China has been one of the world’s fastest growing economies. In real terms, China’s 1978 GDP doubled by 1986, tripled by 1991, quadruped by 1993 and quintupled by 1995. However, the population growth rate dropped to an average of 1.15 a year in 1993-97.
Chinese economy grew to $1.24 trillion in 2002, reaffirming its position of the world’s sixth largest economy. In 2007, it has already become the fourth largest in the world after the US, Japan and Germany, with a nominal GDP of $3.42 (when measured in exchange rate terms).
The country's per capita income is classified as low by world standards; according to the International Monetary Fund in 2006 it was only about $2000.
China’s economic reforms have transformed the country into a major trading power, with average growth of foreign trade of over 15% since 1980, faster than the growth rate of GDP.
In 2001 China has entered the World Trade Organization, which carried with it requirements for further economic liberalization and deregulation.
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China has been the leading foreign direct investment (FDI) recipient of the emerging markers since 1990s. Over half of the world’s top 500 largest firms have entered the country. Labour intensive market is a key factor for FDI inflows in China. FDI generally aims to take advantage of cheaper factor inputs in China, particularly cheaper labour for the export oriented FDI in which production is labour intensive.
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