An Assignment Report

On the topic

‘CHINA’

For the subject of

International Business

mba - 846

SUBMITTED TO: PRESENTED BY:

Sh. Jai Kishan Chandel Kshipra Garg

(Assistant Professor) Semester V

Roll No: 26

Batch – 2008-13

Institute of Management Studies, Kurukshetra University, Kurukshetra.

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DECLARATION

I, Kshipra Garg hereby declare that I have completed the assignment, entitled ‘China’ given to me by Sh. Jai Kishan Chandel, Assistant Professor, Institute of Management Studies, Kurukshetra University, Kurukshetra and the assignment is to be submitted for the partial ascertainment for the internal assessment of the subject, International Business, mba - 846. Further I declare that this is original work done by me and the information provided in the study is authentic to the best of my knowledge and belief.

This study has not been submitted or used for any other purpose.

Dated: 23-08-2010

KSHIPRA GARGV SemesterRoll No.-26

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CONTENTS

Chapter 1

o Introduction Chapter 2

o History Chinese Dynamist Chapter 3

o Cultural and Social Lifeo Traditions o Language o Religion

Chapter 4 o Government Structure

Chapter 5 o Economy of China o Trade and investment, Sectors, Energy o International trade o Industry, Competitiveness

Chapter 6 o Export and Import Statistical Data

Summary References

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Chapter 1

INTRODUCTION

Flag Emblem Euro

An Introduction to China

Staggeringly vast and a land of great diversity, China, the world's most populous and third largest nation is more like a continent in itself than a country.

Stretching from its southern borders in the Himalayas to the deserts of Mongolia in the north, and from the East China Sea through the Yangzi River Valley plains, to the Tibetan Plateau in the western mainland, China covers an area of 9,596,960 square kilometers.

China also encompasses over 5000 islands, not to mention the disputed territories such as the Spratlys and the Paracels. The nation comprises five autonomous regions and twenty-two provinces, as well as Hong Kong, which is now titled a 'Special Administrative Region’. The seat of government, Beijing, is a large city of 11 million people, and like all of China's urban metropolises, life here contrasts immensely with that of the peasant farmers in rural areas. Due to its size, China's climate is obviously very diverse, ranging from an unbearable 48ºC in the northwest during Summer to an equally unbearable -40ºC in the far north in winter.

The official language in China is Mandarin, as spoken in Beijing, but there are also many different dialects to listen for. Chinese food (and much of the ingredients used to create it is like no other cuisine - and again, this differs greatly between regions. Art in China is also stunningly unique, perhaps best typified by calligraphy, performed with ink and brush, and held in extremely high esteem by the Chinese.

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The Capital

Beijing is the capital of the People's Republic of China. It is not only the nation's political centre, but also its cultural, scientific and educational heart and a key transportation hub. Beijing has served as a capital for more than 800 years. The city had many places of historic interest and scenic beauty, including the imperial Palace (also known as the Forbidden City), the largest and best-preserved ancient architectural complex in the world; the Temple of Heaven, where Ming and Qing emperors performed solemn rituals for bountiful harvests; the Summer Palace, the emperors' magnificent garden retreat; the Ming tombs, the stately and majestic mausoleums of 13 Ming Dynasty emperors; and the world-renowned and genuinely inspiring Badaling section of the Great Wall. Large-scale construction since the founding of the People's Republic of China in 1949 has brought great changes to Beijing. Today's Beijing still retains the alluring fascination of an ancient capital, but has added a small forest of skyscrapers and a complete range of municipal facilities, transforming itself into an attractively modern metropolis redolent of history.

The National Flag, National Emblem and National Anthem

The national flag of the People's Republic of China is red in color, rectangular in shape, with five stars. The proportion between the length and height of the flag is three to two. The five five-pointed yellow stars are located in the upper left corner. One of them, which is bigger, appears on the left, while the other four hem it in on the right.

The red color of the flag symbolizes revolution; the stars take on the yellow color in order to bring out their brightness on the red ground. The larger star represents the CPC, while the four smaller ones, the Chinese people. The relationship between the stars means the great unity of the Chinese people underthe leadership of the CPC.

The national emblem of the People's Republic of China is Tiananmen in the center illuminated by five stars and encircled by ears of grain and a cogwheel. The ears of grain, stars, Tiananmen and cogwheel are painted golden, and the inner part of the circle and hanging ribbons are painted red because these two colors are traditional Chinese colors representing auspiciousness and happiness. Tiananmen symbolizes the unyielding national spirit of the Chinese people in their fight against imperialism and feudalism; the ears of grain and cogwheel represent the working class and the peasantry; and the five stars stand for thegreat unity of the Chinese people under the leadership of the CPC.

The national anthem was created in 1935, the lyrics by Tian Han, a famous poet, and the music by Nie Er, a famous composer.

The lyrics of the national anthem are as follows:

March of the Volunteers Arise, ye who refuse to be slaves;

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China National Anthem

With our very flesh and bloodLet us build our new Great Wall!

The Peoples of China are in the most critical time,Everybody must roar his defiance.

Arise! Arise! Arise!Millions of hearts with one mind,

Brave the enemy's gunfire,March on!

Brave the enemy's gunfire,March on! March on! March on, on !

This song, originally named March of the Volunteers, is the theme song of the film, Young Heroes and Heroines in Stormy Years. The film describes the people who went to the front to fight against the invaders in the 1930s when Japan invaded northeast China and the fate of the Chinese nation was hanging in the balance.

March of the Volunteers, inspiring and forceful, expresses the determination of the Chinese people to sacrifice themselves for national liberation, and their fine tradition of bravery, firmness and unity in their fight against aggression. It was for this reason that the CPPCC on September 27, 1949 decided to adopt the song as the national anthem of the People's Republic of China, and the National People's Congress on December 4, 1982 officially decided to adopt the song as the national anthem of the People's Republic of China.

Resources

China abounds in natural resources. It leads the world in many proven mineral deposits; No country in the world boasts more wildlife than China, many of which are native to China, such as giant panda, snub-nosed golden monkey, and Chinese alligator; China's dawn redwood and Cathaya argyrophylla are known as the living fossils of ancient plants.

To protect the nation's native animals and plants, especially the endangered species, China has established more than 700 nature reserves. History China, with a recorded history of 5,000 years, is one of the world's earliest civilizations.

In the 21st century B.C., China entered slave society with the founding of the Xia Dynasty, thereby writing a finale to long years of primitive society. The Xia was followed by the Shang and Western Zhou Dynasty, Which encompassed the Spring and Autumn and Warring States periods.

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In 221 B.C., Qin Shihuang established China's first centralized autocracy, the Qin Dynasty, thereby ushering Chinese history into feudal-ism, which endured in a succession of dynasties, such as the Han, Tang, Song, Yuan, Ming, and Qing, until the Opium War of 1840.

The economy and science and technology were relatively well developed in ancient China. During the Shang Dynasty some 3,000 years ago, the Chinese had mastered the art of bronze metallurgy, and invented iron implements; Many distinguished thinkers, scientists, artists and writers came into being. The contributions to world civilization of ancient China's four inventions: papermaking, printing, powder, and the compass, as well as remarkable achievements in mathematics, medical science, astronomy, agriculture, and architecture, are universally recognized.

The Bourgeois Democratic Revolution of 1991 led by Sun Yat-sen toppled the rule of the Qing Dynasty, put an end to more than 2.000 years of feudal monarchical system and culminated in the establishment of the provisional government of the Republic of China.

The People's Republic of China was founded on October 1,1949. Today, China is implementing reform and opening-up policies, and has established socialist market economy, thereby charting the course for socialist modernization with Chinese characteristics. Population China, as the word's most populous country, has a population exceeding 1.2 billion, which makes up 22 percent of the world total. To bring population growth under control, the country has followed a family planning policy since the 1970s.

Fact file

Area: 9,596,960 square kilometersPopulation: 1.2 billionCapital City: BeijingPeople: Han Chinese 93%, other immigrants (including Mongol, Zhuang, Manchu and Uighur) 7%Main Language: Mandarin (Beijing dialect)Religion: Officially atheist; Confucianism, Buddhism, Taoism. Also Islamic and Christian communitiesMajor Industries: Iron, steel, coal, machinery, textilesCurrency: Renminbi (RMB)

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Geography and climate

Topography of China

Longsheng Rice Terrace

Li River in Guangxi

Mount Everest in Tibet

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South China Sea by Hainan

Jiuzhaigou Valley

The People's Republic of China is the second largest country in the world by land area[17] and is considered the third or fourth largest in respect to total area.[86] The uncertainty over size is related to (a) the validity of claims by China on territories such as Aksai Chin and Trans-Karakoram Tract (both territories also claimed by India),[87] and (b) how the total size of the United States is calculated: The World Factbook gives 9,826,630 km²,[88] and the Encyclopædia Britannica gives 9,522,055 km².[89] China borders 14 nations, more than any other country (shared with Russia); counted clockwise from south : Vietnam, Laos, Burma, India, Bhutan, Nepal, Pakistan,[90] Afghanistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia, Mongolia and North Korea. Additionally the border between PRC and ROC is located in territorial waters. China has a land border of 22,117 km, the largest in the world.

