Economy of China

As of 2012, China has the world's second-largest economy in terms of nominal GDP, totalling approximately US$7.298 trillion according to the International Monetary Fund (IMF). However, China's 2011 nominal GDP per capita of US$5,184 puts it behind around ninety countries (out of 183 countries on the IMF list) in global GDP per capita rankings. If PPP is taken into account in total GDP figures, China is again second only to the United States—in 2011, its PPP GDP reached $11.316 trillion, corresponding to $8,394 per capita. In 2009, China's primary, secondary, and tertiary industries contributed 10.6%, 46.8%, and 42.6% respectively to its total GDP.

From its founding in 1949 until late 1978, the People's Republic of China was a Soviet-style centrally planned economy, without private businesses or capitalism. To propel the country towards a modern, industrialized communist society, Mao Zedong instituted the Great Leap Forward in the early 1960s, although this had decidedly mixed economic results. Following Mao's death in 1976 and the consequent end of the Cultural Revolution, Deng Xiaoping and the new Chinese leadership began to reform the economy and move towards a more market-oriented mixed economy under one-party rule. Collectivization of the agriculture was dismantled and farmlands were privatized to increase productivity. Modern-day China is mainly characterized as having a market economy based on private property ownership, and is one of the leading examples of state capitalism.

Under the post-Mao market reforms, a wide variety of small-scale private enterprises were encouraged, while the government relaxed price controls and promoted foreign investment. Foreign trade was focused upon as a major vehicle of growth, leading to the creation of Special Economic Zones (SEZs), first in Shenzhen and then in other Chinese cities. Inefficient state-owned enterprises (SOEs) were restructured by introducing western-style management systems, with