unprofitable ones being closed outright, resulting in massive job losses. By the latter part of 2010, China was reversing some of its economic liberalization initiatives, with state-owned companies buying up independent businesses in the steel, auto and energy industries.
Since economic liberalization began in 1978, China's investment- and export-led economy has grown almost a hundredfold and is the fastest-growing major economy in the world. According to the IMF, China's annual average GDP growth between 2001 and 2010 was 10.5%, and the Chinese economy is predicted to grow at an average annual rate of 9.5% between 2011 and 2015. Between 2007 and 2011, China's economic growth rate was equivalent to all of the G7 countries' growth combined. According to the Global Growth Generators index announced by Citigroup in February 2011, China has a very high 3G growth rating.
China is the third-most-visited country in the world, with 55.7 million inbound international visitors in 2010. It is a member of the WTO and is the world's second-largest trading power behind the US, with a total international trade value of US$3.64 trillion in 2011. Its foreign exchange reserves reached US$2.85 trillion by the end of 2010, an increase of 18.7% over the previous year, making its reserves by far the world's largest. China owns an estimated $1.6 trillion of US securities. China, holding US$1.16 trillion in US Treasury bonds, is the largest foreign holder of US public debt. China is the world's third-largest recipient of inward foreign direct investment (FDI), attracting $115 billion in 2011 alone, marking a 9% increase over 2010. China also increasingly invests abroad, with a total outward FDI of $68 billion in 2010.
China's success has been primarily due to manufacturing as a low-cost producer. This is attributed to a combination of cheap labor, good infrastructure, relatively high productivity, favorable government policy, and a possibly undervalued