70 years of China's economic progress

SPECIAL REPORT

China has undergone a remarkable economic development process since the People’s Republic of China was founded in 1949. In the past 70 years, it has grown from a poor country to the world’s second largest economy, making a significant contribution to global economic growth.

GDP

China’s national economic foundation was very weak in 1949. However, after the founding of New China, and especially after the introduction of reform and opening up policies in 1978, the national economy made dramatic progress. After the 18th National Congress of the Communist Party of China (CPC) held in 2012, comprehensive national strength has been greatly boosted.

China’s GDP 1952 - 2018

100

¥67.9 billion

1952
¥367.9 billion

1978
¥10.03 trillion

2000
¥41.21 trillion

2010
¥90.03 trillion

2018

174 times higher

The average annual GDP growth rate between 1979 and 2018 was 9.4%, accounting for 18% of the global total.

GOVERNMENT REVENUE

At the time of New China’s founding, government revenue was very low. However, it rose substantially thanks primarily to the rapid economic growth from 1978, providing a strong financial guarantee for further advancement and the betterment of people’s livelihood.

Government Revenue 1952 - 2018

¥6.2 billion

1950
¥113.2 billion

1978
¥1 trillion

1999
¥18.34 trillion

2018

FOREIGN EXCHANGE RESERVE

China’s foreign exchange reserve was low before the 1980s. Thanks to the reform and opening up, the figure has increased steadily.

Foreign Exchange Reserves

PARTICIPATION IN GLOBAL ECONOMIC AFFAIRS

From the 1950s to the 1970s, China remained rather isolated from the world economy due to the blockade maintained by some Western countries. Since 1978, it has become increasingly open to the world. In particular, after the Belt and Road Initiative was proposed in 2013, China has made active efforts in promoting trade and investment liberation and facilitation, and in promoting comprehensive development of multilateral trade relationships and regional economic cooperation.

FOREIGN TRADE

In the initial years after the founding of New China, the country’s foreign trade activity was very low. After 1978, particularly after being admitted to the WTO, the country has seen rapid development in this regard. In the past six years, the progress of BRI has exerted even more positive influences on China’s foreign trade.

INBOUND & OUTBOUND FDI

From the 1950s to the 1970s, China’s access to foreign investment was limited. With the restrictions on market access gradually relaxed and business environment steadily improving, an expanding amount of foreign direct investment (FDI) has been attracted.

Total non-financial inbound FDI

1983
2018

$135 billion used

146 times higher than 1983,
2nd largest FDI recipient in the world

Only a handful of Chinese enterprises conducted business overseas before the 1980s. After China began opening to the world in 1978, a growing number of enterprises began to go global.

Total non-financial outbound FDI

2003
2018

$120.5 billion

41.3 times
higher than 2003

Only a handful of Chinese enterprises conducted business overseas before the 1980s. After China began opening to the world in 1978, a growing number of enterprises began to go global.

CONCLUSION

In the past 70 years since the founding of New China, under CPC’s leadership and with the joint efforts of the Chinese people and overseas Chinese, it has grown from a poor, backward country to a major world power, making great contributions to international society, bringing about profound changes to the world economic structure.

In the recent years, China’s economic growth has slowed, but still leads the world. However, in the face of an increasingly complex international situation, the country will rise to the challenges and achieve greater success.

(Statistics from the National Bureau of Statistics)