China's economic miracle
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1978
First economic reforms introduced by President Deng Xiaoping
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1980s
Special economic zones set up in five areas, where private firms allowed
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1984
14 coastal cities opened up to foreign investment
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1989
Shanghai stock market reopens for first time in 40 years
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1997
Asian Financial Crisis
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2001
China joins World Trade Organisation
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2005
Private firms contribute more to Chinese economy than state-run sector
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2011
China becomes world's second-biggest economy, with GDP at $ 7.2tn
The seeds of China's rapid economic growth since the 1990s were first planted back in 1978 when the Communist Party started to introduce capitalist market principles, initially in the agricultural sector.
Source: World Bank
Economic expansion accelerated dramatically in the 1990s as a result of mass privatisations, and the opening up of the country to foreign investment. Overseas firms rushed to build factories in China to take advantage of its low labour costs.
China's rapid economic growth has been mirrored by the big increase in its energy consumption. The country has built thousands of extra power stations to provide electricity for all the new factories and growing in cities.
However, this has come with a major environmental impact, as pollution levels have soared, particularly from the country's numerous coal-fired power stations. The economic cost to the environment, shown in the graph above right, is a measure of the financial cost of pollution and the using up of finite natural resources.
Number of cities in China, Europe and US of one million people or more
- China:
34 in 2000
102 in 2012
221 in 2025
Source: World Resources Institute, McKinsey Global Institute
As more and more factories have been built in China, the country has seen mass population transfer, as tens of millions of migrant workers have left the countryside to find higher paid work in the cities. This in turn has created a new domestic retail environment, with greatly increased demand for consumer products further fuelling the development and growth of urbanisation.
Annual disposable income - urban and rural households
China's high-speed economic growth has substantially increased the wealth of the country's population. This is particularly the case in cities, where factory workers' wages have risen strongly, giving them more disposable income - measured by someone's income, minus their personal taxes. While earnings in the countryside have lagged behind, people living in rural areas have still seen a marked increase in their disposable income.
Vehicle sales 2007-2012
A car is a status symbol in developing countries around the world and as incomes have risen strongly, there has been a corresponding rise in car ownership in the country.
Pigs slaughtered for consumption in China and US
=10 millionSince 1990 the number of pigs slaughtered in China has more than doubled, while that in the US grew only 30%
China
1990310 million
2010666.9 million
US
199085.4 million
2010110.4 million
Pork has long been the most popular meat in China, but consumption was traditionally limited by the weak spending power of most of the population. As people's incomes have risen strongly since the 1990s so the amount of pork purchased has soared.
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