China Final Report

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CHAPTER 1
INTRODUCTION TO GEOGRAPHY THE NATION
1.1 MAP OF THE COUNTRY
Neighbouring countries
Russia- Russia is the largest country in the world geographically covering one eighth of the total land
mass of the world. It has a total population of 143 million people. Once a communist country, Russia
has undergone political reform and is now embracing democratic reforms. The Russian Federation is
made up of 21 autonomous republics and has adopted a 3 branch government system much like the
United States. Its capital city is Moscow.
India– India is the second most populous country in the world after China with 1.2 billion people. It
is the seventh largest country by area and its government is a democracy. The government of India has
three branches: executive, legislature and judiciary. Its capital city is New Delhi and the country is
divided into 28 states and seven union territories.
Kazakhstan– Kazakhstan is the largest landlocked territory in the world and the ninth largest country
by area. It is divided into 14 provinces each with their own governor. Its capital is Astana and the form
of government used is a republic. The country has a population of 16.6 million people.
Dept. of MBA, DR.AIT 2019-2020 Page 1

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Mongolia– Not to be mistaken for Inner Mongolia, the autonomous province within China, Outer
Mongolia or Mongolia is a sovereign state with no direct relations to China. Mongolia has a
parliamentary government and 21 provinces. The capital of the country is Ulaanbaatar and China
shares the Gobi desert at its border. The country has a population of 2.8 million people.
Pakistan– Pakistan is a federal parliamentary republic, having four provinces and four federal
republics. The country has a total population of 176 million people and its capital is Islamabad.
Pakistan and India have fought two wars, one in 1947, the other in 1965, over disputed land.
Burma – Burma has been ruled by a military junta but has recently begun to hold democratic elections.
It has been long viewed as a pariah state in the international community for its poor human rights
policies. The country has a population of 48 million and Nay Pyi Taw is its capital city.
Afghanistan– Afghanistan has 34 provinces and is an Islamic Republic. The country has a population
of 35 million people and has been under intense media scrutiny because of the US led war against the
Taliban. The country has a total area slightly smaller than that of Texas. Its capital, Kabul, has over
1.7 million inhabitants.
Vietnam – With a population of 87 million people, the Socialist Republic of Vietnam borders the
Guangxi and Yunnan provinces of China. Its capital city is Hanoi and the country has 58 provinces as
well as 5 municipalities.
Laos– Laos has 16 provinces and its capital city is Vientiane. It has a population of 6.2 million people
and the current form of government is communism. It is a landlocked, mountainous country with vast
amounts of tropical forests. The country borders China’s Yunnan province and the geography of Laos
is mostly plateau and mountainous ranges.
Kyrgyzstan – Kyrgyzstan became an independent state after the fall of the Soviet Union in 1991. The
country has a population of 5.4 million people and its capital city is Bishkek. The country is landlocked
and the official government is that of a republic.
Nepal-Nepal has a population of 30 million people and is a democratic republic. Its capital city is
Kathmandu. It geographic territory is slightly larger than the state of Arkansas and the country is
landlocked from any navigable waters.
Tajikistan– Tajikistan has a population of 7.9 million people and its capital city is Dushanbe. It is a
landlocked country known for its mountainous terrain. The form of government in this country is a
republic and the country has four provinces. From 1992 to 1997, the country was embroiled in a
devastating civil war that significantly hampered its economy.
North Korea– Known as the Democratic Peoples’ Republic of Korea or DPKR, North Korea is a
communist dictatorship. It has 9 provinces and a total population of 24 million people. North Korea
borders the Liaoning province in China.
Bhutan– Bhutan is a landlocked country tucked away in the Eastern Himalayas and is officially a
kingdom with a population of 738,000 people. It is a constitutional monarchy that has transitioned

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from an absolute monarchy. The Bhutanese economy is agrarian and around 31% of its people live in
poverty.
National symbol
The five stars on the emblem have the same meaning as those on the national flag. The golden gear
represents the workers. The wheat represents the peasants. The connection of them represents the
Worker-Peasant Alliance led by the Working Class of China.
The colors of the National Badge are red and gold. The two colors reflect the people's wish of being
fortunate. The whole badge symbolizes the New Democratic Revolution beginning with the May
Fourth movement and foundation of the People's Republic of China, with the constitution of the
People's Democratic Dictatorship, on the base of Worker-Peasant Alliance, and under the leadership
of Working Class.
The Chinese National Badge was designed by Liang Sicheng, Lin Huiyin, and six other experts, and
finally confirmed by Gao Zhuang.
National flag
The flag of China, officially the National Flag of the People's Republic of China and also known as
the Five-starred Red Flag, is a Chinese red field charged in the canton (upper corner nearest the
flagpole) with five golden stars. The design features one large star, with four smaller stars in a
semicircle set off towards the fly (the side farthest from the flag pole). The red represents the
"revolution"; the five stars and their relationship represent the unity of the Chinese people under the
leadership of the Communist Party of China (CPC). The first flag was hoisted by the People's
Liberation Army (PLA) on a pole overlooking Beijing's Tiananmen Square on October 1, 1949, at a
ceremony announcing the establishment of the People's Republic of China.

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The flags used in the People's Republic use a red background to symbolize the revolution in
conjunction with other symbols. The flag of the People's Liberation Army uses the gold star with the
Chinese characters 8-1 (for August 1, the date of the PLA's founding). The flag of the Communist
Party of China replaces all of the stars with the party emblem. Due to government regulations, cities
and provinces of China cannot have their own flags; the only sub-national flags that exist are those of
the Hong Kong and Macau Special Administrative Regions. However, this law was defied when the
cities of Kaifeng and Shangrao adopted their flags in March 2006 and March 2009 respectively.
1.2 GEOGRAPHICAL SPREAD BY DIRECTION

Rural and urban divide

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Income inequality between China’s rural and urban areas has surged in recent years. The per capita
income of urban households in 2012 was about three times that of the rural households, whereas in
1978 it was about two and half times higher.
This widening inequality has taken place against a backdrop of rapid growth in both urban and rural
incomes, as well as in a sharp increase of the share of the urban population. The income gap fell sharply
in the early years of reform, when the rural sector was then the primary focus of policy. But as the
economy opened up and expanded, the urban-rural income gap began to rise again, though it fell back
again in 2009-12.
The hukou system is one explanation for the large urban-rural income gaps in China because it restricts
the ability of workers to move from poor rural areas to more productive urban regions. Moreover, easy
access to the already densely populated coastal areas for trade and jobs, as well as the country’s
industrial policy, favoured faster urbanisation in eastern China, while boosting living standards in that
region.
Caution is needed in assessing the full extent of these trends, not least owing to the difficulty of
capturing migrants’ earnings, and because of the unclear boundaries between urban and rural areas,
with some densely built up places around cities still classed as rural. Moreover, the available data do
not take into account the cost of living or income subsidies, both of which are higher in urban areas.
Capital and major cities
1. Shanghai
• Population: 23.4 million people
• Area: 3,900 km2 (1,500 sq mi)
• Density: 6,000/km2 (15,000 per sq mi)
• 2018: 3.27 trillion yuan (464 billion USD)
• 2018GDP per capita: 140k yuan (20,000 USD)
2. Beijing
• Area: 4,100 km2 (1,600 sq mi)
• 2018 GDP: 3.03 trillion yuan (430 billion USD)
• GDP per capita: 160k yuan (23,000 USD)
3. Tianjin
• Area: 2,800 km2 (1,100 sq mi

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4. Shenzhen
• Population:12.7 million people
• Area: 1,700 km2 (700 sq mi)
5. Guangzhou
• Area: 3,800 km2 (1,500 sq mi)
6. Chengdu
• Area: 1,700 km2 (700 sq mi)
1.3 Land Distribution
China has a complicated topography, including towering mountains, basins of different sizes,
undulating plateaus and hills, and flat and fertile plains. For plateaus, the four largest plateaus are
Qinghai-Tibet Plateau, Inner Mongolian Plateau, Loess Plateau, and Yunnan-Guizhou Plateau. It has
many mountain ranges, like the Himalaya mountain range in the southwest, Tianshan in the north
west, Changbaishan in the north east, and Wuyishan in the south. In terms of basin, China has several
basins, and the four biggest ones are Tarim Basin, Junggar Basin, Qaidam Basin and Sichuan Basin.
The first three are located in desert areas, and the last one is in a mountainous area. Among those
plains, the four largest plains are the Northeast China Plain , the North China Plain, the Middle-lower
Yangtze Plain and the Central Shaanxi Plain.
Generally speaking, China in topography descends from the west to the east, and forms a three-step
“staircase” according to altitude. The first step is Qinghai-Tibet Plateau, with an average altitude over
4,500 meters, and it has the Qomolangma or Everest, praised as “roof of the world”. The second step
is lower, with an average altitude between 1,000 -2,000 meters, has large plateaus and basins, and
includes the Inner Mongolia, Loess and Yunnan-Guizhou plateaus, and the Tarim, Junggar and
Sichuan basins. It covers a large area in the mid-west, from Xinjiang, Gansu to, Sichuan, Yunnan.
The third step is much lower, with an altitude below 500 meters, and has hills, low mountains and
plains, and it includes provinces in the east and south of China. With a various topography, China is

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abundant with tourism, from mountain-climbing like in the Everest, desert exploration like in the
Tarim Basin, and horse riding like in a plateau or a plain.
Water resources
1. The Yangtze River

