The Chinese economy is today considered one of the most efficient and overdeveloped in the world. In terms of GDP, China ranks second among all other countries, second only to the United States. Every year the country's treasury is replenished by trillions of dollars, even taking into account the current global financial crisis.
The formation of the economy
In the mid-19th century, Chinese authorities were forced to open their seaports to foreign merchants at a reduced duty of only 5%. The reason for this was an unequal treaty as a result of a loss in the Opium War. Until now, customs duties in the country are considered one of the lowest on the continent.
Significant economic growth in the PRC began to be observed only in the 1950s, when the communists, led by Mao Zedong, managed to unite a fragmented empire. Until that moment, the country had a catastrophically low level of GDP per capita. China at the beginning of the 20th century was characterized by a high degree of unemployment and poverty. The maximum annual earnings of a simple worker was not more than $ 300.
Since the 1980s, openness reforms have begun in the republic. At that time, China's GDP growth was determined by high rates of agriculture. For the first time in 30 years, this industry has been freed from endless restrictions by the government of the Zedong era. Handicraft industry and small commodity production were also encouraged. Gradually, the unemployment problem began to disappear.
With the onset of the new millennium, the PRC authorities headed for the West. Since 2001, China began to export its products in such huge quantities that it could not have been imagined before. Doors were also opened for large foreign investors.
Economic indicators
The volume of China's GDP over the years can be represented as stably developing, growing. These indicators have naturally increased over the past 35 years. Since 2010, in terms of GDP, the republic has been steadily holding second place in the world economic rating. In terms of the effectiveness of the financial system, the PRC surpassed its eternal rival Japan.
In addition, in the near future, experts are expected to raise China's GDP to unprecedented heights. This will get ahead of the United States in the ranking. Nevertheless, China is only 91st in terms of GDP per capita. The average annual salary varies between $ 6, 000. As for the general indicators of GDP, in 2013 they amounted to $ 9.5 trillion, and in 2014 - about $ 10.4 trillion.
Over the past 10 years, gross domestic product has increased by an average of 10% per year.
Structure of the economy
The Republic of China has long been a major global industrial superpower. In addition, it is a leader in industries such as nuclear and space engineering, mining of valuable ores, oil, uranium and gas.
Nevertheless, one of the main branches of replenishing China's GDP is foreign trade. In terms of export products, the country ranks first in the world ranking. The share of income from this sector is about 80% of China's GDP. Over 20 million workers are engaged in export activities. Today, China has close trade relations with 182 countries of the world. The most popular types of products are electronics, cars, textiles, toys, telecommunications equipment.
The industry of the republic is represented by hundreds of industries. Traditional are textiles, coal mining, ferrous metallurgy. Of the new rapidly developing, oil refining, pharmaceuticals, aviation and electronic production should be singled out. Also in the country the leading role is played by the food industry.
Over the past 20 years, China has begun to consume a huge amount of primary energy. The majority is coal, then oil, gas, hydro plants, and nuclear reactors. In terms of energy imports, China is second only to the United States.
Agriculture is declining every year due to acute water shortages.
Financial system
At present, China has exactly half of the world's foreign exchange reserves. The peak in the accumulation of the dollar equivalent was 2012. Today, the pace of reserves buildup has slowed slightly, as the authorities decided to focus on investments in other countries.
The banking system of the republic is mainly aimed at supporting the public sector. The volume of credit investments in private business does not exceed 5%. The situation is gradually changing for the better thanks to the phased process of privatization of some banks.
Since 2013, Chinese branches around the world began to appear as part of foreign financial institutions. Today, PRC banks have representative offices in fifty countries.
