At the end of XIX - beginning of XX centuries. level economic development China was low. For a long time, the authorities tried to choose the most profitable way of modernization. The 1950s and 1970s were characterized by an industrialization policy based on central planning. In the 1950s, industrialization was carried out on the basis of state property and centralized distribution of production assets. Enterprises belonging to foreign capital and the comprador bourgeoisie were nationalized, and agrarian reforms were carried out. At that time, new industries arose, in the creation of which the Soviet Union helped.
At the end of the 1950s, the leadership of the Communist Party and the state was dominated by views on the possibility of catching up with the leading Western countries in terms of production volume in a short time - the theory of the "Great Leap Forward", people's communes. The development of handicraft industry, including the production of heavy industries, was stimulated. In agriculture, rapid collectivization was carried out with the socialization of farmland and the organization of production according to the factory principle. It limited wealth inequality in countryside, created the preconditions for capital accumulation, infrastructure development, ensured the existence of a huge growing rural population, but did not lead to an increase in labor productivity and increase standard of living. The Chinese economy experienced jumps of unevenness - the peak of growth in 1958 (21.3%) and the peak of decline in 1961 (27.3%).
In the 1980s, the economic development of the PRC was characterized by a transition from a centrally planned economy to market relations. The strategy developed at the end of 1978 economic reforms and policies of openness have helped China take a leading position on the world stage. On the eve of the reform rural population accounted for 82%, agriculture occupied 28% in the structure of the economy, while using 70% of the labor force.
The history of reforms in China is usually divided into three major periods.
The first covers 1978-1991 and includes 2 stages:
- 1. At the initial stage (1978-1983), the reform was carried out only on weak links traditional system A: On the one hand, this is rural reform, on the other hand, the opening of the southeast coastal region for foreign trade and investment.
- 2. 1984-1991 - an experiment with the reform of state enterprises, the creation of special economic zones.
aim second period (1992-2002) is the creation of a socialist system market economy. At the center of the reform is the slogan: "to create a system of modern (competitive) enterprises in place of state-owned enterprises."
Third the period began in 2003 characterizes the country's turn to resource-saving and environmentally friendly economic growth in the interests of the harmonious development of regions, improving the quality of life of people. The implementation of the new course is the main task of the 11th five-year plan, the main idea of which is harmonization - alignment regional development, reducing inequality between the city and the countryside, between regions, solving social problems, energy saving and solving environmental problems based on the scientific concept of development.
One of the reasons that led China to the backwardness of the economy is its closeness to the outside world and the rejection of international relations and cooperation. Based on the experience of the East Asian region in the development of foreign trade, the Chinese government decided to follow the course of foreign openness. The reform began with the approval by the CPC Central Committee in January 1979 of "special policies and flexible measures" for the provinces of Guangdong and Fujian, chosen to start the "openness" experiment. Then, since 1980, the consistent creation of special economic zones (SEZ) began, designed to increase the country's export potential. Hainan became the first fully open province in China in 1988. Thanks to the creation of the SEZ, a structure was formed foreign economy, where the main link was the industry.
The main features of Chinese SEZs are:
- - independent economic development based on the principles of market regulation;
- - reliance on foreign investment;
- - the main modern industry priority is industry (until 1989, China went to almost any foreign investment in the SEZ);
- - export orientation of production, wide involvement of imported raw materials;
- - inclusion of vast national regions;
- - Active interaction of the SEZ with the rest of the country.
- - tax system differentiated by regional peculiarities SEZ.
The main goals of creating a SEZ:
- - attracting foreign capital, advanced equipment and technology, mastering management experience, training national personnel;
- - increase in export foreign exchange earnings;
- - stimulation of the reform, preliminary "run-in" of its activities;
- - effective use natural resources;
- - stimulating the development of the country's economy as a whole, transferring advanced foreign technology and management experience to the country's interior;
- - creation of "buffers" in connection with the return of Hong Kong (1997) and Macau (1999);
- - mobilization financial opportunities Chinese emigration;
- - ensuring the accelerated development of those regions of the country where special zones of all types are located.
The development of the SEZ of China was favorably affected by both objective factors: low cost and excess labor; favorable geographical position (access to the sea, presence of ports), proximity to Hong Kong, Macau and Taiwan; in Hainan, the availability of favorable natural resources for the development of tourism, metallurgy, and tropical agriculture; and subjective: the course towards reforms and openness, taken since 1978; legal guarantees for foreign capital; economic benefits; an influx of resources from all over the country for the development of zones.
By the beginning of 2002, there were 6 special economic zones in China, more than 30 state zones economic and technical development, 14 open ports, as well as other free trade zones, customs areas, areas and territories with a special tax and trade status. SEZs are the most economically developed regions of the country. 4 out of 6 SEZs are located on the southeast coast.
The modernization carried out by the government contributed to the rise of the Chinese economy. During the years of reforms, China's GDP has grown several dozen times. At the same time, a steady growth in the production of almost all types of industrial and agricultural products continued.
In 2011, China's GDP was $7,298.1, second only to the United States. However, according to GDP per capita, China lags far behind the leading world powers and ranks only 94th.
If we count from 1978, then the average GDP growth was about 9.8%. In 2011, GDP growth was 9.2%, which is about 5 percentage points higher than the world average GDP growth and about 2 percentage points higher than the average for the Asia-Pacific region. In the future, according to the IMF, this trend will continue, but the average GDP growth will change around 8.5%.
The structure of China's economy has long been dominated by industry. However, the role of the service sector is gradually increasing. In 2009, the agricultural sector of the economy accounted for 11%, industry for 48.0% and services for 41.0%. Based on these data, it can be judged that China is approaching becoming an industrial country.
Foreign trade is one of the ways China cooperates with other countries. In terms of total trade, China is in the lead. In 1980, the volume of foreign trade was only 381 million US dollars. According to this indicator, China was in 32nd place, and its share in the global merchandise trade did not reach even 1%. According to the statistics of the Main Customs Administration of China, by 2011, the foreign trade turnover amounted to 36420.6 million dollars, while the share of imports was 52.1%. In general, the growth rates of imports and exports are declining. Lu Peirong, Vice Minister of the General Administration of Customs, sees the reason for this is that demand around the world is falling, while domestic costs are increasing.
The shares of China's exports and imports in total volumes of world merchandise exports and imports rose to 10.4% and 9.1%, respectively; China has been the world's largest exporter and second largest importer for three consecutive years.
In the commodity structure of imports since 1995, over a decade, the share of raw materials, finished products and machines were stable. The share of raw materials is at the level of 20% (increasing to 23.6% in 2006), finished products - 80%, of which machinery and equipment - 45%. Share of engineering products in 2005-2009 averaged 73.1%, mainly due to the import of the latest equipment from abroad. The share of raw materials tends to increase in recent years, which is necessary for China to maintain the pace of production and consumption at a high level. This primarily concerns the import of oil and gas resources for the development of chemical production and transport, high-quality coal for the energy industry and iron ore for metallurgy and the automotive industry.
