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 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.

Since 1979, China has largely rejected socialism and embraced capitalism, while  maintaining Communist party rule.  Private ownership of the means of production has dramatically reduced 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.

As late as 1980 60% of the people in rural China lives in poverty; by 2007 fewer than 5% did. Grain production has grown 300 to 500 tons per person, and rural income per person has soared from a few hundred yuan in 1980 to over 4000.<ref>See ''Economist'' Dec. 13, 2008</ref>

As late as 1980 60% of the people in rural China lives in poverty; by 2007 fewer than 5% did. Grain production has grown 300 to 500 tons per person, and rural income per person has soared from a few hundred yuan in 1980 to over 4000.<ref>See ''Economist'' Dec. 13, 2008</ref>