Economy of China
World's second-largest economy and largest manufacturer.
The economy of the People's Republic of China (PRC) is a socialist market economy incorporating industrial policies and strategic five-year plans. The economy consists of state-owned enterprises, mixed-ownership enterprises, and a large domestic private sector contributing approximately 60% of GDP, 80% of urban employment, and 90% of new jobs.
- type
- Socialist market economy
- nominal_GDP_rank
- Second-largest in the world
- global_share_PPP_2025
- 19%
- global_share_nominal_2025
- Around 17%
- labor_force_2024
- 773 million workers (largest in the world)
- manufacturing_status
- World's largest manufacturing economy and exporter of goods
Lore & Background
Historically, China was one of the world's foremost economic powers for most of the two millennia of Pax Sinica, accounting for around one-quarter to one-third of global GDP until the mid-1800s. After the Chinese Civil War, the economy was devastated, with liquid assets stripped by the defeated Kuomintang and commerce reduced to barter. Economic reforms under Deng Xiaoping made China the world's fastest-growing major economy, with growth rates averaging 10% over 30 years. Many scholars consider the Chinese economic model as authoritarian capitalism, state capitalism, or party-state capitalism under Xi Jinping, with differences noted between the Deng and Xi eras. The COVID-19 pandemic had an enduring impact, and the post-pandemic period has been characterized as 'China's economic paradox': rapid technological catch-up paired with a broad growth slowdown.
Reader's Guide
China's economic transformation from one of the poorest countries to one of the largest economies was the quickest of any country. China became an industrial powerhouse, moving from low-wage sectors to sophisticated production of computers, pharmaceuticals, and automobiles, generating $3.7 trillion in real manufacturing value added—more than the US, South Korea, Germany, the UK, and France combined. It has two of the global top five science and technology clusters. The economy faces challenges in the 2020s from a property crisis and a shrinking labor force due to rapid aging. China is both a contributor to rising global greenhouse gas emissions and severely affected by climate change, though per capita emissions remain lower than developed economies like the United States.
Did You Know?
- The private sector contributes approximately 60% of China's GDP, 80% of urban employment, and 90% of new jobs.
- China's manufacturing value added exceeds that of the nine next largest manufacturers combined.
Frequently Asked Questions
Who is Economy of China?
Economy of China is the second-largest economy on the planet by nominal GDP and the undisputed leader in global manufacturing and goods exports. It operates under a socialist market framework that mixes state-owned enterprises, mixed-ownership firms, and a vast private sector.
What are Economy of China's powers/role?
Its headline stats include the world's largest labor force at roughly 773 million workers and a private sector that produces about 60% of GDP, 80% of urban jobs, and 90% of all new employment. State-level five-year plans and industrial policy steer the broader direction of growth.
How does Economy of China's story end?
There is no fixed ending; its arc continues through successive planning cycles and policy adjustments. As of 2025 it accounts for around 19% of global output at purchasing-power parity and roughly 17% at nominal value, keeping it firmly in the top tier of the series.
Why is Economy of China important?
As the single largest manufacturing economy and goods exporter on Earth, it is a structural linchpin of global supply chains. A shift in its growth trajectory would ripple through virtually every other national economy in the franchise.
What is Economy of China's faction or affiliation?
It is anchored in the PRC's socialist market system, where the government sets strategic priorities through five-year plans while private and mixed-ownership firms handle most day-to-day production, hiring, and trade.
More in National Economies 1-24
Elsewhere in the National Economies universe
Spotted an error? Know more?
This is a living reference — every entry is fact-audited, and reader corrections feed straight into our audit queue. Suggest an edit · See this site's audit record