what kind of economy does china has?
Socialist state
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 China ranked 29th in the Global Competitiveness Index in 2009 , although it is only ranked 136th among the 179 countries measured in the 2011 Index of Economic Freedom . In 2014 , Fortune 's Global 500 list of the world 's largest corporations included 95 Chinese companies , with combined revenues of US $ 5 @.@ 8 trillion . The same year , Forbes reported that five of the world 's ten largest public companies were Chinese , including the world 's largest bank by total assets , the Industrial and Commercial Bank of China . 

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 China had the largest economy in the world for most of the past two thousand years , during which it has seen cycles of prosperity and decline . Since the introduction of economic reforms in 1978 , China has become one of the world 's fastest @-@ growing major economies . As of 2014 , it is the world 's second @-@ largest economy by nominal GDP and largest by purchasing power parity ( PPP ) . China is also the world 's largest exporter and second @-@ largest importer of goods . China is a recognized nuclear weapons state and has the world 's largest standing army and second @-@ largest defense budget . The PRC is a member of the United Nations , as it replaced the ROC as a permanent member of the U.N. Security Council in 1971 . China is also a member of numerous formal and informal multilateral organizations , including the WTO , APEC , BRICS , the Shanghai Cooperation Organization ( SCO ) , the BCIM and the G @-@ 20 . 

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 These changes made China a global leader , leading some historians to call this an " early modern " economy many centuries before Western Europe made its breakthrough . Many of these economic gains were lost , however , in the succeeding Yuan dynasty . 

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 Today , the Chinese government has accepted numerous elements of traditional Chinese culture as being integral to Chinese society . With the rise of Chinese nationalism and the end of the Cultural Revolution , various forms of traditional Chinese art , literature , music , film , fashion and architecture have seen a vigorous revival , and folk and variety art in particular have sparked interest nationally and even worldwide . China is now the third @-@ most @-@ visited country in the world , with 55 @.@ 7 million inbound international visitors in 2010 . It also experiences an enormous volume of domestic tourism ; an estimated 740 million Chinese holidaymakers travelled within the country in October 2012 alone . 

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 Since economic liberalization began in 1978 , China has been among the world 's fastest @-@ growing economies , relying largely on investment- and export @-@ led growth . According to the IMF , China 's annual average GDP growth between 2001 and 2010 was 10 @.@ 5 % . Between 2007 and 2011 , China 's economic growth rate was equivalent to all of the G7 countries ' growth combined . According to the Global Growth Generators index announced by Citigroup in February 2011 , China has a very high 3G growth rating . Its high productivity , low labour costs and relatively good infrastructure have made it a global leader in manufacturing . However , the Chinese economy is highly energy @-@ intensive and inefficient ; China became the world 's largest energy consumer in 2010 , relies on coal to supply over 70 % of its energy needs , and surpassed the US to become the world 's largest oil importer in September 2013 . In the early 2010s , China 's economic growth rate began to slow amid domestic credit troubles , weakening international demand for Chinese exports and fragility in the global economy . 
