Contradictory to the analysis of international economist, the Chinese officials claim rise in economy since 1978 and hence Chinese economic growth remains a matter of much doubt. According to nominal GDP China stands fourth in the world market. The per capita GDP in 2006 was recorded nearly US $2,000, still low by international standards. 70% of GDP (as of 2005) is based on the non-state owned sector. This includes exports of heavy industries, medical equipment and energy resources.
The People's Republic of China has been re-structuring its economy since 1978 based on Soviet model of economy. The economy has reformed from a centrally planned economy to a more market oriented economy. China has opened the door for foreign capital investors in China after lifting up the traditional governmental monopoly over industries like telecommunication, electricity supply, civil aviation, railway transportation and petrochemicals. Apart from the private sectors, other sectors are largely dominated by political framework creating to a market type known as mixed economy . These reforms have uplifted millions of people above the poverty line, bringing down the poverty rate to a remarkable extent.
The new economic strategy shifted to an advanced system of national responsibility in agriculture replacing the traditional collectivization, amplified the authority of local officials and supervisors in industries, granted permission to wide majority of small-scale enterprise and manufacturing bodies and concentrated on foreign trade and investors as a chief tool for economic growth. The government introduced new management policies to assist the increase of productivity and have also emphasized increasing personal income and consumption.
Adoption of these policies has made China stand ninth in services output and third among the trading nations just behind United States and Germany. Recently the Shenzhen and Shanghai stock exchanges have estimated a joined turnover of $49 billion (R341 billion), more than the rest of Asia combined. The London's Financial Times reported that in March 2007 China turnover was $16.4 billion, a remarkable increase from $5 billion estimated 6 months ago. This increase in turnover proved the economic growth in China . China is approaching the threshold of market economy generating more economic prospect but not yet completely established.