The Yangtze River originates from the snow-draped Geladandong, flows through Qinghai, Tibet,
Yunnan, Sichuan, Hubei, Hunan, Jiangxi, Anhui and Jiangsu, and finally enters into the East China
Sea at Chongming Island. With the total length is 6300 kilometers, Yangtze River is the longest river
in China, and the third longest in the world.
2. The Yellow River

The Yellow River, with a total length of 5,464 kilometers, is the second longest in China next to the
Yangtze River. It runs through Qinghai, Sichuan, Gansu, Ningxia, Inner Mongolia, Shaanxi, Shanxi,
Henan and Shandong and empties into the Bohai Sea. The Yellow River is in the shape of huge Chinese
character . It carries enormous amount of yellow earth and sand and on average contains 34kg of soil
per 1 cubic meter of water which makes it the world’s biggest as far as the outflow is concerned.
3. Heilongjiang River
The Heilongjiang River is the boundary river between China and Russia, it runs eastward across
northeast China and finally empties into the Sea of Okhotsk. Its entire length is 4,370 kilometers. It is
the third longest river in China just after the Yangtze River and the Yellow River.
4. Songhuajiang River
The Songhuajiang River is the largest tributary of the Heilongjiang River, It flows about 1,434
kilometres from Changbai Mountain through Jilin and Heilongjiang provinces. In winter it’s frozen
hard with ice nearly one meter thick, turning it into a huge playground for all kinds of ice sports.
5. Zhujiang River
Zhujiang River or the Pearl River is the largest river in South China. The river enjoys high-temperature
and rainy subtropical climate. It is the second largest by volume in China next the Yangtze river. The
river travels 2197 km and finally empties into the South China Sea between Hong Kong and Macau.
6. Yarlung Tsangpo River

Yarlung Tsangpo River is one of the highest rivers in China. It runs some 2,900 km from its source in
the Himalayas to its confluence with the Ganges River. The Yarlung Tsangpo Grand Canyon, formed
by a horse-shoe bend in the river where it leaves the Tibetan Plateau and flows around Namcha Barwa,
is the deepest, and possibly longest canyon in the world.
7. Lancang River
The Lancang River originates from the Tanggula Mountain Range in Qinghai Province and runs south
until it leaves China from Yunnan Province and changes its name to the Mekong River. The total
length of the Mekong river is 4880 km, with 1612km within in China. Flowing through China, Burma,
Thailand, Laos, Cambodia, Vietnam, the river is reputed as the “Danube of the East”.

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8. Nujiang River
The Nujiang River is originated from Tanggula Mountain Range in Tibet Autonomous Region. With
a total length of 2,815 kilometres, the Nujiang River flows from the Tibetan Plateau into the Andaman
Sea in Southeast Asia. The name of the river is changed into the Salween River after flowing into
Burma from China.
9. Hanjiang River
The Hanjiang River is an important tributary of the Yangtze River with a total length of 1532 km. It
rises in southwestern Shaanxi and then flows through Hubei Province and finally merges with the
Yangtze at Wuhan. The Danjiangkou Reservoir on Hangjiang River is used as part of the South–North
Water Transfer Project.
10. Liaohe River

Liaohe River is popularly known as ‘mother river’ by people in Liaoning Province. The river travels
1,394 kilometers through Hebei, Inner Mongolia, Jilin, and Liaoning provinces and finally empties
into the Gulf of Liaodong. The river’s drainage basin occupies 215,000 sq km.
Cultivable and non cultivable land
Agricultural land (% of land area) in China was reported at 56.22 % in 2015, according to the World
Bank collection of development indicators, compiled from officially recognized sources.
Agricultural land refers to the share of land area that is arable, under permanent crops, and under
permanent pastures. Arable land includes land defined by the FAO as land under temporary crops
(double-cropped areas are counted once), temporary meadows for mowing or for pasture, land under
market or kitchen gardens, and land temporarily fallow. Land abandoned as a result of shifting
cultivation is excluded. Land under permanent crops is land cultivated with crops that occupy the land
for long periods and need not be replanted after each harvest, such as cocoa, coffee, and rubber. This
category includes land under flowering shrubs, fruit trees, nut trees, and vines, but excludes land under
trees grown for wood or timber. Permanent pasture is land used for five or more years for forage,
including natural and cultivated crops. China ranks first in worldwide farm output, primarily
producing rice, wheat, potatoes, tomato, sorghum, peanuts, tea, millet, barley, cotton, oilseed and soy
beans. Nowdays due to lot of pollution enough crops for the population cannot be produced.
1.4 Environmental issues

China's environmental crises seem to arise on a scale as sweeping and epic as the vast nation itself:
Thousands of dead, bloated pigs floating down the river that supplies Shanghai with its drinking water.
Air pollution in Beijing so impenetrable the U.S. Embassy's air quality measuring station can only call
it "beyond index." Industrial towns where rates of cancer are so high they're known as "cancer villages.
"Compounding these problems is the Chinese government's stony silence about anything that might
imperil the country's economic development including environmental regulation. But China's
increasingly restive population of 1.3 billion people is now starting to demand government action to

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combat the deadly plagues of pollution and disease that are stalking the 21st century's economic
powerhouse. [The 10 Most Polluted Places on Earth] Chinese officials, however, have barely started
to acknowledge the problem. In the meantime, the people of China are forced to face the following
environmental catastrophes on a daily basis:
Air pollution-According to the Environmental Protection Agency's air quality scale, any pollution
rating above 300 means the air is unsafe to breathe. Under these conditions, people should stay indoors
with an air purifier running and remain as motionless as possible, according to U.S. Embassy Beijing
guidelines.
In January alone, there were 19 days when the index in Beijing surpassed that 300 threshold, according
to the Washington Post, and readings above 500 are no longer unusual. On Jan. 12, the reading reached
an eye-bleeding 886, comparable to living inside a smoking lounge. Manufacturing industries and
Beijing's 5 million-plus cars all contribute to the city's crippling air pollution, but most experts
primarily blame the coal-burning electrical plants that power China's breakneck economic growth.
China now burns 47 percent of the world's coal, roughly equal to the amount used by all other countries
of the world combined, the New York Times reports. And Beijing is surrounded by a vast network of
coal-burning power plants. But as foul as it is, Beijing's air isn't even China's worst: That dubious
honor goes to Ürümqi in the country's far west, which frequently joins other Chinese cities like
Lanzhou and Linfen on lists of the world's most polluted places. [Top 10 Ways to Destroy Earth]
Water pollution
Thousands of dead pigs floating past Shanghai, dramatic though they are, may be the least of China's
water pollution worries. In January, a chemical accident leaked benzene, a known cancer-causing
agent, into a tributary of the Huangpu River (where the dead pigs were discovered). More than 20
people were hospitalized as a result, according to the Wall Street Journal, and area residents were
forced to rely on fire trucks to deliver safe drinking water. More than half of China's surface water is
so polluted it cannot be treated to make it drinkable, the Economist reports, and one-quarter of it is so
dangerous it can't even be used for industrial purposes. Groundwater isn't any safer: About 40 percent
of China's farmland relies on underground water for irrigation, and an estimated 90 percent is polluted,
Reuters reports. About 60 percent of the groundwater beneath Chinese cities is described as "severely
polluted" by the Economist.
Climate
China is located in the eastern Asia, and faces the Pacific Ocean in the east and south. Due to
geographic position, the eastern and southern China are influenced by monsoon, and have climates
like tropical monsoon climate, subtropical monsoon climate and temperate monsoon climate. In the
west of China, there are two types of climate, temperate continental climate and plateau climate and
highland climate. Most regions are cold and dry in winter and have a warm and rainy climate in
summer. Because of its varied topography and terrain conditions, its climate is complicated and
diversified from region to region. For instance, there is a long winter but no summer in the northern
part of Heilongjiang Province, while there is a long summer but no winter in Hainan Province. There

