of Foreign Trade and Economic Relations (Import/Export License System, 2008).
International organizations have displayed keen interest in investing in China, notwithstanding its restrictive policies. China has displayed good business sense in spite of its negative political rhetoric. 400 of the top fortune 500 companies have invested in China. Cheap labor and improved working conditions appear to spur economic radiance. However, it is good to keep fingers crossed. Economic gains have yielded little political reforms. In case flight of foreign capital starts taking place there will be problems of unemployment and uncertainties in finance (Overall Evaluation of WTO Entry's Influence on China).
While on the subject, it is also pertinent to remember China's growth is spurred by exports. Its domestic market may find it very difficult to survive should exports come down significantly or vanish altogether. For the moment, China faces little competition in the manufacturing sector, thanks to its political ideologies.
China's imports and exports
"China's major exports consist of machinery and transport equipments constituting to nearly half of the total exports. Another major portion of the exports comprise of textile, rubber and metallurgical products constituting to 18%. Chemical products, food, mineral and fuel materials made of up 10% of the total exports. There is an exponential increase in the machinery and transport equipments segment of the exports from a mere 5% to 47% in 2007" (China exports by category of commodities, 2010).
"For year 2007, machinery and transport equipments made up the majority of the imports, accounted for USD 412 billion or 43% of total import volume. Next major imported products were chemical products which took 11.3%; mineral and raw material accounted for 11.0%; and textile, rubber and metallurgical products were 10.8%" (China imports by category of commodities, 2010).
China's reputation as the number one manufacturer of world products today has enabled it capture myriad markets from all over the world, notably the United States (US) and the European Union (EU). Corporations in the US and the EU who found their fortunes dwindling in their own countries rose like the proverbial phoenix by establishing their enterprises in China.
China's Economic System
China's new-found euphoria as a major contributor may also prove to be a setback in certain quarters. As socialist economy, China observes the "rule-of-the-thumb" and cannot digest the principles of