Chinese economy was based on centrally planned economy with non exist private businesses and companies existed. After economic reforms, China has increased the levels of privatization to increase productivity. Chinese economy is now the world’s fastest growing economy and has the world’s second largest nominal GDP.

(Source: Heritage.org, uschina.org)

Gross domestic product (GDP)                                           

(Sources: The World Bank database, self-illustration)

China’s GDP experienced a steady increase from 2007 to 2011. In 2011, the GDP was estimated to reach USD 7.318.5 billion.

GDP growth rate

(Sources: The World Bank database, self-illustration)

In 2007, GDP growth rate of the country was registered at 14.2%. The rate decreased till 2009 at 9,2%, but in 2010, it recovered to 10.4%. The growth rate in 2011 is recorded at 9.3%.

Gross national income (GNI) at purchasing power parity (PPP)

(Sources: The World Bank database, self-illustration)

China’s GNI registered steady rise from 2007 to 2011. In 2011, GNI per capita, PPP is recorded at USD 8,450.

Inflation

(Sources: The World Bank database, self-illustration)

China’s inflation rate kept its level from 2007 to 2011 at around 5% (consumer prices) or 7% (GDP deflator) except in 2009, when it dropped to below 0. In 2011, inflation was recorded at 5.4% (consumer prices) or 7.8% (GDP deflator).

Tax Rate

China has a progressive individual income tax system varying from 5% to 45%

Personal Income Tax

(Source: Tax Rates)

Corporate tax

The corporate income tax is 25%. The VAT rate in the country is 17%.

(Source: Tax Rates)

Foreign direct investment (FDI)

In 2011 (from Jan. to Dec.), the major countries investing in China were:

(Source: Ministry of Commerce)

In 2011 from Jan. to Dec., the number of newly approved foreign-funded enterprises in China totaled 27,712, up by 1.12% year on year; and actually used foreign investment reached USD 116.011 billion, up by 9.72% year on year.

The inflow from the above countries accounted for 91.6% of the total foreign capital.

(Source: Ministry of Commerce)

In 2012 from Jan. to Sept., newly Approved Foreign-invested Enterprises amounted to 18,025, down by 11.67% year on year; and the actual use of foreign investment reached USD 83.423 billion, down by 3.76% year on year.. 

Central bank assets                                             

(Source: Central Bank)

The ‘People’s Bank of China’ is the regulatory authority of the country’s banking sector. By the end of September, 2012, the total assets were registered at CNY 28,965.78 billion.

Consumer price index (CPI)

(Source: The World Bank database, self-illustration)

The CPI in China maintained its increasement from 2007 to 2011. In 2011, the CPI was recorded to be about 121.7, setting 2005's level as 100.

Interest rates on saving deposits / time deposits (2010)

(Source: Standard Chartered Bank)

The interest rates on savings deposits was recorded at (RMB) 0.40% and (HKD) 0.05% in 2010.

Money Supply

(Source: Central Bank)

In the past one year from Oct. 2011 to Sept. 2012, China’s money supply was relatively stable. M2 and quasi money experienced marginal rise. At the end of Sept. 2012, M0 was CNY 5,343.349 billion, M1 was CNY 28,678.82 billion and M2 was CNY 94,368.88 billion.

Official exchange rate

(Source: Central Bank)

The exchange rate between CNY and USD experienced a decline in the first half of the past one year and dropped even across the 6.3 line in April 2012. It has recovered gradually to the former level since then. By the end of Sept. 2012, the exchange value of USD/CNY was recorded as 6.34.

Government finances

Fiscal balance                                

(Source: imf.org)

From 2007 to 2011, China’s fiscal balance dropped from positive to negative side and reached its bottom in 2010. In 2011, the balance recovered a little bit and was recorded a deficit of CNY 850.19 billion.

Total Revenue

(Source: The World Bank database, self-illustration)

The Chinese government’s total revenue increased steadily from CNY 5,262.18 billion in 2007 to CNY 8,735.01 billion in 2011.

