects: the hidden unemployment rate in rural areas is about twice as high as official figures (4.6%). China tacitly encourages emigration.

China is the largest steel producer in the world and the steel industry has rapidly increased its production in recent years. Iron ore production kept pace with steel production in the early 1990s, but lagged behind due to the start of iron ore and other metal imports in the early 2000s.

Steel production rose from about 140 million tonnes in 2000 to 419 million tonnes in 2006. Most steel produced in small businesses. China is the largest steel exporter in the world. The volume of steel exports in 2008 amounted to 59.23 million tons (a decrease of 5.5% compared to 2007).

In 2006, China became the world's third largest automaker (after the United States and Japan) and the second largest consumer (after the United States alone). The production of cars literally took off during the reform.

In 1975, only 13,900 cars were produced, but in 1985 they reached 44,337 units. They then almost jumped to 1.1 million in 1992, then increased each year until 2001, when they reached 2.3 million.

In 2002, automobile production in China reached almost 3.25 million euros in 2003 – 4.74 million in 2004 – 5.71 million in 2005 – 5.71 million in 2006 – to 8.88 million in 2008 , to 8.88 million in 2008. 2009 – up to 9.35 million euros and in 2009 – 13.83 million units. China became the world's largest automaker in 2009. Domestic sales kept pace with production.

After representative annual growth in the mid-to-late 1990s, sales of pbadenger cars rose sharply in the early 2000s. In 2006, 7.22 million vehicles were sold in China, of which 5.18 million pbadenger cars and 2.04 million trucks. Since 2010, China has become the largest vehicle manufacturer in the world and the largest customer.