People’s

Republic
of

CHINA
CHINA PROFILE
China is largest country of east Asia

The population is approximately 20%

of world population

China adopted- socialist market

economy

CHINA is the world second largest

economy by nominal GDP

China is also the largest Exporter &

2nd largest Importer of goods in the
world
Economic History of China
From 1949 to Present
1949 - 1952

-3 years of Economic Rehabilitation

-Foreign currencies were transported to Taiwan

-Land Reform

1953

-Five-Year Plan for Economic and Social Development

-Established more than 100 large industrial enterprises

>Industrial production increased at an average annual rate
of 19% between 1952 and 1957, and national income grew at a
rate of 9% a year
1958

-Great Leap Forward

1960

- Policy of readjusting and raising standards for the
national economy

-China’s economic construction was brought back to
the right track
1966 - 1976

-The Cultural Revolution

>China's economic development experienced
the biggest loss ever since the founding of the People's
Republic

1971

-Accepted in United Nations
1978

-Economic Reforms started

-Starts the “household-responsibility system”

1979

-Ordered to limit family size to one child to stem
population growth
1980 to 1986

-Dual-track system was introduced

-Townships enterprises reform was introduced

-made “special economic zone” to experiment with
more flexible market policies
1988

-Economic turbulence stirs public discontent

-Bank runs and panic buying are triggered by rising
inflation that peaks at over 30% in cities

1989

-The Tiananmen Square protests of 1989, commonly
known in mainland China as the June Fourth Incident 

(六四事件)
1990

-The Shanghai Stock Exchange opens

-Chinese economy continued to grow at a rapid pace
which at 10.43%

1992

-sparks a fresh wave of market growth and some
political relaxation
1994 

-Inflation reached over 20% in 1994

-China’s growth slowed and unemployment rose

1996

-Allowed the yuan to be convertible on the current
account, enabling the free flow of money for imports
and exports
1998

-China kicks off a $500 billion bailout of its banking
sector, rescuing them from loans made in the early
years of reform

2000 - 2004

-Joined the World Trade Organization in 2001

> exports accounted for approximately 20% of
China’s GDP.
2005

-In 2005, China sweeps past Britain, France and Italy to
become the world’s fourth-largest economy

-China's GDP grew 10.0% in 2003, 10.1%, in 2004, and
even faster 10.4% in 2005 

-The domestic private sector first exceeded 50% of GDP
in 2005
2010 

-Wages were rapidly rising in all areas of the country 

-China’s GDP was valued at $5.87 trillion, surpassed
Japan's $5.47 trillion
2012

-increased subsidies and control over the health care
sector

-halted privatisation

-adopted a loose monetary policy

2013

-China Trade Surplus Hits $33.8 billion

!

2018

-China's economy has been transitioning from a phase
of rapid growth to a stage of high-quality development

-Language on monetary and fiscal policy will be under
scrutiny for even minor changes
Economic Data of China
 GDP Growth Rate

The Chinese economy grew by 1.4 percent quarter-on-quarter in the three

months to March of 2018, compared to an advance of 1.6 percent in the
previous period and slightly below market expectations of 1.5 percent. It
was the weakest pace of expansion since the first quarter of 2016.
 GDP Annual Growth Rate

The Chinese economy advanced 6.8 percent year-on-year in the March

quarter of 2018, the same pace as in the previous two quarters. Figure
was in line with market consensus, mainly supported by solid
consumption, property investment and exports.
 GDP Composition by Sectors
Agriculture Industry
Services Agriculture includes farming,
fishing, and forestry.

Industry includes mining,

8.2% manufacturing, energy production,
and construction.

52.3% Services cover government

39.5%
activities, communications,
transportation, finance, and all other
private economic activities that do
not produce material goods.

Source: CIA World Factbook (1/20/18)

 Primary Sector- Agriculture

China is a global producer of rice, cotton, pork, fish, wheat, tea,

potatoes, corn, peanuts, millet, barley, apples, cotton, oilseed,
pork, fish and more.
 Secondary Sector- Industry

China is a world leader in industrial output, including mining

and ore processing, processed metals, petroleum, cement, coal,
chemicals and fertilizer. It's also a leader in machinery
manufacturing, armaments, textiles and apparel.
 Tertiary Sector- Services

Within the service sector are transport, storage and post,

wholesale and retail trades, hotel and catering services,
financial services, real estate and more.
 China Population

The total population in China was estimated at 1378.7 million

people in 2016, according to the latest census figures.
 China Unemployment Rate

Unemployment Rate in China decreased to 3.90 percent in the

fourth quarter of 2017 from 3.95 percent in the third quarter of
2017.
China Consumer Price Index (CPI)

Consumer Price Index CPI in China decreased to 102.10 Index Points in

March from 102.90 Index Points in February of 2018.
 China Inflation Rate

China's consumer price inflation fell to 2.1 percent year-on-year in March

2018 from a four-and-a-half-year high of 2.9 percent in the previous
month and below market consensus of 2.6 percent
 China Imports

Imports to China soared 14.4% year-on-year to USD 179.10

billion in March 2018, beating market consensus of a 10%
increase, and compared with 6.3 percent growth in February.
China Imports by Country
(YEAR 2016)

South Korea- $158.97B

Japan- $145.67B

China- $144B

United States- $135.12B

Germany- $86.11B

Australia- $70.90B
 China Imports by Category
(YEAR 2016)
Electrical- $412.88B

Mineral Fuels- $176.54B

Machinery- $147.66B

Ores Slag and Ash-

$94.48B

Medical Apparatus-
$92.69B

Pearls- $79.33B
 China Exports

Exports from China declined 2.7% from a year earlier to USD

174.12 billion in March 2018, missing market expectations of a
10% rise, and down from a 44.5 percent surge in February.
China Exports by Country
(YEAR 2016)
United States- $385.68B

Hong Kong-$287.25B

Japan- $129.27B

South Korea- $93.71B

Germany- $65.21B

Vietnam- $61.09B
 China Exports by Category
(YEAR 2016)
Electrical- $553.17B

Machinery- $343.77B

Furniture- $87.51B

Articles of Apparel, knit-

$74.41B

Articles of Apparel, not knit-

$72.06B

Medical Apparatus- $67.49B

China's growth engine stutters as
factories slow down
Concerns over the sustainability of China’s growth also remain
in the background.

In December, credit was high by international levels, personal

debt had increased in the past five years

The credit-to-GDP ratio is now about 25% above the long-term

trend, very high by international standards and consistent with
a high probability of financial distress.
“Thank You”