Economic Environment of China

1 Infrastructure

China has strong infrastructure. Some important characteristic of its infrastructure are as follow.

1- The country had 502 airports as estimated in 2010. Out of these 502 airports 442 airports

have paved run ways[ CITATION CIA109 \l 1033 ]. The country ranks first in world for

its 110,000 km navigable waterways. 3,860,800 km road ways and 86000 km railways

link all cities and town of the country[ CITATION CIA109 \l 1033 ].

2- To support trade China possess 2010 merchant marines[ CITATION CIA109 \l 1033 ].

3- The country also possesses 38566 km long gas pipelines and 23,470 km long oil

pipelines[ CITATION CIA109 \l 1033 ].

2 Major Industries

China is the leading economy of the world in production of agricultural and industrial

output[ CITATION CIA109 \l 1033 ]. Major agricultural products include rice, wheat, corn,

barley, cotton, pork, fish, apples, and tea. Major industrial products include iron, steel,

aluminum, coal, armaments, petroleum, chemicals, cements, electronics, textiles and apparels,

fertilizers, automobiles, toys, railcars and locomotives, ships, aircrafts and telecommunication

products etcetera[ CITATION CIA109 \l 1033 ]. The industrial production growth rate of the

country is 15.7% as estimated in 2010[ CITATION CIA109 \l 1033 ].

3 Major Trading Partners

China exports machinery, electronic products, apparels, iron, steel, medical equipment, and

optical equipment to the United States, Hong Kong, Japan, Germany and Korea as major export

partner[ CITATION CIA109 \l 1033 ]. By the end of 2010 exports of the country amounted to

$1.581 trillion out of which US contributed 18%, Hong Kong 13.8%, Japan 7.6% while with

other export were less than 5% of the total export volume[ CITATION CIA109 \l 1033 ].

China imported machinery, oil, fuel, equipment, chemicals and ores amounting to $1.327 trillion

in 2010[ CITATION CIA109 \l 1033 ]. Its biggest import partner is Japan that contributes to the

12.6% of the imports. South Korea, US and Germany contributed to 9.9%, 7.3% and 5.3%

respectively while other countries contributed less than 5% of the imports.[ CITATION

CIA109 \l 1033 ]

4 Macroeconomic Indicators

The GDP of the country was $10.09 trillion in 2010 while it was 5.878 trillion at official

exchange rate in 2010[ CITATION CIA109 \l 1033 ]. GDP is growing at stable rate over years.

In 2010 GDP growth rate was 10.3% while in 2009 and 2008 it was 9.2% and 9.6%[ CITATION

CIA109 \l 1033 ]. Industrial sector contribute the biggest part of GDP up to 46.9% in 2010 while

services contributed 43% and agriculture 10.2% of GDP[ CITATION CIA109 \l 1033 ]. GNI per

capita was $4260 in 2010 as estimated by the World Bank[ CITATION The116 \l 1033 ]. In the

same year population of the country was 1,338,299,512 persons[ CITATION The116 \l 1033 ].

Therefore, the total GNI was $ 5701 trillion in 2010.

The population growth rate of the country was 0.5% in 2009[ CITATION The116 \l 1033 ].

Mortality rate under the age of five was recorded as 1/ 1000[ CITATION The116 \l 1033 ].

Majority of the labor force is associated with agriculture. Unemployment rate was 6.1% in 2009

while 2.8% of the population lives below poverty line[ CITATION The116 \l 1033 ]. Inflation

rate was 3.2% in 2010 and -0.7% in 2009.

Budget of 2010 comprised of revenues of $1.227 trillion and expenditures of $1.323 trillion.

Budget deficit remained -1.6% of GDP while the public debts of the country amounted to 16.3%

of GDP as estimated in 2010[ CITATION CIA109 \l 1033 ]. In 2010 central bank discount rate

of the country was 3.25%. Current account balance remained at $305.4 billion[ CITATION

CIA109 \l 1033 ]. In 2009, the current account balance was $261.1 billion[ CITATION

CIA109 \l 1033 ]. Foreign exchange reserves amounted to 42.876 trillion in 2010[ CITATION

CIA109 \l 1033 ]. The exchange rate of the country is determined under fiat system and in 2010

exchange rate was 6.7852 RMB/$[ CITATION CIA109 \l 1033 ]. In 2009, life expectancy at

birth was 73 years[ CITATION The116 \l 1033 ].

5 Bibliography

CIA, 2010. The World Fact Book: China. [Online] Central Intelligence Agency Available at:

https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html [Accessed 23

November 2011].

The World Bank, 2011. Data. [Online] The World Bank Available at:

http://data.worldbank.org/country/china [Accessed 23 November 2011].