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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

In 2009, China went through an economic crisis that is unrivaled since the big reforms undertaken by Deng Xiaoping, thirty years ago. Direct foreign investments in China showed a drop of 22.5% over a period of a year. As for Chinese exports, they dropped on a yearly sliding scale by 22.6%.
After a 2 figure growth rate between 2000 and 2007 (13% in 2007), the GDP growth rate dropped to 9% in 2008 because of the global financial crisis, particularly felt during the last months of the year.  Despite the decrease, the Chinese economy was carried by the size of its domestic market and its capacity to save (its banks are healthy and do not offer toxic products). China was affected by the global economic crisis on three levels:
- the drop in global demand caused the sudden decrease of Chinese exports (-21%), a drop felt particularly in exclusively exporting companies and mainly in the textile, toys and small household appliances fields;
- the reversal of the real estate market dealt a blow to the national economy (-20% in 2008); and lastly
- the government financial investments in the United States (Treasury bonds and American pension funds) laid the country open to the international financial crisis.

In order to maintain China's growth and ensure social stability, the government has implemented in late 2008 a broad stimulus plan of 460 billion euros, either 12% of Chinese GDP over two years, focusing on development of domestic demand to try to offset declining imports. Priorities for Beijing include infrastructure, modernization of industry, openness to new technologies, health, education and support for countryside.

 
Main indicators 20062007200820092010
GDP (billions USD) 2,657.843,382.454,401.61e4,832.995,302.66
GDP (constant prices, annual % change) 11.613.09.0e6.57.5e
GDP per capita (USD) 2,0222,5603,315e3,6223,915e
Inflation rate (%) 1.54.85.9e0.10.7
Unemployment rate (% of the labor force) 4.14.0---
Current Account (billions USD) 253.27371.83440.01496.57493.58e
Current Account (in % of GDP) 9.511.010.0e10.39.3e

Source: IMF - World Economic Outlook Database ; World Bank

Note: (e) Estimated data

Main sectors of industry

China is the most populated country in the world and one of the largest producers and consumers of agricultural produce. In 2008, China was the leading global producer of cereals (15%), corn (20%), rice (30%) and cotton (25%). China also held 53% of the world pig livestock and agriculture contributed to 12.5% of the GDP. Approximately half the Chinese labor force is employed in agriculture, although only 15% of the Chinese soil (about 1.2 M km ²) is arable. 

 

China has significant coal reserves (the country's primary energy source), which account for two-thirds of the total primary energy consumption. It is the world leader in the production of certain ores (phosphate and titanium) and hydroelectric energy. It is the sixth biggest oil producer in the world with 3.8 million barrels.

The industry and the construction sectors contribute approximately half of China's GDP. China has become one of the preferred destinations for the relocation of global manufacturing units because of a cheap labor market, even though the cost of labor has increased since 2008. The Government sector still contributes approximately 40% to the GDP. More than half of the Chinese exports are made by companies with foreign capital. Their share in the sector's added-value varies according to the sector: more than 60% for electronics and at less than 20% for the majority of producer goods. In sectors with considerable amounts of foreign share capital companies (higher than 40%), exports account for more than 90% of their production. Economic emergence coincided mainly with the development of an export orientated competitive manufacturing sector.

The services sector has not progressed, encumbered by public monopolies and restrictive regulations. The  tertiary sector's share has remained at nearly a third of the GDP in the last 15 years.

 
Breakdown of economic activity by sector Agriculture Industry Services
Employment by sector (in % of total employment) - - -
Value added (in % of GDP) 11.1 48.5 40.4
Value added (annual % change) 3.7 14.7 13.4

- last available data.

 
Monetary indicators 20042005200620072008
Chinese Yuan (Renminbi) (CNY) - Average annual exchange rate for 1 USD 8.288.197.977.616.95

Source: World Bank - World Development Indicators

 

Indicator of economic freedom

Score:
53.2/100
Position:
mostly unfree
World Rank:
132 out of 179
Regional Rank:
28 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

 

Country risk

See the country risk analysis provided by Ducroire.

 

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Foreign trade in figures

After having achieved a record trade surplus in 2006, China has subsequently become the world's primary exporter. Chinese exports are constantly increasing, despite a decrease noted in 2009, due to the international financial crisis. Most of its exports consist of manufactured goods. China's main trade partners are South East Asia, the United States and the European Union.