The territory of China 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 at 8,848 m, 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.[91] 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. China is losing a million acres per year to desertification.[92] Water, erosion, and pollution control have become important issues in China's relations with other countries. Melting glaciers in the Himalayas

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could also lead to water shortages for hundreds of millions of people.[93]

China has a climate mainly dominated by dry seasons and wet monsoons, which leads to temperature differences in winter and summer. In winter, northern winds coming from high latitude areas are cold and dry; in summer, southern winds from sea areas at lower latitude are warm and moist. The climate in China differs from region to region because of the country's extensive and complex topography

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HISTORY

China, one of the countries that can boast of an ancient civilization, has a long and mysterious

history - almost 5,000 years of it! Like most other great civilizations of the world, China can

trace her culture back to a blend of small original tribes which have expanded till they became

the great country we have today.

It is recorded that Yuanmou man is the oldest hominoid in China and the oldest dynasty is Xia

Dynasty. From the long history of China, there emerge many eminent people that have

contributed a lot to the development of the whole country and to the enrichment of her history.

Among them, there are emperors like Li Shimin (emperor Taizong of the Tang), philosophers

like Confucius, great patriotic poets like Qu Yuan and so on.

Chinese society has progressed through five major stages - Primitive Society, Slave Society,

Feudal Society, Semi-feudal and Semi-colonial Society, and Socialist Society. The rise and fall

of the great dynasties forms a thread that runs through Chinese history, almost from the

beginning. Since the founding of the People's Republic of China on October 1st, 1949, China has

become a socialist society and become stronger and stronger.

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List of Chinese Dynasties

Dynasties Period

Xia (Hsia) 

2205 B.C.-1766 B.C.

Shang 

1766 B.C.-1122 B.C.

Zhou (Chow) 

Western Zhou (Chow) 1122 B.C.-770 B.C.

Eastern Zhou (Chow)  770 B.C.-256 B.C.

Spring & Autumn Annals 770 B.C.-476 B.C.

Warring States Period 475 B.C.-221 B.C.

Qin (Chin)  221 B.C.-207 B.C.

Han 

Western Han 206 B.C.- 24

Estern Han 25-220

Three Kingdoms

Period

Wei 220-265

Shu 221-263

Wu 222-280

Jin (Tsin)

 

Western Jin (Tsin) 265-316

Eastern Jin (Tsin) 317-420

Southern and Northern Dynasties Southern

Dynasty

Song 420-479

Qi 479-502

Liang 502-557

Chen 557-589

Northern Dynasty

Northern Wei 386-534

Eastern Wei 534-550

Northern Qi 550-577

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Western Wei 535-556

Northern Zhou 557-580

Sui

581-618

Tang

618-907

Five Dynasties

Later Liang 907-923

Later Tang 923-936

Later Jin 936-947

Later Han 947-950

Later Zhou 951-960

Song (Sung) 

Northern Song (Sung) 960-1127

Southern Song (Sung) 1127-1280

Liao

916-1125

Jin

1115-1234

Yuan

1271-1368

Ming

1368-1644

Qing (Ching)

1644-1911

Republic of China (ROC)

1911- (moved to Taiwan after 1949)

People's Republic of China (PRC)

1949-

   

Successive dynasties developed a system of bureaucratic control that gave the agrarian-based Chinese an advantage over neighboring nomadic and hill cultures. Chinese civilization was

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further strengthened by the development of a Confucian state ideology and a common written language that bridged the gaps among the country's many local languages and dialects. Whenever China was conquered by nomadic tribes, as it was by the Mongols in the 13th century, the conquerors sooner or later adopted the ways of the "higher" Chinese civilization and staffed the bureaucracy with Chinese. 

The last dynasty was established in 1644, when the Manchus overthrew the native Ming dynasty and established the Qing (Ch'ing) dynasty with Beijing as its capital. At great expense in blood and treasure, the Manchus over the next half century gained control of many border areas, including Xinjiang, Yunnan, Tibet, Mongolia, and Taiwan. The success of the early Qing period was based on the combination of Manchu martial prowess and traditional Chinese bureaucratic skills. 

During the 19th century, Qing control weakened, and prosperity diminished. China suffered massive social strife, economic stagnation, explosive population growth, and Western penetration and influence. The Taiping and Nian rebellions, along with a Russian-supported Muslim separatist movement in Xinjiang, drained Chinese resources and almost toppled the dynasty. Britain's desire to continue its illegal opium trade with China collided with imperial edicts prohibiting the addictive drug, and the First Opium War erupted in 1840. China lost the war; subsequently, Britain and other Western powers, including the United States, forcibly occupied "concessions" and gained special commercial privileges. Hong Kong was ceded to Britain in 1842 under the Treaty of Nanking, and in 1898, when the Opium Wars finally ended, Britain executed a 99-year lease of the New Territories, significantly expanding the size of the Hong Kong colony. 

As time went on, the Western powers, wielding superior military technology, gained more economic and political privileges. Reformist Chinese officials argued for the adoption of Western technology to strengthen the dynasty and counter Western advances, but the Qing court played down both the Western threat and the benefits of Western technology. 

Early 20th Century China

Frustrated by the Qing court's resistance to reform, young officials, military officers, and students--inspired by the revolutionary ideas of Sun Yat-sen–began to advocate the overthrow of the Qing dynasty and creation of a republic. A revolutionary military uprising on October 10, 1911, led to the abdication of the last Qing monarch. As part of a compromise to overthrow the dynasty without a civil war, the revolutionaries and reformers allowed high Qing officials to retain prominent positions in the new republic. One of these figures, Gen. Yuan Shikai, was chosen as the republic's first president. Before his death in 1916, Yuan unsuccessfully attempted to name himself emperor. His death left the republican government all but shattered, ushering in the era of the "warlords" during which China was ruled and ravaged by shifting coalitions of competing provincial military leaders. 

In the 1920s, Sun Yat-sen established a revolutionary base in south China and set out to unite the fragmented nation. With Soviet assistance, he organized the Kuomintang (KMT or "Chinese

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Nationalist People's Party"), and entered into an alliance with the fledgling Chinese Communist Party (CCP). After Sun's death in 1925, one of his protégés, Chiang Kai-shek, seized control of the KMT and succeeded in bringing most of south and central China under its rule. In 1927, Chiang turned on the CCP and executed many of its leaders. The remnants fled into the mountains of eastern China. In 1934, driven out of their mountain bases, the CCP's forces embarked on a "Long March" across some of China's most desolate terrain to the northwestern province of Shaanxi, where they established a guerrilla base at Yan'an. 

During the "Long March," the communists reorganized under a new leader, Mao Zedong (Mao Tse-tung). The bitter struggle between the KMT and the CCP continued openly or clandestinely through the 14-year long Japanese invasion (1931-45), even though the two parties nominally formed a united front to oppose the Japanese invaders in 1937. The war between the two parties resumed after the Japanese defeat in 1945. By 1949, the CCP occupied most of the country. 

Chiang Kai-shek fled with the remnants of his KMT government and military forces to Taiwan, where he proclaimed Taipei to be China's "provisional capital" and vowed to reconquer the Chinese mainland. The KMT authorities on Taiwan still call themselves the "Republic of China." 

The People's Republic of China

In Beijing, on October 1, 1949, Mao Zedong proclaimed the founding of the People's Republic of China (P.R.C.). The new government assumed control of a people exhausted by two generations of war and social conflict, and an economy ravaged by high inflation and disrupted transportation links. A new political and economic order modeled on the Soviet example was quickly installed. 

In the early 1950s, China undertook a massive economic and social reconstruction program. The new leaders gained popular support by curbing inflation, restoring the economy, and rebuilding many war-damaged industrial plants. The CCP's authority reached into almost every aspect of Chinese life. Party control was assured by large, politically loyal security and military forces; a government apparatus responsive to party direction; and the placement of party members into leadership positions in labor, women's, and other mass organizations. 

The "Great Leap Forward" and the Sino-Soviet Split

In 1958, Mao broke with the Soviet model and announced a new economic program, the "Great Leap Forward," aimed at rapidly raising industrial and agricultural production. Giant cooperatives (communes) were formed, and "backyard factories" dotted the Chinese landscape. The results were disastrous. Normal market mechanisms were disrupted, agricultural production fell behind, and China's people exhausted themselves producing what turned out to be shoddy, unsalable goods. Within a year, starvation appeared even in fertile agricultural areas. From 1960 to 1961, the combination of poor planning during the Great Leap Forward and bad weather resulted in one of the deadliest famines in human history. 

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The already strained Sino-Soviet relationship deteriorated sharply in 1959, when the Soviets started to restrict the flow of scientific and technological information to China. The dispute escalated, and the Soviets withdrew all of their personnel from China in August 1960. In 1960, the Soviets and the Chinese began to have disputes openly in international forums. 

The Cultural Revolution

In the early 1960s, State President Liu Shaoqi and his protégé, Party General Secretary Deng Xiaoping, took over direction of the party and adopted pragmatic economic policies at odds with Mao's revolutionary vision. Dissatisfied with China's new direction and his own reduced authority, Party Chairman Mao launched a massive political attack on Liu, Deng, and other pragmatists in the spring of 1966. The new movement, the "Great Proletarian Cultural Revolution," was unprecedented in communist history. For the first time, a section of the Chinese communist leadership sought to rally popular opposition against another leadership group. China was set on a course of political and social anarchy that lasted the better part of a decade. 

In the early stages of the Cultural Revolution, Mao and his "closest comrade in arms," National Defense Minister Lin Biao, charged Liu, Deng, and other top party leaders with dragging China back toward capitalism. Radical youth organizations, called Red Guards, attacked party and state organizations at all levels, seeking out leaders who would not bend to the radical wind. In reaction to this turmoil, some local People's Liberation Army (PLA) commanders and other officials maneuvered to outwardly back Mao and the radicals while actually taking steps to rein in local radical activity. 

