China Travel Guide

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China's Economy

China's economic picture has been undergoing great changes since the late 1970s. There are still elements of the pre-1970 era although they are gradually giving way to a more worldwide type of economic outlook.

Agriculture is a very important element in the Chinese culture. After all, farmers provide the raw materials for everyone's food. The picture of farm life in China is changing with time. The farmers are generally better off than forty years ago. Still, there are problems that they face such as higher taxes and government fees. Also, since the land belongs to the government, it can be taken from their use and become the venue for a new factory or housing development.

Chinese farmers are the world's number one producers of red meat products. Their plant crops are quite varied, some of them being used as cash crops rather than being used for Chinese consumers.

Agricultural production increased dramatically after the decollectivization of farm products in the 1970s. Those proved that farmers could and would produce more when there was a financial benefit in it.

As far as natural resources, China has nearly everything that a country needs. Coal mining is one of the resources which China has been involved in for many years. Oil is another of China's mineral resources in good supply.

Since the last half of the twentieth century, foreign investments have become welcome in China, especially in lightweight industries. There have been ups and downs in this invitation for foreigners to invest. Still, China seems to be working toward providing more positives than negatives in this scheme.

In 2003 and again in 2005, China began seriously dealing with its problems of unemployment and social service issues. The country does have significant areas to work on considering that the "one child per couple" rule is creating a population of aging Chinese people. Other areas that the government must deal with are regulating new businesses so they are honest and reflect well on the country. Environmental problems and pollution are also on the agenda for the country's leadership.

Although China tended to keep to itself before the 1970s, its membership in the World Trade Organization in 2001 is forcing the country to enter the world stage, ceasing to focus primarily on China's own problems.

With the world watching China during the recent Olympic Games, hosted in Beijing, China is being forced to make changes which favour world acceptance.