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2. The high rate growth of China's economy is unmatched in modern era.

China's economy has grown so fast since China set about reforming its economy a generation ago, its GDP has expanded at an annual rate of 9.5%. China is so committed to economic growth that the Chinese draw their focus now on capitalism, moving ahead from their anti-capitalist policies.
In its capitalist present, China has been willing to overlook the dark side of modernization, seeing economic progress as the solution to all the country's challenges. Even so, every time the worst is predicted for China's economy, it seems to grow faster, create stronger industries, import more, and export more.

3. China is winning the global competition for investment capital.

One reason China's economy is growing so fast is that the world keeps feeding it capital. According to Japan's Research Institute of Economy, Trade and Industry, one-third of China's industrial production was put in place by the half-trillion dollars of foreign money that has flowed into the country since 1978. In 2004, foreigners invested more in building businesses in China than they spent anywhere else in the world. The U.S. used to attract the most foreign money, but in 2004, China took a strong lead, pulling in $53 billion to the U.S.'s $40 billion.

With money comes technology. The catalytic role of foreigners in the country is still growing quickly; every day China receives a huge array of European, Asian and American experts in manufacturing, banking, computing, advertising, and engineering. In 2004, the exports and imports by foreign companies operating in China rose by over 40%. More than half of China's trade is now controlled by foreign firms. Many of these import goods into the country that they then manufacture into exports. Foreign companies have pumped-up China's trade volume enough to make it the third-largest trading country in the world, behind the U.S. and Germany and now ahead of Japan.

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* Contributed by -
Syam Krishna V. K. ,
B.Tech. (Prod. Engg.), Kerala University,
MBA 2007, DOMS, IIT Madras.