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Since China began to open up and reform its economy in 1978, GDP growth has averaged almost 10 percent a year. As China's economy has enjoyed 30 years of explosive growth, it was made into the world's largest market. Given its size, it is also central to important regional and global development issues. China's success was based on a mixed economy that constituted by the coexistence of the planned system and the market system, as well as governmental intervention and regulated policies. It allocates limited resources to maximum uses.
Nowadays, China becomes one of the most popular place which companies choose to carry their business in. China contains about 20% of the world's population. As its people get richer, they will consume more. Companies over the world are trying to join this market, the largest in the world, and tailor their products to Chinese tastes. In the other side, China becomes well known as "the world's factory" because of its strong business ecosystem, large freedom on production, low taxes and duties, and competitive currency practices. China's business ecosystem of networked suppliers, component manufacturers, and distributors has evolved to make it a more efficient and cost-effective place to manufacture products. A large amount of companies abroad choose to manufacture their products in China.
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