Economy: Its Definition & Types, and System

By Tara Shwan

An economy is a system of organization and institution that either facilitate or play a role in the production and distribution of goods and services in the society.

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The Economy of China

December 09, 2016

The Economy of China:

China's socialist market economy is the world's second largest economy by nominal GDP, and the world's largest economy by purchasing power parity according to the IMF, China's public sector accounts for a bigger share of the national economy than the burgeoning private sector.

China is the largest manufacturing economy in the world as well as the largest exporter of goods in the world. China is also the world's fastest growing consumer market and second largest importer of goods in the world. China is the largest trading nation in the world and plays the most important role in international trade. China also has free trade agreements with several nations, including Australia, South Korea, ASEAN, New Zealand, Switzerland and Pakistan.

China has been criticized by Western media for unfair trade practices, including artificial currency devaluation.

Population: The current population of China is 1,384,178,584 as of 2016, based on the latest United Nations estimates. China population is equivalent to 18.72% of the total world population. China ranks number 1 in the list of countries by population.

Currency: Renminbi (RMB); Unit: Yuan (CNY)
Trade organization: WTO, APEC, G-20 and others
GDP: $11.392 trillion (nominal; 2016)
21,269 $ trillion (PPP; 2016)
GDP rank: 2nd (nominal); 1st (PPP)
GDP per capita: $8,261 (nominal; 2016)
$ 15,424 PPP; (2016)

GDP by sector: Agriculture: 9%, industry: 40.5%, services: 50.5% (2015)
Population below poverty line: 5.1% (2015)
Labour force: 807.202 million (1st; 2015)
Labour force by occupation:
Agriculture: 29.5%, industry: 29.9%, services: 40.6% (2014)
Unemployment: 4.05% (2015)
Average gross salary: $8,500, yearly (2015)

Main industries

Mining and ore processing, iron, steel, aluminum, and other metals, coal; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, aircraft and other vehicles; telecommunication and industrial equipment; machinery; heavy engineering; commercial space launch vehicles, satellites, manufacturing

Exports: $2.28 trillion (2015)

Export goods

Electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment, as well as almost every single category of industrial products.

Main export partners:

United States 16.9%
Hong Kong 15.5%
Japan 6.4%
South Korea 4.3% (2014)
Imports: $1.68 trillion (2015)

Import goods:

Electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals

Main import partners

South Korea 9.7%
Japan 8.3%
United States 8.1%
Taiwan 7.8%
Germany 5.4%
Australia 5% (2014)

Revenues: $2.1 trillion
Expenses: $2.3 trillion (2013)

Main data source: CIA World Fact Book