Business and Economy in China

China is the world's fastest growing major economy, and perhaps the most dynamic. Since 1978, when the country announced its opening up and reform policy, and began experimenting with capitalism and market forces, the country's economy has boomed. While growth has begun to slow sharply in 2008, after growing at close to 12 percent in 2007, China is a rising global economic power. Growth has been driven by exports and heavy investment in infrastructure and manufacturing. Coastal regions are powered by manufacturing, but state-owned companies continue to dominate the domestic economy, even though private entrepreneurs are beginning to thrive.In recent years, China has racked up a huge trade surplus with the rest of the world, particularly the United States and Europe, and has also accumulated over $1 trillion in foreign currency reserves. The country's stock market is troubled and volatile, though an increasingly powerful force. Widespread bribery and corruption are formidable challenges for companies doing business here. Intellectual property theft and counterfeiting are also persistent problems. Still, China has some of the world's most dynamic Internet companies, such as Baidu.com, Tencent and Alibaba.com, and a growing number of wealthy entrepreneurs and billionaires. Many of the world's biggest and most prestigious brands, such as Coca-Cola, Microsoft and Procter & Gamble are aggressively expanding their operations in China.