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are four distinct seasons in the Huaihe River valley. The weather in Yunnan is like the weather in
spring all the year round. The climate in the hinterland of northwestern China varies greatly in winter
and summer. In a summer day, it has a drastic fall in temperature, cold in morning and extremely hot
in noon. The Qinghai-Tibet Plateau in the southwest has a highland climate with a low temperature
throughout the year. Desert regions in Xinjiang has a temperate continental climate, with the weather
of dryness and rainless throughout the year.
Seasons
Monsoon: affected by rain band moving, the rainy season transfers from south to north and lasting
for several months. Begin in May, the monsoon visit route is from southeast area along the coast, the
middle and lower reaches of Yangtze River, and to north and northeast China, ends in September.
Typhoons: as a loanword, Typhoons is often occurred in coastal regions of China, like Fujian, Hainan
and Zhejiang provinces. Invading in the period of summer to early winter, the influence can be massive
and destructive. If you travel China in these areas of the time, please notice the local weather forecast.
Hailstone: being a weather phenomenon, Hailstone is commonly seen from April to July, when the
gradually warming weather changes from spring to summer, increasing the ground temperature over
high, caused a series of physical processes of gasification and solidification. Normally, Hailstone is
more likely in mountainous areas and inland regions, such as south of Gansu province, west of Sichuan
and Yunnan provinces, Qinghai-Tibet Plateau, etc.
Smoggy Weather: smog, a natural phenomenon, itself, makes people afraid by the aggravated air
pollutions in recent years. When comes to winter, some major cities of north China are covered by
smoggy weather, including Beijing, Nanjing, Zhengzhou, Xian and more. So travel in those cities, you
should wear masks, drink more water and pay much attention.
Temperature
Temperatures generally decrease from south to north. The mean annual temperature is above 68 °F (20
°C) in the Pearl River valley. It decreases to between 59 and 68 °F (15 and 20 °C) in the middle and
lower reaches of the Yangtze, to about 50 °F (10 °C) in North China and the southern part of Xinjiang,
and to 41 °F (5 °C) in the southern area of the Northeast, the northern part of Xinjiang, and places near
the Great Wall. It drops below 32 °F (0 °C; i.e., freezing) in the northern part of Heilongjiang. The
annual range of temperature between the extreme south and north is about 86 °F (48 °C). With few
exceptions, January is the coldest month and July is the hottest.
South of the Qin Mountains–Huai River line, the mean January temperature increases progressively,
rising from freezing to 72 °F (22 °C) on the southern coast of Hainan Island. Snow rarely falls, and the
rivers do not freeze. North of this line, the temperature drops from freezing to −18 °F (−28 °C) in the
northern part of Heilongjiang. In April the mean temperature is above freezing for the whole of China,
with the exception of extreme northern Heilongjiang. During that time the mean temperature for
the Northeast Plain is between 36 and 46 °F (2 and 8 °C), and for the extensive plain between Beijing
and Shanghai it is between 54 and 59 °F (12 and 15 °C). South of the Nan Mountains the mean

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temperature is considerably higher than 68 °F (20 °C). Along the coast of southern Guangdong,
willows start to bud in late January, but in Beijing the budding of willows comes as late as early April.
1.5 Natural hazards

China is exposed to an array of natural hazards, including droughts, earthquakes, floods, heat waves,
landslides, severe cold, typhoons, and volcanoes. In recent decades, frequent natural disasters have
caused high loss of life and damage to property in the country, endangering the country’s development
gains. Between 2000 and 2015, natural disasters affected some 1.6 billion people and caused about
$300 billion in damages.
Seismic-prone Sichuan Province has experienced some of China’s largest earthquakes. The magnitude
8.0 Wenchuan Earthquake killed over 69,000 people and caused $128 billion in economic losses in
2008. Nearly five years later, a magnitude 6.6 earthquake struck the province, affecting 2.2 million
people. On the country’s coast, seasonal storms hit regularly and typhoons make landfall at the highest
rate in the world. The 2006 Saomai Typhoon, in highly exposed Fujian Province, sunk and damaged
nearly 2,000 vessels and caused 241 fatalities. Sichuan and Fujian Provinces, among others, were also
impacted by the 2016 June–July floods and storms. Climate change is expected to increase the risks of
hydro-meteorological hazards, especially in rapidly growing urban areas where people and assets are
concentrated in hazardous places and unsafe structures. Coastal inhabitants, numbering over 130
million, are exposed to sea level rise, tropical storms, and flooding. Already, the frequency of these
severe events is accelerating

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Chapter 2
EVOLUTION AND DEVELOPMENT
2.1 HISTORY OF THE COUNTRY
ANCIENT CHINA
Xia dynasty (2070–1600 BC)

The Xia dynasty of China (from c. 2070 to c. 1600 BC) is the first dynasty to be described in ancient
historical records such as Sima Qian's Records of the Grand Historian and Bamboo Annals. The
dynasty was considered mythical by historians until scientific excavations found early Bronze
Age sites at Erlitou, Henan in 1959. With few clear records matching the Shang oracle bones, it
remains unclear whether these sites are the remains of the Xia dynasty or of another culture from the
same period.
Shang dynasty (1600–1046 BC)

Archaeological findings providing evidence for the existence of the Shang dynasty, c. 1600–1046 BC,
are divided into two sets. The first set, from the earlier Shang period, comes from sources
at Erligang, Zhengzhou, and Shangcheng. The second set, from the later Shang or Yin period, is
at Anyang, in modern-day Henan, which has been confirmed as the last of the Shang's nine capitals (c.
1300–1046 BC) The findings at Anyang include the earliest written record of the Chinese so far
discovered: inscriptions of divination records in ancient Chinese writing on the bones or shells of
animals—the "oracle bones", dating from around 1250 BC
Zhou dynasty (1046–256 BC)

The Zhou dynasty (1046 BC to approximately 256 BC) is the longest-lasting dynasty in Chinese
history. By the end of the 2nd millennium BC, the Zhou dynasty began to emerge in the Yellow
River valley, overrunning the territory of the Shang. The Zhou appeared to have begun their rule under
a semi-feudal system. The Zhou lived west of the Shang, and the Zhou leader was appointed Western
Protector by the Shang. The ruler of the Zhou, King Wu, with the assistance of his brother, the Duke
of Zhou, as regent, managed to defeat the Shang at the Battle of Muye
Spring and Autumn period (722–476 BC)

In the 8th century BC, power became decentralized during the Spring and Autumn period, named after
the influential Spring and Autumn Annals. In this period, local military leaders used by the Zhou began
to assert their power and vie for hegemony. The situation was aggravated by the invasion of other
peoples from the northwest, such as the Qin, forcing the Zhou to move their capital east to Luoyang.
This marks the second major phase of the Zhou dynasty: the Eastern Zhou.

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Warring States period (476–221 BC)

After further political consolidation, seven prominent states remained by the end of the 5th century
BC, and the years in which these few states battled each other are known as the Warring States period.
Though there remained a nominal Zhou king until 256 BC, he was largely a figurehead and held little
real power. Numerous developments were made during this period in culture and mathematics.
MIDDLE CHINA
Qin dynasty (221–207 BC)
Historians often refer to the period from the Qin dynasty to the end of the Qing dynasty as Imperial
China. Though the unified reign of the First Qin Emperor lasted only 12 years, he managed to subdue
great parts of what constitutes the core of the Han Chinese homeland and to unite them under a tightly
centralized Legalist government seated at Xianyang (close to modern Xi'an). The doctrine of Legalism
that guided the Qin emphasized strict adherence to a legal code and the absolute power of the emperor.
This philosophy, while effective for expanding the empire in a military fashion, proved unworkable
for governing it in peacetime.
Han dynasty (202 BC – AD 220)

The Han dynasty was founded by Liu Bang, who emerged victorious in the Chu–Han Contention that
followed the fall of the Qin dynasty. A golden age in Chinese history, the Han dynasty's long period
of stability and prosperity consolidated the foundation of China as a unified state under a central
imperial bureaucracy, which was to last intermittently for most of the next two millennia. During the
Han dynasty, territory of China was extended to most of the China proper and to areas far
west. Confucianism was officially elevated to orthodox status and was to shape the subsequent Chinese
civilization.
Three Kingdoms (AD 220–280)

By the 2nd century, the empire declined amidst land acquisitions, invasions, and feuding
between consort clans and eunuchs. The Yellow Turban Rebellion broke out in AD 184, ushering in
an era of warlords. In the ensuing turmoil, three states tried to gain predominance in the period of
the Three Kingdoms. This time period has been greatly romanticized in works such as Romance of the
Three Kingdoms. After Cao Cao reunified the north in 208, his son proclaimed the Wei dynasty in
220. Soon, Wei's rivals Shu and Wu proclaimed their independence, leading China into the Three
Kingdoms period. This period was characterized by a gradual decentralization of the state that had
existed during the Qin and Han dynasties, and an increase in the power of great families.
Jin dynasty (AD 266–420)

The Jin dynasty was severely weakened by internecine fighting among imperial princes and lost
control of northern China after non-Han Chinese settlers rebelled and captured Luoyang and Chang'an.

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In 317, a Jin prince in modern-day Nanjing became emperor and continued the dynasty, now known
as the Eastern Jin, which held southern China for another century.
Northern and Southern dynasties (AD 420–589)

In the early 5th century, China entered a period known as the Northern and Southern dynasties, in
which parallel regimes ruled the northern and southern halves of the country. In the south, the Eastern
Jin gave way to the Liu Song, Southern Qi, Liang and finally Chen.
Sui dynasty (AD 581–618)

The short-lived Sui dynasty was a pivotal period in Chinese history. Founded by Emperor Wen in 581
in succession of the Northern Zhou, the Sui went on to conquer the Southern Chen in 589 to reunify
China, ending three centuries of political division.
Tang dynasty (AD 618–907)

The Tang dynasty was founded by Emperor Gaozu on 18 June 618. It was a golden age of Chinese
civilization and considered to be the most prosperous period of China with significant developments
in culture, art, literature, particularly poetry, and technology.
Five Dynasties and Ten Kingdoms (AD 907–960)

The period of political disunity between the Tang and the Song, known as the Five Dynasties and Ten
Kingdoms period, lasted from 907 to 960. During this half-century, China was in all respects a multi-
state system. Five regimes, namely, (Later) Liang, Tang, Jin, Han and Zhou, rapidly succeeded one
another in control of the traditional Imperial heartland in northern China. Among the regimes, rulers
of (Later) Tang, Jin and Han were sinicized Shatuo Turks, which ruled over the ethnic majority of Han
Chinese. More stable and smaller regimes of mostly ethnic Han rulers coexisted in south and western
China over the period, cumulatively constituted the "Ten Kingdoms".
Song, Liao, Jin, and Western Xia dynasties (AD 960–1234)

In 960, the Song dynasty was founded by Emperor Taizu, with its capital established in Kaifeng (also
known as Bianjing). In 979, the Song dynasty reunified most of the China proper, while large swaths
of the outer territories were occupied by sinicized nomadic empires. The Khitan Liao dynasty, which
lasted from 907 to 1125, ruled over Manchuria, Mongolia, and parts of Northern China. Meanwhile,
in what are now the north-western Chinese provinces of Gansu, Shaanxi, and Ningxia,
the Tangut tribes founded the Western Xia dynasty from 1032 to 1227.