Most of China's exports are machinery and instrumentation products, averaging 70.6% over the period from 2005 to 2009. In second place are light industry products, averaging 13.2% over the same period. If we analyze exports by commodity items within each of the industries, then clothing prevails in the export of textile goods, in metallurgy products, the main share is accounted for by iron, steel and products from them (5.4%). Category Vehicle the export of cars and spare parts for them is of great importance (2.3%). The Chinese engineering industry as a whole is characterized by high dynamics of development. This applies to the production of both certain types of machines for heavy industry, and household appliances and electronics.
Since the beginning of the reform and opening up policy, China has begun to comprehensively develop trade with foreign countries and has established trade relations with the vast majority of countries and regions in the world. The number of China's trading partners has increased during this time from a few dozen to 231 countries and regions.
Another form economic cooperation is the attraction foreign investment. In terms of attracted foreign direct investment, China has been a leader among developing countries since 1993. In 2010, foreign direct investment amounted to 106 billion dollars, which is 17.4% more than in the previous year. This was more than enough to cover the 2.3% drop recorded in 2009 as a result of the global economic crisis. More than one-fifth of all investment went to the private sector.
Due to the fact that China has moved from an extensive to an intensive type of development, the share of R&D spending, which is growing rapidly in China, plays an important role. If in 2006 R&D expenditures amounted to approximately 1.3%, then in 2011 it was already 1.7%. China is expected to overtake the United States in the next decade in terms of relative spending on the development of science and technology, but in absolute terms it is not possible to achieve this in a short time.
In China, great attention is paid to the development of new industries, such as: automotive, textile, equipment manufacturing, shipbuilding, electronic information, non-ferrous metallurgy, light industry, petrochemical industry and logistics. These industries have the following specifics: firstly, they basically belong to the category of leading sectors of the national economy and leading stimulants for increasing GDP. Secondly, they are characterized by high labor intensity and can employ many workers. Thirdly, they are being hit hard by the global financial crisis, as exports important role in these industries. Fourth, in recent years, productivity in these industries has been rapidly increasing, leading to an oversupply.
"Program of the XXI century." China consists of 4 parts and 20 chapters, covering 78 projects.
Main problems China's economic development are as follows:
There are other sectors of the economy where reform is being carried out at a slow pace. This applies to state-owned enterprises. On the other hand, modern production faces numerous difficulties, because commercial enterprises are not yet sufficiently strong and numerous.
High growth rates with low economic efficiency and poor product quality. GDP per capita remains relatively low. The structure of production is characterized by backwardness. The distribution structure is not rational enough, and scientific and technological progress has a relatively small impact on economic growth.
domestic market expanding dynamically. But at the same time there is fierce competition from foreign manufacturers. Chinese goods are often inferior in quality to foreign ones. Some national industries are in danger of being destroyed by foreign capital. AT similar situation entry into the global economy is very difficult. With the rapid development of exports and the low efficiency of domestic production, Chinese products remain insufficiently competitive.
The gap between the eastern and western regions of the country is growing.
Despite the expansion of the economy, unemployment is increasing, the number of jobs in state-owned enterprises is decreasing, the migration of the rural population to the cities is accelerating, which gives rise to many social problems. This exacerbates the problem of social instability. The income gap is widening. Farmers' incomes are slowly growing, which is detrimental to development Agriculture and stability in the countryside.
The purchasing power of the population remains relatively low, which slows down the pace of economic growth. Many old environmental problems to which new ones are constantly added.
The Chinese labor market is large, but its quality characteristics still leave much to be desired. Markets remain undeveloped: monetary and financial, real estate and qualified personnel. The level of education is very far from ideal.
Features of economic strategy are characterized by the following features:
1)Comprehensive character. It is necessary to take into account all the features of the specific situation in which the strategy will be implemented. The omnipresence manifests itself in various levels economy and various fields and scales: starting from the scale of the country and ending with a separate region, industry and individual enterprise.
2) Long-term. Any long-term development strategy should not be based on momentary interests. The economic strategy should be carried out on the basis of a plan for 10-15, 30-50 and even more years.
3)phasing. In the process of implementing any economic development strategy, it is necessary to outline the stages that would make it possible to single out the most urgent current tasks and methods for achieving them.
China borrowed economic strategy development in the USSR. The features of this strategy were: 1) the emergence of a centralized planned economy and state regulation; 2) too much attention was paid to the rate of economic growth while ignoring efficiency gains; 3) human, material and financial resources used to implement large-scale and ambitious projects while ignoring the needs of a harmonious economic, technological and social development. This strategy characterized by high growth rates, low efficiency, high savings rate, but with a low level of consumption. Through this strategy, China has been able to maintain high rates growth, form an independent national industry, maintain political and economic independence.
China in early XXI century is a space and nuclear power. The construction of a market economy is carried out in China under the leadership of the Communist Party on the basis of five-year plans. The economy retains its diversity. With a high share of foreign investment, almost 80% of all foreign investors in the PRC economy are ethnic Chinese (huaqiao) living abroad. By 2020, according to the plans of the CCP, China should catch up with the United States in terms of total GDP income.
To promote structural change, China is developing its own education system, teaching students abroad (especially in the US and Japan), encouraging the import of technologies that allow the development of such progressive sectors of the economy as manufacturing software, new materials, telecommunications industry, biotechnology, healthcare. China has over 384 million Internet users, and the country also leads the world in terms of the number of mobile phone users (487.3 million users as of April 2007). China's "Silicon Valley" has been created in the Haidian region north of Beijing. The intensification of production also brings side effects: the level of hidden unemployment in rural areas is about twice as high as the official figures (4.6%). China tacitly encourages emigration.
Despite the global crisis, which led to a recession in the economies of countries around the world, China's economy shows only a decline in economic growth, according to forecasts, up to 6-8% per year. Why is it that China competes and outperforms developed countries in terms of growth?
First of all, such successes are provided by reforms in the right direction. Back in 1978, Deng Xiaoping proclaimed a "New Deal" that has continued to this day. Thanks to consistent and gradual reforms, China's economy continues to grow, and plans to catch up with developed countries by 2050 and overtake the most strong economy world - the US economy.
A well-thought-out development strategy plays an important role in economic growth. As many probably remember, China began with the production of cheap consumer goods, but gradually developing production, China began to produce electronics and even cars, which, despite many attempts to compromise them, are confidently conquering the world market. Chinese goods have a good competitive potential due to their price. And the low cost of Chinese goods is formed due to the presence a large number cheap labor.
Conclusion
Thanks to the same cheap labor force and well-thought-out policy, foreign investors are attracted to China, who find it profitable to open production facilities here. Therefore, many well-known brands are made in China. Along with this, it also imports the latest technology. Nevertheless, in modern China, huge funds are allocated for the development of science and the creation of their own developments.
