China_ The Future Economic Superpower
Channel: Nadiman
Date: 08/01/2024

China has an upper middle income[31], developing, mixed, socialist market economy incorporating industrial policies and strategic five-year plans.[32] It is the world's second-largest economy by nominal GDP, behind the United States, and the world's largest economy since 2016 when measured by purchasing power parity (PPP).[note 4] Due to a volatile currency exchange rate, China's GDP as measured in dollars fluctuates sharply.[33] China accounted for 19% of the global economy in 2022 in PPP terms,[34] and around 18% in nominal terms in 2022.[34][35] Historically, China was one of the world's foremost economic powers for most of the two millennia from the 1st until the 19th century.[36][37] The economy consists of public sector enterprise, state-owned enterprises (SOEs) and mixed-ownership enterprises, as well as a large domestic private sector and openness to foreign businesses in a system. Private investment and exports are the main drivers of economic growth in China; but the Chinese government has also emphasized domestic consumption.[38]

China is the world's largest manufacturing economy and exporter of goods.[39] It is also the world's fastest-growing consumer market and second-largest importer of goods.[40] China is also the world's largest consumer of numerous commodities, and accounts for about half of global consumption of metals.[41] China is a net importer of services products.[42] It is the largest trading nation in the world and plays a prominent role in international trade.[43][44] China was the largest recipient of foreign direct investment in the world as of 2020, receiving inflows of $163 billion.[45] but more recently, FDI has fallen sharply to negative levels.[46][47] It has the second largest outward foreign direct investment, at US$136.91 billion for 2019 alone.[48] China has significant income and wealth inequality. As of 2022, China was second in the world in total number of billionaires.[49] In 2022, it was second in millionaires with 6.2 million. China has the world's largest foreign-exchange reserves worth $3.1 trillion,[50] but if the foreign assets of China's state-owned commercial banks are included, the value of China's reserves rises to nearly $4 trillion.[51] China faced a mild economic slowdown during the 2007–2008 financial crisis and initiated a massive stimulus package, which helped to regain its economic growth. More recently, the imposition of the "3 Red Lines" on developer borrowing has sparked a real estate crisis and has raised questions on the accuracy of China's claims for the severity of this crisis.[52][53][54]