Gradually, Red Guard and other radical activity subsided, and the Chinese political situation stabilized along complex factional lines. The leadership conflict came to a head in September 1971, when Party Vice Chairman and Defense Minister Lin Biao reportedly tried to stage a coup against Mao; Lin Biao allegedly later died in a plane crash in Mongolia. 

In the aftermath of the Lin Biao incident, many officials criticized and dismissed during 1966-69 were reinstated. Chief among these was Deng Xiaoping, who reemerged in 1973 and was confirmed in 1975 in the concurrent posts of Politburo Standing Committee member, PLA Chief of Staff, and Vice Premier. 

The ideological struggle between more pragmatic, veteran party officials and the radicals re-emerged with a vengeance in late 1975. Mao's wife, Jiang Qing, and three close Cultural Revolution associates (later dubbed the "Gang of Four") launched a media campaign against Deng. In January 1976, Premier Zhou Enlai, a popular political figure, died of cancer. On April 5, Beijing citizens staged a spontaneous demonstration in Tiananmen Square in Zhou's memory, with strong political overtones of support for Deng. The authorities forcibly suppressed the demonstration. Deng was blamed for the disorder and stripped of all official positions, although he retained his party membership. 

The Post-Mao Era

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Mao's death in September 1976 removed a towering figure from Chinese politics and set off a scramble for succession. Former Minister of Pubic Security Hua Guofeng was quickly confirmed as Party Chairman and Premier. A month after Mao's death, Hua, backed by the PLA, arrested Jiang Qing and other members of the "Gang of Four." After extensive deliberations, the Chinese Communist Party leadership reinstated Deng Xiaoping to all of his previous posts at the 11th Party Congress in August 1977. Deng then led the effort to place government control in the hands of veteran party officials opposed to the radical excesses of the previous two decades. 

The new, pragmatic leadership emphasized economic development and renounced mass political movements. At the pivotal December 1978 Third Plenum (of the 11th Party Congress Central Committee), the leadership adopted economic reform policies aimed at expanding rural income and incentives, encouraging experiments in enterprise autonomy, reducing central planning, and attracting foreign direct investment into China. The plenum also decided to accelerate the pace of legal reform, culminating in the passage of several new legal codes by the National People's Congress in June 1979. 

After 1979, the Chinese leadership moved toward more pragmatic positions in almost all fields. The party encouraged artists, writers, and journalists to adopt more critical approaches, although open attacks on party authority were not permitted. In late 1980, Mao's Cultural Revolution was officially proclaimed a catastrophe. Hua Guofeng, a protégé of Mao, was replaced as premier in 1980 by reformist Sichuan party chief Zhao Ziyang and as party General Secretary in 1981 by the even more reformist Communist Youth League chairman Hu Yaobang. 

Reform policies brought great improvements in the standard of living, especially for urban workers and for farmers who took advantage of opportunities to diversify crops and establish village industries. Literature and the arts blossomed, and Chinese intellectuals established extensive links with scholars in other countries. 

At the same time, however, political dissent as well as social problems such as inflation, urban migration, and prostitution emerged. Although students and intellectuals urged greater reforms, some party elders increasingly questioned the pace and the ultimate goals of the reform program. In December 1986, student demonstrators, taking advantage of the loosening political atmosphere, staged protests against the slow pace of reform, confirming party elders' fear that the current reform program was leading to social instability. Hu Yaobang, a protégé of Deng and a leading advocate of reform, was blamed for the protests and forced to resign as CCP General Secretary in January 1987. Premier Zhao Ziyang was made General Secretary and Li Peng, former Vice Premier and Minister of Electric Power and Water Conservancy, was made Premier. 

1989 Student Movement and Tiananmen Square

After Zhao became the party General Secretary, the economic and political reforms he had championed came under increasing attack. His proposal in May 1988 to accelerate price reform

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led to widespread popular complaints about rampant inflation and gave opponents of rapid reform the opening to call for greater centralization of economic controls and stricter prohibitions against Western influence. This precipitated a political debate, which grew more heated through the winter of 1988-89. 

The death of Hu Yaobang on April 15, 1989, coupled with growing economic hardship caused by high inflation, provided the backdrop for a large-scale protest movement by students, intellectuals, and other parts of a disaffected urban population. University students and other citizens camped out in Beijing's Tiananmen Square to mourn Hu's death and to protest against those who would slow reform. Their protests, which grew despite government efforts to contain them, called for an end to official corruption and for defense of freedoms guaranteed by the Chinese constitution. Protests also spread to many other cities, including Shanghai, Chengdu, and Guangzhou. 

Martial law was declared on May 20, 1989. Late on June 3 and early on the morning of June 4, military units were brought into Beijing. They used armed force to clear demonstrators from the streets. There are no official estimates of deaths in Beijing, but most observers believe that casualties numbered in the hundreds. 

After June 4, while foreign governments expressed horror at the brutal suppression of the demonstrators, the central government eliminated remaining sources of organized opposition, detained large numbers of protesters, and required political reeducation not only for students but also for large numbers of party cadre and government officials. 

Following the resurgence of conservatives in the aftermath of June 4, economic reform slowed until given new impetus by Deng Xiaoping's dramatic visit to southern China in early 1992. Deng's renewed push for a market-oriented economy received official sanction at the 14th Party Congress later in the year as a number of younger, reform-minded leaders began their rise to top positions. Deng and his supporters argued that managing the economy in a way that increased living standards should be China's primary policy objective, even if "capitalist" measures were adopted. Subsequent to the visit, the Communist Party Politburo publicly issued an endorsement of Deng's policies of economic openness. Though not completely eschewing political reform, China has consistently placed overwhelming priority on the opening of its economy. 

Third Generation of Leaders

Deng's health deteriorated in the years prior to his death in 1997. During that time, President Jiang Zemin and other members of his generation gradually assumed control of the day-to-day functions of government. This "third generation" leadership governed collectively with President Jiang at the center. 

In March 1998, Jiang was re-elected President during the 9th National People's Congress. Premier Li Peng was constitutionally required to step down from that post. He was elected to the chairmanship of the National People's Congress. Zhu Rongji was selected to replace Li as Premier. 

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Fourth Generation of Leaders

In November 2002, the 16th Communist Party Congress elected Hu Jintao, who in 1992 was designated by Deng Xiaoping as the "core" of the fourth generation leaders, the new General Secretary. A new Politburo and Politburo Standing Committee was also elected in November. 

In March 2003, General Secretary Hu Jintao was elected President at the 10th National People's Congress. Jiang Zemin retained the chairmanship of the Central Military Commission. 

China is firmly committed to economic reform and opening to the outside world. The Chinese leadership has identified reform of state industries and the establishment of a social safety network as government priorities. Government strategies for achieving these goals include large-scale privatization of unprofitable state-owned enterprises and development of a pension system for workers. The leadership has also downsized the government bureaucracy.

THE CULTURAL AND SOCIAL LIFE

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For thousands of years, the Culture of China has attracted and moved many people from all over the world, being so unique and one-of-a-kind as well as elegant and inspiring. The Chinese Culture, a culture that has evolved for thousands and thousands of years, contains rare beauty and enchantment with history. It has drawn so much interest that it is integrating with other cultures. Have you ever eaten fried noodles or kung po chicken at a local Chinese restaurant? Or have you ever seen the traditional style of the ch'i-p'ao used for blouses and dresses? You might have even watched Mulan, Disney's new animated film based on a Chinese folk tale. The Chinese Culture has played an important role in world society, and in China itself.

With such a long history and old-living civilization, the Culture of China offers much more than anything or anyone could possible receive. For any country, and especially China, it is impossible to explore every little aspect of its culture. However, this site contains and explains general areas of the Chinese Culture for you to explore, the areas that have touched and lived across the world, the areas that best define China.

TraditionsThe ethnic groups of China are distinguished by their different traditions and customs in marriage, childbirth, funerals, festivals, food, housing, costume, hosting guests and recreational activities.

The people's government takes care to accord respect to the traditions and customs of the minority groups, and works to gain broad acceptance of these by the population as a whole, especially among Han cadres and Han people living in minority areas. Serious offences against the traditions and customs of minorities may be punished by a sentence of two years' imprisonment or other forms of custody as stipulated by the penal code. The government also has adopted measures to protect ethnic traditions and customs. Vacation is regularly provided for ethnic festival days; pig-raising is discouraged among Islamic groups that have traditions against eating pork; special meals are provided for Huis and Uygurs at their places of work or given subsidies allowing them to have meals at nearby Islamic restaurants; and special arrangements are made for the production and supply of specific utensils and articles needed by the various minorities.

