ABSTRACT
After nearly three decades of “reform and opening,” China now plays an integral part in the world economy. In Marxist terms, China has become an important link in the chain of global capitalism. The country has achieved high stable economic growth, with an annual growth rate of over 9 percent in recent decades. China’s per capita GDP in 2005 still lagged behind about half the nations in the world, ranking 110th in nominal value and 84th in purchasing power parity (PPP) value.1 However, in nominal value the Chinese economy has skyrocketed to fourth largest in overall scale in the world, alongside the United States, Japan, and Germany. The International Monetary Fund (IMF) and the World Bank have ranked China as the second largest economy in terms of GDP by PPP value, behind only the United States; a worrying fact for those politicians who are sensitive to China’s development.2 Another significant development is China’s transition from capital shortage status to capital surplus, and the country has begun to export its capital to different parts of the world.
