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Cities Stocks Weather Movies Coupons Travel Blogs Health Horoscope Maps ASIA EUROPE Classifieds Yellow PagesFor the Chinese civilization, see China.
"PRC" redirects here. For other uses, see PRC (disambiguation).
Not to be confused with Republic of China.
| 中华人民共和国 (Simplified Chinese characters) 中華人民共和國 (Traditional Chinese characters) Zhōnghuá Rénmín Gònghéguó People\'s Republic of China |
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| Anthem: March of the Volunteers (义勇军进行曲) |
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| Capital | Beijing | |||||
| Largest city | Shanghai | |||||
| Official languages | Mandarin1 | |||||
| Demonym | Chinese | |||||
| Government | Socialist Republic² (Marxist-Leninist) (Maoist) | |||||
| - | President | Hu Jintao | ||||
| - | Premier | Wen Jiabao | ||||
| Establishment | ||||||
| - | People\'s Republic declared | October 1 1949 |
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| Area | ||||||
| - | Total | 9,598,086 km² or 9,640,821 km²*4(3rd / 4th–disputed³) 3,704,427 sq mi |
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| - | Water (%) | 2.8³ | ||||
| Population | ||||||
| - | 2007 estimate | 1,321,851,888³ (1st) | ||||
| - | 2000 census | 1,242,612,226 | ||||
| - | Density | 140/km² (53rd) 363/sq mi |
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| GDP (PPP) | 2007 estimate | |||||
| - | Total | $7.043 trillionCIA World Factbook[GDP PPP Rankings] (2nd) | ||||
| - | Per capita | $5,300CIA World Factbook[GDP PPP Per capita Rankings] (130th) | ||||
| GDP (nominal) | 2007 estimate | |||||
| - | Total | $3.42 trillion (4th) | ||||
| - | Per capita | $2,800 (101st) | ||||
| Gini (2007) | 47.0CIA World Factbook[Gini rankings] | |||||
| HDI (2007) | ▲ 0.777 (medium) (81st) | |||||
| Currency | Yuan, Hong Kong dollar,
Macanese pataca (CNY, HKD, MOP,) |
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| Time zone | (UTC+8) | |||||
| - | Summer (DST) | not observed (UTC+8) | ||||
| Internet TLD | .cn, .hk, .mo | |||||
| Calling code | +86³ | |||||
| 1 | General Information of the People\'s Republic of China, ChinaToday. Retrieved 21 February 2007. In addition to Mandarin, Cantonese is co-official in both Hong Kong and Macau. English is co-official in Hong Kong (SAR); correspondingly, Portuguese in Macau (SAR). Similarly, several minority languages are also co-official with Chinese (Mandarin) in minority areas, viz. Zhuang in Guangxi, Uyghur in Xinjiang, Mongolian in the classical alphabet in Inner Mongolia, Tibetan in Tibet, and Korean in Yanbian, Jilin. | |||||
| 2 | The role of the government, China, Encyclopaedia Britannica. Retrieved on 21-02-2007. | |||||
| 3 | Information for mainland China only. The Special Administrative Regions of the PRC: Hong Kong, Macau are excluded. In addition, the island territories under the control of the Republic of China, which includes the islands of (Taiwan, Kinmen, and Matsu) are also excluded. | |||||
| 4 | 9,598,086 km² Excludes all disputed territories. 9,640,821 km² Includes PRC-administered area (Aksai Chin and Trans-Karakoram Tract, both territories claimed by India), Taiwan is not included. |
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| 5 | [1] China Daily website | |||||
The People\'s Republic of China (simplified Chinese: 中华人民共和国; traditional Chinese: 中華人民共和國; pinyin: Zhōnghuá Rénmín Gònghéguó listen ), commonly known as China, is the largest country in East Asia and the third or fourth largest country in the world.Area rank is disputed with the United States and is either ranked third or fourth. See List of countries and outlying territories by area for more information. With a population of over 1.3 billion, roughly one-fifth of the world\'s total population, it is the most populous country in the world. Its capital is Beijing.
The Communist Party of China (CPC) has led the PRC under a single-party system since the state\'s establishment in 1949. The PRC is involved in a long-running dispute over the political status of Taiwan. The CPC\'s rival during the Chinese Civil War, the Kuomintang (KMT), retreated to Taiwan and surrounding islands after its civil war defeat in 1949, claiming legitimacy over China, Mongolia, and Tuva while it was the ruling power of the Republic of China (ROC). The term "Mainland China" is often used to denote the areas under PRC rule, but sometimes excludes its two Special Administrative Regions: Hong Kong and Macau.
