American firms rushing to build in China.

• Position: World Trade - Brief Article - Statistical Data Included

China is on the brink of becoming a major economic power. Economic reforms and open-door programs have provided a powerful impetus for development, explains Chu-yuan Cheng, a business professor specializing in the economic trends of Pacific Rim nations. Ball State University, Muncie, Ind.

"Reform dismantled the highly centralized planning system by returning to a market economy." he notes. "The open-door policy helped to attract large-scale foreign investment that rose from virtually zero in 1978 to $400,000,000,000 by the end of 2001." The market economy helped China's gross domestic product grow at an annual rate of 9.7% over the last 20 years.

"China has enjoyed an unprecedented period of rapid growth and will keep the momentum in years ahead." Cheng predicts. "Economic forecasters in the United States, Western Europe, and Japan all project China will become the world's largest market for consumer products and a major center for manufacturing."

Many American corporations have rushed into China seeking to win over its population of 1,300,000,000 people and a middle class expected to grow to 500,000,000 by 2010. McDonald's has 400 restaurants in the country and plans to add 100 outlets annually. Major corporations such...