D. Economy of China

An image of the Lujiazui financial district of Pudong, Shanghai, the financial and commercial hub of modern China.
Above is a diagram showing the money reserves, excess earnings, and savings each country has. Notice the gigantic money stores China has.

Currently the economy of China is rising. The GDP for china as of 2010 is 8.88 trillion dollars, the 2nd highest GDP in the world. The Per Capita GDP of the U.S. is 47,123 and China’s is 6,567. The big difference between the Per Capita GDP and the GDP is simply because the U.S. has less people with a higher GDP, whereas China has more people and a slightly lower GDP. Thus, China's per Capita GDP will be lower. The GDP for china is rising at a rate of 10.46% and is estimated to surpass the U.S.’s GDP in the year 2016. China’s major exports include clothes, radios, cell phones, and office processing equipment. Before 1981 China had a highly communist government and wasn’t doing very well. Currently China has been moving towards free market and now has the second largest economy in the world, and is very successful. It has a mixed economy leaning toward command but over the years, after they realized communism and command doesn’t really work well, they have become more of a market economy than command and have an economic freedom score of 52%. Entrepreneurs have a small role in the economy due to corruption.  People can own businesses except oil, electricity, coal, and agriculture, which are government owned. China has become the world’s largest exporter. Its main exports are steel, iron, machinery and medical equipment.

Teacher Notes
  • China's economic freedom score is 52%. w\


  • China's GDP is 8.8 trillion dollars (USD) and the per capita GDP is 6,567 dollars. (USD)
  • China has a large steel and iron industry, as well as toy industries, electronic industries such as television and MP3 players, Information Technology industry, common consumer products industries, textile industry, shipbuilding industry, and some other small industries.
  • China's major exports include printing and other office processing equipment, cell phones, radios, etc., electronic machines, and clothes and other apparel.
  • China had a largely Communist government and economy 30+ years ago. Afterward, China wised up and began moving towards free market, and China has the 2nd largest GDP in the world. There is a lot of personal economic freedom, although entrepreneurship is still limited due to government rules and corruption


Quick Summary:
  • China has the world's 2nd largest economy.
  • The economic freedom score is 52%.
  • Entrepreneurship is limited due to government rules and corruption.
  • Large steel and iron industry.