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China´s Economy


Since the founding of the People’s Republic of China in 1949, the Chinese economy noted a rapid development. Especially since the implemention of reform and opening-up policy in 1979, China’s economy is exceeding the growth rate of 9 percent and began to grow and develop. In 2003, China’s domestic gross national product reached from U.S. $400 billion to $1 trillion and after America, Japan, Britain, France and Germany China took 6th place in the world. Until the end of 2003, China’s per capita GDP has exceeded U.S. $1000.

The domestic investment and consumption situation in China takes a positive way. In 2003, China’s fixed property investment in the whole society was 5 trillion 50 billion yuan; the retail volume of consumer goods of the whole society in general was 4 trillion 600 billion yuan. Its foreign trade volume, surpassing Britain and France, is after the U.S., Japan and Germany in the 4th place in the world and reached 850 billion U.S. dollars. Until the end of 2003, China’s foreign stock settled for the second place in the world after Japan and has exceeded 400 billion U.S. dollars.

With the reform and opening-up policy implemention modernization of the construction of the last 20 years, China’s transition from planned economy to socialist market economy as it is actually completed. This socialist market economy is growing stronger and will be even more and more excellent. In addition, the opening up of the market is also growing, the investment environment is improving and the stable financial system reform is driven in a direction. These are leaps guaranteeing the continuous development of China’s economy.

The 21st century, together with China, man and nature, man and society, towns and villages, east and west of the country, the economy and society, coordinated their development with comprehensive thoughts and suggestions. In 2002, the 16th National Congress of the Communist Party of China was held and revealed the target that there will be a structuring comprehensive struggle of middle-class welfare society in 2020.

Socialist Market Economy System:

The first 30 years of the planned economy after the foundation of the People’s Republic of China in 1949, the Chinese government implemented various economic development goals in the areas of the state which was determined by private institutions. This system was a stable development of China’s economy as planned and provided for, but the vigor and pace of development has seriously impeded.

At the end of the 1970s, China’s planned economy system reforms were initiated. In 1978, the family contract responsibility system in rural areas was performed. The economic system reform in 1984 moved from rural areas to cities. In 1992, the direction reform of China’s establishment of a socialist market economy system has been detected.

In October of 2003, the focus was set on the perfection of the socialist market economy system objectives and tasks in China. So the development of urban and rural areas, development of society, development between man and nature co-ordinated development, domestic development and foreign issues, the distribution of resources were discussed and agreed. Dynamism and competitiveness of enterprises, increasing the completion of the development of the macro economy, the government's social management and public service functions of improving and structuring of middle-class welfare society was aimed to be under strong assurance system.

In this process, China has put the main tasks as follows: At first the various forms of property, including public ownership economy in providing development cooperation to improve the system; make changes between urban and rural dual economic structure of the region and gradually establishing a useful system; to form a system of providing coordinated development of the economy of regions; the establishment of a modern, unified, open and competitive market system; the improvement of the macro adjustment, executive management and the improvement of the economic law system; the improvement of employment, the distribution of wages and social insurance systems; the establishment of a providing sustainable development of economy and society.

As the plan is foreseen, there will be established a socialist economic system in China in 2010 and to a large extent by 2020 there will be held relatively mature socialist market economy system.

Development Strategy:

In October of 1987, the 13thGeneral Congress of the Chinese Communist Party of China’s modernization construction of “three steps” will be carried out as clearly suggested. Concrete goals were:

The first step, between 1981 and 1990, to tackle the problem of China’s gross domestic product, as well as a fold increase people’s clothing and nutrition. The second step, from 1991 until the end of the 20th century, two-fold increase in the gross national product, as well as the middle of the living standards of the people to reach the level of welfare. The third step, until the middle of the 21stcentury, China’s per capita gross domestic product of developed countries reached the level of the middle class as well as a relatively wealthy level of living of the people and the realization of modernization.

In September of 1997, the 15th National Congress of the Communist Party of China embodied the three steps of realization of the planned goals. So, up to the first 10 years of the 21st century, China’s gross domestic product will increase by a fold compared to 2000, the people’s life will be richer and there will be formed a relatively perfect socialist market economic system. In the second effort of the 10 years, the socialist national economy will be further developed and various systems will also be improved further. By 2050, China will be carried out on the basis of modernization breakthrough, rich, strong, democratic and will be a modern socialist country.

Import and Export:

With the sustained and rapid development of Chinese economy, China's foreign trade has also constantly evolving. China's general trade import and export volume ranking had taken place 32 inthe worldin 1978, 15th in1989, 10th in1997. In 2001, China took the 6th place and for the first time surpassed 500 billion U.S. dollars to 509 billion 650 million U.S. dollars. This amount also was 7.24 times more in 1978, 4.6 times more in 1989 and 1.57 times more in 1997. In 2002, China's import and export volume of general Taking a new step has reached 620 billion 770 million U.S. dollars. In 2003, China's overall import and export volume increased by 37.1 percent compared to 2002 found 851 billion 200 million U.S. dollars. Export volume increased by 34.6 percent to 438 billion 400 million U.S. dollars; the volume of imports increased by 39.9 percent (appears in Table 7) was 412 billion 800 million U.S. dollars. China's import and export volume is ranking 4th in world trade.

Now, more than 220 countries and regions ins the world has established trade links with China. Japan, U.S., EU, Hong Kong Special Administrative Region, ASEAN, Korea, Taiwan Province, Australia, Russia and Canada are China’s largest 10 trading partners.