China

Party-state architecture. The Communist Party of China leads the state through parallel Party and government structures at every administrative level. The Constitution describes the framework; Party documents and the State Council shape day-to-day policy. The General Secretary of the CPC is the most consequential political post ^S7,S8.

Deep and globally competitive manufacturing base. Manufacturing remains the single largest source of value added among individual sectors. Industry clusters along the southern, eastern, and northern coastal belts produce most of the country's exports across electronics, machinery, vehicles, textiles, and chemicals. The 'Made in China 2025' and successor industrial-policy frameworks targeted upgrading into high-end manufacturing ^S1,S6.

Bank-led financial system with managed capital flows. The big four state-controlled commercial banks intermediate the bulk of credit. Capital flows into and out of the country are subject to controls, with policy flexibility rather than full liberalization. The renminbi runs under a managed float against a basket; offshore renminbi (CNH) trades more freely ^S3,S13.

Demographic transition past the working-age peak. Population peaked in 2022 and has declined slightly since. Working-age population peaked earlier. The demographic dividend that drove a large share of post-1990 growth has converted into a demographic headwind that policy is now trying to offset through productivity gains ^S5,S9.

External-balance surplus and exchange-rate management. China runs a structural goods trade surplus, with services trade in deficit. The renminbi is managed through a daily fix announced by the PBOC and through reserve management. Capital controls limit the speed of adjustment in the exchange rate to external shocks ^S3,S6.