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Economic Growth and Challenge: China

The changing size and structure of China's economy

  • 3 things to know
  • Component 3 Section B

Overview

China's new normal, sector structure of China's economy and china's GDP per head.

What you need to know

Answer each one before you reveal it.

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Numbers

How large is China's economy?

Key term

How fast did China grow between 1978 and 2010?

Key term

What is China's new normal?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How large is China's economy?

    Model answer

    China has been the second largest economy in the world by nominal GDP since 2010. Output was about 18 trillion United States dollars in 2022.

  2. 2

    How fast did China grow between 1978 and 2010?

    Model answer

    GDP growth averaged close to 10% a year over that period. The economy roughly doubled in size every seven to eight years.

  3. 3

    What is China's new normal?

    Model answer

    The new normal describes slower growth of around 5% to 6% from the mid-2010s. Policy shifted from raw expansion towards quality, consumption and technology.

  4. 4

    Describe the sector structure of China's economy.

    Model answer

    Services overtook industry as the largest sector in 2013 and gave over half of GDP by the early 2020s. Agriculture contributes under 8% while still employing around a fifth of workers.

  5. 5

    How dominant is China in world manufacturing?

    Model answer

    China produced around 30% of world manufacturing value added by the early 2020s. The next largest manufacturing nation produces under half as much.

  6. 6

    What is China's GDP per head, and how does it compare?

    Model answer

    GDP per head was around 12,700 United States dollars in 2022, close to the World Bank high income threshold. The figure remains well below the United States or Japan.

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