It has the world's second largest economy by nominal GDP, totaling around US$18.32 trillion in 2022, and the world's largest economy since 2016 when measured by purchasing power parity (PPP). [n 1]  China accounted for 18.6% of global economy in 2022 in PPP terms,   and around 18% in nominal terms in 2022.
The first table includes estimates for the year 2020 made...
- Five-Year Plans
The Five-Year Plans (simplified Chinese: 五年计划; traditional...
- Historical GDP of China
In 1985, the State Council of China (SCC) approved the...
- Fastest-Growing Consumer Market
Below is a list of the largest consumer markets of the...
- Economy of The European Union
The economy of the European Union is the joint economy of...
- Economy of The Soviet Union
The economy of the Soviet Union was based on state ownership...
Japan (Japanese: 日本, Nippon or Nihon, and formally 日本国,...
Gross domestic product (GDP) is a monetary measure of the...
The Chinese Economy: Transitions and Growth is a nonfiction 520+ page book written by Barry Naughton and is published by the MIT Press, originally in 2007. The book is accessible for the general reader and can be used as a college level course textbook for undergraduate and graduate studies.
- Barry Naughton
- Economic Policies, 1949–1969
- from 2000
- See Also
- Further Reading
When the Chinese Communist Party (CCP) came to power in 1949, its leaders' fundamental long-range goals were to transform China into a modern, powerful, socialist nation. In economic terms these objectives meant industrialization, improvement of living standards, narrowing of income differences, and production of modern military equipment. As the y...
China's economy saw continuous real GDP growth of at least 5% since 1991. During a Chinese New Year visit to southern China in early 1992, China's paramount leader at the time Deng Xiaoping made a series of political pronouncements designed to give new impetus to and reinvigorate the process of economic reform. The 14th National Communist Party Con...
After its entry into the World Trade Organization (WTO) in 2001, China began pursuing export-led growth and became a key link in global supply chains. Its industrious and cheap labor also proved attractive to foreign investments.China accumulated large trade surpluses and foreign currency reserves, which greatly increased government resources. By 2...
Determination of prices
Until the reform period of the late 1970s and 1980s, the prices of most commodities were set by government agencies and changed infrequently. Because prices did not change when production costs or demand for a commodity altered, they often failed to reflect the true values of goods, causing many kinds of goods to be misallocatedand producing a price system that the Chinese government itself referred to as "irrational."
One of the most striking manifestations of economic instability in China in the 1930s and 1940s was runaway inflation. Inflation peaked during the Chinese civil war of the late 1940s, when wholesale prices in Shanghai increased 7.5 million times in the space of 3 years. In the early 1950s, stopping inflation was a major government objective, accomplished through currency reform, unification and nationalization of the banks, and tight control over prices and the money supply. These measures we...Bardhan, Pranab. Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India(Princeton University Press; 2010) 172 pagesChow, Gregory C. China's Economic Transformation (2nd ed. 2007) excerpt and text searchDas, Dilip K. China and the Asian Economies: Interactive Dynamics, Synergy and Symbiotic Growth (2013) excerpt and text search
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- Course of Reforms
- Effects of The Reforms
- Reforms in Specific Sectors
- Academic Studies
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- Further Reading
In September 1976, Mao Zedong died, and in October, Hua Guofeng together with Ye Jianying and Wang Dongxing arrested the Gang of Four, putting an end to the Cultural Revolution. Hua's break with Cultural Revolution era economic policies weas consistent with the 1975 reform agenda of Deng Xiaoping. Hua made national economic development a matter of the highest priority and emphasized the need to achieve "liberation of productive forces." He "combined Soviet-style big push industrialization wit...
In 1979, Deng Xiaoping emphasized the goal of "Four Modernizations" and further proposed the idea of "xiaokang", or "moderately prosperous society". The achievements of Lee Kuan Yew to create an economic success in Singaporehad a profound effect on the Communist leadership in China. Leaders in China made a major effort, especially under Deng Xiaoping, to emulate his policies of economic growth, entrepreneurship, and subtle suppression of dissent. Over the years, more than 22,000 Chinese offic...
During this period, Deng Xiaoping's policies continued beyond the initial reforms. Controls on private businesses and government intervention continued to decrease, notably in the agrifood sector which saw relaxation of price controls in 1985 and the establishment of the household responsibility system, and there was small-scale privatization of state enterprises which had become unviable. A notable development was the decentralization of state control, leaving local provincial leaders to exp...
