China's Economic Growth: A Report on Socio-Economic Conditions and GDP

This report provides a comprehensive overview of China's socio-economic conditions and economic health, focusing on GDP and national income. It examines the main sectors contributing to China's GDP, including primary, secondary, and tertiary sectors, and analyzes key macroeconomic indicators such as inflation and unemployment rates over a two-year period. The report highlights China's transition from a centrally planned to a market-based economy and its significant socio-economic development, including improvements in education, healthcare, and living standards. It also offers recommendations for promoting further economic growth through supply-side structural reforms, policy adjustments, and fiscal and monetary policies. The conclusion emphasizes that China's adoption of policies and reforms has led to improved socio-economic conditions and stable economic growth over the past two years.

Running head: BUSINESS ECONOMICS
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Name of the Student
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Author’s Note

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Executive Summary
The report focuses on the socio- economic conditions and economic health of China. The study
also focuses on the GDP and national income of China. The main components contributing
sectors in GDP are discussed in this study. The macroeconomic indicators of China are explained
in this study. The recommendations for economic growth of this nation are also discussed in this
study.

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Table of Contents
Introduction......................................................................................................................................2
Socio-economic conditions of China...............................................................................................2
Discussing GDP, national income of China....................................................................................4
Main components contributing sectors in GDP...............................................................................5
Discussing macroeconomic indicators of China..............................................................................5
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The report provides an overview on the present socio –economic conditions of China.
Over the past few years, China has experienced huge social and economic development. Huge
socio-economic change in this nation has been accompanied by certain restrictions on the basic
rights. With improved socio- economic The national economic statistics of China such as GDP
(Gross domestic product) and National Income are also discussed in this study. The study also
highlights on the major contributing sectors in GDP of China such as education, agriculture. The
variation of macroeconomic indicators of China including inflation, unemployment over the
period of two years are assessed in this study. Furthermore, the recommendations for economic
growth of China are elucidated in this report.
Socio-economic conditions of China
China has had rapid growth period shifting from centrally planned to the market- based
economy. At present, this country has upper middle–income nation that has highly complex
development needs. The socio-economic development of this country specifically, agricultural
manufacturing base along with increasing industrial strength led to huge market- growth
opportunities. Wu et al. (2013) found out that social and economic development of this country
have also occurred owing to implementation of reforms and new polices. The comprehensive
strength of this nation has become stronger over the past few years. In the past few years, this
country has moved from agricultural to industrialized nation. Without even borrowing any kind
of foreign loans, this nation has successfully undertook projects and developed several industries.
This provided the basis for sustainable development of this economy. Over the past last few
years, the per capital national income of China has attained rapid growth. According to the
income statistics, per- capita income reached to about 4761 Yuan in rural areas while 15,781

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Yuan in urban areas. As per the data released by World Bank, China has made huge leap from
low- income nation to middle-p income nation. Moreover, the foreign exchange reserves of
China also enhanced over the past ten years (Sy.chineseembassy.org. 2018).
Infrastructure development of the industries has been the main bottleneck in socio-
economic development of China. In the last few years, this nation has enhanced investment in
the construction of industries such as transport as well as telecommunication sector. This country
has increased its transportation capacity with airports, railways over the past few years. The
telecommunication as well as postal facilities also developed in China. This country has also
built national information and the telecommunication network that covers different parts of the
nation and connects other countries (Banister, Bloom and Rosenberg 2012).
Huge progress has been done in the educational undertakings with increase in education
level and education popularization rate that approaches average medium- income nations. The
gross rate of attendance of high and middle schools also increased over the past few years.
Several reforms have also occurred in the Medicare system and public health undertakings of
China. Mortality rate of infants also decreased from 50% to 15.3% while life expectancy rate
increased from 35 to 73 years over the last ten years. In addition to this, there has been
remarkable changes in the standard of living of Chinese people in both urban and rural areas with
respect to level of consumption patterns and environment (Meng 2012). This country has made
huge progress in reducing poverty and pushing forward global endeavor of lifting poor people
out of poverty. In the past few years, the total number of Chinese people living in poverty
declined to below 250 million (Zhang 2013).

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Discussing GDP, national income of China
The pace of economic growth in this China economy has accelerated by about 6.9%in the
year 2017 slightly up from 6.7% in the year 2016. The country’s strength in retail sales, exports
and property market has led to spur economic growth of China, thereby putting this country in
better position of tackling several problems of this country (Jarreau and Poncet 2012). According
to the data released by ABS (Australian Bureau of Statistics), the GDP of this country increased
at high rate over the last ten years. The GDP value of this country represents 19.74% of the
global economy. China’s GDP value averaged to near about 1970.49 USD billion from the year
1960 until the year 2017. The GDP value recorded highest in the year 2017 by about 12.238
trillion while it recorded to around 1.211 trillion in the year 2000. This reflects that the GDP of
China increased at high rate over the last ten years (Zhang, Wang and Wang 2012). The GDP
growth of China has averaged by near around 10% per year and thus fastened expansion in the
history. However, this has lifted by more than 800 million Chinese people out of poverty.
Although GDP growth of China had slowed during the period 2008, it is impressive by present
global standards. Even, the national income of China also increased at high rate over the years. It
has been estimated by few economists that if the average national income of China continues to
increase by around 8%, the per capita income might reach to around $8500.