Because of its vast population, rapidly growing economy, large research and development investments, China is often considered as an emerging superpower.Gordon, Peter. Review of "China: The Balance Sheet -- What the World Needs to Know Now About the Emerging Superpower". The Asia Review of Books. Retrieved on 2007-12-24.Miller, Lyman. China an Emerging Superpower?. Stanford Journal of International Relations. Retrieved on 2007-12-24. It has the world\'s fourth largest economy and second largest purchasing power parity. China is also a permanent member of the United Nations Security Council and Asia-Pacific Economic Cooperation.China Passes U.S. In Trade With JapanTrade Policy Outlook for Second-term Bush Administration China - Taiwan Economic TiesBeijing\'s Growing Politico-Economic Leverage Over Ulaanbaatar Since 1978, China\'s market-based economic reforms have helped lift over 400 million Chinese out of poverty, bringing down the poverty rate from 53% of population in 1981 to 8% by 2001.Fighting Poverty: Findings and Lessons from China’s Success (World Bank). Retrieved August 10 2006. However, China is now faced with a number of other economic problems, including an aging population, an increasing rural-urban income gap, and rapid environmental degradation.http://www.nytimes.com/2007/12/29/world/asia/29china.html?_r=1&oref=sloginhttp://news.bbc.co.uk/2/hi/asia-pacific/6247119.stm
China plays a major role in international trade. The country is the world\'s largest consumer of steel and concrete, using, respectively, a third and over a half of the world\'s supply of each.[2] China’s Building Boom. Retrieved December 2 2006, It is also the world\'s second largest importer of petroleum. Counting all products, China is the third largest importer and the second largest exporter in the world.The World Factbook, Rank Order - Imports.WTO: China overtakes US as second biggest exporter
Contents |
Mao Zedong proclaiming the establishment of the People\'s Republic in 1949.
Major combat in the Chinese Civil War ended in 1949 with the Communist Party of China in control of the mainland, and the Kuomintang retreating to Taiwan and some outlying islands of Fujian. On October 1, 1949 Mao Zedong proclaimed the People\'s Republic of China, declaring "the Chinese people have stood up".THE CHINESE PEOPLE HAVE STOOD UP!. UCLA Center for East Asian Studies. Retrieved April 16 2006. Red China was a frequent appellation for the PRC (generally within the Western Bloc) used from the time of Communist ascendance until the mid-late 1970s with the improvement of relations between China and the West. Justin Raimondo. "China and the New Cold War". 17 June 1999. Accessed 19 March 2007.
Following a series of dramatic economic failures (caused by the Great Leap Forward), Mao stepped down from his position as chairman in 1959, with Liu Shaoqi as successor. Mao still had much influence over the Party, but was removed from day-to-day management of economic affairs, which came under the control of Liu Shaoqi and Deng Xiaoping.
In 1966, Mao and his allies launched the Cultural Revolution, which would last until Mao\'s death a decade later. The Cultural Revolution, motivated by power struggles within the Party and a fear of the Soviet Union, led to a major upheaval in Chinese society. In 1972, at the peak of the Sino-Soviet split, Mao and Zhou Enlai met Richard Nixon in Beijing to establish relations with the United States. In the same year, the PRC was admitted to the United Nations, replacing the Republic of China for China\'s membership of the United Nations, and permanent membership of the Security Council.
Flag of the People\'s Republic before a modernizing Shanghai.
After Mao\'s death in 1976 and the arrest of the Gang of Four, blamed for the excesses of the Cultural Revolution, Deng Xiaoping quickly wrestled power from Mao\'s anointed successor Hua Guofeng. Although Deng never became the head of the Party or State himself, his influence within the Party led the country to economic reforms of significant magnitude. The Communist Party subsequently loosened governmental control over citizens\' personal lives and the communes were disbanded with many peasants receiving multiple land leases, which greatly increased incentives and agricultural production. This turn of events marked China\'s transition from a planned economy to a mixed economy with an increasingly open market environment, a system termed by many "market socialism". The PRC adopted its current constitution on December 4, 1982.
