Modern Chinese Economy

modern chinese economyThe economy of China today is among one of the greatest, most productive, and fastest-growing in the world. Thanks to the deep structural reforms and the policy of economic liberalization that affected everything in the economy of China from agriculture to services to Chinese manufacturing and industry, the Chinese poverty level is very low, and the Chinese economy is in full swing.

China has grown to become one of the biggest importers of raw materials, industrial goods, and sources of energy in the world, as well as a major exporter of both industrial and consumer goods and services. The manufacturers of China today enjoy a relatively great degree of economic freedom compared to the socialist planned economy in the early decades of the history of Communist China. A few years ago, in 2007, China was ranked first in the world in terms of its current account balance (US$262.2 billion), and among its biggest trade partners are Japan, the United States, South Korea, and Germany, among other nations.

Given the rapid expansion of the economy and Chinese manufacturing, there is an ever-increasing demand for foreign electrical machinery, oil and other petrochemical products, metals and ores, scientific instruments, data processing equipment, and similar products; on its export side, the Chinese economy is one of the biggest producers and exporters of apparel, machinery, plastics, furniture, telecommunications equipment, and many other industrial products and consumer goods. Most other developed economies are said to be “post-industrial” and focused mainly on services with a consequent decline in manufacturing. The manufacturers of China see a perfect economic opportunity in this trend. Contrary to many other industrial and so-called post-industrial nations, Chinese manufacturing and industry have been growing ever since the economic reforms were implemented at the dawn of the 1980s. Many experts predict that the output of manufacturers in China will surpass that of the American manufacturing industry in the near future.