40% which is comparable to the rest of the world. Family income distribution is measured using the Gini index and China's value is 40 which is relatively good compared to the rest of the world but has been a decrease when compared to China's recent history. Official figures put unemployment as being 3. 1% but realistically urban unemployment is estimated to be 10% in 2002, in the rural areas there is also significant unemployment. From 80 to 120 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-paying jobs. The ratio change from labour intensive to technology intensive production is one of the reasons along with increases in productivity which came about due to reforms to state-owned enterprises this displacement of peoples.

Increase in technology available stems from the opening of the borders to trans-national corporations and reforms used to increase competitiveness of state-owned enterprises. Trade With the "open door" policy of 1978, volume of exports and imports has risen strongly over the years until the present and this can be seen in statistical data from Table 1. In the first two years of the policy, the value of both exports and imports nearly doubled and foreign direct investment has risen from US$ 0. 3 billion to US$ 37.

7 billion. Exports from China value US$326. 2 billion which is mostly made up by Trade agreements Foreign investment Development Strategies and Government Policies Government policies Development strategies, growth, development, trade and global integration The 1990's and early 21 st century have seen China really follow the path toward global integration. External events such as the collapse of central planning in the USSR and the success of newly industrialised economies convinced that the Chinese leadership that it was in the best interest of the nation and its people to take advantage of the international force behind the process of globalisation.

One of the main problems that China had to over come was the poor state of state owned enterprises. Problems such as inefficiency, large debts and lack of growth to suit the growth of the national economy made it difficult for the Chinese government to continue to open China to the rest of the world. Solution such as relaxing Effects of external shocks on the economy The Asian Financial Crisis Due to China's relatively isolated position, China didn't see any immediate effects of the funds crisis. Many expected China to fall like the Asian Tiger economies around it.

They had seen economies such as Malaysia which had similar fragile bank-dominated financial systems, poor prudential surveillance, weak central bank regulation and supervision of commercial banks, a large build-up of non-performing loans due in part to excessive lending to inefficient, over-leveraged state enterprises, and a largely state-owned financial sector that may be almost insolvent, . However China remained strong, managing to produce a growth rate close to the expected 8%. Exports did slow during this period but this was due to the "inextricable intra-regional trade and investment linkages" SARS.