In 1989, the death of pro-reform official, Hu Yaobang, helped to spark the Tiananmen Square protests of 1989, during which students and others campaigned for several months for more democratic rights and freedom of speech. However, they were eventually put down on June 4 when PLA troops and vehicles entered and forcibly cleared the square by opening fire on protesters, resulting in numerous casualties. This event was widely reported and famously videotaped, which brought worldwide condemnation and sanctions against the government.
President Jiang Zemin and Premier Zhu Rongji, both former mayors of Shanghai, led post-Tiananmen China in the 1990s. Under Jiang Zemin\'s ten years of administration, China\'s economic performance pulled an estimated 150 million peasants out of poverty and sustained an average annual GDP growth rate of 11.2%.Nation bucks trend of global poverty (July 11 2003). China Daily.China\'s Average Economic Growth in 90s Ranked 1st in World (March 1 2000). People\'s Daily Online. The country formally joined the World Trade Organization in 2001.
Although China needs economic growth to spur its development, the government has begun to worry that rapid economic growth has negatively impacted the country\'s resources and environment. Another concern is that certain sectors of society are not sufficiently benefiting from China\'s economic development. As a result, under current President Hu Jintao and Premier Wen Jiabao, the PRC have initiated policies to address these issues of equitable distribution of resources, but the outcome remains to be seen."China worried over pace of growth". BBC. Accessed 16 April 2006. For much of China\'s population, living standards have seen extremely large improvements, and freedom continues to expand, but political controls remain tight.
While the PRC is regarded as a Communist state by many political scientists, simple characterizations of China\'s political structure since the 1980s are no longer possible.Boum, Aomar (1999). Journal of Political Ecology: Case Studies in History and Society. Retrieved May 5 2007. The PRC government has been variously described as authoritarian, communist, and socialist, with heavy restrictions remaining in many areas, most notably in the Internet and in the press, freedom of assembly, freedom of reproductive rights, and freedom of religion. However, compared to its closed door policies until the mid-1970s, the liberalization of the PRC is such that the administrative climate is much less restrictive than before, though the PRC is still far from the full-fledged democracy practiced in most of Europe or North America, according to most observers internationally.
The country is ruled under the Constitution of the People\'s Republic of China. Its incumbent President is Hu Jintao and its premier is Wen Jiabao.
The country is run by the Communist Party of China (CPC), which is guaranteed power by the Constitution.http://english.people.com.cn/constitution/constitution.html There are other political parties in the PRC, referred to in China as "democratic parties", which participate in the People\'s Political Consultative Conference and the National People\'s Congress. There have been some moves toward political liberalization, in that open contested elections are now held at the village and town levels,Unknown Author (2003). Beijingers Get Greater Poll Choices (Web). China Daily. Retrieved on 2007-02-18."Does China’s Land-Tenure System Discourage Structural Adjustment?" by Bryan Lohmar and Agapi Somwaru. 1 May 2006. USDA Economic Research Service. URL accessed 3 May 2006. and that legislatures have shown some assertiveness from time to time. However, the Party retains effective control over governmental appointments: in the absence of meaningful opposition, the CPC wins by default most of the time. Political concerns in China include lessening the growing gap between rich and poor and fighting corruption within the government leadership.China sounds alarm over fast-growing gap between rich and poor. Retrieved April 16 2006. The level of support that the Communist Party of China has among the Chinese population in general is unclear since there are no consistently contested national elections.http://www.chinadaily.com.cn/en/doc/2003-12/08/content_288018.htm According to a survey conducted in Hong Kong, where a relatively high level of freedom is enjoyed, the current CPC leaders have received substantial votes of support when residents were asked to rank their favourite leaders from the PRC and Taiwan."HKU POP SITE releases the latest ratings of the top 10 political figures in Mainland China and Taiwan as well as people\'s appraisal of past Chinese leaders". 4 April 2006. HKU POP. URL accessed 3 May 2006.
Hu Jintao with George W. Bush.
The People\'s Republic of China maintains diplomatic relations with most major countries in the world. Sweden was the first western country to establish diplomatic relations with China on 9 May 1950.http://www.fmprc.gov.cn/eng/wjb/zzjg/xos/gjlb/3361/default.htmhttp://www.chinaembassy.se/eng/zrgx/t100751.htm In 1971, the PRC replaced the Republic of China as the sole representative of China in the United Nations and as one of the five permanent members of the United Nations Security Council.Eddy Chang (August 22 2004). Perseverance will pay off at the UN The Taipei Times. It is considered a founding member of the UN, though the PRC was not in control of China at the time. The PRC was also a former member and leader of the Non-Aligned Movement.
