section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  China has the world's second-largest economy in terms of nominal GDP, and the world's largest in terms of purchasing power parity (PPP). As of 2022, China accounts for around 18% of the global economy by nominal GDP. China is one of the world's fastest-growing major economies, with its economic growth having been almost consistently above 6 percent since the introduction of economic reforms in 1978. According to the World Bank, China's GDP grew from $150 billion in 1978 to $17.96 trillion by 2022. It ranks at 64th at nominal GDP per capita, making it an upper-middle income country. Of the world's 500 largest companies, 135 are headquartered in China. As of at least 2024, China has the world's second-largest equity markets and futures markets, as well as the third-largest bond market.
  
  China was one of the world's foremost economic powers throughout the arc of East Asian and global history. The country had one of the largest economies in the world for most of the past two millennia, during which it has seen cycles of prosperity and decline. Since economic reforms began in 1978, China has developed into a highly diversified economy and one of the most consequential players in international trade. Major sectors of competitive strength include manufacturing, retail, mining, steel, textiles, automobiles, energy generation, green energy, banking, electronics, telecommunications, real estate, e-commerce, and tourism. China has three out of the ten largest stock exchanges in the world — Shanghai, Hong Kong and Shenzhen —that together have a market capitalization of over $15.9 trillion, as of October 2020. China has four (Shanghai, Hong Kong, Beijing, and Shenzhen) out of the world's top ten most competitive financial centers, which is more than any other country in the 2020 Global Financial Centres Index.
  
  Modern-day China is often described as an example of state capitalism or party-state capitalism. The state dominates in strategic "pillar" sectors such as energy production and heavy industries, but private enterprise has expanded enormously, with around 30 million private businesses recorded in 2008. According to official statistics, privately owned companies constitute more than 60% of China's GDP.
  
  China has been the world's largest manufacturing nation since 2010, after overtaking the U.S., which had been the largest for the previous hundred years. China has also been the second-largest in high-tech manufacturing country since 2012, according to US National Science Foundation. China is the second-largest retail market after the United States. China leads the world in e-commerce, accounting for over 37% of the global market share in 2021. China is the world's leader in electric vehicle consumption and production, manufacturing and buying half of all the plug-in electric cars (BEV and PHEV) in the world as of 2022. China is also the leading producer of batteries for electric vehicles as well as several key raw materials for batteries.