Primary Drivers of the Chinese Economy

China has the second-largest economy in the world with a GDP of $17.9 trillion as of 2022, behind the United States GDP of $25.4 trillion—a position driven largely the power of its industrial production and manufacturing exports. If the economy were represented in purchasing power parity (PPP), China edges out America as the largest economy with a purchasing power of more than $30.3 trillion, compared to $25.4 trillion. How did China go from a poor society, devastated by World War Two and its own civil war by the mid-20th century, to the number two economy today? After decades of economic stagnation and setbacks under Communist rule, China began to open itself to international trade and liberalize the economy when it established diplomatic and trade relations with the U.S. in 1979. As its subsequent export growth fueled the growth of manufacturing and urbanization, China rose to be a major global economic power over the next four decades.Key TakeawaysChina's economy has grown to one of...