Under the One-China policy, the PRC has made it a precondition to establishing diplomatic relations that the other country acknowledges its claim to Taiwan and severs official ties with the Republic of China (ROC) government. The government opposes publicized foreign travels by former and present Taiwanese officials promoting Taiwan\'s independence, such as Lee Teng-hui and Chen Shui-bian, and other politically controversial figures, such as Tenzin Gyatso, the Dalai Lama of Tibet, in an official context.
China has been playing an increasing role in calling for free trade areas and security pacts amongst its Asia-Pacific neighbors. In 2004, China proposed an entirely new East Asia Summit (EAS) framework as a forum for regional security issues that pointedly excluded the United States.Dillon, Dana and John Tkacik Jr, "China’s Quest for Asia", Policy Review, December 2005 and January 2006, Issue No. 134. Accessed 22 April 2006. The EAS, which includes ASEAN Plus Three, India, Australia and New Zealand, held its inaugural summit in 2005. China is also a founding member of the Shanghai Cooperation Organisation (SCO), with Russia and the Central Asian republics.
Much of the current foreign policy is based on the concept of China\'s peaceful rise. Conflicts with foreign countries have occurred at times in its recent history, particularly with the United States; e.g., the U.S. bombing of the Chinese embassy in Belgrade during the Kosovo conflict in May 1999 and the U.S.-China spy plane incident in April 2001. Its foreign relations with many Western nations suffered for a time following the Tiananmen Square protests of 1989, though they have since recovered. The relationship between China and Japan has been strained at times by Japan\'s refusal to acknowledge its war-time past to the satisfaction of the PRC, e.g. revisionist comments made by prominent Japanese officials and in some Japanese history textbooks. Another point of conflict between the two countries is the frequent visits by Japanese government officials to the Yasukuni Shrine. However, Sino-Japanese relations have warmed considerably since Shinzo Abe became the new Japanese Prime Minister in September 2006. A joint historical study to be completed by 2008 of WWII atrocities is being conducted by China and Japan.
Equally bordering the most countries in the world alongside Russia, the PRC was in a number of international territorial disputes. China\'s territorial disputes have led to localized wars in the last 50 years, including the Sino-Indian War in 1962, the Sino-Soviet border conflict in 1969 and the Sino-Vietnamese War in 1979. In 2001, the PRC and Russia signed the Sino-Russian Treaty of Friendship,http://www.chinadaily.com.cn/china/2006-03/21/content_548330.htm Treaty of Good-Neighborliness and Friendly Cooperation] (March 21 2006). Retrieved April 16 2006. which paved the way in 2004 for Russia to transfer Yinlong Island as well as one-half of Heixiazi to China, ending a long-standing Sino-Russian border dispute. Other territorial disputes include islands in the East and South China Seas, and undefined or disputed borders with India, Tajikistan and North Korea.
While accompanying a rapid economic rise, the PRC since the 1990s seeks to maintain a policy of quiet diplomacy with its neighbors. Steadying its economic growth and participating in regional organizations and cultivating bi-lateral relations will ease suspicion over China\'s burgeoning military capabilities. The PRC has started a policy of wooing African nations for trade and bilateral co-operations.http://www.csmonitor.com/2005/0330/p01s01-woaf.html. Abraham McLaughlin, "A rising China counters US clout in Africa", The Christian Science Monitor, March 30, 2005 edition. http://www.cfr.org/publication/8436/ Princeton N. Lyman. "China’s Rising Role in Africa", July 21, 2005. Retrieved June 26 2007.
With a population of over 1.3 billion, the PRC is very concerned about its population growth and has attempted, with mixed results,The New England Journal of Medicine, September 2005 to implement a strict family planning policy. The government\'s goal is one child per family, with exceptions for ethnic minorities and flexibility in rural areas, where a family can have a second child if the first is a girl or physically disabled. The government\'s goal is to stabilize population growth early in the twenty-first century, though some projections estimate a population of anywhere ranging from 1.4 billion to 1.6 billion by 2025. Hence the country\'s family planning minister has indicated that China will maintain its one-child policy for at least to the year 2018.[3]
The policy is resisted, particularly in rural areas, because of the need for agricultural labour and a traditional preference for boys. Families who breach the policy often lie during the census.http://www.usembassy-china.org.cn/sandt/fertl2b.htm, Official government policy opposes forced abortion or sterilization, but allegations of coercion continue as local officials, who are faced with penalties for failing to curb population growth, may resort to forced abortion or sterilization, or manipulation of census figures.