Of course, copying (often almost one-to-one) of goods from other manufacturers is still flourishing in China, but this makes the product even cheaper, since it does not require development costs. The Chinese authorities sometimes make attempts to combat such piracy, but this struggle does not have much success, since due to the closure of copying industries, many jobs will be lost and cash receipts to the state.
A huge advantage of the Chinese economy is the thoughtful financial policy: managing the yuan exchange rate, inflation, etc. China is happy to invest in everything - from valuable papers and ending with metals, oil and other resources that can generate income.
A pre-prepared and step-by-step program to combat the crisis helped China to stay with a growing economy during the crisis.
Thanks to the combination of all factors, China, at the moment, is a dynamically growing country. And although it also cannot do without problems (these are the environment, and overpopulation, and the lack of natural resources, and many others), it is quite possible that soon China will become the first in the world not only in terms of population, but also in terms of economic power.
Of course, copying (often almost one-to-one) of goods from other manufacturers is still flourishing in China, but this makes the product even cheaper, since it does not require development costs. The Chinese authorities sometimes make attempts to combat such piracy, but this struggle does not have much success, since many jobs and cash flows to the state will be lost due to the closure of copying industries.
A huge plus of the Chinese economy is a well-thought-out financial policy: managing the yuan exchange rate, inflation, etc. China is happy to invest in everything - from securities to metals, oil and other resources that can bring income.
A pre-prepared and step-by-step program to combat the crisis helped China to stay with a growing economy during the crisis.
Thanks to the combination of all factors, China, at the moment, is a dynamically growing country. And although it also cannot do without problems (these are the environment, and overpopulation, and the lack of natural resources, and many others), it is quite possible that soon China will become the first in the world not only in terms of population, but also in terms of economic power.
Bibliography:
1) BUYAROV, D / MODERN CHINA. SOCIO-ECONOMIC DEVELOPMENT, NATIONAL POLICY, ETHNOPSYCHOLOGY
2) World economy/Economy of the countries of the world/China
The rapid and successful development of the economy is due to the large volume of industrial production and proper management country's export policy.
Financial system
The main currency in China is the yuan. It is believed that the yuan can become a competitor to the US dollar. However, at present, the yuan is directly dependent on the dollar, and the change in its exchange rate is strictly controlled by the state. Since China is the leader in export trade, the appreciation of the yuan will have a negative impact on all sectors of the economy.
Now China is in first place in the world in terms of foreign trade. The most popular are electronics, cars, toys and textiles.
China not only successfully exports products, but also invests in the economy of other countries. For example, the volume of investments in states located on the territory of the African continent is more than a trillion dollars. In addition, Beijing is successfully implementing its projects in the construction, energy and transport sectors.
Development of economic sectors
Since the end of the 20th century, China's economy has grown rapidly. Most of the structure country's GDP occupies industry, agriculture and services. The most actively developing:
- mechanical engineering;
- automotive industry;
- healthcare;
- industry in the field of information technology;
- Internet trade.
The rapid pace of development is especially noticeable in agriculture and industry.
Agriculture
All lands suitable for plowing are actively used. Rice is grown on most of the land, which is the main crop. In addition to rice, soybeans, potatoes, wheat and other crops are grown in China. In animal husbandry, China occupies a leading position in breeding chickens and pigs. Sheep breeding is developing rapidly. A large number of reservoirs in the country contributes to the active growth of fisheries. The pace of development of the agricultural sector directly depends on natural factors. Constant droughts and floods threaten its further development.
Industry
Construction and industry is the backbone of China's economy. One fifth of the global industry belongs to China. Almost half of the country's GDP comes from these industries. The automotive industry is developing at an active pace. personal computers and steel. Special attention given to the development of the energy industry. A large amount of resources are invested in the development of nuclear and alternative energy(construction of wind farms).
The influence of foreign capital on the Chinese economy
The main feature of the Chinese economy is state control for foreign investment in a number of industries. For example, the intervention of foreign partners in such industries as:
- mining industry;
- production of nuclear fuel and radioactive materials;
- air traffic.
In social activities there is a strict ban on the presence foreign capital in the following areas:
- GMO production;
- publishing activity;
- social studies.
Government purchases are available to foreigners, but the amount is regulated by Chinese law. AT financial sector The “rights” of foreign investors are also limited. In banks, the volume of foreign investments should not exceed 25%, in the securities market - no more than 49%. In the telecommunications and construction industry, the presence of foreign investment is not more than 50%, and in the construction sector, the participation of foreign capital is limited to construction office buildings, hotels and inns.
China's economic development can rightly be called phenomenal. China is a leader in many sectors of the economy and has a significant impact on global trade.
Since the late 1970s, China has shifted from a closed, centrally planned system to a more market-oriented economy that is one of the largest in the world - in 2010, China became the world's largest exporter. The reforms began with collectivized agriculture and expanded through gradual price liberalization, financial decentralization, increased autonomy for state enterprises, creating a diversified banking system, developing stock markets, rapidly growing the private sector and increasing openness to foreign trade and investments. China has implemented reforms gradually.
In recent years, China has renewed its support for state-owned enterprises in sectors it deems important for " economic security," clearly aiming for leadership in global competition. After maintaining the currency in a hard peg against the US dollar for many years, in July 2005 China revalued the yuan and moved towards valuation of its exchange rate against a basket of currencies. However, , the exchange rate still remained effectively pegged to the dollar until June 2010, when Beijing again decided to gradually revalue the yuan.
Economic restructuring and efficiency gains contributed to a more than tenfold increase in China's GDP between 1978 and 2010. Measured at parity purchasing power currencies (PPP), this indicator in 2010 became the second largest in the world after the United States, surpassing Japan in 2001. The dollar value of China's agricultural and industrial output already exceeds that of the US; China is second only to the US in terms of the total value of the service sector it produces. However, per capita income remains below the world average.
The Chinese government is facing numerous economic challenges, including: (a) reducing high internal norm savings and correspondingly low domestic demand; (b) supporting a corresponding increase in employment for tens of millions of migrants and the creation of new jobs; (c) reducing corruption and other economic crimes; and (d) environmental damage and growing social inequalities, which are relevant to the rapid transformation of the economy. Economic development was much faster in coastal areas than inland, and some 200 million rural laborers and their children moved to the cities to find work. A consequence of the "one child" policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - especially air pollution, soil erosion, and steady subsidence of the water table, especially in the north - is another long-term problem. China continues to lose arable land due to erosion and economic development. The Chinese government is seeking to add power generation capability from sources other than coal and oil, focusing on nuclear and alternative energy development.
