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China

 Flag of China

Last reviewed: 27 January 2009

Country information

ECONOMY

Economic indicators

GDP: US $3,250.8bn (est.) (2007)
GDP per capita: US $2,461 per capita (est.) (2007)
Annual Growth: 11.9% (2007)
Consumer prices: 7.1% 2007
Exchange rate: 13.7 Renminbi = £1

China has been one of the world's economic success stories since reforms began in 1978. In purchasing power parity terms, China is the world's second biggest economy. Official figures show that GDP has grown on average by 9% a year over the past 25 years with an estimate of 10.4% recorded for 2007.

The current growth model, and policy underlying it, remains heavily skewed towards exports and investment, with little emphasis on private consumption. China has started to adjust its economic policies to better promote sustainable growth.

The Government has highlighted its intention to:

  • undertake more bank reform (and encourage banks to provide finance to rural areas and smaller firms) 
  • develop the capital markets (to give firms more opportunity to raise finance) 
  • engage in deeper reform of the insurance sector (to expand the options available to savers), and 
  • provide a sounder regulatory structure (aimed at promoting financial integration).

A growing share of China's economic growth has been generated in the private sector as the government has opened up industries to domestic and foreign competition, though the role of the state in ownership and planning remains extensive. China's entry into the World Trade Organisation in December 2001 is further integrating China into the global economy.

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