Abstract
Napoleon Bonaparte had once said "When China wakes up, the world will tremble". Three centuries later, indeed, China is considered, today, as a frightening economic power. China's growth has been exceptional since 1978. Developing countries can grow rapidly with good policies and institutions. China was very poor in 1978 but Economic reforms and opening up to the outside world unleashed a particularly impressive economic growth. China grew on an average of almost 10 percent per year since 1978, compared to 4 percent for all developing countries. With almost one-fifth of the world's total population, China became the world's fourth largest economy in 2005, measured in current exchange rates. On current trends, it may overtake the US to become the largest one in a few decades. The Chinese economy has grown for a few years like it never known in its history. Given the dynamism of the investment, the high rate of its consumption and the increase in the commercial surpluses, there is no reason to doubt that it will growth story in the years to come.
