The impact of the global financial crisis on the Chinese economy Over the past two decades, China has enjoyed one of the fastest growth rates in the world. And for now, China has been the largest contributor to global economic growth. But in recent years, the global financial crisis has already caused enormous damage to China's growing economy. Especially when it comes to the export sector, China has been hit hard by this crisis. The dramatic drop in external demand led to a dramatic slowdown in the economy, and tens of millions of workers were laid off during the crisis. For the Chinese government, it is essential to maintain stable growth, which is considered a way to maintain social stability. Since China, at this time, is the leading economic power in the world and holds extremely large amounts of foreign exchange reserves, it is important to be concerned about the situation of the Chinese economy. This literature review is designed to cover the recent research paper focusing on the topic of the global financial crisis and how it affects the Chinese economy. The correlation of GDP growth between China and the G-3 economies Ligang Liu (2009) used the correlation analysis method to illustrate the correlation between China and the G-3 economies, from 1981 to 2008. How said, trade and foreign direct investment are two important sources of economic growth in China. The G-3 economies are not only important sources of capital inflows to China, but also important markets for Chinese exports. In 2008, trade between China and the G-3 accounted for about 50 percent of total Chinese exports. This number indicates that the Chinese economy and the G-3 economy have a strong interdependent relationship. From the table that concludes the results...... half of the document ......Policy Response, 2008 Institute of World Economy and Politics, Chinese Academy of Social SciencesLigang Liu, Impact of the global financial crisis on China: empirical evidence and policy implications, China and the World Economy, 1-23, Vol 17, No.6, 2009Fung, KC(2009), “Global and Regional Supply Chains and Chinese Exports”, presented at the EAI Distinguished Public Lecture, National University of Singapore. Yuqing , (Stanford University), USA, John Giles (World Bank), The impact of the global financial crisis on employment and non-agricultural earnings in rural China, World Development vol. 39, no.5.