THE 'SOCIALIST MARKET ECONOMY' HAS GROWN TENFOLD IN THREE DECADES, BUOYED BY CHEAP LABOUR, CHEAP CAPITAL AND HIGH PRODUTIVITY, WHICH IS RECKONED TO HAVE INCREASED BY AN AVERAGE OF 20 PER CENT A YEAR FROM 1996 ONWARDS. IN 2008, THE PRC WAS THE WORLD'S SECOND BIGGEST MANUFACTURER, WITH 15 PER CENT OF OUTPUT, JUST BEHIND 17 PER CENT FOR THE USA. BEIJING HAS SET ITSELF THE TARGET OF QUADRUPLING PER CAPITA GDP BY 2020. jonathan fenby.