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Yuan dynasty (AD 1271–1368)

The Yuan dynasty was formally proclaimed in 1271, when the Great Khan of Mongol, Kublai Khan,
one of the grandsons of Genghis Khan, assumed the additional title of Emperor of China, and
considered his inherited part of the Mongol Empire as a Chinese dynasty.
Ming dynasty (AD 1368–1644)

The Ming dynasty was founded by Zhu Yuanzhang in 1368, who proclaimed himself as the Hongwu
Emperor. The capital was initially set at Nanjing, and was later moved to Beijing from Yongle
Emperor's reign onward. Urbanization increased as the population grew and as the division of labor
grew more complex. Large urban centers, such as Nanjing and Beijing, also contributed to the growth
of private industry
Qing dynasty (AD 1644–1911)

The Qing dynasty (1644–1911) was the last imperial dynasty in China. Founded by the Manchus, it
was the second conquest dynasty to rule the territory of China proper, and roughly doubled the territory
controlled by the Ming.
MODERN CHINA
The provisional government of the Republic of China was formed in Nanking on 12 March 1912. Sun
Yat- sen became President of the Republic of China, but he turned power over to Yuan Shikai, who
commanded the New Army. Over the next few years, Yuan proceeded to abolish the national and
provincial assemblies and declared himself as the emperor of Empire of China in late 1915. Yuan's
imperial ambitions were fiercely opposed by his subordinates; faced with the prospect of rebellion, he
abdicated in March 1916 and died of natural causes in June. Yuan's death in 1916 left a power vacuum;
the republican government was all but shattered. This opened the way for the Warlord Era, during
which much of China was ruled by shifting coalitions of competing provincial military leaders and
the Beiyang government. Intellectuals, disappointed in the failure of the Republic, launched the New
Culture Movement. The bitter Chinese Civil War between the Nationalists and the Communists
continued, openly or clandestinely, through the 14-year-long Japanese occupation of various parts of
the country (1931–1945). The two Chinese parties nominally formed a United Front to oppose the
Japanese in 1937, during the Second Sino-Japanese War (1937–1945), which became a part of World
War II. Until the early 1970s, the ROC was recognized as the sole legitimate government of China by
the United Nations, the United States and most Western nations, refusing to recognize the PRC on
account of the Cold War. This changed in 1971 when the PRC was seated in the United Nations,
replacing the ROC. The KMT ruled Taiwan under martial law until 1987, with the stated goal of being
vigilant against Communist infiltration and preparing to retake mainland China.
People's Republic of China (since 1949)
Major combat in the Chinese Civil War ended in 1949 with Kuomintang (KMT) pulling out of the
mainland, with the government relocating to Taipei and maintaining control only over a few islands.
The Communist Party of China was left in control of mainland China. On 1 October 1949, Mao

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Zedong proclaimed the People's Republic of China. "Communist China" and "Red China" were two
common names for the PRC.
The PRC was shaped by a series of campaigns and five-year plans. The economic and social plan
known as the Great Leap Forward caused an estimated 45 million deaths. Mao's government carried
out mass executions of landowners, instituted collectivisation and implemented the Laogai camp
system. Execution, deaths from forced labor and other atrocities resulted in millions of deaths under
Mao. In 1966 Mao and his allies launched the Cultural Revolution, which continued until Mao's death
a decade later. The Cultural Revolution, motivated by power struggles within the Party and a fear of
the Soviet Union, led to a major upheaval in Chinese society.
2.2 IMPORTANT EVENTS OF NATION

PRE-INDEPENDENCE
1938 Bombing of Chongqing: The Japanese army and naval air services
18
began a bombing campaign against civilian targets
February
in Chongqing which would kill some ten thousand people.
Battle of Taierzhuang: The Japanese army was forced to withdraw

7 April after suffering heavy losses in an attempted conquest of Tai'erzhuang
District.
1938 Yellow River flood: KMT forces destroyed a major dyke in an

5 June effort to create a flood to slow down Japanese forces. Nearly a million
citizens died.
17
Battle of Changsha: The Japanese army attacked Changsha.
September
Hundred Regiments Offensive: Communist NRA soldiers

1940 20 August under Peng Dehuai began a campaign of terrorism and sabotage
against Japanese targets in North China.
30 Battle of Changsha: A Japanese army began a general retreat after

September failing to take Changsha.

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Battle of Changsha: A Japanese army crossed the Xinqiang River

1942 15 January
after suffering heavy losses in a failed attempt to conquer Changsha.
Cairo Conference: Chiang, United States president Franklin D.

Roosevelt, and British prime minister Winston Churchill issued
27
the Cairo Declaration, under which the three powers expressed their
November
desire for the independence of Korea and the return
of Chinese territories.
Battle of Changsha: The Japanese army launched a general offensive

1944 27 May
against Changsha.
Atomic bombings of Hiroshima and Nagasaki: As many as eighty

6 August thousand Japanese, largely civilians, were killed in the atomic
bombing of Hiroshima by a United States aircraft.
9 Surrender of Japan: Japanese forces in China formally surrendered

September to Chiang Kai-shek.
Surrender of Japan: China regains control

25 October of Taiwan from Japan and was proclaimed as Retrocession Day. Chen
Yi of the Kuomintang was appointed Chief Executive.
Campaign to Suppress Bandits in Northeast China:

November The Communist People's Liberation Army (PLA) launched a
campaign against bandits and KMT guerillas in northeast China.
1946 20 July Chinese Civil War: The NRA invaded PLA-held territory en masse.
1947 28 February 28 Incident: Nationalist forces violently suppressed an

February anti-government protest in Taiwan Province.
1948 2 Liaoshen Campaign: The last ROC garrison in Manchuria,

November in Yingkou, retreated in the face of a PLA advance.

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15
Huaihai Campaign: The PLA encircled an ROC army in Xuzhou.
December
POST INDEPENDENCE
Korean War: The North Korean army launched a 135,000-man surprise

25 June
assault across the 38th parallel into South Korea.
1949
Battle of the Ch'ongch'on River: The Chinese 38th Group Army broke the
25
UN line between the 7th Infantry Division and 8th Infantry Division in the
November
valley of the Chongchon River.
Representatives of the Dalai Lama of Tibet the 14th Dalai Lama and of
the Central People's Government of the People's Republic of China signed
1951 23 May the Seventeen Point Agreement for the Peaceful Liberation of Tibet, which
guaranteed Tibetan autonomy within China and called for the integration of
the Tibetan Army into the PLA.
18 The first of the five-year plans of China, which called for construction of
1953
November heavy industry, began to be carried out.
1958 Great Leap Forward: The CPC led campaigns to massively overhaul the
17 August Chinese economy and society with such innovations as collective
farming and the use of backyard furnaces.
1959 1959 Tibetan uprising: A rebellion broke out in the Tibetan regional
10 March capital Lhasa after rumors the government was planning to arrest the 14th
Dalai Lama at the local PLA headquarters.
Great Chinese Famine: A famine began which would claim as many as

17 June
forty million lives over three years.

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1966 Cultural Revolution: The CPC launched a campaign to destroy the Four
19 August
Olds.
1969 Sino-Soviet border conflict: PLA forces attacked the Soviet Border
2 March
Troops of the Soviet Union on Zhenbao Island, killing 59.
1970 24 April China launched Dong Fang Hong I, its first satellite.
Battle of the Paracel Islands: Some fifty South Vietnamese soldiers were
1974 19 January
killed in a Chinese conquest of the Paracel Islands.
1976 Tangshan earthquake: An earthquake with its epicenter

27 July
near Tangshan killed roughly a quarter of a million people.
Chinese economic reform: Economic liberalization measures including

17
the replacement of collective farming with the household-responsibility
December
system began to be instituted.
1979 China and the United States issued the Joint Communiqué on the
Establishment of Diplomatic Relations, under which the latter recognized
1 January
the PRC as the legitimate government of China and terminated its
participation in the Sino-American Mutual Defense Treaty with Taiwan.
Sino-Vietnamese War: China declared that the punitive objective of its

6 March
invasion of Vietnam had been achieved and began to retreat.
The one-child policy, under which Chinese couples are heavily fined for
18
additional children after their first, with some exceptions, came into force,
September
and then phased out in 2015.
December Shanghai Stock Exchange re-opened on November 26 and began operation

1990
19. on December 19.