In 2009 the global economic crisis lowered demand for Chinese exports for the first time in years, but China quickly recovered to growth of around 10% a year, outperforming all other major industrialized nations. The Chinese economy appears to be growing at a steady pace in 2011-2016 as well, mainly due to the stimulus policies pursued by the ruling regime during the global financial crisis. Government pledges contained in the 12th Five Year Plan, adopted in March 2011, aim to continue transforming the economy and highlight the need to boost domestic consumption to make the economy less dependent on exports in the future. However, China is likely to make only isolated progress towards these goals. two economic problems What China is currently facing is inflation - which, at the end of 2010, exceeded the government's target of 3% and local government debt, which has skyrocketed as a result of stimulus policies and can be classified as bad debt.
China at the beginning of the 21st century is a space and nuclear power. The construction of a market economy is carried out in China under the leadership of the Communist Party on the basis of five-year plans. The economy retains its diversity. With a high share of foreign investment, almost 80% of all foreign investors in the PRC economy are ethnic Chinese (huaqiao) living abroad. By 2020, according to the plans of the CCP, China should catch up with the United States in terms of total GDP income.
To promote structural change, China is developing its own education system, teaching students abroad (especially in the US and Japan), and encouraging the import of technologies that allow the development of such progressive sectors of the economy as the production of software, new materials, the telecommunications industry, biotechnology, and healthcare. China has over 384 million Internet users, and the country also leads the world in terms of the number of mobile phone users (487.3 million users as of April 2007). China's "Silicon Valley" has been created in the Haidian region north of Beijing. The intensification of production also brings side effects: the level of hidden unemployment in rural areas is about twice as high as the official figures (4.6%). China tacitly encourages emigration.
China's GDP in 2010 amounted to 6.27 trillion. dollars compared to 5.02 trillion. dollars a year earlier. China's GDP in 2010, calculated taking into account the purchasing power parity (PPP) of currencies, according to the IMF, amounted to 10.1 trillion. dollars, and in 2011 - 11.2 trillion.
Chinese industry
Reforms in China have led to changes in the distribution of business and industry. During the time of Mao Zedong, new iron and steel plants, automotive and machine building enterprises were built mainly in the north and northeast of the country, in such cities as Anshan, Shenyang, Jilin (Jilin), etc. Large industrial centers were inherited from the past, for example city of Shanghai.
The opening of China to foreign investment and the formation of special economic zones stimulated the movement new wave industrial activity in coastal areas, in particular in South China. Guangdong took advantage of its proximity to Xianggang (Hong Kong), while Fujian took advantage of its ties to Taiwan. Growth economic activity in Guangdong was of particular importance, and this area has now become the main source of foreign exchange earnings. The former superiority of Shanghai as an industrial center was restored after the creation of a new industrial complex on the Huangpu River. The coastal cities of the northern provinces have also benefited from foreign investment and new connections to the world market.
Currently, China leads the world in the extraction of coal, iron, manganese, lead-zinc, antimony and tungsten ores, as well as timber; is the world's largest producer of coke, iron, steel and steel pipes, aluminium, zinc, tin, nickel, televisions, radios and mobile phones, washing and sewing machines, bicycles and motorcycles, watches and cameras, fertilizers, cotton and silk fabrics, cement, shoes, meat, wheat, rice, sorghum, potatoes, cotton, apples, tobacco, vegetables, mulberry cocoons; has the world's largest population of poultry, pigs, sheep, goats, horses and yaks, and also leads in fish catches. In addition, China is the world's largest automaker (18 million in 2010). On the territory of the PRC, oil, gas, rare earth metals (molybdenum, vanadium, antimony), and uranium are being extracted.
As of 2010, industry and construction accounted for 46.8% of China's GDP. In 2009, approximately 8% of the world's total manufacturing output was of Chinese origin, and China ranked third globally in industrial output in 2009 (first in the EU and second in the US). Research shows that in 2010, China produced 19.8% of the world's manufactured output and became the world's largest producer, after the US held that position for about 110 years.
Major industries include mining and ore processing; iron and steel production; aluminum; coal; mechanical engineering; arms production; textiles and clothing; oil; cement; chemical industry; fertilizer production; food industry; production of automobiles and transport equipment, including wagons and locomotives, ships and aircraft; production consumer goods, including shoes, toys and electronics; telecommunications and Information Technology. China has become an attractive location for factories. the rise in manufacturing has boosted incomes and employment in China. The public sector in industry still accounts for approximately 30% of GDP. In recent years, the authorities have paid more attention to the management of state assets in the financial market.
Since the founding of the People's Republic industrial development China has received considerable attention. Among the various industries, mechanical engineering and the metallurgical industry received the highest priority. These two industries alone now account for approximately 20-30% of the value of the country's total industrial output. True, in these industries, as in most other industries, extensive growth prevailed over intensive growth, as a result of which the assortment and quality of products suffered. Industrial production has grown at an average rate of more than 10% annually over the past two decades, surpassing all other sectors in terms of economic growth and degree of modernization. Some heavy industries and manufacturers of goods of national strategic importance remain state-owned, but the rest are private or public-private joint ventures.
The development of the chemical industry is aimed at increasing the production of chemical fertilizers, plastics and synthetic fibers. The growth of this industry has placed China among the world's leading producers of nitrogen fertilizers. In the consumer goods sector, the focus is on textiles and clothing, which are also an important part of China's exports. Textile production, whose rapid growth is due mainly to the production of synthetic fabrics, accounts for approximately 10% of industrial output and continues to be an important industry, but less significant than before. Industry is dispersed throughout the country, but there are many textile centers including Shanghai, Guangzhou and Harbin.
The main state industries are the production of iron, steel, coal, engineering, light industry, armaments and the textile industry. As a result of the economic reforms carried out, there has been a significant increase in production in enterprises supported by local governments, especially in small towns and villages and, more and more, by private entrepreneurs and foreign investors. The industrial census of 1996 showed that there were 7,342,000 industrial enterprises in the country (at the end of 1995); full-time industrial employment was approximately 147 million. According to the 1999 census, there were already 7,930,000 industrial enterprises in the country (at the end of 1999, including small urban and rural enterprises); full time for state-owned enterprises amounted to approximately 24 million people. Since 2000, the country's automotive and petrochemical industries have grown significantly. Mechanical engineering and electronic products have become China's main export commodities. China's construction sector has also grown significantly since the early 1980s. In the 21st century, investment in capital construction grew at a rapid pace every year. In 2001 investments increased by 8.5% over the previous year, in 2002 - by 16.4%, in 2003 - by 30%. The industrial sector in 2004 amounted to 44.1% of GDP and provided 22.5% full time. In 2005, the volume of industrial production and construction amounted to 53.1% of GDP.
China is the largest steel producer in the world, and steel industry has rapidly increased its production in recent years. Iron ore production kept pace with steel production in the early 1990s but lagged far behind with imports of iron ore and other metals in the early 2000s. Steel production increased from approximately 140 million tons in 2000 to 419 million tons in 2006. Most steel is produced in small factories. China is the main exporter of steel in the world. The volume of steel exports in 2008 amounted to 59.23 million tons (a decrease of 5.5% compared to 2007).
