Hong Kong

Category: Globalization

The Chinese economy is a market economy, playing a large role in globalization because of its rising economy, and is the second largest in the world (behind the US). Reforms were made in 2007, including "gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment". Revaluing the renminbi by 2.1% against the US dollar, and making reforms, resulted in an increase in the GDP. The GDP, as of 2007, was 11.4%. The economy of this "major player" is a result of 803.3 million citizens, 43% working in agriculture, 25% in industry, and 32% in other services. In 2007, the inflation rate of the Chinese economy stood at 4.7%. Problems facing the Chinese government today include maintaining adequate job growth, environmental concerns, and reducing economic crimes.
In the past 25 years, China has changed from being a centrally operated system to opening up to international trade. Also, due to environmental issues (eroding land, air pollution, etc.) China has intensified their efforts in improving these issues (as of 2007).

--Nicole Stetzel, Daryl Correa