China has shown an incredible pattern of swift development while moving from a centrally planned economy to a market economy. In the present day, China is a country whose majority of population comes under upper middle-class income category.
China is a socialist market economy. The socialist market economy is an economic model, which has been put in place by People’s Republic of China. This model, introduced under Deng Xiaoping, is established on a main state-run sector inside an open market economy.
From the time when market reforms were introduced in 1978, China has shown quick economic and social development. GDP rate is about 10% a year, one of the fastest rates in history of economies, raising over 800 million people out of poverty line.
According to IMF, China is the second largest economy of the world based on nominal GDP and the largest economy of the world based on by purchasing power parity, but China has not approved this fact. Public sector industries haves major contribution in the Chinese economy as compared to the flourishing private sector. Overall, China comprises of the natural resources of $23 trillion.
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