After three decades of reform, China's economy experienced one of the world's biggest booms. Agriculture and light industry have largely been privatized, while the state still retains control over some heavy industries. Despite the dominance of state ownership in finance, telecommunications, petroleum and other important sectors of the economy, private entrepreneurs continue to expand into sectors formerly reserved for public enterprise. Prices have also been liberalized. China's economic gro...
Impact on world growth
China is widely seen as an engine of world and regional growth. Surges in Chinese demand account for 50, 44 and 66 percent of export growth of the Hong Kong SAR of China, Japan and Taiwan respectively, and China's trade deficit with the rest of East Asia helped to revive the economies of Japan and Southeast Asia.Asian leaders view China's economic growth as an "engine of growth for all Asia".
Effect on inequality
Although the economic reforms has caused significant economic growth in China, it has also caused increased inequality, resulting in backlash and an attempt at pushing back the reforms by the Chinese New Left faction. Despite rapid economic growth which has virtually eliminated poverty in urban China and reduced it greatly in rural regions and the fact that living standards for everyone in China have drastically increased in comparison to the pre-reform era, the Gini coefficient of China is e...
During the pre-reform period, Chinese agricultural performance was extremely poor and food shortages were common. After Deng Xiaoping implemented the household responsibility system, agricultural output increased by 8.2% a year, compared with 2.7% in the pre-reform period, despite a decrease in the area of land used. Food pricesfell nearly 50%, while agricultural incomes rose. Zhao Ziyangwrote in his memoirs that in the years following the household contracting system, "the energy that was un...
In the pre-reform period, industry was largely stagnant and the socialist system presented few incentives for improvements in quality and productivity. With the introduction of the dual-price system and greater autonomy for enterprise managers, productivity increased greatly in the early 1980s. Foreign enterprises and newly formed Township and Village Enterprises, owned by local government and often de facto private firms, competed successfully with state-owned enterprises. By the 1990s, larg...
Trade and foreign investment
Some scholars assert that China has maintained a high degree of openness that is unusual among the other large and populous nations,[dubious – discuss] with competition from foreign goods in almost every sector of the economy. Foreign investment helped to greatly increase quality, knowledge and standards, especially in heavy industry. China's experience supports the assertion that globalization greatly increases wealth for poor countries. Throughout the reform period, the government reduced t...
Reasons for success
Scholars have proposed a number of theories to explain China's successful transition from a planned to a socialist market economy. This occurred despite unfavorable factors such as the troublesome legacies of socialism, considerable erosion of the work ethic, decades of anti-market propaganda, and the "lost generation" whose education disintegrated amid the disruption of the Cultural Revolution. One notable theory is that decentralization of state authority allowed local leaders to experiment...
Comparison to other developing economies
China's transition from a planned economy to a socialist market economy has often been compared with economies in Eastern Europe that are undergoing a similar transition. China's performance has been praised for avoiding the major shocks and inflation that plagued the Eastern Bloc. The Eastern bloc economies saw declines of 13% to 65% in GDP at the beginning of reforms, while Chinese growth has been very strong since the beginning of reform. China also managed to avoid the hyperinflation of 2...
Criticism and development issues
The government retains monopolies in several sectors, such as petroleum and banking. The recent reversal of some reforms have left some observers dubbing 2008 the "third anniversary of the end of reforms". Nevertheless, observers[who?] believe that China's economy can continue growing at rates of 6–8 percent until 2025, though a reduction in state intervention is considered by some to be necessary for sustained growth. However, it has been reported over the years that the GDP figures and othe...
Gewirtz, Julian. 2022. Never Turn Back: China and the Forbidden History of the 1980s. Belknap Press.
- "Reform and Opening-Up"
Economic history of China (1912–1949), the economic history of the Republic of China during the period when it controlled Chinese mainland from 1912 to 1949. For the economic history of the Republic of China during the period when it only controls Taiwan area after 1949, see Economic history of Taiwan#Modern history.
The Chinese economic reform ( Chinese: 改革开放; pinyin: Gǎigé kāifàng; literally: " reform and opening-up ") refers to the economic reforms in the People's Republic of China between the 1970s and 1990s. They were led by the Communist Party of China and Deng Xiaoping and started in December 1978.