 
Foreign trade indicators 20032004200520062007
Imports of goods (millions USD) 393,618534,410628,295751,936904,618
Exports of goods (millions USD) 438,270593,393762,484969,6821,220,000
Imports of services (millions USD) 55,30672,13383,795100,833130,111
Exports of services (millions USD) 46,73462,43474,40491,999122,206
Imports of goods and services (annual % change) 24.822.511.414.313.9
Exports of goods and services (annual % change) 26.828.424.323.319.9
Imports of goods and services (in % of GDP) 27.431.431.832.132.3
Exports of goods and services (in % of GDP) 29.634.037.439.941.9
Trade Balance (millions USD) 44,65258,982134,189217,746315,381
Trade Balance (including service) (millions USD) 36,07949,284124,798208,912307,477
Foreign trade (in % of GDP) 56.965.469.372.074.2

Source: World Bank

 

Main partner countries

Main customers
(% of exports)
2007
United States 19.1%
Hong Kong 15.1%
Japan 8.4%
South Korea 4.6%
Germany 4.0%
See more countries 48.7%
Main suppliers
(% of imports)
2007
Japan 14.0%
South Korea 10.9%
China 9.0%
United States 7.3%
Germany 4.7%
See more countries 54.1%

Source: Comtrade

Main products

Main exports
(% of exports)
2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 23.1%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 20.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted 5.0%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted 3.9%
Iron and steelIron and steel 3.3%
See more products 44.4%
Main imports
(% of imports)
2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 26.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 13.1%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 11.0%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof 7.3%
Ores, slag and ashOres, slag and ash 5.7%
See more products 36.2%

Source: Comtrade

 
See more products
More imports (Intracen Data)
More exports (Intracen Data)

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Sources of general economic information

Ministries
Ministry of Foreign Trade and Economic Cooperation
Ministry of Finances
State Administration for industry and commerce
Ministry of Land and Resources
Statistical Office
National statistical office of China
Central Bank
Bank of China
Stock Exchange
Shanghai stock exchange
Shenzen stock exchange
Search Engines
China Vista
China Pages
Gcweb
Sina
Surf China
Yahoo! China
Economic portals
China Economy
China Economic net

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Political outline

Executive Power
The Chinese executive is supervised by a collegial body equipped with important powers, the National Business Council (CAE), under which are placed the Government commissions, ministries and certain organizations which have rank of a ministry.
According to the Constitution, the CAE is "the Supreme Administrative Body" of the Chinese Government, and even if the majority of important measures are decided by the Political Bureau of the Chinese Communist Party. The CAE thus plays an important role in the economic domain. The prime minister (Wen Jiabao) is the chief and heads the government, assisted by 4 Deputy Prime Ministers. The CAE also includes 5 National advisers, who, just like the Deputy Prime Ministers, have jurisdiction over several Ministries or Commissions of ministerial rank. The Secretary General of the government also belongs to the CAE.
Legislative Power
The legislature is mono cameral, composed of a National Popular Assembly (ANP), "Body of supreme power of the Government". In reality, made up of approximately 3000 designated deputies elected every five years by indirect vote by the local bodies and meeting only once per annum in congress in plenary session, it has become, during the eighties, a " simple case of resonance" of the local or sectional interests. Deputies are indeed the representatives of 23 provinces, the 5 areas and the 4 autonomous municipalities.

APN comprises a delegation of the People's Liberation Army. The Standing Committee of the National People's Assembly (CPAPN) is appointed by the Political Bureau of the Central committee of the Party. It sits instead of the APN during its recess and exercises all its powers. It is composed of a president, fifteen vice-presidents and 176 permanent members. The CPAPN sits regularly, but it is the Bureau of the APN which exerts daily the functions of the APN.

Eligibility is controlled by the PCC which also has a right to supervise the appointment of the executives and the senior officials of different administrative units.

Main political parties
The one and only political party in the country is CCP (Chinese Communist Party). Though there are eight other registered small parties but all of them are controlled by CCP.
Current political leaders
President: HU Jintao (since March 2003) - CCP
prime Minister: XI Jinping (since March 2008) - CCP
Next election dates
President: March 2013
 

Indicator of freedom of the press

World Rank:
167/173
Evolution:
4 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

 

Indicator of political freedom

Ranking:
Not Free
Political freedom:
7/7
Civil liberties:
6/7


 

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Last updates: November 2009