The decreasing reliability of PRC population statistics since family planning began in the late 1970s has made evaluating the effectiveness of the policy difficult.http://www.usembassy-china.org.cn/sandt/fertl2b.htm Estimates by Chinese demographers of the average number of children for a Chinese woman vary from 1.5 to 2.0. The government is particularly concerned with the large imbalance in the sex ratio at birth, apparently the result of a combination of traditional preference for boys, and family planning pressure, which led to the ban of using ultrasound devices for the purpose of preventing sex-selective abortion.
The Constitution of the People\'s Republic of China states that the "fundamental rights" of citizens include freedom of speech, freedom of the press, the right to a fair trial, freedom of religion, universal suffrage, and property rights. However, censorship of political speech and information is openly and routinely used to protect what the government considers national security interests.China Human Rights Fact Sheet (March 1995). Retrieved April 16 2006. In particular, press control is notoriously tight: Reporters Without Borders considers the PRC one of the least free countries in the world for the press.http://www.rsf.org/rubrique.php3?id_rubrique=554 The government has a policy of limiting some protests and organizations that it considers a threat to social stability and national unity, as was the case with the Tiananmen Square protests of 1989. The Communist Party has had mixed success at controlling information: a very strong media control system faces very strong market forces, an increasingly educated citizenry and cultural change that are making China more open. In some cases, especially on environmental issues,1998 U.S. Embassy Beijing report "The Fading of Environmental Secrecy". Accessed February 4 20071997 U.S. Embassy Beijing report "Environmental NGOs in China: Green is Good, But Don\'t Openly Oppose the Party", Accessed February 4 2007 China\'s leaders see expressions of public dissatisfaction as a catalyst for positive change.
Certain foreign governments and NGOs routinely criticise the PRC, alleging widespread human rights violations including systematic use of lengthy detention without trial, forced confessions, torture, mistreatment of prisoners, restrictions of freedom of speech, assembly, association, religion, the press, and labor rights.China Human Rights Fact Sheet (March 1995). China leads the world in capital punishment, accounting for roughly 90% of total executions in 2004.http://www.commondreams.org/headlines05/0405-07.htm 5 April 2005. Accessed 23 June 2006. The Independent/UK article, republished. Human rights issues are one of the factors driving independence movements in Tibet and Xinjiang. In the Reporters Without Borders\' Annual World Press Freedom Index of 2005,http://www.rsf.org/rubrique.php3?id_rubrique=554 the PRC ranked 159 out of 167 places. PRC journalist He Qinglian in her 2004 book Media Control in ChinaMedia Control in China published 2004 by Human Rights in China, New York. Revised edition 2006 published by Liming Cultural Enterprises of Taiwan documents government controls on the Internet and other media in China.
The PRC government responds to these criticisms by arguing that the notion of human rights should factor in standards of living; rise in the standard of living for some Chinese is seen as an indicator of improvement in human rights."China\'s reform and opening-up promotes human rights, says premier". 11 December 2003. Embassy of the People\'s Republic of China in the United States. Accessed 28 April 2006.
The People\'s Republic of China has administrative control over twenty-two provinces and considers Taiwan to be its twenty-third province.Gwillim Law (April 2 2005). Provinces of China. Retrieved April 15 2006. There are also five autonomous regions, each with a designated minority group; four municipalities; and two Special Administrative Regions that enjoy considerable autonomy. The twenty-two provinces, five autonomous regions and four municipalities can be collectively referred to as "mainland China", a term which usually excludes Hong Kong and Macau.
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Regions (特别行政区) | ||||||
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Grasslands of Chengde, Hebei, North China.
