ABSTRACT
For over 20 years, China experienced hyper economic growth, with its per capita income rising six times as fast as the world average. By the end of 2005, China became the world’s third largest trading nation with total trade of over US$1.4 trillion. With the annual inflow of foreign capital over US$60 billion, it is the largest developing-country recipient of foreign direct investment. It also held US$818.9 billion in foreign reserves, set to overtake Japan’s as the world’s largest. China has become the world’s fourth-largest economy by total nominal GDP. If measured by purchasing power, China’s total GDP is already the second largest economy only after the US.1
