The economy of the People's Republic of China is the second largest in the world after the US with a GDP of $10.21 trillion (2006) when measured on a purchasing power parity (PPP) basis. It is the fourth largest in the world after the US, Japan and Germany, with a nominal GDP of US$2.527 trillion (2006) when measured in exchange-rate terms. China has been the fastest growing major nation for the past quarter of a century with an average annual GDP growth rate above 10%.China's per capita income has grown at an average annual rate of more than 8% over the last three decades drastically reducing poverty, but this rapid growth has been accompanied by rising income inequalities. The country's per capita income is classified as low by world standards, at about $2,000 (nominal, 86th of 179 countries/economies), and $7,800 (PPP, 107th of 179 countries/economies) in 2006, according to the IMF.
ChinaBizExperts
- Home
- China Facts
China Facts
Economy of China
| Currency | Yuan (CNY); also referred to as Renminbi (RMB) |
|---|---|
| Exchange rate (2006 av) | RMB: $USD=7.61 RMB: $EUR=10.55 |
| Fiscal year | Calendar year (01 Jan to 31 Dec) |
| GDP (nominal) 2006 | $2.527 trillion (ranked 4th) |
| GDP (PPP) 2006 | $10.21 trillion (ranked 2nd) |
| GDP growth rate (2006) | 11.1% (official data) |
| GDP by sector | Argriculture (primary) 11.7% Industry (secondary) 48.9% Services (tertiary) 39.3% Note: industry includes construction (5.5%) |
| GDP by components | Private consumptions 36.4% Government consumptions 13.7% Gross fixed investment 40.9% Export of goods/services 39.7% Import of goods/services -31.9% |
Why you should be doing China business now with CBE
- According to a report sponsored by Deloitte & Touche USA LLP in association with the National Venture Capital Association (NVCA), most of the US firms who have invested globally are making investments in China and India.
- Westerners normally build transactions and, if they are successful, a relationship will ensue. However, the Chinese believe that prospective business partners should build a relationship and, if successful, commercial transactions will follow. This difference underlies many misunderstandings arising from business negotiations. Virtually all successful transactions in China result from careful cultivation of the Chinese partner by the foreign one, until a relationship of trust evolves. CBE builds and facilitates long-term relationships (guanxi) on behalf of our clients.
- China may continue to dominate mass manufacturing, providing a low-cost manufacturing base for U.S. and foreign companies. But it also is rapidly acquiring technical and managerial skills and is becoming a growing source of intellectual capital for scientific work and research and development. It also provides immense marketing opportunities for savvy firms. Those that choose to not play now may lose their chance for a competitive advantage.