China is the second largest country in Asia by area after Russia, and is considered the third or fourth largest"The People\'s Republic of China" (September 7 2005). Foreign & Commonwealth Office in the world by the U.S. Central Intelligence Agency in respect to land-and-sea area. The uncertainty over size is related to the validity of claims by the PRC on territories such as Aksai Chin and Trans-Karakoram Tract (both territories also claimed by India), and a recent change in the method used by the United States to calculate its surface area."Rank Order — Area" (March 29 2006). CIA World Factbook. It borders 14 nations (counted clockwise from south): Vietnam, Laos, Burma, India, Bhutan, Nepal, Pakistan,China\'s border with Pakistan falls in the disputed Kashmir province. The area under Pakistani-administration is claimed by India. Afghanistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia, Mongolia and North Korea. Additionally the border between PRC and ROC is located in territorial waters.
The territory of the PRC contains a large variety of landscapes. In the east, along the shores of the Yellow Sea and the East China Sea, there are extensive and densely populated alluvial plains, while on the edges of the Inner Mongolian plateau in the north, grasslands can be seen. Southern China is dominated by hill country and low mountain ranges. In the central-east are the deltas of China\'s two major rivers, the Yellow River and Yangtze River (Chang Jiang). Other major rivers include the Xi, Mekong, Brahmaputra and Amur.
To the west, major mountain ranges, notably the Himalayas, with China\'s highest point at the eastern half of Mount Everest, and high plateaus feature among the more arid landscapes such as the Taklamakan and the Gobi Desert.
A major issue is the continued expansion of deserts, particularly the Gobi Desert."Beijing hit by eighth sandstorm". BBC news. Accessed 17 April 2006. Although barrier tree lines planted since the 1970s have reduced the frequency of sandstorms, prolonged drought and poor agricultural practices result in dust storms plaguing northern China each spring, which then spread to other parts of East Asia, including Korea and Japan. Water, erosion, and pollution control have become important issues in China\'s relations with other countries.
China has some relevant environmental regulations: the 1979 Environmental Protection Law, which was largely modelled on U.S. legislation. But the environment continues to deteriorate.Ma Xiaoying; Leonard Ortalano [May 2000] (2002). Environmental Regulation in China. Rowman & Littlefield Publishers. While the regulations are fairly stringent, they are frequently disregarded by local communities while seeking economic development. Twelve years after the law, only one Chinese city was making an effort to clean up its water discharges.Sinkule, Barbara J., Implementing Environmental Policy in China, Praeger Publishers, 1995, ISBN 0-275-94980-X This indicates that China is about twenty years behind the U.S. schedule of environmental regulation.
Water pollution has increased as an issue along with industrial production. The Chinese government has chosen a discharge standard measuring the concentration of a pollutant rather than the total pollutant load (as is done in the U.S. and many Western countries). As a result many industrial dischargers in China simply dilute the effluent with river water taken from the same source as the receiving waters. Consequently the outcome has been to create considerable water pollution in many of the country\'s rivers.
With regard to carbon emissions, China has ratified the Kyoto Protocol but it is not required to reduce carbon emissions because of its status as a developing country. However, with rapid industrialisation, China is fast becoming one of the world\'s top emitters of carbon gases and possibly a major contributor to global warming.
Part of the price China is paying for increased prosperity is damage to the environment. Leading Chinese environmental campaigner Ma Jun has warned that water pollution is one of the most serious threats facing China. According to Ma the drinking water of 300 million peasants is unsafe and water quality in one fifth of the cities is not up to standard. This makes the crisis of water shortages more pressing, with 400 out of 600 cities short of water.Ma, Jun, Li, Naomi (2006). Tackling China\'s Water Crisis Online (Web). www.chinadialogue.net. Retrieved on 2007-02-18.
With 2.3 million active troops, the People\'s Liberation Army (PLA) is the largest military in the world.China Seeks to Allay U.S. Fears as Summit Nears (2006). Retrieved April 15 2006. The PLA consists of an army, navy, air force, and strategic nuclear force. The official announced budget of the PLA for 2007 was $45 billion. However, the United States claims China does not report its real military spending. The DIA estimates that the real Chinese military budget for 2007 could be anywhere from US$85 to US$125 billion.http://www.defenselink.mil/pubs/pdfs/070523-China-Military-Power-final.pdf pg 25
The PRC, despite possession of nuclear weapons and delivery systems, is widely seen by military researchers both within and outside of China as having only limited power projection capability; this is, among other things, because of the limited effectiveness of its navy. It is considered a major military regional power and an emerging military superpower.Nolt, James H. ANALYSIS: The China-Taiwan military balance. Asia Times. Retrieved April 15 2006.
