In 1990, China’s average per capita national income was around $350. Within a decade, there was a threefold increase, taking the figure to $1,000. At the end of 2008, the figure tripled yet again and China’s average per capita national income reached another high of $3,000. If China’s average national income continues to rise at an annual rate of 8%, the country’s per capita income will reach $8,500 by 2020 and will touch the $20,000 mark by 2030. Hence, China’s average per capita income will exceed the current income of Taiwan and Korea and the country will qualify for an OECD membership.
According to Goldman Sachs estimates, China’s Gross National Product (GNP) stood at $1,529 billion in 2005. The research organization projected that by 2050 China’s GNP would reach $44,453 billion, perhaps the highest in the world. Around 4% of China’s national earnings results from sate-owned enterprises. According to World Bank reports, China’s GNP doubled in 2007 and reached an impressive level of $3,126 billion. At this pace, China will definitely reach the ambitious GNP target for 2050. Although the world’s fastest growing economy is set to become the world’s number one, but its current economic system is characterized by:
The government is also following a heavy taxation policy, which is hindering the expansion of private enterprises. To maintain the country’s buoyant growth rate, the need of the hour is to make the regulations less stringent.
Need more featured reports? Check out Economy Watch's research Store