In 1978, the Chinese government commenced economic reforms which saw the economy experience tremendous economic growth. And between 1978 and 2007 the annual growth rate of GDP per capita averaged at 10 percent without any signs of deceleration. As a matter of fact, China accounted for 35 percent of the growth in the world GDP at purchasing power parity prices. In 2007, the country experienced a historical economic expansion of over 14 percent. However, in 2012, the economic expansion eased, with real GDP growth estimated at around 8 percent, but its economic growth was still stable and continued to expand with a rate that was more than twice that of the global economy. China share of global GDP, which was valued based on purchasing power parity had risen to more than 14 percent in 2012, thus increasing its role in world trade. In terms of imports, the share China imports stood at 1 percent in the early 1980s, but this has risen to more than 9 percent by 2012. China increased imports have had a huge impact on neighboring economies and also the euro area, which increased its export to China from 2.4 percent in 2001 and by 2012 the number had increased to 6.4 percent[ CITATION ECO13 l 1033 ]. .
During the three and a half decades of double-digit growth, China has transformed itself from a country dominated by poor and rural society to be the second largest economies in the world. China boost of the world first class transportation system, a population that is predominantly middle class and urban, and the highest industrialized country in the world. In terms of foreign exchange, the country has accumulated investment amounting to trillions of dollars, which are mainly invested in United States, Europe and Africa. Today, however, the historical economic growth of China is on the decline, and is policies are not enacted quickly and promptly, there reasons to believe that the economy will decline even further, with significant implications for the rest of the world.