Much progress has been made in the last decade and the PRC continues to make efforts to modernize its military. It has purchased state-of-the-art fighter jets from Russia, such as the Sukhoi Su-30s, and has also produced its own modern fighters, specifically the Chinese J-10s and the J-11s.SinoDefence: Fighter Aircraft. Accessed 15 April 2006 It has also acquired and improved upon the Russian S-300 surface-to-air missile systems, which are considered to be among the best aircraft-intercepting systems in the world,SinoDefence: Surface-to-air Missile System[dead link – history] (2006). Accessed 15 April 2006. albeit Russia has since produced the new generation S-400 Triumf. The PRC\'s armoured and rapid-reaction forces have been updated with enhanced electronics and targeting capabilities. In recent years, much attention has been focused on building a navy with blue-water capability.SinoDefence: Aircraft carrier programme (2006). Accessed 15 April 2006
In 1978, Deng Xiaoping initiated China\'s market-oriented reforms.
Beginning in late 1978, the Chinese leadership has been reforming the economy from a Soviet-style centrally planned economy to a more market-oriented economy that is still within a rigid political framework under Party control. The reforms replaced collectivization of Chinese agriculture with privatization of farmlands, increased the responsibility of local authorities and industry managers, allowed a wide variety of small-scale enterprises to flourish, and promoted foreign investment. Price controls were also relaxed. These changes resulted in mainland China\'s shift from a planned economy to a mixed economy.
The Shanghai Stock Exchange. China\'s SSE Composite index surged 130 percent in 2006.
Farmlands in Hebei. Hundreds of millions of Chinese still depend on the agricultural sector for their livelihood.
China became a member of the World Trade Organization in 2001.Five Years of China’s WTO Membership. EU and US Perspectives on China’s Compliance with Transparency Commitments and the Transitional Review Mechanism, Legal Issues of Economic Integration, Kluwer Law International, Volume 33, Number 3, pp. 263–304, 2006. by Paolo Farah China’s accession into the World Trade Organization (WTO) was a goal achieved after nearly fifteen years of exhausting negotiations carrying many legal, political and social implications for all parties. China was finally able to convince WTO members that without China, the WTO is only partially a worldwide trade organization. The road to the signature of the final agreement of accession was long, but these difficulties pale in comparison to the problems that have not yet been tackled in terms of achieving real implementation of its provisions throughout the territory of the People’s Republic of China (PRC). China’s accession surely presents the world trading system with opportunities, but also poses the challenge of integrating a market with strong structural, behavioural and cultural constraints.Ibid
The government emphasizes personal income and consumption by introducing new management systems to help increase productivity. The government also focuses on foreign trade as a major vehicle for economic growth, which led to 5 Special Economic Zones (SEZ: Shenzhen, Zhuhai, Shantou, Xiamen, Hainan) where investment laws are relaxed so as to attract foreign capital. Since the 1990s, SEZs and similar concepts have been expanded to major Chinese cities, including Shanghai and Beijing. The result has been a 6-fold increase of GDP since 1978. Chinese economic development is among the fastest in the world, and has been growing at an average annual GDP rate of 9.4% for the past 25 years.Malik, Khalid (December 16 2005). "Launch of the China Human Development Report 2005". At the end of 2005, the PRC became the fourth largest economy in the world by exchange rate, and the second largest in the world after the United States by purchasing power parity at US$8,158 trillion.CIA Factbook But with its large population this still gives an average GDP per person of only an estimated US$8,000 (2006), about 1/5th that of the United States.
Mainland China has a reputation as being a low-cost manufacturer, which caused notable disputes in global markets. This is largely because Chinese corporations can produce many products far more cheaply than other parts of Asia or Latin America, and because expensive products produced in developed countries like the United States are in large part uncompetitive compared to European or Asian goods. Another factor is the unfavorable exchange rate between the Chinese yuan and the United States dollar to which it was pegged.