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24
1992 Deng Xiaoping traveled south to reassert the economy policy.
February
1998 China floods: China experienced massive flooding including floods

of the Yangtze River, the Nen River, the Songhua River and the Pearl River.
1998 18 June
Chinese People's Liberation Army earned people's respects because of their
heroic behaving against the floods.
1999 United States bombing of the Chinese embassy in Belgrade: United

7 May States bombers under the command of the North Atlantic Treaty
Organization accidentally bombed the Chinese embassy in Belgrade.
China passed Japan as the country with which the United States has the
2000 8 July
largest trade deficit.
Year Date Event
World Trade Organization Ministerial Conference of

2001 10 November 2001: China joined the World Trade Organization, subjecting
it to that body's free trade and dispute resolution agreements.
2003 15 October China launched its first manned space mission Shenzhou 5.
2005 anti-Japanese demonstrations: Mass demonstrations

15 April
against Japan took place.
2005
2005 Jilin chemical plant explosions: A series of explosions
13 November at a chemical plant in Jilin City killed six and forced the
evacuation of tens of thousands.

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2007 2007 Chinese slave scandal: A local television station first

7 May reported on missing children kidnapped to work as slaves at
brickyards in Shanxi.
24 October The lunar orbiter Chang'e 1 was launched.
2008 Sichuan earthquake: An earthquake with its epicenter

12 May
in Wenchuan County killed nearly seventy thousand people.
2008 Summer Olympics opening ceremony: A ceremony

8 August
marked the beginning of the Olympic Games in Beijing.
2008 Summer Paralympics: The thirteenth Paralympic

6 September
Games began in Beijing.
The astronaut Zhai Zhigang completed China's first

27 September
spacewalk on Shenzhou 7.
1 May Expo 2010: A world's fair began in Shanghai.
Tiangong-1 was launched as China's first prototype space

29 September
station.
4 July The Three Gorges Dam went into operation.
2012 China anti-Japanese demonstrations: Anti-Japanese

19 August protests took place in China due to a dispute over ownership
of the Diaoyu Islands.
18th National Congress of the Communist Party of

15 November China: Xi Jinping succeeded Hu Jintao as General Secretary
of the Communist Party of China.

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2014 15 May China became the world's second largest economy.
2015 17 June 2015–16 Chinese stock market turbulence started.
2017 Xi Jinping was re-elected as the General Secretary of the

25 October Communist Party of China and the Chairman of the Central
Military Commission.
2.3 BROAD FEATURES OF CONSTITUTION

SALIENT FEATURES OF CONSTITUTION
• Preamble
• Nature of constitution
• Basic principle
• Unitary system
• Democratic centralism
• One party system
LEGISLATURE
• Duration
• Session
• Powers
• Enactment of laws
• Executive powers
• Elective functions
EXECUTIVE
• State council
• Premier
• President
• Judiciary
• Rights and duties

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2.4 REFORMS
Social reforms
By 1970 many of the stated goals of the Cultural Revolution had been translated into at least
somewhat-operational programs. These included initiatives designed to reduce what were termed the
“three major differences”—those separating intellectual from manual labour, worker from peasant,
and urban from rural.
Many measures had been taken to make the educational system less elitist. The number of years at
each level of schooling was shortened, and admission to a university became based on the
recommendations of a student’s work unit rather than on competitive examination. All youths were
required to engage in at least several years of manual labour before attending a university. Within
schools, formal scholarship yielded in large measure to the study of politics and to vocational training.
Examinations of the traditional type were abolished, and stress was placed on collective study. The
authority of teachers in the classroom was seriously eroded. These trends reached their most extreme
form when a student in the Northeast was made a national hero by the radicals because he turned in a
blank examination paper and criticized his teacher for having asked him the examination questions in
the first place.
Many bureaucrats were forced to leave the relative comfort of their offices for a stint in “May 7 cadre
schools,” usually farms run by a major urban unit. People from the urban unit had to live on the farm,
typically in quite primitive conditions, for varying periods of time. (For some, this amounted to a
number of years, although by about 1973 the time periods in general had been held to about six months
to one year.) While on the farm the urban cadre would both engage in rigorous manual labour and
undertake intensive, supervised study of ideology. The object was to reduce bureaucratic “airs.”
Millions of Chinese youths were also sent to the countryside during these years. Initially, these were
primarily Red Guard activists, but the program soon achieved a more general character, and it became
expected that most middle-school graduates would head to the countryside. While in the hinterlands,
these young people were instructed to “learn from the poor and lower-middle peasants.” Quite a few
were merely sent to the counties immediately adjacent to the city from which they came. Others,
however, were sent over long distances. Large groups from Shanghai, for instance, were made to settle
in Heilongjiang, the northernmost province in the Northeast. This rustication was in theory permanent,
although the vast majority of these people managed to stream back to the cities in the late 1970s, after
Mao’s death and the purge of his radical followers.
The system of medical care was also revamped. Serious efforts were made to force urban-based
medical staffs to devote more effort to serving the needs of the peasants. This involved both the
reassignment of medical personnel to rural areas and, more important, a major attempt to provide short-
term training to rural medical personnel called “barefoot doctors.” This latter initiative placed at least
a minimal level of medical competence in many Chinese villages; ideally, the referral of more-serious
matters was to be made to higher levels. Another prong of the effort in the medical arena was to place
relatively greater stress on the use of Chinese traditional medicine, which relied more heavily on
locally available herbs and on such low-cost treatments as acupuncture. Western medicine was simply
too expensive and specialized to be used effectively throughout China’s vast hinterlands.

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The Cultural Revolution was primarily an urban political phenomenon, and thus it had a highly uneven
effect on the peasants. Some villages, especially those near major cities, became caught up in the
turmoil, but many peasants living in more-remote areas experienced less interference from higher-
level bureaucratic authorities than would normally have been the case.
Political changes
The reformers led by Deng Xiaoping tried after 1978 to reduce the level of political coercion in
Chinese society. Millions of victims of past political campaigns were released from labour camps, and
bad “class labels” were removed from those stigmatized by them. This dramatically improved the
career and social opportunities of millions of former political pariahs. To a considerable extent,
moreover, the range of things considered political was narrowed, so that mundane elements such as
style of dress and grooming and preferences in music and hobbies were no longer considered politically
significant. More importantly, criticizing policy no longer triggered political retaliation against the
critics. Overall, the role of the Public Security (police) forces was cut back substantially. The reformers
also tried to make preparations for their own political succession. This involved first rehabilitating
cadres who had been purged during the Cultural Revolution (most of which was accomplished in the
late 1970s). These cadres in many cases were old and no longer fully able to meet the demands being
made on them, and they were encouraged to retire. Younger, better-educated people committed to
reform were then brought into prominent positions. Deng proved masterful at maintaining a viable
coalition among the diverse forces at the top. By the end of 1981 he had succeeded in nudging Hua
Guofeng and others of the more-rigid Maoists out of high-level positions. Although he refused to take
the top positions for himself, Deng saw his supporters become premier (Zhao Ziyang and then Li Peng)
and general secretary of the CCP (Hu Yaobang, Zhao, and Jiang Zemin), and he worked hard to try to
consolidate and maintain their hold on power.
In early 1982 the CCP leadership made a concerted attempt to restructure the leading bodies in both
the government and the party, and much was reorganized, with the appointment of many new officials.
This general effort continued, with the focus increasingly on the bloated military establishment, but
progress slowed considerably after the initial burst of organizational reformism.
Economic growth had been especially remarkable in southern China, which had developed the highest
concentration of private-sector enterprise. Since the mid-1990s the CCP has worked to drastically
accelerate market reforms in banking, taxes, trade, and investments. These reforms have continued
apace, and the party has attempted to increase public support by conducting energetic anticorruption
campaigns that rely in part on high-profile prosecutions and occasional executions of high-level
officials accused of corruption. Jiang proved to be a capable successor to Deng. He replaced Zhao
Ziyang as general secretary in 1989 after the Tiananmen incident and also that year was named chair
of the Central Military Commission (CMC). In 1993 Jiang became president of the National People’s
Congress (NPC). He combined a pragmatic, reform-minded economic policy with an insistence that
the party maintain strong control over the government. Jiang consolidated his power after Deng’s death
in 1997 to become China’s paramount ruler but gradually relinquished his posts to Hu Jintao in 2002–

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04. In turn, in 2012, as Hu neared the end of his presidential term, China’s vice president, Xi Jinping,
was positioned to succeed him, and that November Xi took over both as general secretary of the party
and as chair of the CMC. Hu stepped down from the presidency in March 2013 after Xi was elected to
the office by the NPC.
ECONOMIC CHANGES
China's economic growth since the reform has been very rapid, exceeding the East Asian Tigers. Since
the beginning of Deng Xiaoping's reforms, China's GDP has risen tenfold. The increase in total factor
productivity (TFP) was the most important factor, with productivity accounting for 40.1% of the GDP
increase, compared with a decline of 13.2% for the period 1957 to 1978—the height of Maoist policies.
For the period 1978–2005, Chinese GDP per capita increased from 2.7% to 15.7% of U.S. GDP per
capita, and from 53.7% to 188.5% of Indian GDP per capita. Per capita incomes grew at 6.6% a
year. Average wages rose sixfold between 1978 and 2005, while absolute poverty declined from 41%
of the population to 5% from 1978 to 2001. Some scholars believed that China's economic growth has
been understated, due to large sectors of the economy not being counted. China is widely seen as an
engine of world and regional growth. Surges in Chinese demand account for 50, 44 and 66 percent of
export growth of the Hong Kong SAR of China, Japan and Taiwan respectively, and China's trade
deficit with the rest of East Asia helped to revive the economies of Japan and Southeast Asia. Asian
leaders view China's economic growth as an "engine of growth for all Asia. After three decades of
reform, China's economy experienced one of the world's biggest booms. Agriculture and light industry
have largely been privatized, while the state still retains control over some heavy industries. Despite
the dominance of state ownership in finance, telecommunications, petroleum and other important
sectors of the economy, private entrepreneurs continue to expand into sectors formerly reserved for
public enterprise. Prices have also been liberalized.

