Beginning in the late 1978, China Economy has been moving to a more market oriented economy. China decollectivized agriculture, yielding tremendous gains in production. Driven by a sharp rise in the procurement price paid for crops and what amounted to the semi-privatization of agriculture, the share of agricultural output in total GDP rose from 30% in 1980 to 33% three years later. However, after that the share of agriculture has fallen fairly steadily, and by 2002 it accounted for only 15.4% of GDP. Thus , even with these improvements, agriculture accounts for only 20% of the nation's gross national product.
At present, more than half of the population depends on agriculture for living. However agriculture's contribution to GDP has remained low.
Significantly large share of industrial production in GDP, characterized the Chinese economy, much before the start of economic reforms there.
ROLE OF STATE vs MARKET
Until 1978, industrial output was dominated by large state-owned enterprises (SOEs). Gradually, the share of state-owned and state-holding enterprises in gross industrial output value had shrunk; in 2002 it was around 41%. However, state-owned companies, controlled by economic ministries in Beijing (Capital of China), represented only 16% of industrial output. State-holding enterprises may control large numbers of state firms, and are not 100% state-owned.
The changes in economic policy, including decentralization of control and the creation of "special economic zones" to attract foreign investment, led to considerable industrial growth, especially in light industries that produce consumer goods.
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