19 Surprising Chinese Economy Facts That You Probably Didn't Know
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China is the largest country in the world that manufactures and produces industrial goods.
The total Chinese economy, which is measured, has increased phenomenally over the last decade. Economic growth is measured in terms of GDP (Gross Domestic Product).
The GDP has increased 2.3% in 2020 and by 8% in 2021. However, in 2022, the Chinese economy is expected to decrease due to the global pandemic, but since it is one of the largest economies, it is expected to overcome the downfall.
In 2020, merchandise exports for China were $2,590,221 million and have increased by over 15.8%.
About 32% share of the global luxury brands market is owned by China. Moreover, it is believed that in the next five years China will surpass the USA to become the world's largest market for luxury goods, especially more prominent for urban areas as compared to rural areas.
Industries Of China
Let's read about the industries of China.
China is the world's largest exporter and importer in the world. The top contributors are copper core mining, building construction, real estate development, and management, online shopping and mail order, residential real estate, bridge subway, and tunnel construction, software development, steel rolling, and engineering services.
China started to reform its capitalist markets in 1978.
Since then, it diverted from state-owned enterprises and focused on collectively owned industries.
This led to a surge in the economy of the country and China became the second-largest economy after the United States of America.
In recent years it has transformed from an industrial to a consumer-based economy.
The largest industry in China is copper ore mining with $13,626,3 billion.
Anshan in Liaoning is one of the largest producers of steel output in China. The national bureau of statistics is directly under the People's Republic of China and regulates the Chinese economy.
Manufacturing Sector In China
Let's learn about the manufacturing sector in China.
Among all the other growing industries, the metallurgical and machine-building industries are being prioritized by the government. However, a deleterious side effect of these industries is the increased carbon emissions.
These two industries now account for 0.4% of the total industrial output.
However, scientific innovation in these commercial services is not enthusiastically encouraged as the GDP is given more priority than innovation. This is unlike the private sector, which is guided by private companies who want to manufacture goods and commodities for domestic demand as well as for foreign countries.
Chemical and petrochemical manufacturing is principally being expanded by the Government to include more output of chemical fertilizers, plastics, and synthetic fibers.
This has made China the largest economy in the world for nitrogenous fertilizers.
The major expansions in the case of consumer-based sectors include textiles, clothing, shoes, processed foods, and toys.
There are a number of textile centers in the country like Shanghai, Guangzhou, and Harbin.
The Tertiary sector contributes to almost 44% of total output in China. These include wholesale and retail trades like transport, storage, real estate, hotel, and catering services.
Service Sector In China
The service sector includes transport, wholesale and retail trades, storage, and shipping, hotel and catering services, financial services, real estate, and other services. In 2011, the Chinese government passed a plan to improve the service sector in the next five years.
The government started independent private firms in 1988. From then, the private sector boosted the economy.
The service sector output has doubled in the last two decades and now contributes to 54.5% of GDP.
This has made the service sector surpass the industrial sector in terms of its output.
In spite of different policy takes, the contributions of the service sector to the overall GDP are less than that in the USA.
Challenges In Economy Of China
The major challenge that China is facing like the world in terms of its economy is the COVID-19 pandemic. The COVID-19 has led to the disruption of tourism in China and has affected its imports and exports.
Due to its political controversy, the Chinese population is facing a crisis due to the disruption of local businesses and trade.
Chinese Consumers are also facing difficulties as international brands are unable to send their products to China as any connection with China will lead to critical consequences for the brands and make them 'anti-national'.
As of 2019, there are nearly 20 million private-controlled industries in China. But only 266,000 firms are controlled directly by the state. Thus there have been reports of mismanagement and unethical practices in the private sector solely for the purpose of profit.
FAQs
What is China's main economy?
Services, agriculture, and manufacturing mainly led to China's economy.
What is an interesting fact about China's economy?
The Chinese economy is boosting rapidly and may surpass the USA in the next five years.
Is China the number one economy?
When measured by personal power parity, China has the number one economy.
How important is China to the world economy?
It is the second-largest economy in the world.
Will China's economy fall?
The economy has fallen a little due to pandemics but will rise again in the next five years.
How does China make money?
The exact amount of money China makes is not known.
Is China richer than the USA?
In terms of GDP, it is not, but in terms of PPP, it has surpassed the USA.
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Bachelor of Science specializing in Mass Communication.
Adekunle Olanrewaju JasonBachelor of Science specializing in Mass Communication.
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