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China has been transformed into a global economic power over the past 40 years, thanks to protracted reforms.
China's economic growth, which averaged nine percent in recent decades, is unique in history. Since the late 1970s, China's GDP has doubled and this country's 1.4 billion people has become the world's second largest economy – immediately after the United States.
Chinese leader Deng Ksiaoping initiated reforms in 1978, "the second revolution"
Gradually in the decentralization, reducing the impact of central planning and the increase of the market influence, large agricultural collectives were abolished, companies were able to set their own business objectives, and maintaining profits could have been used to increase the wages and incentives of other workers, which would have resulted in strong growth in productivity.
These reforms included efforts to strengthen foreign trade. During the 1980s, 12 foreign trade companies were established and special trading zones were established in southern China, where private companies were allowed to work.
In the late 1980s, the capital market was reopened. The new wind in the back of the Chinese economy dates back to the 1990s, when mass privatization and the opening of foreign investment began. Many companies have opened their doors in the 90s factory in China because of the cheap labor (then still). The private sector has boomed beyond the public sector by contributing to the Chinese economy in 2005.
Economic development has followed the improvement of standards, so that hundreds of millions of people have emerged from poverty since the early 1980s. In absolute poverty four decades ago, China accounted for the majority of the population, over 80%. Today, only two per cent of the population lives in absolute poverty and is expected to be completely eradicated by 2020.
Unemployment in the United States China last year was about 4%. The labor force is about 800 million people.
GDP growth last year was 6.8% and GDP per capita purchasing power parities reached $ 17,000. The largest share of GDP of 52.2% has a service sector, followed by 39.5% with industry and 8.3% with agriculture.
Below the poverty line set at about $ 400, he lives today 3.3
The public debt is about 47% of GDP, while the budget deficit was 4, 3% of GDP last year.
China is the world's largest exporter, with the largest US buyers (19%), Hong Kong (12.4%), Japan (6%) and South Korea (4.5%)
( index.hr)
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