Tax revenue

Tax revenues in China increased by 22.6% in 2010, amounting to CNY 7.74 trillion. This revenue was comprised of tax refunds worth CNY 732.8 billion.  

Valued-added, consumption and sales taxes increased 14.8%, 27.5% and 23.8% from the previous year respectively. Income taxes increased by 20.4% over 2009. 

Imported tariffs amounted to CNY 1.05 trillion, with a consistent rise 35.9% per year.

(Source: China Economic)

Total grants                                                              

(Source: The World Bank database, self-illustration)

Total grants increased from 2005 to 2007 and then declined till 2009. In 2007, total grants were recorded at its peak of CNY 1,913.93 billion.

Current account balance 

 (Sources: The World Bank database, self-illustration)

China’s current account balance increased steadily until 2008. Since then it has dropped gradually to USD 201.71 billion in 2011.

Balance of Payments

(Source: The World Bank database, self-illustration)

China’s external balance of goods and services had been quite fluctuate from 2007 to 2011. In 2009, the balance of payments reached its bottom within this period amounting to USD 220.10 billion and gradually recovered back to 297.80 billion in 2011.

China is one of the most populated countries in the world.  It constitutes a large number of the world labour force. Indeed, the labour market is one of the most essential components of economic transition in China.

(Source: un.org) 

Unemployment rate

(Source: imf.org) 

From 2005 to 2008, China’s unemployment rate experienced a decline from 4.2% to 4%. In 2010, unemployment was estimated to reach 4.1%.

The labour force participation rate for females in the year 2008 was 69.3% while for males the rate was 78.2%. 

(Source: un.org) 

Minimum wage

In March 2010, officials in China’s Jiangsu province announced a minimum wage hike of 13% from RMB 850 (approximately USD 124.51) to RMB 960 (approximately USD 140.62) per month.

The labour unions and labourers have cited rising inflation and cost of living to justify their demand for the hike in wages.  

(Source: Pacific Bridge Medical) 

Level of Unionisation

Unions in China have been weak or virtually non-existent in the past. However, with the growing economic activity, their has begun a recent establishment of labour unions. 

In 2008, State-run All-China Federation of Trade Unions (ACFTU) announced plans to unionise foreign-invested enterprises. Additionally, ACTFU union leaders are involved in drafting a series of laws to empower unions.

ACFTU is the only trade union authorized by the government. The union comprises of provincial and industry federations as well as individual companies.

Unions in China are not very effective or powerful as compared to unions in any other part of the world.

(Source: International Journal of Employment Relations)

The government in China is based on a single party, socialist, republican framework. The People’s Republic of China was founded in 1949, after the Communist Party defeated the previously dominant nationalist Kuomintang, in a civil war.

The Communist party of China (CPC) dominates the Chinese Government. However, during a period of relative liberalization, the influence of people and organizations outside the party increased, allowing for the establishment of a market economy. With this market economy now in place, the CPC has limited, or no power, on the economic institutes. 

The Communist Party include:

•           The Central Discipline Inspection Commission
•           The Central Military Commission
•           The Politburo (includes members from Politburo Standing Committee)
•           The Politburo Standing Committee
•           The Secretariat, headed by the General Secretary

(Source: Government of China)

Regulatory Environment

(Source: Heritage.org)

China stands 135^th on the 2011 Economic Freedom Index with a score of 52. The country is ranked 29^th amongst 41 countries of the Asian-Pacific Africa region.

(Source: Heritage.org)

Freedom of information

In 2010, China was ranked 171^st on the Press Freedom Index. This index gives countries a scoreranging from zero, implying most freedom, to about 105. China scores 84.67 points on this index indicating very high regulations on the media.

(Source: rsf.org)

Corruption

The Corruption Perceptions Index (CPI) is a survey that measures the perceived level of corruption across countries worldwide. China is ranked 78^th out of 178 countries in the 2010 index, indicating that it is perceived as highly corrupt.