Since 1949, many of the old customs and traditions that benefit production and prosperity have been further developed, for example, the Ongkor (Harvest) Festival of the Tibetan people, the Mongolian traditional festival, the Nadam Fair, the Corban of the Huis and Uygurs, and the Water-Sprinkling Festival of the Dais. These have become days on which people hold cultural physical activities, exchange goods and discuss farming innovations. As the political and cultural awareness of the more primitive minorities rise and their economy improves, they have taken steps to voluntarily give up some ancient customs and traditions that are emotionally and physically harmful. Among these practices are such customs as the slaughter of draft animals for

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religious purposes, restrictions preventing men from transplanting rice seedlings and women from ploughing, prohibitions against doing field work on special days, and the practices of polygamy, polyandry, early marriage and outdoor childbirth

Chinese Eating Customs

The main difference between Chinese and Western eating habits is that unlike the West, where

everyone has their own plate of food, in China the dishes are placed on the table and everybody

shares. If you are being treated by a Chinese host, be prepared for a ton of food. Chinese are very

proud of their culture of food and will do their best to give you a taste of many different types of

cuisine. Among friends, they will just order enough for the people there. If they are taking

somebody out for dinner and the relationship is polite to semi-polite, then they will usually order

one more dish than the number of guests (e.g. four people, five dishes). If it is a business dinner

or a very formal occasion, there is likely to be a huge amount of food that will be impossible to

finish.

A typical meal starts with some cold dishes, like boiled peanuts and smashed cucumber with

garlic. These are followed by the main courses, hot meat and vegetable dishes. Finally soup is

brought out, which is followed by the starchy "staple" food, which is usually rice or noodles or

sometimes dumplings. Many Chinese eat rice (or noodles or whatever) last, but if you like to

have your rice together with other dishes, you should say so early on.

One thing to be aware of is that when eating with a Chinese host, you may find that the person is

using their chopsticks to put food in your bowl or plate. This is a sign of politeness. The

appropriate thing to do would be to eat the whatever-it-is and say how yummy it is. If you feel

uncomfortable with this, you can just say a polite thank you and leave the food there, and maybe

cover it up with a little rice when they are not looking. There is a certain amount of leniency

involved when dealing with Westerners, so you won't be chastised.

Eating No-no's

Traditionally speaking, there are many taboos at Chinese tables, but these days not many people

pay attention to them. However, there are a few things to keep in mind, especially if you are a

guest at a private home.

1. Don't stick your chopsticks upright in the rice bowl. Instead, lay them on your dish. The

reason for this is that when somebody dies, the shrine to them contains a bowl of sand or rice

21

with two sticks of incense stuck upright in it. So if you stick your chopsticks in the rice bowl, it

looks like this shrine and is equivalent to wishing death upon person at the table!

2. Make sure the spout of the teapot is not facing anyone. It is impolite to set the teapot down

where the spout is facing towards somebody. The spout should always be directed to where

nobody is sitting, usually just outward from the table.

3. Don't tap on your bowl with your chopsticks. Beggars tap on their bowls, so this is not polite.

Also, in a restaurant, if the food is coming too slow people will tap their bowls. If you are in

someone's home, it is like insulting the cook.

Eat Local You can get expensive, delicious meals in any of the large hotels, but if you are

looking for atmosphere, you have to go to a local joint. Not only is it cheaper, but you can get a

good look at the locals and what normal people are like. And what the food lacks in presentation

is made up for in the taste. Some restaurants have English menus, but don't count on it. A good

way to choose dishes is to look at what others are eating and point at it for the waitress. The

other option is to play "Mystery Dinner", where players randomly point at items in the menu and

wait for the surprise dishes to come. Whoever orders the braised dog heart with scallions in shark

vomit sauce wins!

Drinking Gan Bei! (Cheers!)

Alcohol is a big part of eating in Beijing. Especially when dining with Chinese hosts, you can

expect the beer to flow freely and many beis to be gan-ed (Gan Bei literally means "dry [the]

glass"). Besides beer, the official Chinese alcoholic beverage is bai jiu, high-proof Chinese

liquor made from assorted grains. There are varying degrees of bai jiu, and some are quite good.

The Beijing favorite is called Er Guo Tou, which is a whopping 56% alcohol. More expensive

and less formidable are Maotai and Wuliangye, which go far about 300-400 Yuan per bottle. In

comparison, Er Guo Tou costs a modest 4 or 5 Yuan per ping (each bottle). If you are not a

drinker, or don't feel up to the challenge, just say "wo bu hui he jiu" (I don't drink). It is generally

acceptable to use Coke or tea as an alcohol substitute.

Language

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The confusion stems from a few issues. First, China has a lot of linguistic diversity -- there are several dialects of Chinese spoken in different regions of China and countless minority languages. Second, Chinese expatriates in Western countries have historically come from Guangdong province (also known as Canton province), and often speak the Cantonese dialect of Chinese, leading many westerners to think that it's frequently spoken in China. Incidentally, the two names for Guangdong are romanizations from two different Chinese dialects -- Mandarin and Cantonese.

The short answer is: Standard Mandarin -- the official language of the country -- is spoken and understood throughout most of China, including increasing numbers of people in Hong Kong, and Standard Cantonese is spoken and understood in Hong Kong, some parts of Guangdong province, Macau, and by many overseas Chinese in Singapore, Malaysia, Canada, the U.S., Australia and Europe.

Religion

Architecture and culture are tightly related to each other. In a sense, architecture is the carrier of

culture. Styles of Chinese ancient architecture are rich and varied, such as temples, imperial

palaces, altars, pavilions, official residencies and folk houses, which greatly reflect Chinese

ancient thought - the harmonious unity of human beings with nature.

You may find much Chinese ancient architecture, is often composed of small yards. Instead of

pursuing the over-dimensioned architecture such as western cathedrals, Chinese ancient people

designed housings fit human dimensions so that they may feel intimate and safe, and this idea

reflects the practical thinking in Chinese culture.

Chinese people practice moderation in all things and they don't lay emphasis on strong self-

expression but seek modesty and gentleness. The influence of this spirit on architecture is

characterized by pursuing sense and connotation. Usually, the front of Chinese architecture is

simply plain walls that cannot catch your eyes, but when you patiently walk inside, you will find

the best feature is waiting in the farthest inside like a shy girl slowly uncovers her veil.

        

Two typical types of Chinese ancient architecture represent the profound influence of Chinese

culture are Fengshui and Memorial arch.

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Fengshui: Chinese traditional theory especially directs the process of architectural construction

on the basis of the culture of the Book of Change. Its emphasis is concerned with the harmonious

unity of human beings with nature.

Memorial Arch (Paifang) : It is the derivative of Chinese feudal society, also called Pailou,

unique to China, was built to honor great achievement and virtue of ancestors.

The Medicines of the China

China was one of first countries to have a medical culture. In comparison with Western

medicine, the Chinese method takes a far different approach. With a history of 5,000 years, it has

formed a deep and immense knowledge of medical science, theory, diagnostic methods,

prescriptions and cures.

The basic principles of Chinese medicine are rather distinctive:

 Relative Properties - Yin and Yang

The Physiology of Chinese medicine holds that the human body's life is the result of the balance

of yin and yang. Yin is the inner and negative principles, and yang, outer and positive. The key

reason why there is sickness is because the two aspects lose their harmony. Seen from the

recovery mechanism of organs, yang functions to protect from outer harm, and yin is the inner

base to store and provide energy for its counterpart.

 Basic Substance

Doctors of Chinese medicine believe that vital energy - moving and energetic particles, state of

blood, and body fluid are the essential substances that compose together to form the human

body, and the basis for internal organs to process. They are channeled along a network within the

body - Jing Luo as their channels. On the physical side, vital energy serving to promote and

warm belongs to the properties of yang, and blood and body fluid to moisten possesses the

properties of yin.

 Four Methods of Diagnosis

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It is a wonder that Chinese doctors could

cure countless patients without any assistant

apparatus but only a physical examination.

The four methods of diagnosis consist of

observation, auscultation and olfaction,

interrogation, pulse taking and palpation.

 Observation indicates that doctors directly

watch the outward appearance to know a patient's condition. As the exterior and interior

corresponds immediately, when the inner organs run wrongly, it will be reflected through skin

pallor, tongue, the facial sensory organs and some excrement.

 Auscultation and olfaction is a way for doctors to collect messages through hearing the sound

and smelling the odor. This is another reference for diagnosis.

 Interrogation suggests that doctors question the patient and his relatives, so as to know the

symptoms, evolution of the disease and previous treatments.

 The taking of the pulse and palpation refer that doctors noting the pulse condition of patients

on the radial artery, and then to know the inner change of symptom. Doctors believe that when

the organic function is normal, the pulse, frequency, and intension of pulse will be relatively

stable, and when not, variant.

When treating a disease, doctors of

traditional Chinese medicine usually find

the patient's condition through these four

diagnostic methods: observation,

auscultation and olfaction, interrogation,

pulse, and palpation. Combining the

collected facts and according to their

internal relations, doctors will utilize the

dialectics to analyze the source and virtue of

the disease. Then make sure what

prescription should be given. In traditional Chinese medical science, the drugs are also different

from the West, because doctors have discovered the medicinal effects of thousand of herbs over

a long period of time. Before taking the medicine, the patient will have to boil it. Then there is 25

The statue of Sun Simiao,the king of Chinese medicine

Pharmacist of traditional Chinese medicine

the distinctive method of preparation, associated with the acupuncture and massage, the

treatment will take effect magically.

Such a complicated medical science had come down thanks to records like The Yellow Emperor's Canon

of Interior Medicine, Shen Nong's Canon of Herbs, and the Compendium of Materia Medica, which are

all comprehensive and profound works. There are also wide-spread stories praising the experienced and

notable doctors in ancient China like Hua Tuo in the Three Kingdoms Periods (220 - 280). Today, though

western medicine has been adopted, traditional treatments are still playing an important role and have

raised great attention and interest worldwide due to the amazing curative effects reported.

Ginseng, a traditional Chinese medicinal herb

Hawksbill turtle's shellcan be used in medicine.

