China is a one-party socialist republic governed by the Chinese Communist Party. As the world's second-largest economy, it combines state control with market-oriented elements in what it calls a "socialist market economy." The country's economic power is primarily based on manufacturing and exports, though it's increasingly shifting toward services and domestic consumption. Key sectors include technology, heavy industry, infrastructure development, and international trade. Despite rapid modernization and urbanization, China maintains significant state control over crucial industries while allowing private enterprise in many sectors.