China 's Economic Development And Macroeconomic Policies

China has been improving its economy from last few years.It is only due to its efforts to overcome USA

The Chinese president is looking to boost consumption and import as part of efforts to restructure its economy (Hu Looks to Boost China's Consumption, Imports, (April 15, 2011). The Chinese energy consumption has been predicted to soar to 68% higher than that of the USA by the year 2035(China, India to lead energy consumption, (September 20, 2011). Investment spending is also set to increase from $12,633 billion (2011, 48% of GDP) to $29,628 billion by 2030 (38% of GDP) (CHINA - Gross fixed investment (% of GDP) from 2011 to 2030, EIU Country Data). In 2006 China had a rating of 5.00 and was seen ranked at 101st in terms of the degree of economic freedom as measured

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s

Today’s China is the most populous country in the world and is so one of the most important political and economical forces in the world.

Inflation in China accelerated in november, as economic growth picked up and food prices rose. Chinese consumers paid 2% more for good and services in november then they did a year ago, the government's national bureau statistics reported on a Sunday. While that up from a 1.7% annual increase in october, it nevertheless represents tame inflation for the world's second largest economy. A year ago the country was experiencing an annual inflation rate at 4%. the Chinese government prefers to keep its annual inflation rate below 4%- a level it seems as consistent with health economic growth and consumer demand. The inflation rate averaged 4.23 percent reaching an all time high of 27.70 percent in october of 1994 and a record low of -2.20 percent in march of 1999. in china the most important components of the CPI basket are food at 31.8 percent of total weight and residence at 17.2 percent. Recreation, education and culture articles account for 13.8 percent; transportation and communication for 10 percent, healthcare and personal articles at 9.6 percent, clothing at 8.5 percent; household facilities, articles and services for 5.6 percent; tobacco liquor and articles for the remaining 3.5 percent. The CPI basket is reviewed every five years on the basis of household surveys. Revisions reflect new spending patterns and economic development, according to the nation bureau of statistics.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

High government intervention has also had positive effects on China’s economy. Since the Global Financial Crisis of 2007-08, China has become increasingly

Over the last few decades while China’s population growth rate has decreased, its GDP has increased. “China’s GDP per capita for the period 1952 to 2008 grew at an average annual rate of 5.58%.” (Yao) Furthermore, during the same time

Furthermore, monetary conditions in China have changed as a result in Chinese’s GDP growth. The Chinese Central bank has reduced its reserve requirements and the

top 5 and 10% of earners in China accounted for 19.8% and 31.9% of the

Muhammad Umer Arshad, Phd Fellow, Department of Economic, Inner Mongolia University, HoHHoT, China, International Building #D Room#109,Student.Pak@yahoo.com

Since the financial tsunami and the bankruptcy of Lehman’s Brother in September 2008, the world’s economy took a deep plunge and the Chinese economy is no exception. In the wake of the global financial crisis, The Economist (2008) reported that China’s real GDP growth slowed to 9 percent in the third quarter of 2008 and export growth slowed to 21.1%. It was, in fact, well below analyst expectations and recent

The economic growth slowed down in the past 3 years. The GDP growth decreased from 7.76% in 2013 to 6.9% in 2015. At the same time, as a big contributor to the total GDP, the proportion of the second industry decrease, while the tertiary industry replaced the first place and accounted for 50.5% (National Bureau of Statistics of China 2015), indicating that China is trying to change its economic structure. Besides, the CPI figure shows a steady decrease, while the disposal income gradually rises. In brief, the performance of the economic indicators shows that the economy of China is slowing down.

With China's deepening Opening Up and economic restructure adjustment and the continuous appreciation of RMB in recent years, the

For the past decades, China has been in the limelight for inflationary episodes. Funke (2006) has compared this phenomenon as a “roller coaster ride”. But Girardin et.al. (2013) argues that there is a remarkable inflation performance over the past decade, in spite of the absence of explicit inflation targeting. This section shall focus on the inflations of the recent past of China. To contextualise this section, how inflation became a normal trend of China’s economy, the third, fourth and fifth phase of the economic reform of China shall be presented according to the study of Funke (2006). During the third (1988–1991) and fourth phase of economic reform (1992-1998), the reform process was characterized by lack of effective macroeconomic policy intruments. The effect was a substantial increase in inflation after price liberalisation. The fifth phase of economic reform (1998 to present) can be characterized by broad-based enterprise, financial and social reforms. Inspite the sound mix monetary policies of the People’s Bank of China, the fifth phase of economic reform apparently still have substantial inflation increase. Figure 1 shows inflation peaks for years 2004, 2007, 2008 and 2011 respectively.