Memory Monuments

Following are some of the famous buildings present in the form of memories of China: Great wall of China Great Hall of the People National Museum of China Cultural Palace of Nationalities Military Museum of the Chinese People's Revolution

26

Great Wall Of ChinaThe Long Wall is really an amazing landmark and today the most celebrated symbol of China. In pre modern times the Great Wall was also recognized as a symbol of the futility and cruelty of the first emperor's political and military ambitions.  

Great Hall of the PeopleThe Great Hall of the People was opened in September 1959. It was one of the "Ten Great Constructions" completed for the 10th Anniversary of the People's Republic. It was built in 10 months by volunteers.

National Museum of China

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The museum was re-organized in 2003 out of two separate museums that already occupied the building: the Museum of the Chinese Revolution in the northern wing and the National Museum of Chinese History in the southern wing.

Cultural Palace of NationalitiesThe mission of the Culture Palace is to serve and educate the various minority cultures of the country. A valuable collection of National Culture Palace inlucde literature and science text books of more than 60 million copies.

Military Museum of the Chinese People's RevolutionIt displays restored military equipment from the history of the People's Liberation Army, up to and including modern-day machinery.

28

GOVERNMENT AND POLITICAL CONDITIONS

29

South Gate of Zhongnanhai - Headquarters of Chinese Government Note: Wall Banner on the left-hand side: "Long Live the Great Chinese Communist Party!"Wall Banner on the right-hand side: "Long Live the Invincible Mao Zedong Thought!"

Top Government Officials

President: Hu Jintao

Vice President: Xi Jinping

Prime Minister: Wen Jiabao

Vice Prime Ministers: Li Keqiang, Hui Liangyu, Zhang Dejiang, Wang Qishan

State Councillors: Liu Yandong, Liang Guanglie, Ma Kai, Meng Jianzhu, Dai Bingguo

Secretary General: Ma Kai

The Constitutional System

The Constitution is the fundamental law of the state.

The existing Constitution was adopted for implementation by the 5th Session of the 5th National People’s Congress on December 4, 1982. Amendments were made to the Constitution

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respectively at the 1st Session of the 7th National People’s Congress on April 12, 1988, the 1st Session of the 8th National People’s Congress on March 29, 1993 and the 2nd Session of the 9th National People’s Congress on March 15, 1999.

I. Major stipulations in the Constitution in regard to China’s political system

1. Major political principles in China

(1) The Communist Party of China is the country’s sole political party in power.

The People’s Republic of China was founded by the Communist Party of China which is the leader of the Chinese people.

(2) The socialist system

The socialist system led by the working class and based on the alliance of the workers and farmers is the fundamental system of the People’s Republic of China

(3) All rights belong to the people

All the power in the country belongs to the people who exercise their power through the National People’s Congress and local people’s congresses at all levels.

The people manage the state, economy, culture and other social affairs through a multitude of means and forms.

(4) The fundamental task and goals of the state

To concentrate on the socialist modernization drive along the road of building socialism with Chinese characteristics; to adhere to the socialist road, persist in the reform and opening up program, improve the socialist system in all aspects, develop the market economy, expand democracy, and improve the rule of law; to be self-reliance and work hard to gradually realize the modernization of the industry, agriculture, national defense, science and technology so as to build China into a strong and democratic socialist country with a high degree of cultural development.

(5) Democratic centralism

The organizational principle for the state organs is democratic centralism.

(6) The armed forces of the people

The armed forces of the People’s Republic of China belong to the people.

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The tasks of the armed forces are to consolidate national defense, resist invasion, defend the country, safeguard the people in their peaceful work and life, take part in the country’s economic construction and strive to serves the people.

(7) To govern the country through the rule of law

All individuals, political parties and social organizations must abide by the Constitution in all their actions and shall not be privileged to be above the Constitution or the law.

All acts in violation of the Constitution and law must be investigated.

The rule of law is practiced to build China into a socialist country with the rule of law.

(8) The system of ethnic regional autonomy

All ethnic groups are equal.

All prejudice and oppression against any ethnic group is forbidden. All behaviors harmful to ethnic unity and aimed at ethnic separation are forbidden.

2. The position and rights of the citizen in the political life of the country

(1) All citizens are equal before the law.

(2) The right to vote and stand for election

All citizens who have reached the age of 18 have the right to vote and stand for election, regardless of ethnic status, race, sex, occupation, family background, religious belief, education, property status or length of residence, except persons deprived of political rights according to law.

(3) The freedom of speech and thought

All citizens enjoy freedom of speech, of the press, or assembly, of association, of procession and of demonstration

(4) The freedom of religious belief

Citizens enjoy the freedom of religious belief.

No state organ, public organization or individual may compel citizens to believe in, or not to believe in, any religion.

(5) Inviolable freedom of the person

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No citizen may be arrested except with the approval or by decision of a people’s procuratorate or by decision of a people’s court, and arrests must be made by a public security organ.

Unlawful detention or deprivation or restriction of citizens’ freedom of the person by other means is prohibited, and unlawful search of the person of citizens is prohibited.

The personal dignity of citizens is inviolable, so are their residences.

(6) Freedom of correspondence

The freedom and privacy of correspondence of citizens are protected by law.

No organization or individual may, on any ground, infringe upon citizens’ freedom and privacy of correspondence, except in cases where, to meet the needs of state security or of criminal investigation, public security or procuratorial organs are permitted to censor correspondence in accordance with procedures prescribed by law.

(7) The right to criticize and make suggestions

Citizens have the right to criticize and make suggestions regarding any state organ or functionary. They have the right to make to relevant state organs complaints or charges against, or exposures of, any state organ or functionary for violation of the law or dereliction of duty.

(8) The right to compensation

Citizens who have suffered losses as a result of infringement of their civic rights by any state organ or functionary have the right to compensation in accordance with law.

(9) The right to work

Citizens have the right as well as duty to work.

The state should, through various channels, create conditions for employment, enhance occupational safety and health, improve working conditions and, on the basis of expanded production, increase remuneration for work and welfare benefits.

(10) The right to welfare

Citizens have the right to material assistance from the state and society when they are old, ill or disabled.

The state and society ensure the livelihood of disabled members of the armed forces, provide pensions to the families of martyrs and give preferential treatment to the families of military personnel.

33

The state and society help make arrangements for the work, livelihood and education of the blind, deaf-mutes and other handicapped citizens.

(11) The right to receive education

Citizens have the right and duty to receive education.

(12) The freedom to engage in academic studies and literary creation

Citizens have the freedom to engage in scientific research, literary and artistic creation and other cultural pursuits.

(13) The equality of men and women

Women enjoy equal rights with men in all spheres of life, in political, economic, cultural, social and family life.

(14) Both husband and wife have the duty to practice family planning.

(15) Citizens have the obligation to pay taxes in accordance with the law.

(16) Citizens have the obligation to perform military service and join the militia in accordance with the law.

II. The interpretation and revision of the Constitution and the system of supervision of its implementation

1. The right of interpretation of the Constitution

The right to interpret the Constitution rests with the Standing Committee of the National People’s Congress.

2. The amendment of the Constitution

The National People’s Congress holds the right to make amendments to the Constitution.

The revision of the Constitution shall be proposed by the Standing Committee of the National People’s Congress or more than one-fifth of the delegates to the National People’s Congress and it must be approved by a two-thirds majority of a session of the National People’s Congress.

3. The system of supervision

The National People’s Congress has the duty to supervise the enforcement of the Constitution.

34

The National People’s Congress has the right to change or withdraw interpretations to the Constitution by the Standing Committee of the National People’s Congress.

Human rights

Human rights groups have been critical of China's treatment of religious and press freedoms.

While economic and social controls have been greatly relaxed in China since the 1970s, political freedom is still tightly restricted. 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, these provisions do not afford significant protection in practice against criminal prosecution by the State.

With the Chinese economic reform, tens of millions of rural Chinese who have moved to the cities[72] find themselves treated as second-class citizens by China's obsolescent household registration system that controls state benefits, called hukou.[73] The system of property rights is weak, and eminent domain land seizures has abused peasants.[72] In 2003/2004, the average farmer had to pay three times more in taxes even though his income was only one sixth that of the average urban dweller.[73] Since then, a number of rural taxes have been reduced or abolished, and additional social services provided to rural dwellers.[74][75][76]

35

Censorship of political speech and information, including on the Internet,[77] is openly and routinely used to silence criticism of government and the ruling Chinese Communist Party.[78] In 2005, Reporters Without Borders ranked the PRC 159 (out of 167 states) in its Annual World Press Freedom Index.[79] The government has put down demonstrations from organizations and beliefs that it considers a potential threat to "social stability" and control, as was the case with the Tiananmen Square protests of 1989. The Communist Party has had mixed success in 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, especially on environmental issues.

A number of foreign governments and NGOs routinely criticize the PRC, alleging widespread civil 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 executes more people than any other country, accounting for 72% of the world's total in 2009, though it is not the largest executioner per capita.

The PRC government has responded by arguing that the notion of human rights should take into account a country's present level of economic development, and focus more on the people's rights to subsistence and development in poorer countries. The rise in the standard of living, literacy, and life expectancy for the average Chinese in the last three decades is seen by the government as tangible progress made in human rights. Efforts in the past decade to combat deadly natural disasters, such as the perennial Yangtze River floods, and work-related accidents are also portrayed in China as progress in human rights for a still largely poor country.

