Changes

After 1980 China had the highest economic growth rates in the world. Suddenly in mid-2008, the growth rate slowed sharply from 11% a year to only 5.5%.  Much of the economy was geared to exports, and building factories for exports to the United States and Japan.  When the [[Financial Crisis of 2008]] hit, exports fell off and prices for industrial products like steel fell in half.  Many factories were shut down.  The decline has especially hit steel, cement and the construction industry.  The government in November 2008 announced a $586 billion stimulus program to build roads, dams, electric grids and other infrastructure projects that are designed to supplement the international market.<ref> David Barboza, "Great Engine of China Slows ," [http://www.nytimes.com/2008/11/26/business/worldbusiness/26chinasteel.html?_r=1  ''New York Times'' Nov. 25, 2008] </ref>

After 1980 China had the highest economic growth rates in the world. Suddenly in mid-2008, the growth rate slowed sharply from 11% a year to only 5.5%.  Much of the economy was geared to exports, and building factories for exports to the United States and Japan.  When the [[Financial Crisis of 2008]] hit, exports fell off and prices for industrial products like steel fell in half.  Many factories were shut down.  The decline has especially hit steel, cement and the construction industry.  The government in November 2008 announced a $586 billion stimulus program to build roads, dams, electric grids and other infrastructure projects that are designed to supplement the international market.<ref> David Barboza, "Great Engine of China Slows ," [http://www.nytimes.com/2008/11/26/business/worldbusiness/26chinasteel.html?_r=1  ''New York Times'' Nov. 25, 2008] </ref>

===Economic Reforms===

===Economic Reforms===

Since 1979, China has reformed and opened its economy. The Chinese leadership has adopted a more pragmatic perspective on many political and socioeconomic problems, and has reduced the role of ideology in economic policy. China's ongoing economic transformation has had a profound impact not only on China but on the world. The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship. The result has been the largest reduction of poverty and one of the fastest increases in income levels ever seen. China today is the fourth-largest economy in the world. It has sustained average economic growth of over 9.5% for the past 26 years. In 2006 its $2.76 trillion economy was about one-fifth the size of the U.S. economy.  

Since 1979, China has largerly rejected socialism and embraced capitalism, while  maintaining Communsit party rule.  Private ownership of the means of production has dramatically reducedd poverty and increased wealth, especially in the cities but also in rural areas.  Nationally the GDP (in 2007 prices) has exploded from 2 trillion yuan in 1980 to 25 trillion in 2007.

 

 

The reforms reformed and opened its economy. The Chinese leadership has adopted a more pragmatic perspective on many political and socioeconomic problems, and has reduced the role of ideology in economic policy. China's ongoing economic transformation has had a profound impact not only on China but on the world. The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship. The result has been the largest reduction of poverty and one of the fastest increases in income levels ever seen. China today is the fourth-largest economy in the world. It has sustained average economic growth of over 9.5% for the past 26 years. In 2006 its $2.76 trillion economy was about one-fifth the size of the U.S. economy.  

In the 1980s, China tried to combine central planning with market-oriented reforms to increase productivity, living standards, and technological quality without exacerbating inflation, unemployment, and budget deficits. China pursued agricultural reforms, dismantling the commune system and introducing a household-based system that provided peasants greater decision-making in agricultural activities. The government also encouraged nonagricultural activities such as village enterprises in rural areas, and promoted more self-management for state-owned enterprises, increased competition in the marketplace, and facilitated direct contact between Chinese and foreign trading enterprises. China also relied more upon foreign financing and imports.  

In the 1980s, China tried to combine central planning with market-oriented reforms to increase productivity, living standards, and technological quality without exacerbating inflation, unemployment, and budget deficits. China pursued agricultural reforms, dismantling the commune system and introducing a household-based system that provided peasants greater decision-making in agricultural activities. The government also encouraged nonagricultural activities such as village enterprises in rural areas, and promoted more self-management for state-owned enterprises, increased competition in the marketplace, and facilitated direct contact between Chinese and foreign trading enterprises. China also relied more upon foreign financing and imports.  

Social and economic indicators have improved since reforms were launched, but rising inequality is evident between the more highly developed coastal provinces and the less developed, poorer inland regions. According to World Bank estimates, more than 152 million people in China in 2003--mostly in rural areas of the lagging inland provinces--still live in poverty, on consumption of less than U.S. $1 a day.  

Social and economic indicators have improved since reforms were launched, but rising inequality is evident between the more highly developed coastal provinces and the less developed, poorer inland regions. According to World Bank estimates, more than 152 million people in China in 2003--mostly in rural areas of the lagging inland provinces--still live in poverty, on consumption of less than U.S. $1 a day.  

Following the Chinese Communist Party's Third Plenum, held in October 2003, Chinese legislators unveiled several proposed amendments to the state constitution. One of the most significant was a proposal to provide protection for private property rights. Legislators also indicated there would be a new emphasis on certain aspects of overall government economic policy, including efforts to reduce unemployment (now in the 8-10% range in urban areas), to rebalance income distribution between urban and rural regions, and to maintain economic growth while protecting the environment and improving social equity. The National People's Congress approved the amendments when it met in March 2004. The Fifth Plenum in October 2005 approved the 11th Five-Year Economic Program aimed at building a "harmonious society" through more balanced wealth distribution and improved education, medical care, and social security.  

Following the Chinese Communist Party's Third Plenum, held in October 2003, Chinese legislators unveiled several proposed amendments to the state constitution. One of the most significant was a proposal to provide protection for private property rights. Legislators also indicated there would be a new emphasis on certain aspects of overall government economic policy, including efforts to reduce unemployment (now in the 8-10% range in urban areas), to rebalance income distribution between urban and rural regions, and to maintain economic growth while protecting the environment and improving social equity. The National People's Congress approved the amendments when it met in March 2004. The Fifth Plenum in October 2005 approved the 11th Five-Year Economic Program aimed at building a "harmonious society" through more balanced wealth distribution and improved education, medical care, and social security.

===Agriculture===

===Agriculture===