Title: 
Headings: China’s Economic Rise: History, Trends, Challenges, and Implications for the United States
China’s
 
Economic
 
Rise:
 
History,
 
Trends,
 
Challenges,
 
and
 
Implications
 
for
 
the
 
United
 
States
 

Updated
 
June
 
25,
 
2019
 

Congressional
 
Research
 
Service
 

Summary
 

China’s

The
 
History
 
of
 
China’s
 
Economic
 
Development
 

China’s
 
Economy
 
Prior
 
to
 
Reforms
 

The
 
Introduction
 
of
 
Economic
 
Reforms
 

China’s
 
Economic
 
Growth
 
and
 
Reforms:
 
1979-the
 
Present
 

Causes
 
of
 
China’s
 
Economic
 
Growth
 

Measuring
 
the
 
Size
 
of
 
China’s
 
Economy
 

The
 
Decline
 
and
 
Rise
 
of
 
China’s
 
Economy
 

Changes
 
in
 
China’s
 
Wage
 
and
 
Labor
 
Cost
 
Advantages
 

Foreign
 
Direct
 
Investment
 
(FDI)
 
in
 
China
 

Factors
 
Driving
 
China’s
 
FDI
 
Outflow
 
Strategy
 

China’s
 
Merchandise
 
Trade
 
Patterns
 

China’s
 
Major
 
Trading
 
Partners
 

Major
 
Chinese
 
Trade
 
Commodities
 

Percentage
 
of
 
2017/2016
 

Major
 
Long-Term
 
Challenges
 
Facing
 
the
 
Chinese
 
Economy
 

China’s
 
Incomplete
 
Transition
 
to
 
a
 
Market
 
Economy
 

Industrial
 
Policies
 
and
 
SOEs
 

China
 
and
 
Global
 
Steel
 
Overcapacity
  

A
 
State-Dominated
 
Banking
 
Sector,
 
Excess
 
Credit,
 
and
 
Growing
 
Debt
 

Environmental
 
Challenges
 

Corruption
 
and
 
the
 
Relative
 
Lack
 
of
 
the
 
Rule
 
of
 
Law
 

Demographic
 
Challenges
 

China’s
 
Hukou
 
System91
 

Economic
 
Goals
 
of
 
the
 
19th
 
Party
 
Congress
 
of
 
the
 
Communist
 
Party
 

China’s
 
Belt
 
and
 
Road
 
Initiative
  

Made
 
in
 
China
 
2025
 

Challenges
 
to
 
U.S.
 
Policy
 
of
 
China’s
 
Economic
 
Rise
 

Author
 
Information
 

Disclaimer
 


Content: China’s Economic Rise: History, Trends, Challenges, and Implications for the United States
China’s
 
Economic
 
Rise: History,
 
Trends,
 
Challenges,
 
and
 
Implications
 
for
 
the
 
United
 
States
 
Updated
 
June
 
25,
 
2019
 
Congressional
 
Research
 
Service
 
https://crsreports.congress.gov
 
RL33534
 
Implications
Summary
 
Prior
 
to
 
the
 
initiation
 
of
 
economic
 
reforms
 
and
 
trade
 
liberalization
 
nearly
 
40
 
years
 
ago,
 
China
 
maintained
 
policies
 
that
 
kept
 
the
 
economy
 
very
 
poor,
 
stagnant,
 
centrally
 
controlled,
 
vastly
 
inefficient,
 
and
 
relatively
 
isolated
 
from
 
the
 
global
 
economy. Since
 
opening
 
up
 
to
 
foreign
 
trade
 
and
 
investment
 
and
 
implementing
 
free-market
 
reforms
 
in
 
1979,
 
China
 
has
 
been
 
among
 
the
 
world’s
 
fastest-growing
 
economies,
 
with
 
real
 
annual
 
gross
 
domestic
 
product
 
(GDP)
 
growth
 
averaging
 
9.5%
 
through
 
2018,
 
a
 
pace
 
described
 
by
 
the
 
World
 
Bank
 
as
 
“the
 
fastest
 
sustained
 
expansion
 
by
 
a
 
major
 
economy
 
in
 
history.” Such
 
growth
 
has
 
enabled
 
China,
 
on
 
average,
 
to
 
double
 
its
 
GDP
 
every
 
eight
 
years
 
and
 
helped
 
raise
 
an
 
estimated
 
800
 
million
 
people
 
out
 
of
 
poverty. China
 
has
 
become
 
the
 
world’s
 
largest
 
economy
 
(on
 
a
 
purchasing
 
power
 
parity
 
basis),
 
manufacturer,
 
merchandise
 
trader,
 
and
 
holder
 
of
 
foreign
 
exchange
 
reserves. This
 
in
 
turn
 
has
 
made
 
China
 
a
 
major
 
commercial
 
partner
 
of
 
the
 
United
 
States. China
 
is
 
the
 
largest
 
U.S.
 
merchandise
 
trading
 
partner,
 
biggest
 
source
 
of
 
imports,
 
and
 
third-largest
 
U.S.
 
export
 
market. China
 
is
 
also
 
the
 
largest
 
foreign
 
holder
 
of
 
U.S.
 
Treasury
 
securities,
 
which
 
help
 
fund
 
the
 
federal
 
debt
 
and
 
keep
 
U.S.
 
interest
 
rates
 
low. As
 
China’s
 
economy
 
has
 
matured,
 
its
 
real
 
GDP
 
growth
 
has
 
slowed
 
significantly,
 
from
 
14.2%
 
in
 
2007
 
to
 
6.6%
 
in
 
2018,
 
and
 
that
 
growth
 
is
 
projected
 
by
 
the
 
International
 
Monetary
 
Fund
 
(IMF)
 
to
 
fall
 
to
 
5.5%
 
by
 
2024.