of both domestic
and export goods. On the darker side, the leadership has often
experienced in its hybrid system the worst results of socialism
(bureaucracy, lassitude, corruption) and of capitalism (windfall gains
and stepped-up inflation). Beijing thus has periodically backtracked,
retightening central controls at intervals. In late 1993 China's
leadership approved additional long-term reforms aimed at giving still
more play to market-oriented institutions and at strengthening the
center's control over the financial system; state enterprises would
continue to dominate many key industries in what was now termed "a
socialist market economy". In 1995-99 inflation dropped sharply,
reflecting tighter monetary 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 had been losing
the ability to pay full wages and pensions. From 50 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. The next few
years will witness increasing tensions between a highly centralized
political system and an increasingly decentralized economic system.

GDP: purchasing power parity - $4.8 trillion (1999 est.)

GDP - real growth rate: 7% (1999 est.)

GDP - per capita: purchasing power parity - $3,800 (1999 est.)

GDP - composition by sector:
agriculture: 15%
industry: 35%
services: 50% (1999 est.)

Population below poverty line: 10% (1999 est.)

Household income or consumption by percentage share:
lowest 10%: 2.2%
highest 10%: 30.9% (1995)

Inflation rate (consumer prices): -1.3% (1999 est.)

Labor force: 700 million (1998 est.)

Labor force - by occupation: agriculture 50%