Rapid Growth in the Economy of China

China’s economy has expanded rapidly since the PRC government introduced economic reforms in the late 1970’s. China’s accession to the World Trade Organization in 2001 further accelerated the reform of the Chinese economy.

In the past 10 years, China’s GDP has increased from RMB4.7 trillion in 1994 to RMB13.7 trillion in 2004, representing a compound annual growth rate of approximately 11%.

The growing Chinese economy has also led to a rapid increase in personal disposal income. In the past 10 years, per capita annual disposable income of urban households in China increased from RMB3,496 in 1994 to RMB9,422 in 2004, representing a compound annual growth rate of approximately 10%. Trucks, one of the main users of biodiesel, increased from 6.8 million trucks in 1994 to 13.0 million trucks in 2004, representing a compound annual growth rate of approximately 7%.

The number of vehicles in China has also increased significantly over the past 10 years. The number of vehicles increased from 11.5 million in 1994 to 41.8 million in 2004, representing a compound annual growth rate of approximately 14%.