The economy of the People's Republic of China is the third largest in the world, after the United States and Japan. China has had the fastest growing economy for the past 30 years with an average annual GDP growth rate over 10%.
The fact of being at the same time one of the last communist countries of the planet and an economy which beats all the records of growth can seems to be paradoxical. But some people assert that if this country keeps its growth rate before 2020, China will have exceeded the USA and will be the first world power. So, the increase in power of China can worry some countries.
To understand the current economy of China, it is important to return at first on its evolution, since

I-HISTORY
-1949-1978
In 1949, China followed a socialist heavy industry development strategy. Consumption was reduced while rapid industrialization was given high priority. The government took control of a large part of the economy, and entire new industries were created. Most important, economic growth was started. A tight control of budget reduced inflation by the end of 1950.
From 1958 to 1960, an economic and social plan is led by Mao Zedong: the “Great Leap Forward”. It aimed to use China’s vast population to rapidly transform China from an agrarian economy into a modern communist society.

-1978-1990
In 1978, started the Chinese economic reform. It refers to the program of economic reforms called "Socialism with Chinese characteristics ». During these years, the government emphasized on raising personal income and consumption. The government also had focused on foreign trade as a major vehicle for economic growth, while before, China lived almost in autarky, completely closed to the rest of the world.
A decision was made in 1978 to permit foreign direct investment in several small "special economic zones" along the coast. But the country lacked the infrastructure and the knowledge of international practices to make this prospect attractive for