36

ECONOMY OF THE CHINA

Market liberalization in the Chinese Economy has brought its huge economy forward by leaps and bounds - but rural China still remains poor, even as its cities increase in affluence.

OverviewChina's economy is huge and expanding rapidly. In the last 30 years the rate of Chinese economic growth has been almost miraculous, averaging 8% growth in Gross Domestic Product (GDP) per annum, with a nominal GDP of $4.99[7] trillion and PPP of $8.77 trillion in 2009. The economy has grown more than 10 times during that period, with Chinese GDP reaching 3.42 trillion US dollars by 2007. In Purchasing Power Parity GDP, China already has the biggest economy after the United States. Most analysts project China to become the largest economy in the world this century using all measures of GDP.The country's per capita income was at either $6,567 (IMF, 98th) or $6,675 (World Bank, 92nd) in 2009 and China is the second largest trading nation in the world and the largest exporter and second largest importer of goodsHowever, there are still inequalities in the income of the Chinese people, and this income disparity has increased in the recent times, in part due to a liberalization of markets within the country. The per capita income of China is only about 2,000 US dollars, which is fairly poor when judged against global standards. In per capita income terms, China stands at a lowly 107th out of 179 countries. The Purchasing Power Parity figure for China is only slightly better at 7,800 US dollars, ranking China 82nd out of 179 countries. Economic reforms started in China in the 70s and 80s. The initial focus of these reforms was on collectivizing the agricultural activities of the country. The leaders of the Chinese economy , at that point in time, were trying to change the center of agriculture from farming to household activities. At later stages the reforms extended to the liberalization of prices, in a gradual manner. The process of fiscal decentralization soon followed.As part of the reforms, more independence was granted to the business enterprises that were owned by the state government. This meant that government officials at the local levels and the managers of various plants had more authority than before. This led to the creation of a number of various types of privately held enterprises within the services sector, as well as the light manufacturing sectors. The banking system was diversified and the Chinese stock markets started to develop and grow as economic reforms in China took hold.

37

The economic reforms made in China in the 70s and 80s had other far reaching effects as well. The sectors outside the control of the state government of China grew at a rapid pace as a result of these reforms. China also opened its economy to the world for the purposes of trade and direct foreign investment. China has adopted a slow but steady method in implementing their economic reforms. It has also sold the equity of some of the major Chinese state banks to overseas companies and bond markets during the middle phase of the first half of the 21st century. In recent years the role played by China in international trade has also increased.

International trade

China's global trade totaled $324 billion in 1997 and $151 billion in the first half of 1998; the trade surplus stood at $40.0 billion. China's primary trading partners were Japan, Taiwan, the U.S., South Korea, Hong Kong, Germany, Singapore, Russia, and the Netherlands. China had a trade surplus with the U.S. of $49.7 billion in 1997 and $54.6 billion in 1998. Major imports were power generating equipment, aircraft and parts, computers and industrial machinery, raw materials, and chemical and agricultural products.

In 1998, China was in its 12th year of negotiations for accession to the World Trade Organization (WTO)—formerly the General Agreement on Tariffs and Trade (GATT).

After reaching a bilateral WTO agreement with the EU and other trading partners in summer 2000, China worked on a multilateral WTO accession package. China concluded multilateral negotiations on its accession to the WTO in September 2001. The completion of its accession protocol and Working Party Report paved the way for its entry into the WTO on December 11, 2001, after 16 years of negotiations, the longest in the history of the General Agreement on Tariffs and Trade.

China's global trade exceeded $2.4 trillion at the end of 2008. It first broke the $100 billion mark in 1988, $200 billion in 1994, $500 billion in 2001 and $1 trillion mark ($1.15 trillion) in 2004. The table below shows the average annual growth (in nominal US dollar terms) of China's foreign trade during the reform era.

Period Two-way trade Exports Imports1981–85 +12.8% +8.6% +16.1%1986–90 +10.6% +17.8% +4.8%1991–95 +19.5% +19.1% +19.9%1996–2000 +11.0% +10.9% +11.3%

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2000–05 +24.6% +25.0% +24.0%2006 +27.2% +19.9% +23.8%2007 +25.6% +20.8% +23.4%

The China’s Economy in 2009

China on Friday revised up 2009 gross domestic product growth to 9.1% from 8.7% on the back of higher output from industry and services.

The revision means China was even closer at the end of 2009 to overtaking Japan as the world's second-largest economy -- a status it is virtually certain to secure this year on current growth trends.

China's fourth quarter growth alone surged to 10.7 percent on an annualized basis.

China's economy has been picking up pace the first three quarters of the year, growing at 6.2 percent the first quarter and 7.9 percent the second quarter and 9.1 percent in the third quarter.

The gross domestic product total was $4.9 trillion in 2009. The annual growth was spurred by a $586 billion stimulus package to bolster its economy.

The government had set a growth target rate of 8 percent last year, which the government sees as a benchmark to maintain employment rates in the nation of 1.3 billion.

"In the face of severe impact brought about by the global financial crisis in a century and the most complicated domestic and international situations, the (government) sized up the situation, made scientific decisions, and headed the whole nation united as one to surmount the difficulties of our time," said Ma Jiantang, director of the National Bureau of Statistics. "It stopped the remarkable decline ... and China became the first to emerge (from the recession)."

Retail sales rose 16.9 percent in 2009, as China encourage domestic spending to make up for lost export business during the recession.

But concerns are rising of a growing property bubble in China, fueled by lending which has seen property prices grow 50 percent or more in some cities.

On Wednesday China signaled to several banks to curb lending, causing stock markets to slump globally as questions about China's lending practices slammed the price of commodities.

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The sector was also hit by reports that China intends to slow the pace of lending this year in an attempt to get ahead of inflation. A stronger dollar also pressured dollar-traded commodity prices and stocks.

"China's efforts to get their banks to lend less really hit commodities hard, because China is the marginal buyer of commodities," said David Chalupnik, head of equities at First American Funds.

The numbers released Thursday showed, foreign trade dropped 13.9 percent. China still holds a significant trade surplus -- $196 billion -- though the surplus slipped more than 34 percent.

EXPORT AND IMPORT

The Export-Import Bank of China (China Eximbank) was established in 1994. Fully owned by the Chinese government and under the direct leadership of the State Council, China Eximbank is a government policy bank enjoying the same international credit ratings as China's sovereign ratings. Headquartered in Beijing, the Bank now has over ten domestic business branches and representative offices as well as three overseas representative offices in South Africa (Representative Office for Southern & Eastern Africa), Paris and St. Petersburg. In terms of correspondent network, it has set up correspondent banking relations with more than 300 banks overseas.As an important force in promoting foreign trade and economy and a significant component of the financial system, China Eximbank has been acting as a key channel of policy financing for both Chinese import-and- export of mechanic and electronic products, complete sets of equipment, and high- and new-tech products and undertaking of offshore construction contracts and overseas investment projects by Chinese companies. Meanwhile, the Bank is a major onlending bank of foreign government loans and the only operating bank for Chinese Government Concessional Loan. By doing so, the Bank is playing a bigger role in promoting the development of China's open and export-oriented economy.

China's Import & ExportIn the first two quarters of 2010, the total value of China’s import and export rose by 43.1% year on year to US$ 1354.88 billion, among which, the export value rose by 35.2% to US$ 705.09 billion while the import value rose by 52.7% to US$ 649.79 billion. In June, the total value of China’s export and import rose by 39.2% year on year to US$ 254.77 billion, among which, the export value rose by 43.9% to US$ 137.4 billion while the export value rose by 34.1% to US$ 117.37 billion.

Unit: US$ 100 million

　 April First Four Months

Absolute Increase ±% Absolute Increase ±%

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Value Value(year on year)

(year on year)

Total Import and Export Value

 2547.7  39.4  13548.8  43.1

Export Value  1374.0  30.5  7050.9 35.2

Import Value  1173.7  49.7  6497.9  52.7

Import and Export Balance

 200.2  151.8 553.0 -42.5

China Exports by category of commodities China’s major exports consist of machinery and transport equipments constituting to nearly half

of the total exports. Another major portion of the exports comprise of textile, rubber and

metallurgical products constituting to 18%. Chemical products, food, mineral and fuel materials

made of up 10% of the total exports. There is an exponential increase in the machinery and

transport equipments segment of the exports from a mere 5% to 47% in 2007. With reference to

Organization for Economic Cooperation and Development, China has surpassed US to become

the world’s largest exporter of IT goods. This is largely attributed to China’s strong capabilities

in grasping labor-intensive sectors of the worldwide marketplace. Other factors include China’s

strategies in building its technical manpower and Research and Development capabilities.

 

Below is the chart of top 10 China exported goods for the year 2007:

 

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China Imports by category of commodities 

To liberalize trade in China, the government continued to reduce administrative obstacles to

trade by adjusting the tariffs and exchange rates. In 2005, the categories of import commodities

subject to licensing controls were reduced to three, down from five in 2004 and eight in 2003.

 

As shown in the commodity chart below for year 2007, machinery and transport equipments

made up the majority of the imports, accounted for USD 412 billion or 43% of total import

volume. Next major imported products were chemical products which took 11.3%; mineral and

raw material accounted for 11.0%; and textile, rubber and metallurgical products were 10.8%.

