Introduction
As the largest manufacturing economy in the world as well as
the largest exporter of goods in the world, China is an enormous
nation that has been experiencing unprecedented growth over the
past few decades. In the fifty years since the founding of the
Peoples Republic of China, especially in the two decades since
the initiation of reform and opening to the outside world, China's
socialist construction has scored great achievements that have
attracted world attention. The national economy showed a rapid and
sustained growth, the overall strength of the country expanded
noticeably, the standard of living of the people improved with the
passage of time and unprecedented results have been achieved in
such undertakings as science and technology, education, culture,
health and physical culture.
Contemporary China now participates in the global private
sector. Her companies play a major role in the global economy, and
companies in the developed world take Chinese manufacturing trends
quite serious. China's view of her economy is "Socialism with
Chinese Characteristics," which is defined variantaely by
scholars. Over 1/3 of the economy is state owned and controlled,
and there is significant new foreign investment in the country.
Key government industries are utilities, heavy industry and energy
resources. China is the world's largest producer of rice, and is
among the top producers of cotton, corn, tobacco, soybeans, and
peanuts. Industrially, it is also a world producer in cotton
products, coal, crude oil, and its mineral resources are among the
richest in the world, albeit only partially developed. All this
developed has resulted in China's populace seeing a gradual
improvement in their living standard, even in the rural areas, but
it is the cities in which the most vital and burgeoning growth
occurs. Like any developing country, though, China has growing
pains. It remains more concerned with State economic development
that per capita improvement. China's growth may not, in fact,
remain sustainable unless there is a dramatic change in the
infrastructure and a redevelopment of natural resources that
matches the needs of the global environment (e.g. human rights,
pollution control, trade imbalances, etc.). Even with the "new
face," china still has severe corruption issues in the government,
huge environmental issues, and a rapidly aging population with
limited capital resources to sustain an older, non-working,
population.
One very telling example is the way China has merged the
political with global economic independence, and its ability to
negotiate environmental issues. For the past fifty years, the
country has spent considerable resource modernizing, coalescing
power, investing in other countries, and changing the way it
utilizes its greatest resource - its population. Indeed, much of
China's current strategic and tactical foreign policy surrounds
its rapid growth over the last several decades and the way it has
extended itself in so many directions. China is still dependent
upon Middle Eastern oil - importing up to 8 million barrels a day.
The vulnerability also extends past oil dependence into fears of
an energy insecurity peak.
Chapter 1
Classical Growth
It shows that the Gross Domestic Product (GDP) of China is
increasing. It provides data for China from 2006 to 2016. Chinas
estimated nominal Gross Domestic Product (GDP) in June 2012 was
around US$8560.55 while on the basis of purchasing power parity
(PPP) it was around US$12.46 trillion. Its nominal per capital GDP
was US$ 5,184 while on PPP basis it was US$ 8,394. Its GDP growth
in 2011 was 9607.22 or 9.5 percent and grow more until year 2016.
Figure 1. Chinas constant prices
GDP at purchaser's prices is the sum of gross value added
by all resident producers in the economy plus any product taxes
and minus any subsidies not included in the value of the
products. It is calculated without making deductions for
depreciation of fabricated assets or for depletion and
degradation of natural resources.
Figure 2. Chinas GDP. Constant Dollars
In figure 2, it shows that the Gross Domestic Product
(GDP) of China is still increasing. The World Bank provides data
for China from 1960 to 2015. The average value for China during
that period was 1467.42 U.S. dollars with a minimum of 131.96 U.S.
dollars in 1962 and a maximum of 6497.48 U.S. dollars in 2015. See
the global rankings for that indicator or use the country
comparator to compare trends over time.
