Beijing thus has periodically backtracked, retightening central controls at intervals. In 1992-97 annual growth of GDP accelerated, particularly in the coastal areas "averaging about 10% annually according to official figures (CIA, 1998). This purpose will analyze the efforts of China's government to restore its economy to a more performing one in spite of many challenges. China's Economy: An Overview Over the past 10 years, China's GDP has grown at an average annual rate of nearly 10%. .
Some economists have speculated that China could become the world's largest economy at some point in the near future. However, future economic growth will likely depend on the ability of the Chinese government to make significant new reforms. Chinese officials have recently announced major new initiatives to reform money-losing state-owned enterprises and China's banking system. China's emergence as a global economic and trade power has created economic opportunities for China's trading partners, but has presented several challenges as well. .
On the one hand, China's economic growth has made it an increasingly important trading partner for many nations. On the other hand, China's trade barriers, failure to adopt most multilateral rules on international trade, and the relative absence of the rule of law for business activities have often proved to be major barriers for doing business and have been the cause of growing tensions with various trading partners, especially the United States (Yifu, 1998).
The People's Republic of China is made up of twenty-two provinces, five autonomous regions, and four centrally administered cities, and one Special Administrative Region. The Making of the Modern Chinese State the PRC is one of only a few countries in the world that is still a Communist party-state. This is a political system which the ruling Communist Party holds a monopoly on political power, claims the right to lead or control all government and social institutions, and proclaims allegiance (at least officially) to the ideology of Marxism-Leninism.