China has one of the largest economies in terms of its gross national product. This is the value of all good and services produced in a country yearly.

The national government has tremendous control over China's economy. It owns and operates most industrial plants and directly controls most non-agricultural employment and wages. The government also controls and operates the banking system, long-distance transportation, and foreign trade. The national government gets most of its income from taxes.

Agriculture is the backbone of China's economy. About seventy percent of China's population is farmers. Rice, sweet potatoes, and tea are major crops in the country. China grows three quarters of the world sweet potatoes and is the producer of many foods, such as apples, cabbages, carrots, corn, melons, rubber, sugar beets, sugar cane, tea, tomatoes, and wheat.

Also China is one of the worlds leading manufacturing centers. There many factories maintain the heavy industry. Trade is also vital to China's economic development. The Chinese have begun import machinery and other technology to modernize China's economy. In addition, the Chinese are seeking foreign loans to finance these imports.

China's government makes plans for the country's economy that covers five-year period. These five-year plans determine how much money the government will invest in each type of industry and agriculture. The plans also help to determine the quantity of goods each worker is expected to
produce. These plans help China to maintain their booming, stable economy.

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"China: Economy," The World Book Encyclopedia (United States of America:
World Book, Inc., 1988) 496.