The Overview of China Economy

Maoist Era Start from 1949 All foreign currency were transported to Taiwan After the formation of PRC, tight control of budget

and money supply were apply. The anti capitalist campaign applied between

1951-1952 Govt nationalized the country’s banking system

and centralized currency and credit control. Boost govt revenue by collecting agriculture taxes.

Economy history of China

Land reform, eliminating landlord. Great Leap Forward After few years, agricultural and industrial

production returned to normal levels

1978-1990 China began to reforms to its economy. Introduce aspects of a capitalist economic system. Emphasized raising personal income,

consumption and new management system. In the 1980s, China tried to combine central

planning with market-oriented reforms Reforms began in the agricultural, industrial,

fiscal, financial, banking, price setting, and labor systems

In 1978,decision was made to permit foreign direct investment in several small "special economic zones" along the coast

In the early 1980s steps were taken to expand the number of areas that could accept foreign investment

This additional effort resulted in making 14 coastal cities and three coastal regions "open areas" for foreign investment

1990-2000 In the 1990s, the Chinese economy continued to

grow at a rapid pace which at 10.43% Inflation, which reached over 20 percent in 1994 China had huge reserves, a currency that was not

freely convertible, and capital inflows that consisted overwhelmingly of long-term investment

China faced slowing growth and rising unemployment based on internal problems

Financial system burdened by huge amounts of bad loans

Massive layoffs affected from aggressive efforts to reform state-owned enterprises (SOEs).

Despite China's impressive economic development during the past two decades, reforming the state sector and modernizing the banking system remained major barriers.

Announced plans to sell, merge, or close the vast majority of SOEs in his call for increased "non-public ownership"

In 2000, China claimed success in its three-year effort to make the majority of large SOEs profitable

2000-2010 In October 2003, Chinese legislators unveiled

several proposed amendments to the state constitution.

One of the most significant was a proposal to provide protection for private property rights

In October 2005, government aimed at building a "socialist harmonious society“

China's economy grew at an average rate of 10% per year during the period 1990–2004

China's GDP grew 10.0% in 2003, 10.1%, in 2004, and even faster 10.4% in 2005

China's total trade in 2010 surpassed $2.97 trillion

In 2007 China recorded its fastest growth since 1994 when the GDP grew by 13.1 percent

China launched its Economic Stimulus Plan to specifically deal with the Global financial crisis of 2008–2009

Goverment also focused on increasing affordable housing, easing credit restrictions for mortgage and SMEs, lower taxes

Increase public investment into infrastructure development, such as the rail network, roads and ports

By the end of 2009 it appeared that the Chinese economy was showing signs of recovery

2010-present Government was poised to move from export

dependency to development of an internal market. Wages were rapidly rising in all areas of the

country The standards of living increase In 2010, China's GDP was valued at $5.87 trillion,

surpassed Japan's $5.47 trillion China is the largest creditor nation in the world

and owns approximately 20.8% of all foreign-owned US Treasury securities

From 2011 onward, however, China has been experiencing a slowing of its growth that throws all of the above calculations into doubt

Due to the corruption and political uncertainties of the one-party state and the limited economic freedom in an economy dominated by large state owned enterprises, many skilled professionals are either leaving the country or preparing safety nets for themselves abroad

Currency => Yuan or Renminbi GDP growth => 7.8%(2012) Inflation => 2.5% (2012) Labour force => 795.5 million (2010) Unemployment => 4.1% (2012) Exports => $2.021 trillion (2012) Imports => $1.78 trillion (2012) Revenues => $1.838 trillion (2012) Expenses => $2.031 trillion (2012) Foreign reserves => $ 3.44 trillion (Q1,

2013)