CHINA

Background:

For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences, but in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the Communists under MAO Zedong established an autocratic socialist system that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, his successor DENG Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight.

Geography:

Location: Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam.

Area: Total: 9,596,960 sq km

Land: 9,326,410 sq km

Water: 270,550 sq km

Coastline: 14,500 km

Climate: Extremely diverse, tropical in south to subarctic in north

Terrain: Mostly mountains, high plateaus, deserts in west; plains, deltas, and hills in east

Resources: Coal, iron ore, petroleum, natural gas, mercury, tin, tungsten, antimony, manganese, molybdenum, vanadium, magnetite, aluminum, lead, zinc, uranium, hydropower potential (world's largest)

Hazards: Frequent typhoons (about five per year along southern and eastern coasts); damaging floods; tsunamis; earthquakes; droughts; land subsidence

People:

Population: 1,313,973,713 (July 2006 est.)

Age Structure: 0-14 years: 20.8% (male 145,461,833/female 128,445,739)
15-64 years: 71.4% (male 482,439,115/female 455,960,489)
65 years and over: 7.7% (male 48,562,635/female 53,103,902) (2006 est.)

Religions: Daoist (Taoist), Buddhist, Christian 3%-4%, Muslim 1%-2%
note: officially atheist (2002 est.)

Languages: Standard Chinese or Mandarin (Putonghua, based on the Beijing dialect), Yue (Cantonese), Wu (Shanghaiese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects, minority languages

Government:

Government type: Communist state

Capital: Beijing

Divisions: 23 provinces (sheng, singular and plural), 5 autonomous regions (zizhiqu, singular and plural), and 4 municipalities (shi, singular and plural)
provinces: Anhui, Fujian, Gansu, Guangdong, Guizhou, Hainan, Hebei, Heilongjiang, Henan, Hubei, Hunan, Jiangsu, Jiangxi, Jilin, Liaoning, Qinghai, Shaanxi, Shandong, Shanxi, Sichuan, Yunnan, Zhejiang; (see note on Taiwan)
autonomous regions: Guangxi, Nei Mongol, Ningxia, Xinjiang, Xizang (Tibet)
municipalities: Beijing, Chongqing, Shanghai, Tianjin
note: China considers Taiwan its 23rd province

National Holiday: Anniversary of the Founding of the People's Republic of China, 1 October (1949)

Legal System: Based on civil law system; derived from Soviet and continental civil code legal principles; legislature retains power to interpret statutes; constitution ambiguous on judicial review of legislation; has not accepted compulsory ICJ jurisdiction

Executive Branch: chief of state: President HU Jintao (since 15 March 2003) and Vice President ZENG Qinghong (since 15 March 2003)
Head of government: Premier WEN Jiabao (since 16 March 2003); Executive Vice Premier HUANG Ju (since 17 March 2003), Vice Premiers WU Yi (17 March 2003), ZENG Peiyan (since 17 March 2003), and HUI Liangyu (since 17 March 2003)
Cabinet: State Council appointed by the National People's Congress (NPC)
Elections: president and vice president elected by the National People's Congress for five-year terms; elections last held 15-17 March 2003 (next to be held mid-March 2008); premier nominated by the president, confirmed by the National People's Congress
Election results: HU Jintao elected president by the 10th National People's Congress with a total of 2,937 votes (four delegates voted against him, four abstained, and 38 did not vote); ZENG Qinghong elected vice president by the 10th National People's Congress with a total of 2,578 votes (177 delegates voted against him, 190 abstained, and 38 did not vote); two seats were vacant.

Political Parties

& Leaders: Chinese Communist Party or CCP [HU Jintao]; eight registered small parties controlled by CCP

Economy:

China's economy during the last quarter century has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy. Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment. China has generally implemented reforms in a gradualist or piecemeal fashion. The process continues with key moves in 2005 including the sale of equity in China's largest state banks to foreign investors and refinements in foreign exchange and bond markets. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis, China in 2005 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income and 150 million Chinese fall below international poverty lines. Economic development has generally been more rapid in coastal provinces than in the interior, and there are large disparities in per capita income between regions. The government has struggled to: (a) sustain adequate job growth for tens of millions of workers laid off from state-owned enterprises, migrants, and new entrants to the work force; (b) reduce corruption and other economic crimes; and (c) contain environmental damage and social strife related to the economy's rapid transformation. From 100 to 150 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time, low-paying jobs. One demographic consequence of the "one child" policy is that China is now one of the most rapidly aging countries in the world. Another long-term threat to growth is the deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the north. China continues to lose arable land because of erosion and economic development. China has benefited from a huge expansion in computer Internet use, with more than 100 million users at the end of 2005. Foreign investment remains a strong element in China's remarkable expansion in world trade and has been an important factor in the growth of urban jobs. In July 2005, China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. Reports of shortages of electric power in the summer of 2005 in southern China receded by September-October and did not have a substantial impact on China's economy. More power generating capacity is scheduled to come on line in 2006 as large scale investments are completed. Thirteen years in construction at a cost of $24 billion, the immense Three Gorges Dam across the Yangtze River will be essentially completed in 2006 and will revolutionize electrification and flood control in the area. The Central Committee of the Chinese Communist Party in October 2005 approved the draft 11th Five-Year Plan and the National People's Congress is expected to give final approval in March 2006. The plan calls for a 20% reduction in energy consumption per unit of GDP by 2010 and an estimated 45% increase in GDP by 2010. The plan states that conserving resources and protecting the environment are basic goals, but it lacks details on the policies and reforms necessary to achieve these goals.

******************************************

www.asiatradeforum.org