Changes

These two factors have changed Chinese economy, from a command economy to a more socialist state, with the Chinese economy increasingly in the hands of privately-owned businesses, not state- or military-run enterprises. The 2001 declaration by Jiang Zemin (former leader of the Communist Party) of the "theory of three represents" -- that the CCP represents not only workers, but also intellectuals and entrepreneurs -- was an explicit affirmation of what had been a trend for the previous years

These two factors have changed Chinese economy, from a command economy to a more socialist state, with the Chinese economy increasingly in the hands of privately-owned businesses, not state- or military-run enterprises. The 2001 declaration by Jiang Zemin (former leader of the Communist Party) of the "theory of three represents" -- that the CCP represents not only workers, but also intellectuals and entrepreneurs -- was an explicit affirmation of what had been a trend for the previous years

 

Since 1980 China has enjoyed 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>

Since 1980 China has enjoyed 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>