General Information » Economy » China Overview

China’s economic miracle has awoken the dragon from its slumbers and propelled it to the forefront of the global economy. In just 30 years, the still staunchly communist country has successfully turned from a planned central economy fuelled by inefficient, state-run factories to become the workshop of the world. It has embraced this change in direction with such fervour, dynamism and enterprise that it is now the world’s fourth largest economy; some believe it could become the world’s largest within 30 years. Its gross domestic product grew by 10.7% to reach RMB 20.94 trillion ($2.68 trillion) in 2006. Some observers are worried its economy might overheat, leading to a spectacular crash; inflation fears have already triggered a yo-yo effect on the Shanghai stock exchange. The government is trying to keep the economy in check - it set a growth target of 8% for 2007, although the World Bank has raised its forecast to 10.4% growth from its previous prediction of 9.6%.