Challenges for the Chinese economy in the new era of development

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Notes

1. In terms of GDP at market exchange rates. In terms of GDP, Purchasing Power Parity China produces approximately 20% of world output and is already the largest economy.

2. In 2018, the total GDP of 90 trillion Renminbi Yuan, take the 2018 average market exchange rate of the US dollar against RMB of 6.62, China’s total GDP is then 13.6 trillion US dollars. The population is estimated at 1.355 billion; China’s per capita GDP is about 9750 dollars.

3. It should be noted that GDP calculation using current price or constant price may yield slightly different numbers.

4. It should be noted that FDI may have technological spillover which was badly needed in China, so to only think of FDI from the point of view of capital is not sufficient; foreign exchange accumulation also helps the stability of the Chinese currency implying that only calculating the market returns may not be an adequate reflection of its value.