Since the introduction of market-based economic reforms in 1978, China has become the world's fastest-growing major economy. As of 2012, it is the world's second-largest economy, after the United States, by both nominal GDP and purchasing power parity (PPP), and is also the world's largest exporter and second-largest importer of goods.
By then, China's economic size (in purchasing power parity terms) may be twice as large as the US; and measured at market exchange rates, China may be at least the same size as the US two decades from now.
By 2030, China's income per head (measured in purchasing power parity) may reach about 50% of that in the United States.
Taiwanese industry, traditionally heavily dependent on Japanese industry, has recently suffered badly as a result of Japanese stagnation and the global high-tech slowdown. Taiwanese entrepreneurs will be looking for more capital outlets, production bases and export markets in mainland China than ever before.
Japan has benefited from a booming China, initially by businesses moving production there to take advantage of lower wages and, as local incomes have risen, by tapping a large and increasingly lucrative market for Japanese goods.
“A lot of other economies in the region are essentially riding on China’s coat tails, and this is remarkable for an economy with a low per capita income.”
China can boost global economic growth by pressing ahead with reforms to promote domestic consumption and reduce reliance on exports and investment
while the United States and the European Union are struggling to grow in the wake of the worst economic crisis in decades, China has continued to climb up the economic league tables by investing heavily in infrastructure and backing a $586 billion stimulus plan.
The country’s leaders have grown more confident on the international stage and have begun to assert greater influence in Asia, Africa and Latin America, with things like special trade agreements and multibillion dollar resource deals.
China passed the United States last year to become the world’s largest market for passenger vehicles. China also passed Germany last year to become the world’s biggest exporter.
Lately, China has been wielding its influence by investing in debt-troubled Greece
"This enables China to exert significant pressure in bilateral talks and we’re seeing that in the context of the U.S.-China bilateral relationship."
With more than $3 trillion in foreign currency reserves, China has become the world's biggest lender, outpacing even the World Bank in loans to developing countries.
China's foreign reserves, which now exceed $3 trillion, are the largest in the world.
China had attracted Foreign Direct Investment (FDI) to the tune of US $ 44 billion in 2001 and the corresponding figure for 2002 rose to $52.7 billion.
Even if Korea tries to strike a balance in its economic and political relations between China, Japan and the United States, China’s influence on Korea’s economy may grow as China’s economy expands.
China’s more open markets will allow South Korea to increase its sales there. However, some analysts argue that China’s emergent economic power may also prompt a reactive free trade agreement between Korea and Japan, neither of which is a member of ASEAN.
One of the defining features for the Chinese economy came on the 11th of December, 2001 when it became a member of the World Trade Organization or WTO. The Chinese accession to the WTO meant that Chinese economy opened up more to the rest of the world
China is now the world's second biggest economy and the largest exporter of goods, with 9.6% of the global share, followed by Germany, the United States and Japan.