Introduction
China is a global hub for manufacturing, and is the largest manufacturing economy in the world as well as the largest exporter of goods in the world. China is also the world's fastest growing consumer market and second largest importer of goods. China is a net importer of services products hence obtained an average annual Growth Domestic Product (GDP) growth of 9.10%. China has been an economic power house since the 70s, and ranked the 2nd largest economy in the world ever since. Presently, the Central Bank of China has adopted a Long Term Economic Policy, designed to reduce rural-urban income inequality, reduce centralized planning and to attract Foreign Direct Investments (FDIs) to boost their economy growth. China has also adopted several trade policies to liberalize their economy to encourage global trade. This will not only benefit the country, but the rest of the world consequently.
This essay will attempt to analyze the performance trend of China’s economy with the consideration of the Production output performance analysis, Labour market analysis and Price level analysis.

GDP growth rate
Fig 1a) China’s annual GDP growth rate from 2004 – 2014 (Tradingeconomics.com, 2014).

As shown in Fig 1a), China is seen to have a positive economic growth from 2004-2014 and a spike in it’s growth rate in 2007 before the global financial crisis in 2008. China then took a steep fall in 2008-2009 to 6.3% GDP per annual. The reason behind the plummet is due to capital flight of American Multinational Co-operations from the Chinese Economy due to the lost in investor confidence and the instability of their home country
The cause of China stock market crashing was due to the sudden pull out of western partners (Bank of America, UBS, RBS, etc) , by selling their minority stocks to retrieve capital. This dealt a massive blow to China’s fledgeling sovereign