China's economy

Question 1

What is China’s GDP?

Answer 1

~$17.5 trillion USD (2023)
→ 2nd largest economy in the world (after the US)

Question 2

GDP per capita?

Answer 2

~$12,700 USD
→ Now an upper-middle-income country

Question 3

Real GDP growth rate?

Answer 3

~5.2% in 2023
→ Recovering from COVID-era slowdown but slower than historic highs (10%+ in 2000s)

Question 4

Inflation rate

Answer 4

~0.7% (2023) — very low, raising concerns of deflation

Question 5

Structure of China’s Economy

Answer 5

• Industry and manufacturing: ~37% of GDP
  → China is the “world’s factory”, producing electronics, textiles, steel, etc.
• Services sector: ~54% of GDP
  → Growing with urbanisation, tech, and financial sectors
• Agriculture: ~7% of GDP but employs ~25% of the labour force

Question 6

What does China mainly export

Answer 6

Electronics, machinery, steel, textiles, solar panels

Question 7

Main trading partners

Answer 7

US, EU, ASEAN, Japan

Question 8

What is China’s trade balance like

Answer 8

Large current account surplus (but narrowing)

Question 9

China population

Answer 9

~1.41 billion (2023) — was largest in the world, but now in decline. Currently second largest to India

Question 10

China HDI

Answer 10

0.768 (2022)
→ Ranked 79th, in the high human development category

Question 11

How has poverty improved in China

Answer 11

→ Over 850 million people lifted out of extreme poverty since 1980
→ Declared “poverty-free” in 2021 (by domestic standards)

Question 12

Challenges that China Faces

Answer 12

• Aging population and declining birth rate — long-term threat to growth
  
  • Regional inequality — East Coast vs rural inland areas
  • Environmental degradation and pollution
  • High youth unemployment (~21% in 2023)
  • Trade tensions with the US and geopolitical risks