By 2006, China had become the world's third largest vehicle manufacturer (after the US and Japan) and the second largest consumer (after the US alone). Car production literally skyrocketed during the reforms. In 1975, only 139,800 cars were produced, but by 1985 production had reached 443,377 units, then jumped to almost 1.1 million in 1992 and then increased evenly every year until 2001, when it reached 2.3 million units. In 2002, China's car production rose to almost 3.25 million, in 2003 to 4.44 million, in 2004 to 5.07 million, in 2005 to 5.71 million, in 2006 to 7.28 million, in 2008 to 8.88 million, in 2009 to 9.35 million and in 2009 to 13.83 million units. China became the world's number one automaker in 2009. Domestic sales kept pace with production. After respectable annual gains in the mid- and late 1990s, passenger car sales skyrocketed in the early 2000s. In 2006, a total of 7.22 million vehicles were sold in China, including 5.18 million passenger cars and 2.04 million trucks. Since 2010, China has become the world's largest vehicle manufacturer as well as its largest buyer.
It should also be noted that China is the largest producer of sex toys in the world (70% of the world production of sex toys). There are about 1,000 enterprises in the country in this industry, which produces products worth approximately 2 billion dollars a year. As of 2011, China is the world's largest market for personal computers.
Energy in China
During the 1950s, China imported a relatively small amount of oil from the USSR, but in the mid-1960s, after exploring a large oil field in Heilongjiang province, it switched to self-sufficiency. With subsequent discoveries oil fields, especially in the provinces of Shandong and Hebei, the potential for oil production has more than doubled. As of early 1997, general reserves oil in the PRC amounted to 94 billion tons. Large oil reserves have been explored in Northwest China - in the province of Gansu, the Xinjiang Uygur Autonomous Region, in the Tsaidam depression (Tibetan Plateau); in Northeast China - in the valleys of the Songhua and Liaohe rivers. In the early 1980s, China undertook intensive offshore exploration. Promising oil fields have been identified in the Bohai and Liaodong bays, the East China and South China seas. In 1996, China became the fifth largest oil producer in the world.
Compared to Japan, Western Europe and North America, factories in China typically used three times as much electricity per unit of output. However, with the adoption of measures to rationalize the economy in the 1980s, China discovered a new "source" of energy - saving energy resources. The result has gone far beyond simply improving the efficiency of specific industrial processes and has led to an adjustment in the energy mix. Various energy-saving measures, including the closure of the most obsolete factories and the attraction of new foreign enterprises and technologies to the country, have reduced overall energy consumption by almost 40%.
Since the early 1970s, several attempts have been made to address the problem of electricity shortages in rural areas. Thus, the construction of small hydroelectric power plants has brought noticeable changes in certain mountainous regions of southern China, where a large amount of precipitation falls. In other places, on empty slopes, plots were set aside for planting trees specifically for firewood. More advanced stoves for cooking began to be used everywhere. The opening of private small coal mines has eased the problem of fuel supply in some provinces.
China once provided energy resources not only for itself, but also for its neighbors - South Korea and Japan. Since 1993, it has moved from the first group of energy suppliers to the second, becoming a net importer of oil, and 10 years later, in 2003, it ranked second in the world after the United States in terms of oil imports. From now on, Beijing needs to pursue a well-defined energy security strategy in foreign policy.
Coal has always dominated China's energy mix, followed by hydropower, oil, and nuclear energy. The richest deposits of coal are concentrated in China, the country ranks first in the world in its extraction. The deposits are concentrated mainly in the northern and northeastern provinces (the Shanxi province alone accounts for about a quarter of all coal production). Among the most major centers coal mining stand out Huainan, Hegang, Kailuan, Datong, Fushun, Fuxin. In addition, a lot of small deposits are scattered throughout the country, and about half of the coal is mined in 11,000 small coal mines.
True, after coal exports reached 70 million tons in 2003, export volumes began to fall. There was an increase in imports mainly from Australia and Indonesia. The leadership of the largest coal corporations assures that this is only a temporary measure, and the problem will soon be solved by increasing the local level of production. However, according to the Energy Information Administration, imports of coking coal will only grow, and if in 2004 it amounted to 7 million tons, then in 2030 it will be 59 million tons.
Rapid economic growth makes the PRC increasingly dependent on energy imports. This is a two-way process, as a result of which China is increasingly influencing world energy markets, the energy policy of other countries, world energy prices, stimulates production growth, as well as redistribution and the creation of new supply chains. So, at present, the share of China's imports in the world oil market is 8%, and in global demand growth since 2000 - 30%. At the same time, according to the calculations of the Cambridge Energy Research Association (CERA), all of Asia over the next 15 years will account for half of the total increase in oil consumption. Thus, it is possible with full confidence say that there has been a gradual transition of dominance in the energy sector from developed to developing countries. At the same time, energy security becomes a matter of national security, maintaining the pace of economic development, as well as the environment.
In order to diversify consumption energy resources China needs to increase its share of natural gas consumption. Gas accounts for only 3-4% of energy consumption, while in most other countries this figure is 20-25%. According to the Energy Information Administration, the consumption of this type of fuel, from 2003 to 2030, will grow by an average of 6.8% annually. By 2020, China will consume 200 billion cubic meters of natural gas, and only 120 billion of them will be covered by domestic sources. Meanwhile, domestic gas sources are severely limited, by 2010 the shortage reached 20 billion cubic meters, and by 2015 it will reach 40 billion cubic meters, according to estimates by the Energy Research Center of the Development and Reform Committee.
In the last published national strategy development of the Chinese energy sector for the period up to 2020, a large share is made up of plans for the development of nuclear energy. It is planned to put into operation at least 1.8 GW of nuclear generating capacities annually, so that by 2020 the total capacity of Chinese nuclear power plants will increase to 40 GW, which by then should be about 4% of the country's total energy balance. Over the past 20 years of development, Chinese nuclear power has built nuclear power plants with a total capacity of power units at the level of 6.7 GW, which provides a little more than 1% of all electricity generation in the country.
In 2009, China ranked third in the world in terms of total wind energy capacity - 25,104 MW. At the end of 2009, about 90 Chinese companies produced wind turbines, more than 50 companies produced blades, and about 100 companies produced various components.
During the 11th Five-Year Plan, China was going to build about 30 large wind farms with a capacity of 100 MW or more. According to the national development plan, China's installed capacity was to grow to 30,000 MW by 2020. However, the rapid development of wind energy in the country made it possible to pass this milestone already in 2010. In the same year, China overtook the US to become the world leader in installed wind capacity, surpassing the 40,000-megawatt threshold.
