e-pointed stars (arranged in a vertical arc toward the middle of
the flag) in the upper hoist-side corner

@China, Economy

Overview:
Beginning in late 1978 the Chinese leadership has been trying to move
the economy from the sluggish Soviet-style centrally planned economy
to a more productive and flexible economy with market elements, but
still within the framework of monolithic Communist control. To this
end the authorities switched to a system of household responsibility
in agriculture in place of the old collectivization, increased the
authority of local officials and plant managers in industry, permitted
a wide variety of small-scale enterprise in services and light
manufacturing, and opened the economy to increased foreign trade and
investment. The result has been a strong surge in production,
particularly in agriculture in the early 1980s. Industry also has
posted major gains, especially in coastal areas near Hong Kong and
opposite Taiwan, where foreign investment and modern production
methods have helped spur production of both domestic and export goods.
Aggregate output has more than doubled since 1978. On the darker side,
the leadership has often experienced in its hybrid system the worst
results of socialism (bureaucracy, lassitude, corruption) and of
capitalism (windfall gains and stepped-up inflation). Beijing thus has
periodically backtracked, retightening central controls at intervals.
In 1992-93 annual growth of GDP has accelerated, particularly in the
coastal areas - to more than 10% annually according to official
claims. In late 1993 China's leadership approved additional reforms
aimed at giving more play to market-oriented institutions and at
strengthening the center's control over the financial system. Popular
resistance, changes in central policy, and loss of authority by rural
cadres have weakened China's population control program, which is
essential to the nation's long-term economic viability.
National product:
GDP - purchasing power equivalent - $2.61 trillion (1993 estimate
based on a 1990 figure from the UN International Comparison Program,
as extended to 1991 and published in the World Bank's World
Development Report 1993; and as extrapolated by use of official
Chinese growth statistics for 1992 and 1993)
National product real growth rate:
13.4% (1993)
National product per capita:
$2,200 (1993 est.)
Inflation rate (c