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Figure 1: GDP of China
Source: (Data.worldbank.org. 2018)
Main components contributing sectors in GDP
The GDP of China is highly contributed by three sectors that include- primary sector,
secondary sector and tertiary sector. According to data released by ABS, the primary sector
accounted for around 10%, secondary sector accounted for around 44% and tertiary sector
accounted for around 46%. China’s being the globe biggest agricultural economy with forestry,
fisheries and animal husbandry accounts for about 10% of its GDP. Over the last few years, the
total share of China’s agriculture as part of GDP has remained stable at 10%. Industries
involving electricity, mining, manufacturing accounted for about 44% of this nations GDP. The
transport, retail trades, real estate, financial services accounts for around 46% of GDP. This
country focus on the manufacturing sector with considerable barriers to trade circumvents them.
Discussing macroeconomic indicators of China
China’s core rate of inflation has been more or less stable over the last two years. The
yearly inflation rate stood at around 1.8%in the year 2017 and 2.1% in the year 2016.

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Nevertheless, the food inflation hit at highest level for the past two years and cost of the non-
food commodities enhanced at higher pace. The inflation rate of China remained below the target
set by the Chinese government of about 3% over the last two years (Tradingeconomics.com.
2018). The data released by ABS also reveals that the rate of unemployment in China declined
slightly over the last two years. The data reflects that China’s unemployment rate has been fairly
constant owing to implementation of full employment policy by Chinese government
(Tradingeconomics.com. 2018). Therefore, this reflects that inflation rate and unemployment rate
of China had slight fluctuation during the year 2016-2017 and remained below the target level
set by the Chinese government (Feng, Hu and Moffitt 2015).
Figure 2: Inflation rate of China
Source: (Tradingeconomics.com. 2018)

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Figure 3: Unemployment rate of China
Source: (Tradingeconomics.com. 2018)
Recommendations
The recommendations are provided to the Chinese government in order to enhance
economic growth of this country. These are given below-
 China should promote supply side structural reform and also open up new methods for
boosting the economy.
 The Chinese government should eliminate remaining disablements to flexibility in this
economy. The policymakers of China must adopt reforms including low trade barriers,
exchange rate in order to increase economic growth.
 The policymakers of China must adopt expansionary fiscal and monetary policy for
boosting economic growth.

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Conclusion
From the above discussion, it can be seen that adoption of policies and reforms by the
China led to improvement of socio-economic conditions and increase in GDP and national
income. Agricultural and education sector contributes to GDP of this country by large amount.
Moreover, the macroeconomic indicators such as unemployment rate and inflation rate also
reflects that the economic growth has remained stable over the last two years. Thus, this shows
that the economic growth of China remains to be strong.

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References
Banister, J., Bloom, D.E. and Rosenberg, L., 2012. Population aging and economic growth in
China. In The Chinese Economy (pp. 114-149). Palgrave Macmillan, London.
Data.worldbank.org. (2018). GDP (current US$) | Data. [online] Available at:
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=CN [Accessed 9 Sep. 2018].
Feng, S., Hu, Y. and Moffitt, R., 2015. Long run trends in unemployment and labor force
participation in China (No. w21460). National Bureau of Economic Research.
Jarreau, J. and Poncet, S., 2012. Export sophistication and economic growth: Evidence from
China. Journal of development Economics, 97(2), pp.281-292.
Meng, X., 2012. Labor market outcomes and reforms in China. Journal of Economic
Perspectives, 26(4), pp.75-102.
Sy.chineseembassy.org. (2018). China's Socio-Economic Achievements during the past 60 years.
[online] Available at: http://sy.chineseembassy.org/eng/xwfb/t622842.htm [Accessed 9 Sep.
2018].
Tradingeconomics.com. (2018). China Core Inflation Rate | 2008-2018 | Data | Chart | Calendar |
Forecast. [online] Available at: https://tradingeconomics.com/china/core-inflation-rate [Accessed
9 Sep. 2018].
Tradingeconomics.com. (2018). China Unemployment Rate | 2002-2018 | Data | Chart | Calendar
| Forecast. [online] Available at: https://tradingeconomics.com/china/unemployment-rate
[Accessed 9 Sep. 2018].

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Wu, K.Y., Ye, X.Y., Qi, Z.F. and Zhang, H., 2013. Impacts of land use/land cover change and
socioeconomic development on regional ecosystem services: The case of fast-growing Hangzhou
metropolitan area, China. Cities, 31, pp.276-284.
Zhang, C., 2013. Money, housing, and inflation in China. Journal of Policy Modeling, 35(1),
pp.75-87.
Zhang, J., Wang, L. and Wang, S., 2012. Financial development and economic growth: Recent
evidence from China. Journal of Comparative Economics, 40(3), pp.393-412.