In 2009 China had 226 GW of renewable energy power plants. Of these, 197 GW of hydroelectric power, 25.8 GW of wind farms, 3,200 MW of biomass, and 400 MW of photovoltaic power plants connected to electrical networks. By 2020, the Chinese government plans to build 300 GW of new hydroelectric power plants, 150 GW of wind farms, 30 GW of biomass plants, and 20 GW of photovoltaic power plants. The total capacity of power plants operating on renewable energy sources will reach 500 GW., The capacity of the entire power industry in China will grow to 1600 GW. by 2020.
Agriculture in China
The most important sector of the Chinese economy is agriculture. The leading branch of agriculture is crop production. In 2007, China harvested 500 million tons of grain. This is a record figure in the history of the country. The government pursued a policy of comprehensive support for the peasants, sought to improve their lives. The peasantry was completely exempted from the agricultural tax, the slaughter tax and the tax on special agricultural products, and the provision of special subsidies was determined, for example, subsidies for peasants engaged in agricultural activities, subsidies for breeding breeding seeds, for the purchase of agricultural implements and equipment. Subsidies to grain growers and payments to counties that produce large amounts of grain increased. A policy of minimum purchase prices for the main varieties of cereals was introduced. In a number of areas introduced government order with guaranteed purchase of crops from peasants at guaranteed prices. Another area of assistance to peasants was the simplification of the issuance of loans to peasants and the provision of gratuitous assistance.
The Chinese government has abolished all three types of rural contributions: to the accumulation fund, social fund and fund administration at the village level, as well as those collected by the authorities additional charges for education, planned childbearing, road construction and some others. All these costs are now covered by state budget. Thus, the Chinese peasantry received a big gain. The average annual income of peasants has increased by more than eight percent in the past three years.
In order to increase the interest of farmers in grain production, the Government decided to allocate special funds to farmers involved in grain production in the amount of about 1.4 billion US dollars in 2006. Another component of the success that Chinese farmers achieved in 2006 is confidence in the future. In 2006, the central government provided nearly $1.94 billion in rural benefits. This amount is 20% more than in 2005. The government has promised to cover the entire rural population of the country with a social insurance system that will include social benefits, social insurance, health insurance etc.
Medicine remains one of the main concerns for Chinese peasants. To solve it, a system of cooperative medical care. At the end of 2006, the population of 80% of rural counties was covered by the system of such services. A participant in this system pays an annual fee of ten yuan. Another ten yuan is added by the local government. And, if a peasant falls ill, then almost all the expenses for his treatment are covered by the insurance company.
A great contribution was made by Chinese scientists-breeders. They developed hundreds of new varieties of cereals. The biggest success of Chinese breeders has been hybrid rice, which yields far more than conventional varieties and has increased the grain harvest by hundreds of millions of tons in 25 years. According to the plans of the Chinese government, by 2020, the country should become a leading force in the field of rural science, despite climate change and a lack of natural resources.
The priorities for the development of agriculture at present and in the coming years are:
1) strengthening, improving and intensifying policies in the interests of agriculture and a significant increase;
2) guaranteeing the basic supplies of the main types of agricultural products and actively promoting the growth of peasant incomes;
3) the priority of infrastructure construction in agriculture and the acceleration of the improvement of the production conditions of this sector;
4) strengthening the role of science, technology and human resources in the development of agriculture and the comprehensive development of socialized services;
In 2007, the Chinese Government continued to strengthen financial support for agriculture. Direct general subsidies for agriculture reached $59 billion in 2007, an increase of 63% over the same period in 2006. In 2007, the Chinese Ministry of Agriculture launched "ten programs" aimed at developing modern agriculture. The targets set for 2007 assumed that the net income of peasants would grow by at least 5%, and the gross grain harvest would be no less than in 2006.
Grain production in the country in 2007 exceeded 500 million tons against 497 million tons produced in 2006. Analysts of the ministry note a gradual decline in annual grain consumption per capita - from 412 kg in 1996 to 378 kg in 2006.
China ranked first in the world in terms of vegetable exports and fruit production. In recent years, the area under vegetable crops has been significantly expanded in the country. If in 1996 their total area was 11 million hectares, in 2006 it reached 15 million hectares. The volume of vegetable production can not only satisfy domestic demand but also to increase their exports. In 2007, a mechanism for monitoring the quality and safety of products was created at 676 wholesale markets for agricultural products in large and medium-sized cities.
The total area of orchards increased from 9 million hectares in 1996 to 10 million hectares in 2006, during this period, the volume of fruit harvest increased from 46.53 million tons to 95.99 million tons. Currently, fruit production in China is 17% of the world volume. In 2007, the gross aquatic production of Inner Mongolia Autonomous Region (Northern China) reached 94,000 tons, an increase of 8%. The net per capita income of fishermen amounted to USD 740 with an increase of 10%.
In 2007, fish farming is developing steadily in China, Chinese market a wide range of aquatic products is presented, prices for seafood are stable, trade turnover is growing. Gross production in this area in 2007 amounted to about 69.4 billion US dollars.
The rapid development of fisheries in Inner Mongolia is supported by local and state financial support. In 2007 alone, the state allocated $158.3 million to the owners of 568 fishing boats in the form of subsidies, and the Ministry of Agriculture allocated more than $1.7 million for the construction of fisheries infrastructure in the region. In 2008, the main focus of the work will be on the management legislative framework in the field of livestock and fish farming, it is mainly about guaranteeing the quality and safety of aquatic products, as well as expanding openness to the outside world and raising the level of international cooperation in this area.
The growth of the country's population leads to an increase in the consumption of basic types of agricultural products. The main task in 2008, the ministry calls the further increase in the production of grain crops in the country, both by increasing the area under crops, and by increasing the yield.
According to analysts from the Central European Information Group, high world wheat prices will lead to a sharp increase in flour exports from China this season. In particular, according to various estimates, the country exports in 2007-2008 MY from 0.7 to 1 million tons of flour, deliveries will be made mainly to the countries of Southeast Asia (Philippines, Vietnam, Indonesia).
China has a developed milling industry, in addition, a fairly high wheat harvest this season allows the production and export of significant volumes of wheat flour. However, flour exporters fear that the government may impose restrictions on wheat exports, since in 2007 the Chinese market experienced a significant increase in prices for wheat and flour, as well as for other food products. In 2008, China once again ensured the grain harvest within the same limits and did everything necessary to adequately supply the population with basic agricultural products. Since the second half of 2007, China has seen a rapid increase in prices for agricultural products, including pork and edible oils. This is due to rising global prices for such products, rising labor costs and accelerating urbanization in China.
Developing production and increasing supply are key to stabilizing agricultural prices in China. In 2008, the Ministry of Agriculture continued to provide rural areas active assistance in the production of grains, oilseeds and pork in order to contain the excessive growth of domestic prices for agricultural products.
