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Study Guide for Chapter 17 China Develops a New Economy Terms For each term below, explain why each item, place or idea was important to Chinas economy. Example: Urbanization: The growth of cities.

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China's growing economy is also an important source of global demand. Its economic rebalancing will create new opportunities for manufacturing exporters, though it may reduce demand for commodities over the medium-term. China is a growing influence on other developing economies through trade, investment, and ideas.

Today, it is the world's second-largest economy and produces 9.3 percent of global GDP (Figure 1).

The largely agrarian economy transitioned into an advanced economy with the expansion of its manufacturing and services sector. China's industrial growth strategy paved the way for the country to become the largest manufacturer. Due to its industrial prowess, it began to be called the ''world's factory''.

China's economy is set to rebound this year as mobility and activity pick up after the lifting of pandemic restrictions, providing a boost to the global economy. The economy will expand 5.2 percent this year, ing to our latest projections, versus 3 percent last year.

Trade surged: the value of U.S. goods imports from China rose from about $100 billion in 2001 to $500 billion in 2021. This leap in imports is due in part to China's critical position in global supply chains; Chinese factories assemble products for export to the United States using components from all over the world.

Causes of China's Economic Growth Economists generally attribute much of China's rapid economic growth to two main factors: large-scale capital investment (financed by large domestic savings and foreign investment) and rapid productivity growth. These two factors appear to have gone together hand in hand.

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