Economists have long envisaged that China would be a major economic power in the 21st century. China along with India accounts for 18 percent of the global economy (on purchasing power parity basis) and 40 percent of the global working age population. During the past decade, China’s economy grew on average at ten percent per annum, and China’s share of world trade increased from one percent in early 1990s to six percent in 2004. China’s industrial production also increased at an annual rate of 17 percent in 2004. Going forward, the continued economic growth of China will continue to impact other countries as well as provide impacts within China. Long term impacts of this growth will likely result in spillover effects in countries surrounding China as well as other countries in the Pacific Rim.