(Sources: Transparency.org)

Judicial System

The judicial system of the PRC, as established in Articles 123-135 of the constitution, consists of:

•            People’s Courts
•           The Supreme People’s Court
•           The People’s Procuratorates
•           The Supreme People’s Procuratorate, 
•            Military Procuratorates
•            Other Special People’s Procuratorates

The Supreme People's Procuratorate, accountable to the NPC and its Standing Committee, is the highest prosecutorial agency in China, exercising and supervising at all state and local levels.

The hierarchy of the court structure is:

•           The Supreme People’s Courts
•           The Higher People’s Courts 
•           The Intermediate People’s Courts 
•            The Basic People’s Courts

The Basic People’s Courts comprises of more than 3,000 courts,which function at a county level, which are further subdivided into about 20,000 smaller units referred to as people’s tribunals, that are located in towns and villages. 

There are approximately 376 Intermediate People’s Courts and 31 Higher People’s Courts in the provinces.

(Source: Law Info China)

Population

(Source: imf.org)

China’s population showed a steady rise from 2005 to 2009. In 2010, the population was estimated to be 1,341.41 million. 

In 2009, the population below 14 years of age constituted 20.2%. Men above 60 years of age made up 11.2%. Women constituted 12.6%.

(Source: un.org)

47% of China’s population is classified as urban.

(Source: undp, page: 181) 

The country’s gender ratio was recorded at 121.2 (men per 100 women) in 2010.

(Source: undp, page: 181) 

In 2010, the average life expectancy in China was 73.5 years and median age was about 34.2 years.

(Source: undp, page: 181) 

In 2008, the under-5 mortality rate (per '000 live births) was registered at 21.

(Source: undp)

In 2009, the crude birth rate was registered at 14 (per '000).   

(Source: unicef.org)

Human Development Index

The country is ranked 89^th on United Nation’s Human Development Index. It falls in the category of ‘Medium Human Development’. HDI integrates a country’s life expectancy, schooling and income. This signifies the overall social and economic development of a nation.

(Source: undp, page: 140)

Education

China has a major expansion plan for education. The state funds for education have been increasing annualy. For 2009, the government expenditure of education was about 56.76 billion Yuan. There has been a sharp increase in the enrollment of children for the undergraduate and graduate programs.

In 2010, the country’s literacy rate was 94.2%.

(Source: Ministry of Education, undp)

Health

The ‘Ministry of Public Health’ (MOPH) is the governing body of China’s health sector. It conducts health sector research, formulates policies and implements measures for improvement of healthcare services. MOPH is also responsible for the functioning of 11 medical colleges, which include 3 teaching hospitals.

Manufacturing and distribution of pharmaceutical products is supervised by the ‘State Pharmaceutical Administration’ (SPA). Hospitals at the local and county levels are operated by Local Public Health Bureaus.   

(Sources: Pacific Bridge Medical)

Road

In 2005, China’s total road length was measured at 1.9 million km.

(Source: GRSP Road Safety)

Railway

China’s total rail network in 2009 was recorded at 90,000 km. High Speed Rail (HSR) accounted for 6,500 km of the total length. In 2009, 30,000 km of HSR lines were under construction.

Road Classification (2005)

(Source: GRSP Road Safety)

In 2005, expressways made up 16.9% of the total network, while roads below Class III covered 83.1%.

Ports

There are about 2000 ports in China. Shanghai, Shenzhen, Qingdao, Tianjin, Guangzhou, Xiamen, Ningbo and Dalian are some of the biggest and the busiest ones. 

(Source: World Port Source,Government of China)

Airports

In total there are 41 airports in China:

(Source: Aircraft Charter World)

Telecommunications networks

Fixed telephone lines

(Source: itu.int)

In 2009, the numbers of fixed telephone line users in China was recorded at 313.73 million.

Mobile cellular subscriptions

(Source: itu.int)

In 2009, the number of mobile cellular subscription users in china was recorded at 747.21 million.

China’s major cellular service providers include China Mobile, China Unicom and China Telecom. Chinese government issued 3G licences in 2008, this enabled better internet connectivity.

In 2010, 420 million people, i.e. 31.6% of the total population, used internet services. In 2009, 28.7% of the population, which is about 384 million people, used internet.

(Source: Internet World Stats)