China Overview of Economy

The Chinese economy is without doubt a key player in the global economic market.
Despite the fact that in 2011 the per capita income (PPP) was relatively low, the Chinese economy is still considered the second largest in the world, after the United States.
Changes in the Chinese market have a considerable effect on the world economy.
Thus for example, one of the reasons for the increase in world oil prices is attributed to the rising demand in China, including the demand for new automobiles.
The economic revolution in China began in 1978 when the Government contributed to turning a Communist-style centralized economy to one that operates on the principles of a market economy.
The steps towards modernization led to a tremendous increase in foreign investments in China and to the abolition or replacement of factories that were controlled centrally by the Government and turning them into separate entities that could be controlled by local managers.
Change has made its mark on agriculture as well. Many farms have gone from the communist to the village method or that of the single farm.
The main prosperity has been seen in industry and the services sector while agriculture is on a constant decline.
The main cities that have benefited from the economic boom are those cities in China that lie along the coast.
The economic changes in China have created a number of problems, starting from that of air pollution that derives from the increase in industry, and ending with the dismissal of workers who were previously employed in industry or in agriculture based on communist methods.