 

Below is the chart of top 10 China imported goods for the year 2007:

 

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CHINA’S EXPORT IMPORT STATISTICS WITH THE WORLD

Table 1: China's Trade with the United States ($ billion)

Notes: US exports reported on FOB basis; imports on a general customs value, CIF basis

Source: US International Trade Commission

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

US exports

16.3 19.2 22.1 28.4 34.7 41.8 55.2 65.2 71.5 69.6

% 24.4 18.3 15.1 28.5 22.2 20.6 32.1 18.1 9.5 -2.6

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Table 1: China's Trade with the United States ($ billion)

change

US imports

100.0 102.3 125.2 152.4 196.7 243.5 287.8 321.5 337.8 296.4

% change

22.3 2.2 22.4 21.7 29.1 23.8 18.2 11.7 5.1 -12.3

Total 116.3 121.5 147.3 180.8 231.4 285.3 343 386.7 409.2 366.0

% change

22.6 21.4 21.2 22.8 28 23.3 20.2 12.7 5.8 -10.6

US balance

-83.7 -83.0-

103.1-

124.0-

162.0-

201.6-

232.5-

256.3-

266.3-

226.8

Table 2: Top US Exports to China 2009 ($ billion)

*Calculated by USCBCSource: US International Trade Commission

HS# Commodity description Volume% change over

2008

85Electrical machinery andand

equipment9.5 -16.8

12 Oil seeds and oleaginous fruits 9.3 26.5

84 Power generation equipment 8.4 -13.8

88 Air and spacecraft 5.3 4.5

39 Plastics and articles thereof 4.4 14.1

90 Optics and medical equipment 4.0 6.0

72, 73 Iron and steel *3.5 *6.9

47 Pulp and paperboard 2.5 9.4

29 Organic chemicals 2.4 15.1

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Table 2: Top US Exports to China 2009 ($ billion)

87 Vehicles, excluding railway 1.9 2.3

Table 3: Top US Imports from China 2009 ($ billion)

*Calculated by USCBCSource: US International Trade Commission

HS# Commodity description Volume % change over 2008

85 Electrical machinery and equipment 72.9 -9.2

84 Power generation equipment 62.4 -4.2

61, 62 Apparel *24.3 *1.5

95 Toys and games 23.2 -14.6

94 Furniture 16.0 -17.4

72, 73 Iron and steel *8.0 *45.9

64 Footwear and parts thereof 13.3 -7.9

39 Plastics and articles thereof 8.0 -10.1

42 Leather and travel goods 6.0 -18.9

90 Optics and medical equipment 5.6 -9.4

Table 4: China's Trade with the World ($ billion)

Note: PRC exports reported on an free-on-board basis; imports on a cost, insurance, and freight basis

Sources: PRC National Bureau of Statistics and PRC General Administration of Customs, China's Customs Statistics

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Exports 249.2 266.1 325.6 438.2 593.3 762.0 969.0 1,220.5 1,430.7 1,201.7

% change

27.8 6.8 22.4 34.6 35.4 28.4 27.2 26.0 17.3 -16.0

Imports 225.1 243.6 295.2 412.8 561.2 660.0 791.5 956.1 1,132.6 1,005.6

% change

35.8 8.2 21.2 39.8 36.0 17.6 19.9 20.8 18.5 -11.2

Total 474.3 509.7 620.8 851.0 1,154.6 1,421.9 1,760.4 2,176.6 2,563.3 2,207.2

% change

31.5 7.5 21.8 37.1 35.7 23.2 23.8 23.6 17.8 -13.9

Balance 24.1 22.5 30.4 25.5 32.1 102.0 177.5 264.3 298.1 196.145

Table 5: China's Top Exports 2009 ($ billion)

*Calculated by USCBCSource: PRC General Administration of Customs, China's Customs Statistics

HS# Commodity description Volume % change over 2008

85 Electrical machinery and equipment 301.1 -12.0

84 Power generation equipment 236.0 -12.2

61, 62 Apparel *100.5 *-11.1

72, 73 Iron and steel *47.3 *-53.6

94 Furniture 38.9 -9.1

90 Optics and medical equipment 38.9 -10.2

28, 29 Inorganic and organic chemicals *32.0 *-24.5

89 Ships and boats 28.4 44.9

64 Footwear 28.0 -5.7

87 Vehicles, excluding railway 27.9 -28.9

Table 6: China's Top Imports 2009 ($ billion)

*Calculated by USCBCSource: PRC General Administration of Customs, China's Customs Statistics

HS# Commodity description Volume % change over 2008

85 Electrical machinery and equipment 243.8 -8.5

27 Mineral fuel and oil 124.0 -26.8

84 Power generation equipment 123.7 -10.9

26 Ores, slag and ash 70.0 -19.0

90 Optics and medical equipment 67.0 -13.8

39 Plastics and articles thereof 48.5 -0.7

28, 29 Inorganic and organic chemicals *42.4 *-50.7

72, 73 Iron and steel *36.7 *4.7

74 Copper and articles thereof 29.5 13.3

87 Vehicles other than railway 28.4 5.2

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Table 7: China's Top Trade Partners 2009 ($ billion)

Source: PRC General Administration of Customs, China's Customs Statistics

Rank Country/region Volume % change over 2008

1 United States 298.3 -10.6

2 Japan 228.9 -14.2

3 Hong Kong 174.9 -14.1

4 South Korea 156.2 -16.0

5 Taiwan 106.2 -17.8

6 Germany 105.7 -8.1

7 Australia 60.1 0.7

8 Malaysia 52.0 -3.0

9 Singapore 47.9 -8.8

10 India 43.4 -16.3

Table 8: China's Top Export Destinations 2009 ($ billion)

Source: PRC General Administration of Customs, China's Customs Statistics

Rank Country/region Volume % change over 2008

1 United States 220.8 -12.5

2 Hong Kong 166.2 -12.8

3 Japan 97.9 -15.7

4 South Korea 53.7 -27.4

5 Germany 49.9 -15.7

6 The Netherlands 36.7 -20.1

7 United Kingdom 31.3 -13.3

8 Singapore 30.1 -6.9

9 India 29.7 -6.1

10 Australia 20.6 -7.2

Table 9: China's Top Import Suppliers 2009 ($ billion)

Source: PRC General Administration of Customs, China's Customs Statistics

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Table 9: China's Top Import Suppliers 2009 ($ billion)

Rank Country/region Volume % change over 2008

1 Japan 130.9 -13.1

2 South Korea 102.6 -8.5

3 Taiwan 85.7 -17.0

4 United States 77.4 -4.8

5 Germany 55.8 0.0

6 Australia 39.4 5.4

7 Malaysia 32.3 0.7

8 Brazil 28.3 -5.3

9 Thailand 24.9 -3.0

10 Saudi Arabia 23.6 -23.9

Trade with Countries and Regions in AsiaWednesday, May 26, 2010

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49

INDIA-CHINA TRADE & INVESTMENT

Import from India Indian Exports to China is an integral part of the bilateral trade relations between the

two Asian countries, India and china. Indian Exports to China focus on mainly primary products. In 1984, India and China signed a trade agreement, providing for Most Favored Nation treatment, to foster greater cooperation between each other. Moreover, the year 2006 was celebrated as Friendship Year between India and China.

Item of Indian Export to ChinaThe principal items of Indian exports to China comprise of ores, slag and ash, iron and steel, plastics, organic chemicals, and cotton. In order to increase the extent of exporting Indian goods to China, however, there should be a special emphasis on investments and trade in services and knowledge-based sectors.

At present, iron ore constitutes about 53% of the total Indian exports to China. The other items that have potentials are marine products, oil seeds, salt, inorganic chemicals, plastic, rubber, optical and medical equipment, and dairy products. Not only this, great potential exists in areas like biotechnology, IT and ITES, health, education, tourism, and the financial sector - all of which will contribute to the services and knowledge based sectors.

The need is to shift the focus from primary exports to the export of diverse range of high value added products, including -

Auto engine components and automobiles Organic and inorganic products

Pharmaceuticals

Metal and metal based products like alloy steel bars and rods

Agricultural products like grains, tobacco and oilseeds

Engineering goods like diesel engines and compressors

Marine foods

Fresh and processed fruits and vegetables

Medical and optical diagnostic equipment and laboratory equipment

Consumer durables

Textile yarns

Such diversification of Indian exports to China clearly indicates that there exists a steady demand for these products in the Chinese market.

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Export to India

Chinese exports to India focuses on resource based exports as well as the exports of manufactured products. China has emerged as a global manufacturing center and India as the most lucrative market in the world.

In 2004, the Chinese exports to India stood at US$ 5926.67 million. However, it industrialists in India were not in favor of China being given free access to the domestic markets. But bilateral trade relations between India and China have increased over the years, reaching US$18.7 billion in 2005 from US$ 4.8 billion in 2002. However, the bilateral trade is to be increased further to US$ 20 billion by 2008 and further to US$30 billion by 2010.

Item of Indian Export to China

The main items to be exported from China to India are electrical machinery and equipment, organic chemicals, nuclear reactors, boilers, machinery, silk, mineral fuels, and oils. Value added items also dominate Chinese exports to India, like machinery, specially electrical machinery, which forms about 36% of Chinese exports to India.

