China Economy

china economyThe economy of China is known as a “developing market economy.” A developing market economy is one that puts emphasis in the areas of labor, goods and services, and is set by supply and demand. The economy of China is the third largest in the world after Japan and the United States. The economic growth in China has been increasing over the last few years. The average annual growth rate for China is about 10%. Because the economy in China continues to increase, the poverty rate in China has decreased. Per capita income has increased over the last three decades by more than 8%. Because of economic changes in 2008, many of the private sector businesses were forced to close. Due to this problem, the public sector had to expand.

China’s economy emphasizes income and productivity. Foreign trade is one of China’s major ways to spur economic growth. There are still problems that arise that have held China back from achieving the economic growth potential that it strives for. For the industrial markets, energy is not sufficient to produce certain products, the transport system needs upgrading to be able to transport items such as coal, and the communication system does not have the capacity to support China’s large population.

The most important fields and the ones that employ about 70% of China’s population are agriculture and industry. Industry has been rapidly increasing because it includes the field of technology. Agriculture is very popular but is always affected by the weather from year to year, while the industrial field is affected by government.

The China travel service was developed to help develop tourism in China. The CTS was established in 1949. The CTS headquarters located in China is one of the largest travel services. This company handles many different areas of travel including hotel management, car rental, and even international trade.