The economy of the People's Republic of China is a developing market-oriented economy that incorporates economic planning through industrial policies and strategic five-year plans. As of the end of 2019, the total assets of all China's SOEs, including those operating in the financial sector, reached US$78.08 trillion. China has the world's second largest economy when measured by nominal GDP, and the world's largest economy since 2014 when measured by Purchasing Power Parity (PPP), which is claimed by some to be the more accurate measure of an economy's true size.
The following tables and chart will tell the change details in last 5-10 years:
China Distribution of workforce from the last 5 years:
China Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Russia GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture plays an important role in the Chinese economy. It employs almost 25.1%% of the total workforce and contributes almost 7.1% in Chinese GDP.
Although China's agricultural output is the largest in the world, only 10% of its total land area can be cultivated. China's arable land, which represents 10% of the total arable land in the world, supports over 20% of the world's population.
Major products in this sector:
Rice: China is the largest producer of rice in the world. It produces almost 212 million tons rice every year. Rice is China's most important crop, raised on about 25% of the cultivated area. The majority of rice is grown south of the Huai River, in the Zhu Jiang delta, and in the Yunnan, Guizhou, and Sichuan provinces. In 2019, China exported around 2.75 million metric tons of rice abroad. In 2019, the value of China's rice exports abroad amounted to around 1.06 billion US dollars.
Wheat: China is the largest producer of wheat in the world. Wheat is the second most-prevalent grain crop, grown in most parts of the country but especially on the North China Plain, the Wei and Fen River valleys on the Loess plateau, and in Jiangsu , Hubei, and Sichuan provinces. As of 2019, wheat exports in China were 3,645 thousand US dollars that accounts for 50.03% of total wheat exports.
Corn: China is the second largest producer of corn in the world. It produces almost 257 million tons of corn every year. In 2020 China import $251 million worth of corn from US China is the biggest importer of corn from US followed by Canada and Mexico.
Agriculture Subsidy in China
China is now the world's largest subsidizer of agriculture — Beijing provided an estimated $212 billion in farm subsidies in 2019, significantly more than the European Union ($100 billion), United States ($33 billion) or any other country.
Subsidies now make up a significant portion of earnings for Chinese farmers, accounting for 38 percent of their revenue for wheat, 29 percent for corn and 32 percent for rice. By comparison, US subsidies constitute 8 percent of US farm earnings for wheat, 4 percent for corn and 2 percent for rice.
Beijing's support to China's agriculture sector includes government purchases at above-market prices, as well as market price support programs, where farmers receive a direct payment from the government if market prices fall below a minimum set price.
Industry is an important part in the China's economy. It accounts for 39% of GDP and employed almost 27.5% of the workforce.
Major Industries in this Sector:
Mining: The mining is among the major industries in the Chinese economy. The industry annually injects billions of dollars into the country's GDP. China is the by far the largest producer of gold in the world, with the country producing about 380 tons of gold in 2020. Most of China's gold deposits are found in the eastern part of the country, in the Liaoning, Henan, Fujian and Shandong provinces. Most of the gold produced in China is consumed locally as China is the world's fourth largest gold consumer.
Manufacturing: Manufacturing is by far the biggest industry in China accounting for 46.8% of the country's GDP which is attributed to China's intense investment in its heavy industries. China's manufacturing industry has experienced tremendous growth in the past century, with the country rising from being a small- scale player in global manufacturing to become the largest manufacturer in 2010, surpassing the United States which had held that distinction for over a century. China is the world's number-one producer of cement, steel, and chemical fertilizers. Of the ten largest steel producers in the world, six are based in China with the country's annual steel production of 683 million tons being the highest in the world.
能源: Energy is an important pillar of China's economy and is one of the country's largest industries. China is the leading country in electricity production since 2011 when the country's production exceeded that of the United States. China's annual electricity production reached 5,920 Tw-h in 2019. Most of the country's electricity (57.2% in 2019) is produced from coal, a mineral that China has in plenty, with the third largest coal reserves in the world. Hydropower is the second-most important electricity source in China, accounting for 20.1% of the total electricity production in 2016.
Service sector is an important part in the China's economy. It contributes almost 54% in the GDP and employed almost 47% of the total China's workforce.
Major Industries in this Sector:
Finance: In 2019, the financial intermediation sector made up around 7.8 percent of China's gross domestic product. China's banking sector is the largest in the world by assets, with total assets of US40.1 trillion in the first quarter of 2019.The “big four/ five” state-owned commercial banks are the Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China, and the Agricultural Bank of China, all of which are among the largest banks in the world as of 2019.
Tourism: In 2019, the comprehensive contribution of tourism to China's GDP reached 10.94 trillion yuan (2.61 trillion PPP US dollars), accounting for approximately 11.05% of China's total GDP. At the same time, the tourism industry has also created more jobs. In 2019, 28.25 million people were directly employed by tourism and 51.62 million people were indirectly employed by tourism9. The total number of direct and indirect jobs accounted for 10.31% of the total employed population in the country.
Top Companies in China
|Company Name||Sector||Fortune 500 Rank|
|State Grid Corporation of China||Electric Utility||3|
|China National Petroleum||Petroleum||4|
|China State Construction Engineering||Construction||18|
|Ping An Insurance||Insurance||21|
|Industrial and Commercial Bank of China||Commercial Bank||24|
|China Construction Bank||Commercial Bank||30|
|Agriculture Bank of China||Commercial Bank||35|
|Bank of China||Commercial Bank||43|
|China Life Insurance||Insurance||45|