India – China Trade   Values in US $ Millions

S.No. \Year2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

1. EXPORT 6,759.10 8,321.86 10,871.34 9,353.50 11,617.88

2. %Growth 23.12 30.64 -13.96 24.21

3. India's Total Export 103,090.53 126,414.05 163,132.18 185,295.36 178,745.46

4. %Growth 22.62 29.05 13.59 -3.53

5. %Share 6.56 6.58 6.66 5.05 6.50

6. IMPORT 10,868.05 17,475.03 27,146.41 32,497.02 30,824.04

7. %Growth 60.79 55.34 19.71 -5.15

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8. India's Total Import 149,165.73 185,735.24 251,654.01 303,696.31 288,403.31

9. %Growth 24.52 35.49 20.68 -5.04

10. %Share 7.29 9.41 10.79 10.70 10.69

11. TOTAL TRADE 17,627.15 25,796.89 38,017.74 41,850.52 42,441.92

12. %Growth 46.35 47.37 10.08 1.41

13. India's Total Trade 252,256.26 312,149.29 414,786.19 488,991.67 467,148.78

14. %Growth 23.74 32.88 17.89 -4.47

15. %Share 6.99 8.26 9.17 8.56 9.09

16. TRADE BALANCE

17. India's Trade Balance -46,075.20 -59,321.19 -88,521.83 -118,400.95

-109,657.85

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Netherlands - An OutlineAnthem: " March of the Volunteers "Capital(and largest city)

Beijing

Official language(s)

Mandarin (Chinese: 普通话, Pinyin: Pu Tong Hua)

Ethnic groups 

Han Chinese- 91.59% (~1.2 billion)., Zhuang (16.1 million), Manchu (10.6 million), Hui (9.8 million), Miao (8.9 million), Uyghur (8.3 million), Tujia (8 million), Yi (7.7 million), Mongol (5.8 million), Tibetan (5.4 million), Buyei (2.9 million), Dong (2.9 million), Yao (2.6 million), Korean (1.9 million), Bai (1.8 million), Hani (1.4 million), Kazakh (1.2 million), Li (1.2 million), and Dai (1.1 million).

Demonym ChineseEU accession Area

Total 9,596,961–9,640,011 km2 (3/4) Population

2010 estimate % of World

Population

1,339,061,00019.51%

Gini (2009) 47 HDI (2009) ▲Ranked 92nd, with score of 0.772 (+0.009)Currency YuanTime zone UTC+8  

Drives on the rightInternet TLD .cnCalling code 86

53

GDP (purchasing power parity):$8.767 trillion (2009 est.)

$8.088 trillion (2008 est.)

$7.42 trillion (2007 est.) note: data are in 2009 US dollars [see also: GDP (purchasing power parity) country ranks ]

GDP (official exchange rate):$4.758 trillion (2009 est.) [see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:8.4% (2009 est.)

9% (2008 est.)

13% (2007 est.) [see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):$6,500 (2009 est.)

$6,100 (2008 est.)

$5,600 (2007 est.) note: data are in 2009 US dollars [see also: GDP - per capita country ranks ]

GDP - composition by sector:agriculture: 10.9% [see also: GDP - composition by sector - agriculture country ranks ] industry: 48.6% [see also: GDP - composition by sector - industry country ranks ]

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services: 40.5% (2009 est.) [see also: GDP - composition by sector - services country ranks ]

Labor force:812.7 million (2009 est.) [see also: Labor force country ranks ]

Labor force - by occupation:agriculture: 39.5% [see also: Labor force - by occupation - agriculture country ranks ] industry: 27.2% [see also: Labor force - by occupation - industry country ranks ] services: 33.2% (2006 est.) [see also: Labor force - by occupation - services country ranks ]

Unemployment rate:4.3% (September 2009 est.)

4.2% (2008 est.) note: official data for urban areas only; including migrants may boost total unemployment to 9%; substantial unemployment and underemployment in rural areas [see also: Unemployment rate country ranks ]

Population below poverty line:2.8% (2006 est.) [see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:lowest 10%: 3.5% [see also: Household income or consumption by percentage share - lowest 10% country ranks ] highest 10%: 15% [see also: Household income or consumption by percentage share - highest 10% country ranks ] note: data are for urban households only (2005)

Distribution of family income - Gini index:41.5 (2007)

40 (2001) [see also: Distribution of family income - Gini index country ranks ]

Investment (gross fixed):42.6% of GDP (2009 est.) [see also: Investment (gross fixed) country ranks ]

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Budget:revenues: $972.3 billion [see also: Budget - revenues country ranks ] expenditures: $1.137 trillion (2009 est.) [see also: Budget - expenditures country ranks ]

Public debt:18.2% of GDP (2009 est.)

15.6% of GDP (2008 est.) [see also: Public debt country ranks ]

Inflation rate (consumer prices):-0.8% (2009 est.)

5.9% (2008 est.) [see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:2.79% (31 December 2008)

3.33% (31 December 2007) [see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:5.31% (31 December 2008)

5.58% (17 December 2007) [see also: Commercial bank prime lending rate country ranks ]

Stock of money:$2.434 trillion (31 December 2008)

$2.09 trillion (31 December 2007) [see also: Stock of money country ranks ]

Stock of quasi money:$4.523 trillion (31 December 2008)

$3.437 trillion (31 December 2007) [see also: Stock of quasi money country ranks ]

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Stock of domestic credit:$5.555 trillion (31 December 2008)

$4.653 trillion (31 December 2007) [see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:$2.794 trillion (31 December 2008)

$6.226 trillion (31 December 2007)

$2.426 trillion (31 December 2006 est.) [see also: Market value of publicly traded shares country ranks ]

Agriculture - products:rice, wheat, potatoes, corn, peanuts, tea, millet, barley, apples, cotton, oilseed; pork; fish

Industries:mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites

Industrial production growth rate:8.1% (2009 est.) [see also: Industrial production growth rate country ranks ]

Electricity - production:3.451 trillion kWh (2007 est.) [see also: Electricity - production country ranks ]

Electricity - consumption:3.438 trillion kWh (2007 est.) [see also: Electricity - consumption country ranks ]

Electricity - exports:16.64 billion kWh (2008 est.) [see also: Electricity - exports country ranks ]

Electricity - imports:3.842 billion kWh (2008 est.) [see also: Electricity - imports country ranks ]

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Oil - production:3.795 million bbl/day (2008 est.) [see also: Oil - production country ranks ]

Oil - consumption:7.999 million bbl/day (2008 est.) [see also: Oil - consumption country ranks ]

Oil - exports:388,000 bbl/day (2007 est.) [see also: Oil - exports country ranks ]

Oil - imports:4.393 million bbl/day (2007) [see also: Oil - imports country ranks ]

Oil - proved reserves:15.55 billion bbl (1 January 2009 est.) [see also: Oil - proved reserves country ranks ]

Natural gas - production:76.1 billion cu m (2008 est.) [see also: Natural gas - production country ranks ]

Natural gas - consumption:80.7 billion cu m (2008 est.) [see also: Natural gas - consumption country ranks ]

Natural gas - exports:3.34 billion cu m (2008 est.) [see also: Natural gas - exports country ranks ]

Natural gas - imports:4.44 billion cu m (2008 est.) [see also: Natural gas - imports country ranks ]

Natural gas - proved reserves:2.46 trillion cu m (1 January 2009 est.) [see also: Natural gas - proved reserves country ranks ]

Current account balance:$296.2 billion (2009 est.)

$426.1 billion (2008 est.) [see also: Current account balance country ranks ]

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Exports:$1.194 trillion (2009 est.)

$1.429 trillion (2008 est.) [see also: Exports country ranks ]

Exports - commodities:electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment

Exports - partners:US 17.7%, Hong Kong 13.3%, Japan 8.1%, South Korea 5.2%, Germany 4.1% (2008)

Imports:$921.5 billion (2009 est.)

$1.131 trillion (2008 est.) [see also: Imports country ranks ]

Imports - commodities:electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals

Imports - partners:Japan 13.3%, South Korea 9.9%, US 7.2%, Germany 4.9% (2008)

Reserves of foreign exchange and gold:$2.206 trillion (31 December 2009 est.)

$1.955 trillion (31 December 2008 est.) [see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:$347.1 billion (31 December 2009 est.)

$400.6 billion (31 December 2008 est.) [see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:$576.1 billion (31 December 2009 est.)

$758.9 billion (2007 est.) [see also: Stock of direct foreign investment - at home country ranks ]

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Stock of direct foreign investment - abroad:$227.3 billion (31 December 2009 est.)

$184 billion (31 December 2008 est.) [see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:Renminbi yuan (RMB) per US dollar - 6.8249 (2009), 6.9385 (2008), 7.61 (2007), 7.97 (2006), 8.1943 (2005)

REFERENCES

http://www.transworldeducation.com/asia/china.htmhttp://www.travelchinaguide.com/intro/religion/http://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://www.chinatoday.com/gov/a.htmhttp://www.state.gov/r/pa/ei/bgn/18902.htmhttp://www.china.org.cn/english/Political/26143.htmhttp://www.chinatoday.com/gov/a.htmhttp://www.republicanchina.org/homepage.htmlhttp://www.chinafacttours.com/facts/tradition/chinese-eating-custom.htmlhttp://business.mapsofindia.com/india-economy/india-vs-china.htmlhttp://www1.cei.gov.cn/ce/http://www.moneycontrol.com/news/world-news/china-revises2009-gdp-creeps-closer-to-japan_467690.htmlhttp://exportimportchina.net/http://www.export.gov/china/exporting_to_china/importregs.asphttp://www.starmass.com/china_review/imports_exports/imports_by_commodities.htmhttp://english.eximbank.gov.cn/profile/intro.shtmlhttp://commerce.nic.in/eidb/iecnt.asphttp://www.commerce.gov.in/http://www.photius.com/rankings/economy/distribution_of_family_income_gini_index_2009_0.html

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