Economic Transition and International Business

5 China Looking for a New Model

Yugang Guo and Sophie Nivoix

Fifteen years after entering the World Trade Organization and ten years after the subprime crisis, China continues on the way of a major economic transition while pursuing strong development in many areas. During the last 30 years, the Chinese economy has experienced the highest growth rate in the world. The growth rate of gross domestic product (GDP) was 9.88% per annum during the period 1978–2010.¹ In 2008, China ranked third in the world with a GDP of $4,222 billion, behind the United States ($14,330 billion) and Japan ($4,844 billion). In 2010, China surpassed Japan and became the second largest economy with a GDP of $5,879 billion. In 2015, China again recorded 7% growth, even ...