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CHAPTER 3
GOVERNMENT
3.1 TYPE OF GOVERNMENT
A republic (Latin: res publica, meaning “public affair”) is a form of government in which the country
is considered a "public matter", not the private concern or property of the rulers. The primary positions
of power within a republic are attained, through democracy, oligarchy, autocracy, or a mix thereof,
rather than being unalterably occupied. As such it has become the opposing form of government to a
monarchy and has therefore no monarch as head of state. In the context of American constitutional
law, the definition of republic refers specifically to a form of government in which elected individuals
represent the citizen body[better source needed] and exercise power according to the rule of law under
a constitution, including separation of powers with an elected head of state, referred to as a
constitutional republic or representative democracy.
3.2 FORM OF GOVERNMENT

Unitary state is a state governed as a single power in which the central government is ultimately
supreme. The central government may create (or abolish) administrative divisions (sub-national
units).Such units exercise only the powers that the central government chooses to delegate. Although
political power may be delegated through devolution to regional or local governments by statute, the
central government may abrogate the acts of devolved governments or curtail (or expand) their powers.
A large majority of the world's states (166 of the 193 UN member states) have a unitary system of
government.
Unitary states stand in contrast with federations, also known as federal states. In federations, the
provincial governments share powers with the central government as equal actors through a written
constitution, to which the consent of both is required to make amendments. This means that the sub-
national units have a right of existence and powers that cannot be unilaterally changed by the central
government. The United Kingdom of Great Britain and Northern Ireland is an example of a unitary
state.
3.3 DECENTRALISATION OF GOVERNMENT

China has actually divided its ‘state-like’ divisions into 4 different levels:
• Provinces (ex: Sichuan, Shaanxi)

• Autonomous Regions (ex: Xinjiang, Tibet)
• Municipalities (ex: Beijing, Shanghai)
• Special Administrative Regions or SAR’s (ex: Hong Kong, Macau)
It could also be argued that there is a 5th, that of a “claimed territory” such as Taiwan, but since
that’s really the only one in that category I’ll just leave that as a special classification. Each of these
divisions has minor differences in governmental setup, however all ultimately report to the central
government in Beijing.

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Chinese Provinces
There are 22 different provinces that make up the majority of Chinese territory. These are usually led
by a person referred to as a “secretary”.
China’s “Autonomous Regions”
There are 5 Autonomous regions in China designated as such because of the large population of a
particular minority group. While they retain the right to appoint their own minority governor, the head
of this region is the Party Secretary who is always Han Chinese. Among the autonomous regions,
Xinjiang is the largest in China covering 1,660,001 km2 (640,930 sq mi).
China’s Municipalities
A Municipality is basically a huge city that has the same rights as provinces. These areas usually cover
an area much larger than the actual city and are governed by a mayor.The largest municipality is
Chongqing with an area of 82,300 km2 (31,776.2 sq mi) which, by the way, is bigger than the smallest
province of Hainan.
China’s Special Administrative Regions
There are only two SAR’s: Hong Kong and Macau. They’re basically a self-governing nation that
report directly to the central government on all issues of foreign policy or national defense, among
other things. The largest of the two SARs is Hong Kong.
3.4 NATIONAL SECURITY

The armed forces of China are officially and collectively known as the People's Liberation
Army (PLA). The ground forces are referred to simply as the PLA, but the navy is called the PLA
Navy and the air force is known as the PLA Air Force. The PLA's independent strategic missile forces
are often referred to as the PLA Rocket Forces. The Chinese Communist Party (CCP) Central Military
Commission sets policy for the PLA. The commission, which is chaired by Chairman (Party General
Secretary), has two or three vice chairmen, each a general in the PLA ground forces, and seven
members representing various components of the PLA. Operational control is administered dually by
the CCP Central Military Commission and the State Central Military Commission and the Ministry of
National Defense. PLA headquarters is organized into the General Staff Department, General Political
Department, General Logistics Department, and General Armaments Department. In 2005 China
announced that it downsized its military by 200,000 troops in order to optimize force structures and
increase combat capabilities. The active-duty troop numbers declined to 2.3 million, compared to 3.2
million in 1987. The changes included eliminating layers in the command hierarchy, reducing
noncombat units, such as schools and farms, and reprogramming officer duties. The number of ground
forces was reduced by the largest margin, while the navy, air force, and Second Artillery Corps were
strengthened. An estimated 1.7 million military personnel are in the ground forces, 250,000 in the navy
(including 26,000 naval aviation, 10,000 marines, and 28,000 coastal defense forces), an estimated
400,000 to 420,000 in the air force, and 90,000–100,000 in the strategic missile forces. Reservists

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number an estimated 500,000 to 600,000 and paramilitary forces in the People's Armed Police an
estimated 1.5 million.
Major military units
The ground forces are organized into seven military regions (headquartered in Shenyang in the
northeast, Beijing in the north, Lanzhou in the west, Chengdu in the southwest, Guangzhou in the
south, Jinan in central China, and Nanjing in the east), 28 provincial military districts, four centrally
controlled garrison commands (coinciding with the centrally administered municipalities
of Beijing, Tianjin, Shanghai, and Chongqing), and 21 integrated group armies. The group armies
have strengths between 30,000 and 65,000 troops. Each group army typically has two or
three infantry divisions, one armored division or brigade, one artillery division or brigade, and one
joint surface-to-air missile or antiaircraft artillery brigade or simply an antiaircraft artillery brigade.
The navy is organized into North Sea (headquartered at Qingdao, Shandong Province), East
Sea (headquartered at Ningbo, Zhejiang Province), and South Sea (headquartered at Zhanjiang,
Guangdong Province) fleets. Each fleet has destroyer, submarine, and coastal patrol flotillas, possibly
even amphibious flotillas, and naval air stations. There are numerous major naval bases: the North Sea
Fleet has seven, the East Sea Fleet eight, and the South Sea Fleet 16.
The air force has five air corps and 32 air divisions. The major air force headquarters coincide with
the seven military regions. The air force has more than 140 air bases and airfields, including ready
access to China’s major regional and international airports.
3.5 FOREIGN POLICY

The People's Republic of China is a state in East Asia that is a great power. Under current Paramount
Leader Xi Jinping, China has expanded its foreign policy ambitions on the global scale. China is
investing heavily in global infrastructure, citing a desire for economic integration. It is also investing
in strategic locations to secure its trade and security interests. It calls these programs "One Belt, One
Road" and the "Maritime Silk Road", which it sees as part of its goal of self-sufficiency
Status of Taiwan
China considers Taiwan area administered by Republic of China, part of its inviolable sovereign
territory. In China's view, Taiwan is a separatist, breakaway province that must be reunified, by force
if necessary. China exerts efforts for countries recognizing the ROC to switch their recognition to the
People's Republic of China (PRC). This has forced Taiwan to go to great lengths to maintain its extant
diplomatic relations, particularly with countries that recognize the Republic of China as the one
"China".
It has passed the controversial Anti-Secession Law authorizing the use of military force in the event
of unilateral separatist activity by the Government of Taiwan, as outlined in PRC's condition on
military intervention

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South China Sea
China has staked its territorial claims in the disputed South China Sea with the Nine-Dash Line. Its
claims are disputed by other countries. The contested area in the South China Sea includes the Paracel
Islands, the Spratly Islands and various other areas including the Pratas Islands, the Macclesfield
Bank and the Scarborough Shoal. The claim encompasses the area of Chinese land reclamation known
as the "Great Wall of Sand". The United States Navy has conducted freedom of navigation operations
asserting its position that some waters claimed by China are international waters.
On July 12, 2016, an arbitral tribunal constituted under Annex VII to the 1982 United Nations
Convention on the Law of the Sea ruled that China has no legal basis to claim "historic rights" within
its nine-dash line in a case brought by the Philippines. The tribunal judged that there was no evidence
that China had historically exercised exclusive control over the waters or resources within the Nine-
Dash Line.The ruling was rejected by both Taiwan and China. The People's Republic of China and the
Republic of China (Taiwan) stated that they did not recognize the tribunal and insisted that the matter
should be resolved through bilateral negotiations with other claimants. However, the tribunal did not
rule on the ownership of the islands or delimit maritime boundaries
3.6 GOVERNMENT AGREEMENTS

Bilateral
China has bilateral investment agreements with over 100 countries and economies, including Austria,
the Belgium-Luxembourg Economic Union, Canada, France, Germany, Italy, Japan, South Korea,
Spain, Thailand, and the United Kingdom. China’s bilateral investment agreements cover
expropriation, arbitration, most-favored-nation treatment, and repatriation of investment proceeds.
They are generally regarded as weaker than the investment treaties the United States seeks to negotiate.
Trilateral
The China–Japan–South Korea trilateral summit is an annual summit held
between China, Japan and South Korea, three major countries in East Asia. The first summit was held
during December 2008 in Fukuoka, Japan. The talks are focused on maintaining strong
trilateral relations, the regional economy and disaster relief.
The summits were first proposed by South Korea in 2004, as a meeting outside the framework of
the ASEAN Plus Three, with the three major economies of East Asia having a separate community
forum. In November 2007 during the ASEAN Plus Three meeting, the leaders of China, Japan, and
South Korea held their eighth meeting, and decided to strengthen political dialogue and consultations
between the three countries, eventually deciding on an ad hoc meeting to be held in 2008.
In September 2011, the three countries launched the Trilateral Cooperation Secretariat in Seoul. The
Secretary-General is appointed on a two-year rotational basis in the order of Korea, Japan, and China.
Each country other than the one of the Secretary-General nominates a Deputy Secretary-General
respectively

