China is considered a significant economic power and the economic sector has seen considerable growth in the
past few decades.
In the 1950s, a majority of economic activity was brought under state control, which then determined production, pricing, and distribution of goods and services. Then in 1979, China began implementing economic reforms to expand and modernize its
economy. These reforms, however, lessened the government's control of the economy, allowing some aspects of a market
economy and encouraging foreign investment. Nevertheless, the state-owned sector still remains the backbone of China's economy.
These reforms resulted in the
economy growing by 10.2 percent in the 1980s and by 10 percent annually in the period of 1990-2001. This was among the highest growth rates in the world.
In 2001, China's gross domestic product (GDP) was $1,159 billion. Industrial activity (manufacturing, mining, and construction) contributes the largest percentage of the country's GDP, amounting to 51 percent in 2001. Transportation, commerce, and services together accounted for 34 percent. And agriculture, together with forestry and fishing, contributed 15 percent.
