China is the world's largest producer and consumer of agricultural products – and some 300 million
Chinese farm workers are in the industry, mostly laboring on pieces of land about the size of U.S farms.
Virtually all arable land is used for food crops. China is the world's largest producer of rice and is among
the principal sources of wheat, corn (maize), tobacco, soybeans, potatoes, sorghum, peanuts, tea, millet,
barley, oilseed, pork, and fish. Major non-food crops, including cotton, other fibers, and oilseeds, furnish
China with a small proportion of its foreign trade revenue. Agricultural exports, such as vegetables and
fruits, fish and shellfish, grain and meat products, are exported to Hong Kong. Yields are high because of
intensive cultivation, for example, China's cropland area is only 75% of the U.S. total, but China still
produces about 30% more crops and livestock than the United States. China hopes to further increase
agricultural production through improved plant stocks, fertilizers, and technology.
The Primary Sector: Agriculture
With an estimated population of 1.355 billion people in mid-2014, China is the globe’s most populous
country. Its agricultural output needs to feed nearly 20% of the world’s population.
Most of the agricultural produce is indeed intended for the domestic market. Agriculture employs about a
third of the country’s workforce, but it’s only responsible for 10% of the GDP. This uneven ratio points at a
fairly low productivity. Most products are simply bought by local consumers, and the majority of
agricultural exports from mainland China go to Hong Kong.
Agriculture in China yields food crops like rice, wheat, corn, millet, sorghum, soybeans, and tea, as well
as such cash crops as cotton and tobacco. Animal husbandry, fishing, and aqua farming are also
important parts of China’s economy.
The Primary Sector: Mining
China is rich in natural resources, particularly in coal and oil. The reserves of natural gas, however,
remain largely unexplored.
Though mining employs less than 1% of the national workforce, it is indispensable for China’s economy.
The country has the largest consumption of electricity worldwide (another superlative), and it relies to a
large extent on fossil fuels. Oil and coal account for about 70% of China’s energy production. Lots of
small pits mine coal for local consumption, while additional oil has to be imported in huge quantities to
meet the equally huge demand.
Moreover, natural resources include various ores, precious metals, and rare metals. Iron ore is essential
for China’s heavy industry, and many rare metals are either used or exported as raw materials for the
high-tech sector.
The Secondary Sector: Manufacturing
The most productive manufacturer around the globe, China’s economy is often nicknamed "the workshop
of the world". About 30% of the working population is employed in manufacturing in some capacity,
creating 44% of the GDP.
Heavy industry – particularly steel-production and metalworking – makes up a large part of the secondary
sector. However, the focus of China’s economy has traditionally been on quantity of output rather than on
its quality. This, combined with government subsidies for many companies, has resulted in overcapacities
and indebted enterprises – issues that the industry has to address sooner or later.
While the heavy industry produces mainly for the Chinese market, as does the growing automotive sector,
the light industry has always been more export-oriented. Cheap textiles and apparel, consumer goods
(e.g. plastic toys), and consumer electronics "made in China" add to the country’s export volume.
Other key industries of China’s economy include chemicals (especially plastics, fertilizers, and synthetic
fibers) and telecommunications equipment.
The Tertiary Sector: The Service Industry
By now, the service sector employs the biggest part of China’s workforce (36%) and accounts for the
largest slice of the GDP (46%). Jobs in China’s public administration are probably of little interest to
expatriates, though they offer plenty of career opportunities to citizens of the PRC.
However, expats might want to look for job opportunities into industries like tourism and travel, or
telecommunications, Internet, and e-commerce. Just like with the wholesale trade and retail in brick-and-
mortar stores, online shopping benefits from the rising living standards of China’s expanding middle-class.
Tourism and travel gets a fair share of their newly acquired discretionary income as well.
Expats might also be interested in shipping and logistics, which are still gaining in importance as China’s
infrastructure develops further and foreign trade keeps growing. China joined the World Trade
Organization in 2001: its foreign trade has increased at least tenfold ever since. Recently, the PRC
entered into negotiations about two more free trade agreements, with Australia and South Korea.
South Korea and Australia are actually among the key trading partners for China’s economy, though
neither is the #1. This rank belongs to the United States, which receives about 17% of Chinese exports.
Other significant trading partners include Japan, Taiwan, and the EU, especially Germany.