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Free trade agreement

The Chinese Government deems Free Trade Agreements (FTAs) as a new platform to further opening
up to the outside and speeding up domestic reforms, an effective approach to integrate into global
economy and strengthen economic cooperation with other economies, as well as particularly an
important supplement to the multilateral trading system. Currently, China has 24 FTAs under
construction, among which 16 Agreements have been signed and implemented already.
FTA News Release
• 2019/11/25 : Chinese Mainland and Hong Kong Sign the Agreement on Amending the CEPA
Service Trade Agreement
• 2019/11/25 : Mainland and Macao Sign The Amendment Agreement on the CEPA Agreement
on Trade in Services
• 2019/11/22: Round of Negotiations on China-Israel Free Trade Agreement Held
• 2019/11/04 : joint media statement between the people’s republic of china and new zealand on
the upgrade of the china - new zealand free trade agreement
• 2019/10/18 :China and Mauritius Sign Free Trade Agreement
• 2019/09/13 :China and Norway Hold the 16th Round of Negotiations of FTA
• 2019/08/05 :The Ministerial Meeting of the Regional Comprehensive Economic Partnership
Successfully Held in Beijing
• 2019/08/01:The 27th Round of the Negotiation of the Regional Comprehensive Economic
Partnership Agreement Prepares for the Beijing Ministerial Conference
• 2019/07/29:The 27th Round of Negotiation on Regional Comprehensive Economic Partnership
Kicks off in Zhengzhou
• 2019/07/05:The 15th Round of China-Norway FTA Negotiation Held
• 2019/06/24:Second Round of Negotiation on Upgrading China-Peru Free Trade Agreement
Held in Peru
• 2019/05/27:The Sixth Round of Negotiation of the China-Israel Free Trade Agreement Held
• 2019/05/15:The 55th Asia-Pacific Trade Agreement Standing Committee Meeting Held in
Bangkok,Thailand
• 2019/04/29:China and Pakistan Ended the Second Phase Negotiation of FTA and Signed a
Protocol
• 2019/04/29:The 5th Round Negotiation of China-Panama FTA Held in Beijing

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CHAPTER 4
SOCIAL STRUCTURE
4.1 ETHNIC GROUPS
As a large united multi-national state, China is composed of 56 ethnic groups. Among them Han
Chinese account for 91.59% of the overall Chinese population and the other 55 make up the remaining
8.41% according to the Fifth National Population Census of 2000. As the combined population of these
other minorities is far fewer than that of the Han, they form the 55 minorities of China.
Chinese Han People
With a population of 1159.4 million, the Han Chinese can be found in almost every part of China.
However, they mainly live in the middle and lower reaches of the Yellow River, Yangtze River and
the Pearl River, and also in the Northeast Plain Region (Songliao Plain). They form the largest ethnic
group within China and also the largest in the world. The Han people have their own distinctive way
of life.
55 Minorities in China
Although they make up only a small proportion of the overall Chinese population, the 55 minority
ethnic groups are distributed extensively throughout different regions of China. The regions where
they are most concentrated are Southwest China, Northwest China and Northeast China. No matter
whether it is Inner Mongolia, Xinjiang, Ningxia, Guangxi, Tibet, Yunnan, Guizhou, Qinghai or
Sichuan, Gansu, Hubei, Hunan or another province, one can find Chinese minorities. From the areas
listed above, the greatest number of minorities can be found in Yunnan Province (25 ethnic groups).
Zhuang has the largest population (more than 16 million) of minority ethnic groups.
Tibetan People
In order to ensure that the 56 Chinese ethnic groups live together in harmony, the government
introduced a series of policies including ones to secure the equality and unity of ethnic groups, give
regional autonomy to ethnic minorities and promote respect for the faith and customs of ethnic groups.
Among these the policy of regional autonomy for minorities is the most fundamental. Under this policy,
five autonomous regions; Inner Mongolia, Xinjiang, Guangxi, Ningxia and Tibet, as well as numerous
autonomous prefectures, counties, nationality townships and towns have been set up. With guidance
from the Chinese government, the minorities in areas that have been given regional autonomy are
entitled to deal with their own affairs. Together with the Han people, the Chinese minorities are making
great efforts to build a prosperous China.

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Achang Nationality
With a population of 33,936 (in 2000), the Achang ethnic minority lives mainly in the Dehong Dai -
Jingpo Autonomous Prefecture in Yunnan Province. They lived in the reaches of Nu River as long ago
as the 2nd century, and then migrated southwest to the present Longchuan and Lianghe Counties.
Daur Nationality
Daur is the title that the people of the Daur ethnic minority named themselves, meaning cultivator.
With historical records dating back to the early 17th century, there are several stories about the origin
of this minority. The most accepted is that they were descendants of the brave Khitan tribe (Qidan) in
the Liao Dynasty (916 - 1125). This minority helped guard the frontier during the Qing Dynasty (1644
- 1911) near Xinjiang Province.
Economy and Food:
Living in an area where vegetation and animals can be farmed easily, the Daur people can eat well on
various fresh fruits, grains, fish, and meat. During the Qing Dynasty, the Daur people ate mostly meat.
Now their tastes have changed to grain. Millet rice, buckwheat pies, and buckwheat noodles are all to
their taste. Milk foods are also their favorite. There are so many ways of cooking with milk – tea with
milk, rice mixed with yogurt, milk porridge, milk bean curd, etc.
4.2 SOCIAL CLASS SYSTEM
ANCIENT CASTE SYSTEM:
SHI – GENTRY SCHOLARS :Defining the Shi as Gentry scholars is not wholly accurate. The early
Shi came from the ancient warrior caste, but the make-up of the Shi gradually evolved until it was
mostly made of aristocratic scholars who studied in order to occupy positions of rank, and then further
into a bureaucratic scholarly elite where noble lineage was de-emphasized. Scholars – even those who
owned land – were never very rich, but they were respected because of their knowledge. Access to
information was very limited in ancient times, and so scholarly pursuits were very challenging.
NONG – PEASANT FARMERS: Peasant farmers were second only to Gentry scholars in ancient
China. Farmers were landholders like gentry scholars, and agriculture long played a key role in the
rise of Chinese civilization. Not only did the farmers produce the food to sustain the society, they paid
land tax, which was a source of state revenue for the ruling dynasties. Farmers were therefore valuable
members of society even though they weren’t shi. However, shi families were still landholders who
also produced crops and food themselves
GONG – ARTISANS AND CRAFTSMEN: The Gong were those who had skills to make useful
objects. This was the class identified by the Chinese character that stands for “labour.” They were like
farmers in that they produced essential objects, but most of them did not have land of their own and so
did not generate the revenue. However, they commanded more respect than merchants because the
skills they had were handed down from father to son. Artisans could be government employed or self
employed, and those that were most successful could become wealthy enough to hire apprentices or

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labourers that they could manage. Besides creating their own enterprises, the artisans also formed their
own guilds.
SHANG – MERCHANTS AND TRADERS: There was not a lot of respect for merchants and traders
in ancient Chinese society. Though they could achieve significant wealth, they were held in low esteem
because they did not produce anything, but rather transported and traded goods made by others.
Sometimes merchants bought land in order to be considered farmers and therefore command more
respect in society. Some would buy a good education for their descendants so that they could attain
the status of scholars. Though traders, merchants, and peddlers were viewed as essential members of
society, they were lowest on the four rungs of the ladder of ancient Chinese social hierarchy, due to
popular perception of these people as greedy and immoral.
MODERN CASTE SYSTEM
China’s current class structure, dividing society into nine tiers, describing the first three tiers as the
“ruling class” and the bottom three as the “underclass.” The division is based on political power and
connection as much as wealth and prestige, reflecting the fact that the ruling Communist Party plays
an extraordinarily large role in the distribution of social goods in China.
Tier 1: The Head Honchos
Who they are: Current members of the Communist Party Politburo, which oversees the ruling party;
certain retired members of the Standing Committee, the highly selective sub-committee of the
Politburo that essentially runs China. Tier 1 has the power to set agenda and make decisions regarding
national and international policy. The Politburo has twenty-five members, including seven standing
committee members. A handful of retired standing committee members are also usually assumed to
wield power from behind the scenes. There are probably about thirty people in China who can be
considered a member of this elusive class.
Tier 2: The Bigwigs
Who they are: Ministers and provincial-level heads with substantive power; retired Politburo members;
certain politically-connected business magnates, tycoons, and bankers (property magnate Li Ka- shing
is pictured above). There are probably about 200 people in China who can be considered Tier 2.
Members of Tier 2 have direct influence on national policymaking.
Tier 3: The Powerbrokers
Who they are: Ministers and provincial-level heads with less power; owners of top companies like
Tencent or Alibaba; regional magnates and very wealthy businesspeople; chancellors of elite
universities. There are probably about 4,000 to 5,000 people who can be considered Tier 3. Members
of Tier 3 exert some influence over the development of certain regions or industries.
Tier 4: The Privileged
Who they are: Municipal or county-level party heads; prominent university professors; owners of
medium- to large-sized companies; top managers at large corporations; well-known doctors and

