China's Packaging Machinery Market Research Report - PMMI

1. SUMMARY OF THE CHINESE ECONOMY
China has become one of the fastest developing countries, enjoying an economic
boom since 1978. The Asian Crisis in 1997 and the severe flood in 1998 seriously
stunted China’s development, resulting in substantial reduction of exports, severe
lack of domestic demand, and sharp increase of unemployment.
Listed below are the major economic indicators of China from 1997 to 1999.
(RMB in
billion)
8500
8000
7500
7000
(%)
10
8
6
4
2
0
7446
GNP 1997-1999
7834
6
8205
1997 1998 1999
GNP Growth Rate & Inflation Rate in China 1997-1999
8.8
3.4
7.8
2
7.1
1997 1998 1999
1.1
GNP Growth Rate
Inflation Rate
A revival of the Chinese economy in 2000 put an end to the continuous
7-year-decline of the growth rate. Such revival is attributed to two major factors:
China eventually recovered from the Asian Crisis, which resulted in substantial
increase in exports; and the government decided to employ large investments to
develop Western China, which stimulated domestic demand. The State Bureau of
Statistics has estimated that the annual growth rate of the Chinese economy will
maintain around 7 – 7.5% or even reach 8% from 2001 to 2010. The reformation of
state-owned companies, the development of the West, and the entrance to WTO will
ensure the stability of the Chinese economic growth.