China is located to the west of the Pacific Ocean and the South China Sea and is surrounded by Mongolia, Kazakhstan, Pakistan, Nepal, India, Laos, and Vietnam. China's economy ranks 2nd in the world with a GDP PPP of $ 9 trillion (USD) according to the IMF in 2009. China has a People's Republic/Communist State government. According to CIA.gov its inflation was 6% in 2008 and -.7% in 2009. China has two special administrative regions (SARs) within the People's Republic of China including Hong Kong and Macau.