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: It
 
subsequently
 
raised
 
tariffs
 
by
 
25%
 
on
 
$250
 
billion
 
worth
 
of
 
imports
 
from
 
China,
 
while
 
China
 
increased
 
tariffs
 
(ranging
 
from
 
5%
 
to
 
25%)
 
on
 
$110
 
billion
 
worth
 
of
 
imports
 
from
 
the
 
United
 
States. Such
 
measures
 
have
 
sharply
 
decreased
 
bilateral
 
trade
 
in
 
2019. On
 
May
 
10,
 
2019,
 
President
 
Trump
 
announced
 
he
 
was
 
considering
 
raising
 
tariffs
 
on
 
nearly
 
all
 
remaining
 
products
 
from
 
China. A
 
protected
 
and
 
escalating
 
trade
 
conflict
 
between
 
the
 
United
 
States
 
and
 
China
 
could
 
have
 
negative
 
consequences
 
for
 
the
 
Chinese
 
economy. China’s
 
growing
 
global
 
economic
 
influence
 
and
 
the
 
economic
 
and
 
trade
 
policies
 
it
 
maintains
 
have
 
significant
 
implications
 
for
 
the
 
United
 
States
 
and
 
hence
 
are
 
of
 
major
 
interest
 
to
 
Congress. While
 
China
 
is
 
a
 
large
 
and
 
growing
 
market
 
for
 
U.S.
 
firms,
 
its
 
incomplete
 
transition
 
to
 
a
 
free-market
 
economy
 
has
 
resulted
 
in
 
economic
 
policies
 
deemed
 
harmful
 
to
 
U.S.
 
economic
 
interests,
 
such
 
as
 
industrial
 
policies
 
and
 
theft
 
of
 
U.S.
 
intellectual
 
property. This
 
report
 
provides
 
background
 
on
 
China’s
 
economic
 
rise; describes
 
its
 
current
 
economic
 
structure; identifies
 
the
 
challenges
 
China
 
faces
 
to
 
maintain
 
economic
 
growth; and
 
discusses
 
the
 
challenges,
 
opportunities,
 
and
 
implications
 
of
 
China’s
 
economic
 
rise
 
for
 
the
 
United
 
States.