Since the reform and opening-up，China's economy develops rapidly, being the second largest economy country in the world after the US, who is the biggest country of economy, with a GDP of over $ 7 trillion (2007) when measured on a purchasing power parity (PPP) basis. In November 2007, it became the third largest in the world after the US and Japan with a nominal GDP of US$3.42 trillion (2007) when measured in exchange-rate terms. And it grows fast on GDP, industry and production. China’s economy shows a fast-growing prospect.
Ancient china economy-In China, most people have spent most of their time farming for the last ten thousand years. In northern China, people mostly farm wheat, while in southern China it is mostly rice. But there was also a lot of trade in China, and between China and the West. People first used cowrie shells for money in China as early as 1800 BC, under the Shang Dynasty. Then people used metal imitations of cowrie shells, and then metal strings of beads called cash. We don't know whether the idea to make coins with writing on them guaranteed by the government came from Western Asia or not. But there were definitely bronze coins in China by the 400's BC in the Chou Dynasty.
China economic growth-China has been the fastest-growing major nation for the past quarter of a century with an average growth rate above 10%. In 2007, the industrial value increased to RMB10.7367t, up by13.5% year-on-year. The added value above scale upwards 18.5%. Among them, state-owned and state-owned holding enterprises increased by 13.8%, which realized a profit of RMB 9662 billion, up by 29.6%; collective enterprises by 11.5%, a profit of RMB 566 billion, up by 25.2%; stock enterprises by 20.6%, a profit of RMB12209 billion, up by35.1%; foreign-capital and Hong Kong, Marco, and Taiwan investment enterprises by 17.5%, a profit of RMB 6126 billion, up by34.3%; private enterprises by 6.7%, a profit of RMB 4000 billion, up by 50.9%.
Major industrial production volume increased quickly. In 2007, total volume of primary energy production reached 2.37 billion tons of standard coal, up by 7.0% year-on-year; 2.536 billion tons of raw coal, up by 6.9%; 187million tons of crude oil, up by 1.1%; 69.31 billion cubic meters of natural gas, up by 18.4%; 3.27772t kWh of electricity, up by 14.4%; hydroelectricity 482.88billion kWh, up by 10.8%. Raw coal consumption reached 2.58 billion tons, up by 7.9%; crude oil consumption 340million tons, up by 6.3%; natural gas consumption 67.3 billion cubic meters, up by 19.9%; electricity consumption 3.2632t kWh, up by14.1%. Crude steel production output amounted to 489.66million tons, up by 16.8% year-on-year; steel products 568.964 million tons, up by 21.3%; cement 1.36billion tons, up by 9.9%. Automobile production volume reached 8.887 million, up by 22.1%, among which cars were 4.798million, up by 24%.
China's per capita income has grown at an average annual rate of more than 8% over the last three decades, so it drastically reduced poverty, but this rapid growth has been accompanied by rising income inequalities. The per capita income is classified as low by world standards, at about $2,000 (nominal, 107th of 179 countries/economies), and $7,800 (PPP, 82nd of 179 countries/economies) in 2006, according to the IMF. With public ownership playing a dominant role in China’s economy and diverse forms of ownership, developing side by side is a basic characteristic of the socialist economic system at the preliminary stage. However, according to this growing trend, the sound development of China’s economy is a must.