To increase exports, China pursued policies such as fostering the rapid development of foreign-invested factories, which assembled imported components into consumer goods for export and liberalizing trading rights. In its 11th Five-Year Program , adopted in , China placed greater emphasis on developing a consumer demand-driven economy to sustain economic growth and address imbalances. China's investment climate has changed dramatically with more than two decades of reform.
In the early s, China restricted foreign investments to export-oriented operations and required foreign investors to form joint-venture partnerships with Chinese firms. The Encouraged Industry Catalogue sets out the degree of foreign involvement allowed in various industry sectors. From the beginning of the reforms legalizing foreign investment, capital inflows expanded every year until Since the early s, the government has allowed foreign investors to manufacture and sell a wide range of goods on the domestic market, eliminated time restrictions on the establishment of joint ventures, provided some assurances against nationalization , allowed foreign partners to become chairs of joint venture boards, and authorized the establishment of wholly foreign-owned enterprises, now the preferred form of FDI.
In , China granted more preferential tax treatment for Wholly Foreign Owned Enterprises and contractual ventures and for foreign companies, which invested in selected economic zones or in projects encouraged by the state, such as energy, communications and transportation. China also authorized some foreign banks to open branches in Shanghai and allowed foreign investors to purchase special "B" shares of stock in selected companies listed on the Shanghai and Shenzhen Securities Exchanges. These "B" shares sold to foreigners carried no ownership rights in a company.
China revised significantly its laws on Wholly Foreign-Owned Enterprises and China Foreign Equity Joint Ventures in and , easing export performance and domestic content requirements. Foreign investment remains a strong element in China's rapid expansion in world trade and has been an important factor in the growth of urban jobs.
Foreign-invested enterprises today produce about half of China's exports the majority of China's foreign investment come from Hong Kong , Macau and Taiwan , and China continues to attract large investment inflows. However, the Chinese government's emphasis on guiding FDI into manufacturing has led to market saturation in some industries, while leaving China's services sectors underdeveloped. From to , China was the world's second-largest recipient of foreign direct investment after the United States.
Amid slowing economic conditions and a weakening yuan in , December of that year saw a 5. This survey of over members found that "China remains a top three investment priority for six out of ten member companies," though this is a decline from the high of eight out of ten respondents considering China a top priority. China's foreign exchange reserves are the largest in the world.
As part of its WTO accession, China undertook to eliminate certain trade-related investment measures and to open up specified sectors that had previously been closed to foreign investment. New laws, regulations, and administrative measures to implement these commitments are being issued.
Major remaining barriers to foreign investment include opaque and inconsistently enforced laws and regulations and the lack of a rules-based legal infrastructure. Warner Bros. Another major development in the history of foreign investment in China was the establishment of the Shanghai Free Trade Zone in September Outward foreign direct investment is a new feature of Chinese globalization, where local Chinese firms seek to make investments in both developing and developed countries.
Such investments offer access to expertise in marketing and distribution potentially useful in exploiting the developing Chinese domestic market. Since , Chinese companies have been actively expanding outside of China, in both developed and developing countries. At the beginning, state-owned enterprises dominate the foreign acquisition and most of the money goes to oil and minerals. Since , more and more private companies start to acquire non raw material foreign companies.
Below is a list of the top 15 outbound deals from Chinese companies: . According to market consecutive researches by the Monogram Group, a Chicago-based advertising agency, in , , and , American consumers' willingness to purchase Chinese products across all categories except PC remained the same or became worse during The only sector in which Americans were more likely to purchase was personal computers. Case 1: Shanghai Auto acquired Shanghai Auto wanted the brand and technology to expand its footprint in China.
However, the cultural difference, the objection to transfer the technology and the failed sales of new SUV model put Shanghai Auto's ambition of expansion in jeopardy. It caused huge conflict between Ssangyong employees and Shanghai Auto as things didn't go well as planned. And the global economic crisis put Ssangyong on a survival mode, let alone expansion. For the coming two years, the company recorded huge loss, especially in Europe.
Several factors contributed to the failure:. Since the s medical care , public hygiene and sanitation improved considerably, and epidemics were controlled. Consecutive generations continuously experienced better health. The population growth rate surged as the mortality rate dropped more rapidly than the birth rate. China's massive population has always been a major difficulty for the government as it has struggled to provide for it. In the s, food supply was inadequate and the standard of living was generally low. This spurred the authorities to initiate a major birth control program.
The Great Leap Forward industrial plan in —60 was partially responsible for a huge famine that caused the death rate to surpass the birth rate, and by , the overall population was declining. A second population control drive began in with major efforts focused on promoting late marriages and the use of contraceptives. In , the Cultural Revolution suspended this second family planning program, but resumed four years later with the third attempt by making later marriage and family size limitation an obligation. Since , the efforts have been much more effective.
