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About
China
China
Population: 1,298,847,624 (July 2004 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.
Capital: Beijing
Government Type: Communist State
Independence Day: People's Republic of China, 1 October (1949)
Legal System: Acomplex amalgam of custom and statute, largely
criminal law; rudimentary civil code in effect since 1 January
1987; new legal codes in effect since 1 January 1980; continuing
efforts are being made to improve civil, administrative, criminal,
and commercial law.
Currency: yuan (CNY)
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);
Vice Premiers HUANG Ju (since 17 March 2003), WU Yi (17 March
2003), ZENG Peiyan (since 17 March 2003), and HUI Liangyu (since
17 March 2003).
American
Embassy: Xiu Shui Bei Jie 3, 100600 Beijing
Mailing Address: PSC 461, Box 50, FPO AP 96521-0002
Telephone: [86] (10) 6532-3831 FAX: [86] (10) 6532-6929
General Overview: 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, China was beset by civil
unrest, major famines, military defeats, and foreign occupation.
After World War II, the Communists under MAO Zedong established
a dictatorship 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
gradually introduced market-oriented reforms and decentralized
economic decision making. Output quadrupled by 2000. Political
controls remain tight while economic controls continue to be
relaxed.
Economic
Overview: In late 1978 the Chinese leadership began moving the
economy from a sluggish, inefficient, Soviet-style centrally
planned economy to a more market-oriented system. Whereas the
system operates within a political framework of strict Communist
control, the economic influence of non-state organizations and
individual citizens has been steadily increasing. The authorities
switched to a system of household and village responsibility
in agriculture in place of the old collectivization, increased
the authority of local officials and plant managers in industry,
permitted a wide variety of small-scale enterprises in services
and light manufacturing, and opened the economy to increased
foreign trade and investment. The result has been a quadrupling
of GDP since 1978. Measured on a purchasing power parity (PPP)
basis, China in 2003 stood as the second-largest economy in
the world after the US, although in per capita terms the country
is still poor. Agriculture and industry have posted major gains
especially in coastal areas near Hong Kong, opposite Taiwan,
and in Shanghai, where foreign investment has helped spur output
of both domestic and export goods. The leadership, however,
often has experienced - as a result of its hybrid system - the
worst results of socialism (bureaucracy and lassitude) and of
capitalism (growing income disparities and rising unemployment).
China thus has periodically backtracked, retightening central
controls at intervals. The government has struggled to (a) sustain
adequate jobs 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) keep afloat the large state-owned enterprises, many
of which had been shielded from competition by subsidies and
had been losing the ability to pay full wages and pensions.
From 80 to 120 million surplus rural workers are adrift between
the villages and the cities, many subsisting through part-time,
low-paying jobs. Popular resistance, changes in central policy,
and loss of authority by rural cadres have weakened China's
population control program, which is essential to maintaining
long-term growth in living standards. 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. Beijing says it
will intensify efforts to stimulate growth through spending
on infrastructure - such as water supply and power grids - and
poverty relief and through rural tax reform. Accession to the
World Trade Organization helps strengthen its ability to maintain
strong growth rates but at the same time puts additional pressure
on the hybrid system of strong political controls and growing
market influences. China has benefited from a huge expansion
in computer internet use. Foreign investment remains a strong
element in China's remarkable economic growth. Growing shortages
of electric power and raw materials will hold back the expansion
of industrial output in 2004.
International
Disputes: Involved in complex dispute with Malaysia, Philippines,
Taiwan, Vietnam, and possibly Brunei over the Spratly Islands;
the 2002 "Declaration on the Conduct of Parties in the South
China Sea" has eased tensions but falls short of a legally binding
"code of conduct" desired by several of the disputants; most
of the rugged, militarized boundary with India is in dispute,
but the two sides are committed to begin resolution with discussions
on the least disputed Middle Sector; Kashmir remains the world's
largest and highly militarized territorial dispute with portions
under the de facto administration of China (Aksai Chin), India
(Jammu and Kashmir) and Pakistan (Azad Kashmir and Northern
Areas), but recent discussion and confidence-building measures
among parties are beginning to defuse tensions, India does not
recognize Pakistan's ceding lands to China in a 1964 boundary
agreement; in 2003 China together with Taiwan asserted their
claims to the Japanese-administered Senkaku Islands (Diaoyu
Tai) with increased media coverage and protest actions; China
and Kazakhstan have resolved their border dispute and are working
to demarcate their large open borders to control population
migration, illegal activities, and trade; certain islands in
Yalu and Tumen rivers are in an uncontested dispute with North
Korea and a section of boundary around Mount Paektu is indefinite
- China has been attempting to stem mass illegal migration of
North Koreans escaping famine and oppression into northern China;
China continues to seek a mutually acceptable solution to the
disputed alluvial islands with Russia at the confluence of the
Amur and Ussuri rivers and a small island on the Argun river
as part of the 2001 Treaty of Good Neighborliness, Friendship,
and Cooperation; boundary delimitation agreements signed in
2002 with Tajikistan cedes 1,000 sq km of Pamir Mountain range
to China in return for China's relinquishing claims to 28,000
sq km, but demarcation has not commenced; demarcation of land
boundary with Vietnam continues but maritime boundary and joint
fishing zone agreement remains unratified; China occupies Paracel
Islands also claimed by Vietnam and Taiwan; groups in Burma
and Thailand express concern over China's construction of 13
hydroelectric dams on the Salween River in Yunnan Province.
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