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China's Economy

Before the beginning of the 1978 economic reform, China had been pursuing a rather protectionist type of program, largely considering the interests of China and giving much less consideration to other countries. Now, however, a series of five-year plans have helped China to tackle several economic problems that have existed for some time.

China has long been reliant upon its agriculture since the country has such a large population to feed. The focus has been, and still is, to produce as many farm commodities as possible. The country is one of the world's most prolific producers of food products. In recent years, marine agriculture and animal husbandry have been taking a very important role in Chinese farm economy. The major agricultural products in China include cattle, poultry, sheep and pork as well as plant products such as corn, millet, rice, sweet potatoes, cotton, potatoes and soybeans, to name a few.

Having become a major outsourcing nation for western products, China's industrial output has increase significantly since 1978. Major Chinese products are struggling to find places is the world marketplace. The Chinese Socialist ideas tend to conflict somewhat with production of appliances and other industrial output. The need for raw materials for these products also helps China toward success in economic reform, an element which needs some help in the country.

China is still considered to be a developing country. The average income per person in China is still quite low when compared to many western countries. One of the most outstanding problems the Chinese must face is how to balance its strongly centralized political system with the decentralized system which a capitalist marketplace needs for success.

China is working toward solutions to this problem. Since the late 1970s, the country has begun decollectivizing agriculture. This has brought about a tremendous increase in production. The problems have not disappeared, however, since the state owns the crop land which farmers have been using. Farmers face taxes and fees which reduce their personal profit from the increase in production.

Agricultural production in China is largely in the eastern part of the country. Rice, wheat and other plant products account for much of China's self-sufficiency. For cash crops, which can be sold for use outside China, cotton and tobacco are a major income source.

The raising of livestock and production of red meat have made China the number one producer in the world. The northern and western areas of China are more commonly used for this meat production.

Mineral production in China largely involves coal mining in the north and northeast sections of the country. Chinese oil production amounts to the fifth-ranked producer. Iron ore is another of China's important minerals although most of the earth's variety of minerals are found in China so importation is not a great need.

Since the 1970s, special economic zones have been created which attract foreign investors in China. Light industries, in particular, have been allowed to crop up around China with foreign ownership although land ownership remains in the name of the Chinese government.

Previous to the 1970s, industry in China was largely in the Manchuria area of China. Now, however, the growth has involved many other areas of the country. Coastal cities on the south as well as cities on canals have become major ports, giving the nation more international input.