Where does China get most of its money from?
China's economic development has been fueled in large part by a sprawling industrial sector, which includes manufacturing, construction, mining, and utilities. In 2021, value-added industrial output accounted for 39 percent of China's GDP—more than double that of the United States (18 percent).
Private investment and exports are the main drivers of economic growth in China, but the Chinese government has also emphasized domestic consumption. Post-1978 economic reforms China's average GDP growth has been over 10% annually for over three decades. And in certain years, GDP growth even exceeded 13% annually.
China has the first or second-largest economy in the world depending on whether you're looking at PPP or GDP, respectively. Industrial production and manufacturing exports are major forces driving the economy. However, perhaps significantly, the country is not nearly as developed as other countries in the top 10.
The major sectors and industries driving growth for China include the services sector, agriculture, manufacturing, and technology. China is also one of the world's largest exporters and importers in the world.
With a total surface area of approximately 9.6 million square kilometers, China has abundant land resources and possesses strategic shares in various mineral resources. Due to its geologic preconditions, China has proved reserves of nearly all major minerals.
The People's Bank of China (PBOC) and State Administration of Foreign Exchange (SAFE) regulate the flow of foreign exchange in and out of the country and set exchange rates through a "managed float" system.
In China, the average monthly salary is 29,300 Yuan (Chinese Yuan), equating to USD 4,214 (US dollars) per month according to the exchange rate in May 2023 (according to Salary Explorer).
[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).
China's economic development has been fueled in large part by a sprawling industrial sector, which includes manufacturing, construction, mining, and utilities. In 2021, value-added industrial output accounted for 39 percent of China's GDP—more than double that of the United States (18 percent).
Measured at market exchange rates, China's GDP was $18.3 trillion in 2022, 73 percent of the GDP of the United States and 10 times more than the 7 percent of US GDP it registered in 1990.
Will China overtake us?
"The likelihood of the prediction that China's GDP will one day overtake that of the U.S. is declining," Eswar Prasad, a professor at Cornell University and a former International Monetary Fund official in charge of China, told Nikkei in a recent interview.
IIT is imposed on all individuals, including Chinese and foreign nationals, residing in or deriving income from China. The comprehensive income is subject to three to 45 percent of progressive rates on the whole.
In 2021, Brazil replaced the United States as China's largest agricultural supplier, providing 20 percent of China's agricultural imports.
Water insecurity represents an even harder constraint on China's growth, with per capita freshwater resources at just a quarter of the world average. China bears the burden of feeding 20% of the world's population with less than 10% of the world's arable land and only 7% of the world's potable water.
In addition to its low labor costs, China has become known as "the world's factory" because of its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices.
The existing high income inequality in China is primarily attributed to structural factors inherent in the Chinese political system, with the principal structural drivers being the urban-rural disparity and regional disparities in economic prosperity.
China remains heavily dependent on the U.S. dollar for pricing and settling commodities contracts, which means Chinese businesses face higher transaction costs, and its economy is more vulnerable to global volatility and geopolitical tensions.
The PBOC can print yuan as needed, although this can lead to high inflation. However, China has tight state-dominated controls on its economy, which enables it to control inflation differently compared to other countries.
Are foreign currencies like US dollars acceptable in China? Major international currencies like US dollars, euros, and pounds are readily accepted in hotels or when buying things from vendors outside scenic spots and tipping the hotel porters, drivers, and guides.
Healthcare in China is free for Chinese citizens and Chinese permanent residents. If you're a foreigner with permanent resident status you may be able to access government supported public health insurance. If not, you'll need private health cover.
How much does a house cost in China?
In 2022, the average price for residential real estate in Shenzhen was over 55.700 thousand yuan per square meter. This was the highest price among all major cities in China, with the average price across the country amounting to 17,359 yuan per square meter.
| Minimum Wages in China 2023 | ||
|---|---|---|
| Province/region | Class | Monthly minimum wage (RMB) |
| Heilongjiang | B | 1,610 |
| C | 1,450 | |
| Henan | A | 2,100 |
As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
China owes the United States $1.3 trillion, which is the most debt out of all the countries that are its debtors. Japan was the primary debt holder until 2008, but now comes in second place, with $1.2 trillion. Other countries with outstanding U.S. debt include Russia, India and South Korea.
Singapore is one of Asia's major financial centers. It is also one of the most prosperous countries on the planet. And all this has been achieved without taking on any meaningful public debt. In fact, very much like Norway, Singapore has more assets than debt.
