China's Economy & China's Economic Development

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China's Economy

Since the implementation of the Open Door Policy and economic reforms, economic growth in China has been rapid.

Fluctuations in the growth rate of China's national income are closely related to domestic political conditions and campaigns. Since the implementation of the new policies in 1978, China's growth rate of national income and national income per capita has accelerated at an annual average of 8.7% per year.

Such high economic growth has offered the world many opportunities for trade and investment.

China's economy is stepping into a sound development track and increasing steadily but gradually.

More space for economic development together with the gradual improvement of the market-oriented economy drove China's economy into a new round of increases.

Beginning in 2002, China's new round of economic growth is comparatively all-round and features the growth of manufacturing and new technologies. In 2005, China's economy is expected to continue to grow at a rate of about 9 percent and consumer price index at 3 percent or so.

In the new round of economic increases, heavy industry is likely to see another boom, which will prompt the development of many related sectors, stimulating the economic increase. The upgrading of manufacturing industry and the continuing migration of farmers into the cities will also quicken economic growth.

However, the low economic base from which they began underscores China's economic achievements of the past decade. The high level of economic growth in China, therefore, has somewhat been a process of "catching up". Reforms are still needed in some aspects of the economic system, including changes in the criteria for investment and the supervising of land. It is crucial to deepen the economic reform in a bid to boost China's economic development.