Chinese Economy

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The Chinese Economy
The People's Republic of China is the world's second largest economy after the United States. It is the world's fastest-growing major economy, with average growth rates of 10% for the past 30 years. China is also the largest exporter and second largest importer of goods in the world. China became the world's top manufacturer in 2011, surpassing the United States. For 2010, inbound foreign direct investment into China surpassed $100bn for the first time, and investment overseas by Chinese companies in non-financial sectors totaled $59 billion. The country's per capita GDP (PPP) is $7,518 (IMF, 93rd in the world) in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed.
China and the Political Economy of Global Engagement
In many respects it was not until 1992 that China really began to engage with the global economy in a significant way. In an inspection tour of development in southern China in 1992, Deng Xiaoping praised the emergence of proto-capitalist practices in open areas and called for further opening. Following Deng’s exhortations, the CCP declared in October 1992 that China now had a ‘socialist market economy’—the ideological battle appeared to have been won, and this victory was given further force when 1993 saw more FDI flood into China than in the preceding 14 years of reform put together. A trade deficit in 1992 was turned into surplus as exports doubled in the space of five years on the back of FDI growth.
Winners and Losers Promoting exporting industries had proved to be a highly successful means of generating growth. Rural reform in China had released excess workers from the land, many of whom found employment in small-scale township and village enterprises (TVEs), which accounted for around a third of all exports in the l990s. Foreign-…...

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