China is the world's second largest economy and the world's most populous country, with more than 1.3 billion people. At the same time, India is the second most populous country with 1.1 billion people. Although 1.1 billion people represent a significant share of purchasing power, India continues to have the highest concentration of poor people in the world. In particular, the Indian economy is based on agriculture, textiles, chemicals, food processing, steel, transportation equipment and software services (Just the Facts, 2006). In this article, I will discuss and compare China and India's economy, political issues, offshoring, social issues, education system, government structure and infrastructure. The Chinese Economy and the Goods and Services It Provides The Chinese economy has been changed by the continuing influences of economic reform. Before 1949, China was a traditional society with a traditional household-based economy. For example, 90 percent of China's population lived in rural areas and depended on agriculture. However, “China's new leaders turned their back on China's traditional household-based economy and set about developing a massive socialist industrial complex under direct government control” (Wei and Rowley, 2009). China shaped its economy from socialism for 30 years until it became associated with major shortcomings. As a result, China initiated economic reform that transformed the Chinese economy from a "Soviet-style planned economy to a more market-oriented economy, but still within a rigid political framework of Communist Party control" (Wei and Rowley, 2009). China experienced strong economic growth after the start of reform in 1978, and gradually continued to expand over time...... middle of article ......k: Charles Scribner's Sons . Retrieved from http://0-go.galegroup.com.library.dcccd.edu/ps/i.do?id=GALE%7CCX3403700565&v=2.1&u=txshracd2500&it=r&p=GVRL&sw=wRothermund, D. (2002). India—Education system. In K. Christensen and D. Levinson (Eds.), Encyclopedia of Modern Asia (Vol. 3, pp. 17-20). New York: Charles Scribner's Sons. Retrieved from http://0-go.galegroup.com.library.dcccd.edu/ps/i.do?id=GALE%7CCX3403701275&v=2.1&u=txshracd2500&it=r&p=GVRL&sw=wWei, JQ and Rowley, C. ( 2009). China. In C. Wankel (Ed.), Encyclopedia of business in today's world (Vol. 1, pp. 268-272). Thousand Oaks, CA: Sage Publications Inc. Retrieved from http://0-go.galegroup.com.library.dcccd.edu/ps/i.do?id=GALE%7CCX3201500172&v=2.1&u=txshracd2500&it=r&p=GVRL&sw= wXinhuanet.com (2003) Health sector. Accessed online May 4, 2012 and 2003 at http://202.84.17.11/english/china_abc/health.htm