netary policies and stronger measures to control
food prices. At the same time, the government struggled to (a) collect
revenues due from provinces, businesses, and individuals; (b) reduce
corruption and other economic crimes; and (c) keep afloat the large
state-owned enterprises, most of which had not participated in the
vigorous expansion of the economy and many of which have been losing
the ability to pay full wages and pensions. From 60 to 100 million
surplus rural workers are adrift between the villages and the cities,
many subsisting through part-time low-paying jobs. Popular resistance,
changes in central policy, and loss of authority by rural cadres have
weakened China's population control program, which is essential to
maintaining growth in living standards. Another long-term threat to
continued rapid economic growth is the deterioration in the
environment, notably air pollution, soil erosion, and the steady fall
of the water table especially in the north. China continues to lose
arable land because of erosion and economic development; furthermore,
the regime gives insufficient priority to agricultural research. The
next few years will witness increasing tensions between a highly
centralized political system and an increasingly decentralized
economic system. Rapid economic growth likely will continue but at a
declining rate.

GDP: purchasing power parity - $3.39 trillion (1996 estimate as
extrapolated from World Bank estimate for 1995 with use of official
Chinese growth figure for 1996; the result may overstate China's GDP
by as much as 25%)

GDP - real growth rate: 9.7% (1996 est.)

GDP - per capita: purchasing power parity - $2,800 (1996 est.)

GDP - composition by sector:
agriculture: 20%
industry: 49%
services : 31% (1995 est.)

Inflation rate - consumer price index: 10% (1996 est.)

Labor force:
total : 614.7 million (1994)
by occupation: agriculture and forestry 54%, industry and commerce
26%, construction and mining 7%, social services 6%, other 7% (1994)

Unemployment rate: officially 3% in urban areas; probably 8%-10%;
substantial unemployment and underemployment in rural areas (1996
est.)

Budget:
revenues : $NA
expenditures: $NA, including capital expenditures of $NA

Industries: iron and steel, coal, machine building, armaments,
textiles and apparel, petroleum, cement, chemical fertilizers,
consumer durables, food processing, autos, consumer electronics,
telecommunications

Indust