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China is expected to continue to enjoy rapid economic growth over the next several years, provided that it continues to implement needed reforms, particularly in regard to its inefficient state-owned enterprises and the state banking system.
Trade and foreign investment continues to play a major role in China's booming economy. In 2006, exports rose by 27% to $969 billion, while imports were up by 20% to $792 billion. This produced a trade surplus of about $177 billion. From 2003 to 2006, the value of total Chinese trade doubled. On the basis of current trends, China could surpass the United States in 2007 to become the second largest merchandise exporter (after the European Union)...
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