China foreign trade
A characteristic feature of the modern Chinese economy is its dependence on the external market. In terms of export volume, China ranks first in the world. Export provides 80% of the state's foreign exchange earnings. About 20 million people are employed in the export industries. 20% of the gross output of industry and agriculture is exported to the foreign market. The export nomenclature includes 50 thousand items. The PRC maintains trade and economic relations with 182 countries and regions of the world, with 80 of them signed intergovernmental trade agreements and protocols. China's main trading partners are the developed capitalist countries, primarily Japan, the United States, and Western European states, which account for 55% of foreign trade turnover. The most competitive products are still shoes, clothes and toys, but the export of electronics, bicycles, motorcycles and vehicles, transport and construction machinery is becoming more and more active. Since 2004, China has confidently led the world in terms of exports of office and telecommunications equipment, and since 2005, in general, in terms of high-tech exports.
The textile industry of China is the first in the world, so China's export products are represented in most countries. Textile enterprises specialize in the manufacture of clothing from synthetic fabrics. Enterprises in this industry are scattered throughout the country, but the largest are located in Shanghai, Canton and Harbin. Chinese export products supplied to North America, Japan, Western European countries have the highest quality standards. These products are produced in the coastal provinces of the country, where numerous branches of foreign corporations are concentrated. Numerous artisanal enterprises are based in the northern and inland regions, producing counterfeit products of the world's leading brands. These products are of low quality and the price is the same as the price of similar quality products.
Since the mid-1980s, the provision of the population with food has been achieved. Today, fruits, fish, and seafood are exported (the main food market is the CIS countries, especially the Far East region of Russia, which is provided with Chinese food by 44%). In addition, cotton is the leading agricultural export product. With the opening of the Natu-La pass in 2006, trade with India increased.
Meanwhile, the positive balance trade balance China in 2011 will amount to 150 billion dollars. This forecast was presented by the country's Ministry of Commerce. Thus, this figure will be significantly reduced - in 2010 it was $183 billion, and in 2009 it even exceeded $196 billion. The document notes that the prospects for export growth have deteriorated amid unfavorable economic conditions.
China transport
Eastern China, which accounts for a third of the country's territory, is the most densely populated region in the world, but even here the transport network remains underdeveloped. The overall increase in the length of Chinese railways compared with 1979 was less than 10%. During the same period, the number of passenger cars increased by almost 70%, and the volume of passenger traffic tripled. Rail freight traffic doubled between 1970 and 1990, exceeding 1.5 billion tons per year. The main object of freight traffic in rail transport is hard coal, which accounts for more than 40% of the total tonnage. Due to the fact that the vast majority of high-quality coal deposits are concentrated in the north of the country, and the booming industries are in the south, the average coal transportation distance is currently approx. 750 km. In the mid-1990s, with a total length of 54,000 km of railways, only 25% of double-track roads were used, while electrified roads accounted for approx. 12%. The locomotive fleet consists of approximately half of steam locomotives and only 15% of electric locomotives.
Road transport increased rapidly. The total length of highways in 1995 amounted to 1.15 million km (approx. 85% of the roads were laid before 1992), and the total volume of passenger road transport - 10.5 billion people and freight - 9.5 billion tons. public transport is inexpensive, but the bus fleet is outdated and the buses are always crowded. Although the number of private cars remains very low (one car per 480 people), the streets of large cities quickly filled with taxis and cars belonging to government agencies and firms.
Inland waterways, which have traditionally played a major role in the transport of people and goods, now account for only a few percent of passenger traffic and less than 10% of freight traffic. Inland shipping lanes are approx. 110 thousand km, and 2 thousand of them belong to the ancient Grand Canal. Most of the internal river cargo and passenger traffic falls on the river. Yangtze and its basin (with a total length of navigable routes of 17 thousand km).
Entering the arena of international trade, China was forced to engage in the development of maritime navigation. In 1996, the PRC ranked 10th in the world in terms of tonnage of the sea fleet (17 million tons). The marine fleet consists of universal and combined ships, dry cargo ships, tankers. The total volume of cargo handled annually in major Chinese ports reaches 500 million tons. Chinese airlines, formed after the division of a single national airline in 1984, modernized their aircraft fleet, mainly through the purchase of Boeing 747s and other American airliners. However, the level of service on Chinese airlines and the statistics in the field of flight safety leave much to be desired. In total, there are approx. 500 domestic and 60 international airlines; in 1995, almost 1 million tons of cargo and 5.5 million passengers were transported by air. The development of infrastructure and transport in the country is given high priority because it is strategically linked to national economy and national defense. Meanwhile, infrastructure and transport are still not fully developed in many aspects and areas, and they constitute a major hindrance to economic growth.
China invests about 9% of GDP annually in transport and infrastructure development, while others developing countries- from 2% to 5% of GDP. In 2007, China became one of the few countries in the world to start operating high-speed trains. The development of railways is associated primarily with the need to transport a large amount of goods due to rapid economic growth.
Chinese service industry
China's service sector is the fifth largest in the world and is expected to continue to grow in the long term, given the development of telecommunications. In 2005, the service sector accounted for 40.3% of China's GDP. However, the share of the service sector in GDP is still low compared to that in most developed countries of the world, and the agricultural sector of the PRC still uses a significant part of labor resources countries.
Prior to the start of economic reforms in 1978, China's service industry was characterized by state-run shops, rationing and regulated prices. In connection with the reform in the service sector, individual entrepreneurship began to develop, large private companies came. Wholesale and retail received fast development in cities now full of malls, retail stores, restaurant chains and hotels. Meanwhile, public administration still remains the main component of the service sector, while tourism has become a significant factor for employment and as a source of foreign exchange. The potential for further growth in China's service sector is enormous.
Prospects for China's Economy
China's GDP growth fell from 9.5% in the second quarter of 2011 to 9.1% in the third - the lowest since 2009. The country's economy has been slowing for the third quarter, Qian Kiming from Shenyin Wanguo worries. But the decline is not yet strong: growth rates are stable, - said Mark Williams from Capital Economics. The dynamics of industrial production and retail sales is good, continues Williams: in September they rose from 13.5 to 13.8% and from 11 to 11.7%, respectively.
Economists are concerned about high inflation (6.1% against the government's target of 4%), as well as a gap of almost 2 times between the growth rate of construction (24%) and real estate sales (13%). This indicates the instability of the situation, says Williams, if demand does not strengthen, construction volumes will fall. Stock market countries reacted to macroeconomic statistics with a decline.
China cannot avoid a hard landing, and this will hit the recovery of the entire global economy, - such an opinion was expressed by New York University professor Nouriel Roubini. China's Contribution to Recovery global economy is growing, as imports are growing faster than exports, a representative of the National Bureau of Statistics reassured yesterday: net exports reduced economic growth rates by 0.1 percentage points.