On July 21 2005 the People\'s Bank of China announced that it would move to a floating peg, allowing its currency to move against the United States dollar by 0.5% (effective 18 May 2007, which was earlier 0.3%) a day, while 3% a day against other currencies.China widens yuan, non-dollar trading range to 3% (September 23 2005). Retrieved April 15 2006. Many high-tech American companies have difficulty exporting to China because of U.S. federal government restrictions, which exacerbated the trade gap between the PRC and the US, widespread software piracy and illegal copying of intellectual property (a major US export), and perceived low quality of US goods. On the other hand, China runs a trade deficit with Taiwan and South Korea, importing more from those nations than exports. China runs a large but diminishing trade surplus with JapanTrade Statistics of Japan (Web). Japan Ministry of Finance (2007). Retrieved on 2007-02-27. (slight deficit if Hong Kong is included).The New York Times.The New York Times.
There has been a significant rise in the Chinese standard of living in recent years. Today, a rapidly declining 10 percent of the Chinese population is below the poverty line. 90.9% of the population is literate,CIA - The World Fact Book, [4]. Central Intelligence Agency compared to 20% in 1950.Plafker, Ted, China\'s Long — but Uneven — March to Literacy International Herald Tribune The life expectancy in China is the third highest in East Asia, after Japan and South Korea. There is a large wealth disparity between the coastal regions and the remainder of the country. To counter this potentially destabilizing problem, the government has initiated the China Western Development strategy (2000), the Revitalize Northeast China initiative (2003), and the Rise of Central China policy (2004), which are all aimed at helping the interior of China to catch up.
China is undergoing major reforms in its financial sector, which has been plagued by nonperforming loans made in the 1980s and early 1990s to inefficient state-owned enterprises. The government has spent five years and more than US$400 billion cleaning bad loans off the books of the big four state-owned banks, helping prepare them to become shareholder corporations.China will list the Agricultural Bank of China, once restructured David Barboza, International Herald Tribune. Accessed: 11 February 2007. By the end of 2006, China had restructured three of its four largest banks and listed them publicly. China\'s largest bank, the Industrial and Commercial Bank of China (ICBC) in October 2006 raised US$21.6 billion in the world\'s largest initial public offering (IPO) in history. ICBC is now the world\'s second largest bank in market value, after only Citibank.ICBC becomes world\'s second biggest bank Geoff Dyer, The Financial Times, accessed 11 February 2007. These highly successful IPOs have helped ease the government\'s burden and spur further structural reforms in China\'s nascent banking industry.
Windmill generators in Xinjiang. The Dabancheng project is Asia\'s largest wind power plant.
After the Sino-Soviet split, China started to develop its own nuclear weapons and delivery systems, successfully detonating its first surface nuclear test in 1964 at Lop Nur. A natural outgrowth of this was a satellite launching program, which culminated in 1970 with the launching of Dong Fang Hong I, the first Chinese satellite. This made the PRC the fifth nation to independently launch a satellite. In 1992, the Shenzhou manned spaceflight program was authorized.China\'s First Man-made Satellite (2003). Ministry of Culture. Retrieved April 16 2006. After four tests, Shenzhou 5 was launched on October 15, 2003, using a Long March 2F rocket and carrying Chinese astronaut Yang Liwei, making the PRC the third country to put a human being into space through its own endeavors.Wade, Mark. Shenzhou (6 January 2006). Retrieved April 16 2006. With the successful completion of the second manned mission, Shenzhou 6 in October 2005, the country plans to build a Chinese Space Station in the near future and achieve a lunar landing in the next decade.Wade, Mark. (30 March 2005)Project 921-2. Retrieved April 16 2006.
China has the world\'s second largest research and development budget, and is expected to invest over $136 billion this year after growing more than 20% in the past year."China overtakes Japan on R&D" Financial Times. Accessed 3 December 2006. The Chinese government continues to place heavy emphasis on research and development by creating greater public awareness of innovation, and reforming financial and tax systems to promote growth in cutting-edge industries. President Hu Jintao in January 2006 called for China to make the transition from a manufacturing-based economy to an innovation-based one, and this year\'s National People\'s Congress has approved large increases in research funding. Stem cell research and gene therapy, which some in the Western world see as controversial, face minimal regulation in China. China has an estimated 926,000 researchers, second only to the United States\'s 1.3 million.OECD: China to spend $136 billion on R&D BusinessWeek. Retrieved 3 December 2006.
China is also actively developing its software, semiconductor and energy industries, including renewable energies such as hydro, wind and solar power."Blinding Science: China\'s Race to Innovate" Bruce Einhorn, Business Week, 31 March 2006, accessed: 16 April 2006. In an effort to reduce pollution from coal-burning power plants, China has been pioneering the deployment of
