Source: fpc.state.gov
Topic: China's Economic
Sort Desciption: Congressional Research Service ˜ The Library of Congress CRS Report for Congress Received through the CRS Web Order Code RL33534 Chinas Economic Conditions July 12, 2006 Wayne M.
Content Inside:
Congressional Research Service ˜ The Library of Congress
CRS Report for Congress
Received through the CRS Web
Order Code RL33534
Chinas Economic Conditions
July 12, 2006
Wayne M. Morrison
Specialist in International Trade and Finance
Foreign Affairs, Defense, and Trade Division
Chinas Economic Conditions
Summary
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 9.7%; it grew by 9.9% in 2005. During the first quarter of
2006, Chinas real GDP grew by 10.2%. Many economists speculate that China
could become the worlds largest exporter within the next few years and the largest
economy within a few decades, provided that the government is able to continue and
deepen economic reforms, particularly in regard to its inefficient state-owned
enterprises (SOEs), the state banking system, and fixed exchange rate 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 worlds third-largest trading
economy after the United States and Germany. Chinas trade boom is largely the
result of large inflows of foreign direct investment (FDI) into China, which totaled
$60 billion in 2005. Over half of Chinas trade is accounted for by foreign-invested
firms in China.
Chinas economy continues to be a concern to many U.S. policymakers. On the
one hand, Chinas economic growth presents huge opportunities for U.S. exporters.
On the other hand, the surge in Chinese exports to the United States has put
competitive pressures on various U.S. indus ...
indian present economical condition pdf, us present economic condition, economic conditions in india, economical conditions china food, present economic condition of china and india, latest economic conditions of india, economic condition of china as compare to india, report on indian economic condition in 2007, key economic conditions in china, india s economic condition, economic condition food in china, crs china economic, india and china s economic conditions