China

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

China - In Short.

Overview of China

China’s historical civilization dates to at least 13th century B.C., first under the Shang (to 1046 B.C.) and then the Zhou (1046-221 B.C) dynasties. The imperial era of China began in 221 B.C. under the Qin Dynasty and lasted until the fall of the Qing Dynasty in 1912. During this period, China alternated between periods of unity and disunity under a succession of imperial dynasties. In the 19th century, the Qing Dynasty suffered heavily from overextension by territorial conquest, insolvency, civil war, imperialism, military defeats, and foreign expropriation of ports and infrastructure. It collapsed following the Revolution of 1911, and China became a republic under SUN Yat-sen of the Kuomintang (KMT or Nationalist) Party. However, the republic was beset by division, warlordism, and continued foreign intervention. In the late 1920s, a civil war erupted between the ruling KMT-controlled government led by CHIANG Kai-shek, and the Chinese Communist Party (CCP). Japan occupied much of northeastern China in the early 1930s, and then launched a full-scale invasion of the country in 1937. The resulting eight years of warfare devastated the country and cost up to 20 million Chinese lives by the time of Japan’s defeat in 1945. The Nationalist-Communist civil war continued with renewed intensity following the end of World War II and culminated with a CCP victory in 1949, under the leadership of MAO Zedong.MAO and the CCP established an autocratic socialist system that, while ensuring China’s sovereignty, imposed strict controls over everyday life and launched agricultural, economic, political, and social policies – such as the Great Leap Forward (1958-1962) and the Cultural Revolution (1966-1976) – that cost the lives of millions of people. MAO died in 1976. Beginning in 1978, subsequent leaders DENG Xiaoping, JIANG Zemin, and HU Jintao focused on market-oriented economic development and opening up the country to foreign trade, while maintaining the rule of the CCP. Since the change, China has been among the world’s fastest growing economies, with real gross domestic product averaging over 9% growth annually through 2018, lifting an estimated 800 million people out of poverty, and dramatically improving overall living standards. By 2011, China’s economy was the second largest in the world. The growth, however, has created considerable social displacement, adversely affected the country’s environment, and reduced the country’s natural resources. Current leader XI Jinping has continued these policies, but also has maintained tight political controls. Over the past decade, China has also increased its global outreach, including military deployments, participation in international organizations, and initiating a global infrastructure investment project in 2013 called the “Belt and Road Initiative” (BRI). While many nations have signed on to BRI agreements, others have balked seeing the terms as a form of neo-imperialism or debt-trap diplomacy.
Value
Country Full Name
China
Country Code
CHN
Region
East Asia & Pacific
Income Group
Upper middle income
Currency Unit
GDP
1.47E+13
Population
1410929362
Land Area
9424702.9
Net National Income Per Capita
7556.254955
GDP per Capita (PPP)
17210.76489

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

China - Economic

Economy of China

Since the late 1970s, China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2017 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world’s largest exporter in 2010, and the largest trading nation in 2013. Still, China’s per capita income is below the world average.In July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi (RMB) appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would resume a gradual appreciation. From 2013 until early 2015, the renminbi held steady against the dollar, but it depreciated 13% from mid-2015 until end-2016 amid strong capital outflows; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” – which was relaxed in 2016 to permit all families to have two children – is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment – notably air pollution, soil erosion, and the steady fall of the water table, especially in the North – is another long-term problem. China continues to lose arable land because of erosion and urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.The government’s 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to “economic security,” explicitly looking to foster globally competitive industries. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.

Unemployment Rate

Inflation Rate

China - GDP Composition

GDP Composiiton & Value Added of China

Last Updated: Jan, 2021, Updated For 2020.

China - GDP, Value Added

Demographics of China

overwhelming majority of the population is found in the eastern half of the country; the west, with its vast mountainous and desert areas, remains sparsely populated; though ranked first in the world in total population, overall density is less than that of many other countries in Asia and Europe; high population density is found along the Yangtze and Yellow River valleys, the Xi Jiang River delta, the Sichuan Basin (around Chengdu), in and around Beijing, and the industrial area around Shenyang
Geographic Location

Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam

Races

Han Chinese 91.6%, Zhuang 1.3%, other (includes Hui, Manchu, Uighur, Miao, Yi, Tujia, Tibetan, Mongol, Dong, Buyei, Yao, Bai, Korean, Hani, Li, Kazakh, Dai, and other nationalities) 7.1% (2010 est.)note: the Chinese Government officially recognizes 56 ethnic groups

Languages

Standard Chinese or Mandarin (official; Putonghua, based on the Beijing dialect), Yue (Cantonese), Wu (Shanghainese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects, minority languages (see Ethnic groups entry); note - Zhuang is official in Guangxi Zhuang, Yue is official in Guangdong, Mongolian is official in Nei Mongol, Uighur is official in Xinjiang Uygur, Kyrgyz is official in Xinjiang Uygur, and Tibetan is official in Xizang (Tibet)major-language

Religion

folk religion 21.9%, Buddhist 18.3%, Christian 5.2%, Muslim 2%, Hindu < 0.1%, Jewish < 0.1%, other 0.7% (includes Daoist (Taoist)), unaffiliated 51.8% (2020 est.)note: officially atheist

Dependency & Expectancy of China

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

Politics & Policies of China

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB, AfDB (nonregional member), APEC, Arctic Council (observer), ARF, ASEAN (dialogue partner), BIS, BRICS, CDB, CICA, EAS, FAO, FATF, G-20, G-24 (observer), G-5, G-77, IADB, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, LAIA (observer), MIGA, MINURSO, MINUSMA, MONUSCO, NAM (observer), NSG, OAS (observer), OPCW, Pacific Alliance (observer), PCA, PIF (partner), SAARC (observer), SCO, SICA (observer), UN, UNAMID, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, UNIFIL, UNMIL, UNMISS, UNOCI, UN Security Council (permanent), UNTSO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO, ZC

Import of China

Export of China

Import Destination

Export Destination