The third family planning program continued until when the one child per family policy was implemented. In the s, the average overall population growth was around 1. Today it is about 0. One demographic consequence of the one-child policy is that China is now one of the most rapidly ageing countries in the world. According to the latest Forbes China Rich List , China had 66 billionaires , the second largest number after the United States , which had In the Forbes Rich List it stated that there were 15 Chinese billionaires.
In , for the first time, according to statistics released by China's National Bureau of Statistics in January , the size of the labor force, people aged 15 to 59, in China shrank slightly to This trend, resulting from China's one-child policy of population control, is anticipated to continue to at least On 29 October , Xinhua, China's state news agency, reported a change in the existing law to a two-child policy, citing a statement from the Communist Party of China, and the new law is effective from 1 January after it was passed in the standing committee of the National People's Congress on 27 December Development of the country's transportation infrastructure is given a high priority because it is so strategically tied to the national economy and national defense.
China's economic growth is expected to slow to a nearly year low this year | Markets Insider
Regardless, the transportation infrastructure is still not fully developed in many aspects and areas, and it constitutes a major hindrance on economic growth and the efficient logistical movement of goods and people. China's transportation policy, influenced by political, military, and economic concerns, have undergone major changes since Immediately after the People's Republic was founded, the primary goal was to repair existing transportation infrastructure in order to meet military transport and logistics needs as well as to strengthen territorial integrity. During most of the s, new road and rail links were built, while at the same time old ones were improved.
During the s much of the improvement of regional transportation became the responsibility of the local governments, and many small railways were constructed.
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Emphasis was also placed on developing transportation in remote rural, mountainous, and forested areas, in order to integrate poorer regions of the country and to help promote economies of scale in the agricultural sector. Before the reform era began in the late s, China's transportation links were mostly concentrated in the coastal areas and access to the inner regions was generally poor. This situation has been improved considerably since then, as railways and highways have been built in the remote and frontier regions of the northwest and southwest.
At the same time, the development of international transportation was also pursued, and the scope of ocean shipping was broadened considerably. Freight haulage is mainly provided by rail transport. The rail sector is monopolized by China Railway and there is wide variation in services provided. In late China became one of the few countries in the world to launch its own indigenously developed high-speed train. This considerable spending gap allowed the Chinese economy to grow at near optimal conditions while many South American economies suffered from various development bottlenecks such as poor transportation networks, aging power grids and mediocre schools.
Science and technology in China has in recent decades developed rapidly. The Chinese government has placed emphasis through funding, reform, and societal status on science and technology as a fundamental part of the socio-economic development of the country as well as for national prestige. China has made rapid advances in areas such as education, infrastructure, high-tech manufacturing, artificial intelligence,  academic publishing , patents and commercial applications and is now in some areas and by some measures a world leader.
China is now increasingly targeting indigenous innovation and aims to reform remaining weaknesses. These initiatives are dependent on attracting highly educated overseas Chinese back to China to work in the innovation economy and to teach the next generation of Chinese students.
From Wikipedia, the free encyclopedia. This article is about the economy of the People's Republic of China. For the economy of the Republic of China, see Economy of Taiwan. For other uses, see Economy of China disambiguation. Shanghai , the financial centre of China. Fiscal year. Agriculture : 7. Household consumption: Inflation CPI. Population below poverty line. Gini coefficient.
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Human Development Index. Mining ore processing iron steel aluminum and other metals coal machine building armaments textiles apparel petroleum cement chemicals fertilizer food processing information technology transportation equipment automobiles railcars telecoms equipment locomotives ships aircraft space launch vehicles satellites consumer products including footwear toys electronics military equipment financial services electric power.
Ease-of-doing-business rank. Agricultural products 3. United States Agricultural products 9. European Union FDI stock. Current account. Gross external debt. Public debt. Budget balance. Credit rating.
List of ratings. See also: Metropolitan regions of China and List of cities in China. This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Main article: National debt of China.
Main article: Tax system in China. See also: Renminbi , Chinese yuan , and Currency of China. Main article: Agriculture in China. Main article: Real estate in China. See also: Energy policy of China. Electricity: Production: 6. See also: Gold mining in China. Main article: Coal power in the People's Republic of China. Main article: Petroleum industry in the People's Republic of China. Main article: Steel industry in China. Main article: Automotive industry in China.
Further information: Telecommunications industry in China , Electronics industry in China , Pharmaceutical industry in China , Defense industry in China , and Shipping industry in China. Main article: Telecommunications in China. Main article: Tourism in China. Main article: Luxury goods of China. Main articles: Labor relations in China and Social welfare in China. Main article: History of trade of the People's Republic of China.
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Further information: List of the largest trading partners of China , List of exports of China , List of Chinese administrative divisions by exports , and China—United States trade war. Main article: Demographics of the People's Republic of China. Main article: Transport in China. Main article: Science and technology in the People's Republic of China. China portal Economics portal Business and economics portal.
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