Abstract
Executive Summary
Since the economic reform started in late 1978, China has witnessed nearly
twenty-two years of high economic growth, which has been stimulated by the
continuous increases of industrial output, consumer consumption and capital
investments. The country' s economy has grown at a double-digit rate in the
past. Industrial output in major cities have increased by nearly 20% each year
for the past few years. In the past decade, China' s GDP has been growing at
9.1% per annum and is forecast to grow 7.3% annually by the year 2005.
National industrial output has been advancing at 19.2% annually and will
continue to sustain a strong growth in the century. The central government has
made great progresses in combating the inflation, but it is projected that the
inflation will remain high, at 6.1% by the year 2005. According to the United
Nations' projections, China will be the third largest economy in the world by
the early 21st century; the United States and Japan being the first and
second, respectively.
China' s spectacular economic growth and industrialization have transformed the
world most populous nation into an economic powerhouse. The fast-growing
middle class is creating an enormous consumer society. As the fastest-growing
economy in the world, the emerging market has attracted the attention of
investors and corporations around the world for the last two decades. Each
year, billions of dollars are invested in the world' s largest market of 1.3
billion consumers. Foreign investment reached 39.2 billion US dollars in 2000.
The country imports over 222.2 billion US dollars worth of goods annually. It
is forecast that imports will increase to 306 billion US dollars by the year
2005. In 2000, the total foreign trade was valued at 470 billion US dollars
and is projected to reach 652 billion US dollars by the year 2005.
Since China began reforming its inefficient and staterun economy, the country
has experienced rapid changes in both economic and social aspects. The
introduction of foreign advanced technology will continue to be favored by the
Chinese government and business community. China will continue to improve its
investment environment in the areas of legal system, intellectual property
protection, foreign trade and investment regulations, infrastructure and
financial system. China is the second largest foreign investment recipient
after the United States in the world. Given its vast market, the country
promises tremendous opportunities for investment and trade both for the
present and future.
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