China's economy grew at an average rate of 10% per year during the period 1990–2004, the highest growth rate in the world. China's GDP grew 10.0% in 2003, 10.1%, in 2004, and even faster 10.4% in 2005 despite attempts by the government to cool the economy. China's total trade in 2006 surpassed US$1.76 trillion, making China the world's third largest trading nation after the USA and Germany.

Such high growth is necessary if China is to generate the 15 million jobs needed annually – roughly the size of Ecuador or Cambodia – to employ new entrants into the job market internationally. On January 14, 2009, as confirmed by the World Bank the NBS published the revised figures for 2007 fiscal year in which growth happened at 13% instead of 11.9% (provisional figures).  China's gross domestic product stood at US$3.4 trillion while Germany's GDP was US$$3.3 trillion for 2007.  This made China the world's third largest economy by gross domestic product.  Based on these figures, in 2007 China recorded its fastest growth since 1994 when the GDP grew by 13.1%.

China launched its Economic Stimulus Plan to specifically deal with the global financial crisis of 2008 – 2009.  It has primarily focused on increasing affordable housing, easing credit restrictions for mortgage and SMEs, lower taxes such as those on real estate sales and commodities, pumping more public investment into infrastructure development, such as the rail network, roads and ports. By the end of 2009 it appeared that the Chinese economy was showing signs of recovery.

In 2010, China became the world's second largest economy, surpassing Japan's economy and second only to the economy of the United States. In the second quarter of 2010, China's economy was valued at US$1.33 trillion, ahead of the US$1.28 trillion that Japan's economy was worth. Preliminary estimates China's 2010 total GDP to be worth US$5.7 trillion. China could become the world's largest economy (by nominal GDP) sometime as early as 2015, suggesting a strong economic upturn and a desire to take steps to manage it.

The table below shows the trend of the GDP of China at market prices estimated by the IMF with figures in millions (Chinese Yuan). For purchasing power parity comparisons, the US dollar is exchanged at 2.05 CNY only.