The main risk to the Chinese economy is lower demand in foreign markets, said Alistair Thornton of IHS Global Insight. But if the PRC cools too quickly, the government could use the levers at its disposal to support the economy, such as loosening monetary policy, he said. Chinese enterprises are too dependent on external conditions and therefore any negative scenario for the development of the world economy will hit the country's industries hard, said former Vice Minister of Commerce Wei Jianguo. In September, China's total exports fell by 2.1%, especially strongly - by 7.5% - from Europe, follows from statistics published last week. Domestic demand is also weakening, analysts at Societe Generale say: it fell from 35% of GDP to 33.8% in 2010.
A catastrophic slowdown in China is not yet expected, Williams is optimistic: GDP growth rates will be about 8.5% in 2011-2012. Most likely, they will remain at the level of 9%, analysts at Barclays Capital agree.
Since the end of the 70s of the last century, China has moved from a centrally planned economy to a market economy: financial reform was carried out, prices were released. Enterprises have become more free in terms of finding markets, actively developing banking system. The private sector grew rapidly, and the flow of investment increased. Thanks to the gradual reforms of the authorities, China has become the No. 1 exporter in the world.
Features of the economy
Efficiency gains and ongoing restructuring have ultimately led to a tenfold increase in GDP since 1978. China has already managed to overtake the United States of America in terms of dollar value of production volumes. True, while per capita income in China remains below average.
The Chinese economy is not without problems:
- low demand for goods within the country;
- inflation;
- damage to nature;
- social stratification;
- corruption;
- debts of local administrations;
- gap between construction growth and real estate sales.
China's long-term problems remain falling water tables, erosion of arable land, and polluted air. To deal with this, the Chinese government is focusing on renewable energy sources to replace traditional oil and coal.
Today, the country sets itself the task of increasing domestic consumption in order to be less dependent on exports. The Celestial Empire also remains the largest nuclear and space superpower.
But with all the elements of a market economy, China remains faithful to the five-year plans, but the economy remains multi-layered. The country encourages technology imports and actively trains its students abroad. The government is keenly interested in the development of new materials, software, biotechnologies, qualified personnel in healthcare.
Agriculture
The state is the largest consumer and producer of agricultural goods. About 300,000,000 people are now employed in agriculture. Due to the active development of industrial production, many Chinese leave the villages and move to cities.
Note that only 10-15% of the territory is suitable for cultivation in the country (everything else is sand and desert). Agronomists have been able to achieve maximum yields through the use of modern technologies. The main agricultural crop is rice. China ranks 1st in the production of this product.
Livestock breeding is also developed in the country. The country also leads the way in the production of chicken meat, eggs, and pork. Fishing is popular: they even create special ponds where they grow fish. The main threats to livestock natural disasters, dry days, soil erosion.
industrial production
The country is called "the world's assembly shop". Goods from China flooded the markets: they can be found at any point the globe. 1/3 of production is produced at state-owned enterprises. The state has a large share in the space and defense industries, as well as in heavy industry (which, in principle, is traditional).
The country is listed among the world's largest car manufacturers, exporters and producers of steel.
The state is actively engaged in mining:
- coal;
- iron ore;
- raw oil;
- natural gas.
Also on an industrial scale, silver and gold mining was established. The mining sector employs no more than 1% of the workforce, but the share of mining in industrial production reaches 5%.
The search for and use of minerals in China are very intensive. True, this is not enough for the needs of the country's industrialization: the import of raw materials from abroad is required. Deliveries have been made from the USA, Australia, Russia and African countries. The Chinese government has set itself the task of diversifying raw material supplies.
Energy
Naturally, with the growth of the economy and GDP, the need for energy began to increase. About 80% is generated by thermal power plants, only 2% by nuclear power plants. But the situation is improving. In recent years, the Chinese have put into operation several nuclear power plants at once, their total capacity is 6.7 GW.
Not all of China's energy potential has been realized. The reason for this lies in the remoteness of the main energy carriers. Some are located in the west of the country, others are far to the north. At the same time, consumers live on the east coast.
Hard coal is being replaced by oil and gas, and the share of the latter is constantly growing. This phenomenon has a positive effect, first of all, for the environment. The government also sets the task of developing renewable energy sources, but it is unlikely that by 2020 their share will reach at least 10%.
Science and Information Technology
China has successfully completed its nuclear program. Now the country can independently engage in the construction of nuclear power plants, and also owns the technology to create nuclear warheads. China is launching a lot of satellites. The world event was the launch of its own orbital station (in 2011). China became the third in the world to carry out a manned space flight.
Since the 1980s, active investment in communication and Internet services has begun. The coverage of the population by the "world wide web" is still small, but the numbers are growing.
Trade and services
Until the economic reforms of the late 1970s, shops were state-run, and food and non-food prices were regulated. But after market changes, private entrepreneurship began to develop intensively. Wholesale and retail trade is going well in China, opening shopping centers, shops, hotels and restaurants. The number of tourists has significantly increased (compared to the middle of the 20th century). Therefore, the service sector occupies an increasing share of Chinese GDP every year.
Transport
China has a well-developed railway network. It is second in the world after the United States. The Chinese themselves move by rail, as it is cheap and fast. More than half of the railways were electrified, which reduced costs. At the moment, the construction of high-speed railways is actively underway. Trains can reach speeds of more than 350 km/h, which allows Chinese citizens to move around the territory of their vast Motherland.
Passenger transportation using the metro is popular among the townspeople. Major subways are located in the capital, as well as in large settlements(Shanghai, Hong Kong, Guangzhou).
Developed network highways, there are toll highways, bridges are being actively built and tunnels are being built. More and more ordinary citizens of China choose as a means of transportation a car. Also popular are bicycles and scooters, which help to move faster through the narrow streets of cities.
Aviation and shipping transport is developing rapidly. There are now more than 500 airports in China, and more than 30 national airlines carry passengers. China currently accounts for over 1/3 of the world's maritime cargo turnover.
International trade
A significant share of production in China is export-oriented. Therefore, the Chinese economy turned out to be dependent on the conjuncture of foreign markets. Approximately 80% of all currency in the country comes from exports.
Kutai has signed trade protocols and agreements with 80 countries of the world. But the main partners of the Celestial Empire are Japan, the United States, as well as the countries of Western Europe. They account for more than half of the total foreign trade turnover. It is also important that China is a member of the WTO and APEC.
Textile products from China flooded the world markets. As a rule, goods are made of synthetic materials, but not all clothes from China are of poor quality. In the coastal provinces, branches of popular and well-known global brands are concentrated, for which it is simply profitable to sew clothes in China (low costs, tax preferences significantly reduce the cost of production). There are handicrafts in the central regions, but low-quality fakes are produced there.
Population since the mid-1980s of the twentieth century. provided with food. Fruits, seafood, fish are now exported. The leading agricultural export product is cotton. Trade with neighboring India increased significantly due to the opening of the Natu-La pass.
The region's economy is actively developing, but the authorities have to deal with external and internal risks
