China's socialist market economy[18] is the world's second largest economy by nominal GDP,[4][19] and

the world's largest economy by purchasing power parity according to the IMF,[20] although China's
National Bureau of Statistics rejects this claim.[21] Until 2015[22] China was the world's fastest-growing
major economy, with growth rates averaging 10% over 30 years.[23]

China is a global hub for manufacturing, and is the largest manufacturing economy in the world as well as the
largest exporter of goods in the world.[26]China is also the world's fastest growing consumer market and second
largest importer of goods in the world.[27] China is a net importer of services products.[28]

China is the largest trading nation in the world and plays a vital role in international trade, [29] and has increasingly
engaged in trade organizations and treaties in recent years. China became a member of the World Trade
Organization in 2001.[30] China also has free trade agreements with several nations, including ChinaAustralia, South
Korea, ASEAN, Switzerland and Pakistan.[31]

On a per capita income basis, China ranked 77th by nominal GDP and 89th by GDP (PPP) in 2014, according to
the International Monetary Fund (IMF).

The Gross Domestic Product (GDP) in China was worth 10354.80 billion US dollars in 2014.
The GDP value of China represents 16.70 percent of the world economy. GDP in China
averaged 1437.04 USD Billion from 1960 until 2014, reaching an all time high of 10354.80
USD Billion in 2014 and a record low of 46.68 USD Billion in 1962. GDP in China is reported by
the World Bank Group.
But dig a little deeper, and Chinas rise begins to look less imposing. First, the top 12 Chinese
companies are all state-owned. They include massive banks and oil companies that the
central government controls through the State-Owned Assets Supervision and
Administration Commission of the ruling State Council (SASAC), which appoints CEOs and
makes decisions on large investments. Of the 98 Chinese companies on the list, only 22 are
private.

With the government as their largest shareholders, Chinas state-owned enterprises (SOE)
enjoy massive state support, which fosters growth and insulates them from competition.
What would the chairman of Chinas largest bank do if the chairman of PetroChina asked
for a loan? wrote Carl Walter and Fraser Howie in their history of Chinas markets, Red
Capitalism. He would say, Thank you very much, how much, and for how long? Hed
probably do so from one of the extravagantly designed SOE-headquarters, many with foreign
architects, that line two major thoroughfares in Beijing.

One of the mainstays of the Chinese strategy of following a mass-production and mass-consumption
formula, is to keep the profit margins low and cover the gap by the subsequent boost in sales. China is
doing what Japan did in the 1970s and South Korea in the 1980s. An alternative strategy for India could
be to concentrate on building competitive advantage in the services and knowledge based sectors,
allowing the Chinese to rule the manufacturing domain.
Lewin said China has also faced the problem of attracting the best talent, with the countrys
engineering graduates not looking at IT services as a primary option for employment, instead
focusing more on manufacturing firms. China currently trains 1.1 million engineers annually,
according to a recent report by Kotak Institutional Equities. Since 2006, the Chinese
government has tried to build expertise in software outsourcing. It identified 20 cities where
such firms could be developed.

Chinas market cannot be a threat until India considers and works on each opportunity that
comes its way. It should efficiently make use all possible resources and infrastructure to
welcome foreign investment and manpower hiring.