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China's Economic Conditions
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Topic: Economic Conditions
Sort Desciption: Chinas Economic Conditions. S. UMMARY. Since the initiation of economic reforms. in 1979 China has become one of the worlds. fastest-growing economies. ...
Content Inside: Congressional Research Service The Library of Congress CRS Issue Brief for Congress Received through the CRS Web Order Code IB98014 Chinas Economic Conditions Updated January 12 2006 Wayne M. Morrison Foreign Affairs Defense and Trade Division C ONTENTS S UMMARY M OST R ECENT D EVELOPMENTS B ACKGROUND AND A NALYSIS An Overview of Chinas Economic Development Chinas Economy Prior to Reforms The Introduction of Economic Reforms Chinas Economic Growth Since Reforms: 1979-2005 Causes of Chinas Economic Growth Measuring the Size of Chinas Economy Foreign Direct Investment in China Chinas Trade Patterns Chinas Major Trading Partners Major Chinese Trade Commodities Major Long-Term Challenges Facing the Chinese Economy Outlook for Chinas Economy and Implications for the United States IB98014 01-12-06 Congressional Research Service The Library of Congress Chinas Economic Conditions S UMMARY Since the initiation of economic reforms in 1979 China has become one of the worlds fastest-growing economies. From 1979 to 2005 Chinas real GDP grew at an average annual rate of 9.6%. Many economists spec- ulate that China could become the worlds largest economy at some point in the near future provided that the government is able to continue and deepen economic reforms par- ticularly in regard to its inefficient state- owned enterprises (SOEs) and the state bank- ing system. In addition China faces several other difficult challenges such as pollution and growing income inequality that threaten social stability. Trade continues to play a major role in Chinas booming economy. In 2005 exports rose by 28.4% to $762 billion while imports grew by 17.6% to $660 billion producing a $102 billion trade surplus. China is now the worldsthird-largesttrading economyafter the United States and Germany. Chinas trade boom is largely the result of large inflows of foreign direct investment (FDI) into China which totaled $61 billion in 2004 and an estimated $58 billion in 2005. Over half ...
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