Economy
Beginning in late 1978 the Chinese leadership has been trying to move the economy from a sluggish Soviet-style centrally planned economy to one that is more market-oriented, but still within a rigid political framework of Communist Party control. To this end the authorities switched to a system of household responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprise in services and light manufacturing, and opened the economy to increased foreign trade and investment. The result has been a strong surge in production.
Agricultural output doubled in the 1980s, and industry also posted major gains, especially in coastal areas near Hong Kong and opposite Taiwan, where foreign investment and modern production methods helped spur output of both domestic and export goods. GDP has more than tripled since 1978.
On the darker side, the leadership has often experienced in its hybrid system the worst results of socialism (bureaucracy, lassitude, corruption) and of capitalism (windfall gains and stepped-up inflation). Beijing thus has periodically backtracked, retightening central controls at intervals. In 1992-95 annual growth of GDP accelerated, particularly in the coastal areas - averaging more than 10% annually according to official figures. In late 1993 China's leadership approved additional long-term reforms aimed at giving still more play to market-oriented institutions and at strengthening the center's control over the financial system; state enterprises would continue to dominate many key industries in what was now termed "a socialist market economy." In 1995 inflation dropped sharply, reflecting tighter monetary policies and stronger measures to control food prices. At the same time, the government struggled to (a) collect revenues due from provinces, businesses, and individuals; (b) reduce extortion and other economic crimes; and (c) keep afloat the large state-owned enterprises, most of which had not participated in the vigorous expansion of the economy. From 60 to 100 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-pay jobs. Popular resistance, changes in central policy, and loss of authority by rural cadres have weakened China's population control program, which is essential to the nation's long-term economic viability.
One of the most dangerous long-term threats to continued rapid economic growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. The amount of arable land continues to decline because of erosion and economic development, the cumulative loss since the Communist takeover in 1949 being more than 15%. The next few years will witness increasing tensions between a highly centralized political system and an increasingly decentralized economic system.
China's GDP, calculated on a purchasing power parity basis, is estimated at about US$3.5 trillion in 1995, as extrapolated from World Bank estimate with use of official Chinese growth figures for 1993-95, the result of which may overstate China's GDP by as much as 25%. The GDP real growth rate is estimated at 10.3%, and GDP per capita at US$2,900. Of the total GDP, the agricultural sector contributes abut 19%, the industrial sector 48%, and the service sector 33%. Consumer prices inflation rate is at 10.1% (December 1995 over December 1994.)
The labour force is estimated to be about 583.6 million in 1991, of which 60% are involved in agriculture and forestry, 25% in industry and commerce, 5% in construction and mining, 5% in social services, and 5% in other areas (1990 est.). Unemployment rate is around 5.2% in urban areas (1995 est.).
Major industries include iron and steel, coal, machine building, armaments, textiles and apparel, petroleum, cement, chemical fertilizers, consumer durables, food processing, autos, consumer electronics, and telecommunications. The overall industrial production growth rate is estimated at 13.4% for 1995.
Major agricultural products are rice, potatoes, sorghum, peanuts, tea, millet, barley, cotton, other fibers, and oilseed. There is also substantial production in fishes and livestock products such as pork.
China's exports reached an estimated US$148.8 billion (f.o.b.) in 1995, mostly involved with
commodities such as garments, textiles, footwear, toys, machinery and equipment. Main export partners include Hong Kong, Japan, US, Germany, South Korea, and Singapore.
China's import was worth around $132.1 billion (c.i.f.) in 1995, with commodities such as industrial machinery, textiles, plastics, telecommunications equipment, steel bars, and aircraft. China mostly import from Japan, Taiwan, US, Hong Kong, South Korea, and Germany.
The Chinese currency is denoted in yuan (�). Each yuan can be further divided into 10 jiao.
There is a total of 58,399 km of railways in China, 54,799 km of which are 1.435-m gauge standard gauged (7,174 km electrified; more than 11,000 km double track) and 3,600 km are 0.762-m gauge narrow gauged local industrial lines.
There is a total of 1.029 million km of highways in China, of which 170,000 km are paved and 859,000 km are unpaved (1990 est.).
There are 138,600 km of waterways in China, about 109,800 km of which are navigable.
In terms of pipelines, there are 9,700 km of crude oil lines, 1,100 km for petroleum products, and 6,200 km for natural gas.
There are a number of ports in China, including Aihui, Changsha, Dalian, Fuzhou, Guangzhou, Hangzhou, Harbin, Huangpu, Nanning, Ningbo, Qingdao, Qinhuangdao, Shanghai, Shantou, Tanggu, Xiamen, Xingang, Zhanjiang.
The Chinese merchant marine totals 1,700 ships (1,000 GRT or over), totaling 16,663,260 GRT/25,026,090 DWT. These include 2 barge carriers, 316 bulk ships, 876 cargo ships, 15 chemical tankers, 11 combination bulk ships, 103 containers, 4 liquefied gas tankers, 3 multifunction large-load carriers, 227 oil tankers, 24 passenger vessels, 28 passenger-cargo vessels, 22 refrigerated cargo ships, 24 roll-on/roll-off cargo ships, and 45 short-sea passenger vessels.
China also owns an additional 267 ships (1,000 GRT or over), totaling 9,044,039 DWT, operating under the registries of Panama, Hong Kong, Malta, Liberia, Vanuatu, Cyprus, Saint Vincent and the Grenadines, The Bahamas, Marshall Islands, and Singapore.
There are 204 airports in China. 17 of which have paved runways over 3 047 m, 69 with paved runways 2 438 to 3 047 m, 89 with paved runways 1 524 to 2 437 m, 9 with paved runways 914 to 1 523 m, and 7 with paved runways under 914 m. There are 7 with unpaved runways 1 524 to 2 437 m, 3 with unpaved runways 914 to 1 523 m, and 3 with unpaved runways under 914 m.
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