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lawyers; famous writers and celebrities. There are probably 5 million to 10 million people who can be
considered Tier 4. Those in Tier 4 have ties to the ruling class (as do those further up the chain).
Tier 5: The Very Comfortable
Who they are: Mid-level party cadres with power over certain pockets of local policy; successful small-
to medium-sized business owners; university professors; mid-managers of large corporations; owners
of multiple real property in large cities; reputable doctors, lawyers, and engineers. There are probably
100 million people who can be considered Tier 5. Members of Tier 5 have control over their careers.
Tier 6: The Squeezed
Who they are: Ordinary civil servants; white-collar workers; ordinary doctors, lawyers, and engineers;
modestly successful small business owners. There are probably 200 million to 300 million people who
can be consider Tier 6. Those in Tier 6 have social mobility to ascend to Tier 5 or even to Tier 4.
Tier 7: The Marginalized
Who they are: Ordinary factory workers; owners of mom and pop shops; urban residents with odd jobs;
wealthy peasants. There are probably 500 million people who can be considered Tier 7. Those in Tier
7 have the means to subsist in medium to large Chinese cities.
Tier 8: The Underclass
Who they are: Migrant workers in sweatshops; ordinary peasants. There are probably 400 million who
can be considered Tier 8. Those in Tier 8 can eke out a living on their own.
Tier 9: The Destitute
Who they are: Long-term unemployed urban residents; impoverished peasants in far-flung rural areas.
There are probably 100 million people who can be considered members of Tier 9.
4.3 RELIGIONS
As a Communist country, China has no official religion. That being said, the government does
officially recognize five religions: Buddhism, Taoism, Islam, Catholicism, and Protestantism. As of
the last official census in 2010, 52.2% of the population said they were unaffiliated with any religion.
The other circa 48% of the population is split between the officially recognized religions, as well as
folk religions and very small populations of Jewish and Hindu believers.
Confucianism: Societal Order and Harmony
You will probably encounter Confucianism and Confucian thoughts and principles during your time
in China. The first important thing to know about Confucianism is that it is not actually a religion, but
rather a way of thinking and behaving. It was developed from the musings of Confucius (552–479 BC),
who pondered the best way to establish societal order and harmony. Within a couple centuries,
Confucianism started to gain a popular following. This ethical and philosophical system centers around

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filial piety, kinship, loyalty, and knowing one’s proper place in society and acting accordingly. These
Confucian principles and doctrines played an important part in shaping how Chinese people think and
act today. If you understand Confucianism, you’ll be well on your way to understanding the Chinese
mindset.
Buddhism: The Noble Eightfold Path
Buddhism is practiced by the largest number of people in China, about 18%. This religion first reached
China circa 2,000 years ago. It subsequently developed into three sections: Han Buddhism (the largest
branch), Tibetan Buddhism, and Southern Buddhism (the smallest branch). Buddhism has had a great
influence on the local culture in China in terms of art, literature, and ideology. Today, Buddhism enjoys
followers from all social classes. There are about 13,000 Buddhist temples with 180,000 monks and
nuns in mainland China.
Taoism: The Balance between Yin and Yang
Taoism, unlike Buddhism, developed in China. It dates back to the Eastern Han Dynasty (25–220). In
Taoism, emphasis is placed on living in harmony with the tao (the “way”). Taoism’s influence on
Chinese culture far outweighs its number of official followers today (less than 1%). Its legacy is mostly
in the areas of literature and traditional medicine. Several well-known concepts, such as the importance
of preserving the balance between yin and yang, are central teachings of Taoism. There are around 300
Taoist temples scattered around China.
Islam: Submission to God
Approximately 1.8% of the population in China practices Islam. This religion was introduced to areas
of present-day China during the 7th century. Although Muslims live in all Chinese provinces, the
highest concentration can be found in the Xinjiang Uyghur Autonomous Region, the Ningxia Hui
Autonomous Region, Gansu Province, and Qinghai Province. Ten of China’s 56 officially recognized
ethnic groups practice Islam. The vast majority of Muslims in China are followers of Sunni Islam.
Christianity: State-Sanctioned Churches and Silent Believers
Christianity was first introduced to China in the 7th century. In the 19th century, many Christian
missionaries came to China, especially to its port cities. This missionary activity was outlawed in 1949,
but since the easing of restrictions in recent years the number of Christians in China has been increasing
at a significant rate. Today, an estimated 5% of Chinese people identify as Christian. It is difficult to
obtain an exact verified number, as many Chinese Christians do not belong to one of the government-
sanctioned churches.

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4.4 POPULATION AND LONGEVITY

China's 2019 population is 1.43 billion, based on United Nations projections. China, officially the
People's Republic of China, is the largest country in the world today. In January 2013, the Chinese
Government released data confirming that the population of China was an impressive 1,354,040,000,
although this does not include Taiwan, Hong Kong and Macau. As of September 2013, that number
had grown even further to 1,360,720,000.Unfortunately, there is some confusion around the question
of how many people live in China. That's because it is a country of several different parts,
The figure quoted at the top of this article, for example, doesn’t include the island of Taiwan, which
the PRC claims as a part of China. Nor does it include the former British and Portuguese colonies of
Hong Kong and Macau, which are governed as special administrative regions.
Area and Population Density
As a whole, China has an estimated population density of 145 people per square kilometer, or 375
people per square mile. This ranks 81st, despite the country itself being one of the largest in terms of
size and the largest in terms of population.The density figures change dramatically when you look at
the largest urban areas, however. Shanghai, the largest city in the country and the world, has a
population density of 3,800 people per square kilometer, or 9,900 people per square mile.
Demographics
China is classified as an upper middle-income country by the World Bank, and its rapid growth over
the decades has pulled hundreds of millions of its citizens out of poverty. About 10% of the population
in the country lives on $1 USD a day, compared to 64% just 35 years ago. Although 56 different ethnic
groups are officially recognized in China, 91.51% of Chinese are Han Chinese. Only one other group
– Zhuang – has a larger than 1% share of the population. Other ethnic groups are growing at a higher
rate than Han Chinese, but because of the massive dominance of Han Chinese, this is not expected to
dramatically alter China’s ethnic composition.
China Population Growth
The size of China's population has long been a hot political issue in China. After rapid population
growth in the middle of the 20th century, the Chinese government sought to limit population growth
by introducing the famous "one-child policy. Much of China’s economic growth has been attributed
to its abundant and cheap workforce, combined with its low social costs. However, with the number
of young Chinese falling and the number of elderly Chinese increasing, it is not certain whether
China’s economy can continue to grow at the same rapid rate. China also has an abnormal ratio of
male to female births. Whereas in most countries more girls are born than boys, in China the reverse
is true. Many suspect that this is because of a preference for boys among Chinese families.

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China Population Projections
China's has slowed significantly since the implementation of the one-child policy, and that slowing is
projected to continue. The population is predicted to grow at increasingly slower rates until 2030, at
which point the population should actually begin to decrease.
Longetivity
Decades of breakneck economic growth have raised questions regarding China’s level of development.
By some measures, China is still developing. In other ways, China compares favorably with developed
nations. In terms of public health, however, China’s development is not yet complete. China’s still
faces challenges in terms of improving health outcomes.Examining trends in China’s life expectancy
and mortality rates for different age groups provides key insights into the strengths and weaknesses of
China’s health care system. In this way, life expectancy trends shed light on one of China’s most
important resources for cultivating power – its own people.
Global Life Expectancy Since 1990
Life expectancy is a key social development indicator that provides an important summary of mortality
conditions within countries. China has made considerable strides in raising the average life expectancy
across the country from 69.3 years in 1990 to 76.3 years in 2016. Despite this increase of 7 years, life
expectancy in China still falls 4.5 years short of the average of 80.8 years found in OECD countries.
China has made impressive gains in life expectancy given the scale of its territory and population, as
well as its relatively low gross national income (GNI) per capita level. In the second half of the
twentieth century, China increased its average life expectancy at birth from around 40 years to over 70
years, a feat that took many advanced economies nearly a century to achieve. The following analysis
will first examine the reduction of child and adult mortality through health improvements and then
describe the challenges that China still faces. Arguably, improvements in the provision of public health
services, particularly in infant and maternal health, have been the biggest factors in raising life
expectancy. In Mainland China, the Millennium Development Goal to reduce child mortality by two-
thirds was reached in 2008, seven years ahead of the target date. World Bank data indicates that
between 1990 and 2015, China’s mortality rate for children under 5 fell from 53.8 to 10.7 per 1,000, a
reduction of approximately 80 percent. Similarly, improvements in adult mortality rates have also
raised China’s life expectancy levels. In 1990, the mortality rate for adults between age 15 and 60
stood at 151 per 1,000, and by 2015, it had been reduced to 85. According to recent World Health
Organization reports, China has nearly eliminated diseases like malaria and measles, with a drop in
the incidence of other communicable diseases. Recent research from The Lancet likewise reports a
60–90 percent decrease in death from infectious diseases broadly in this period. Both improvements
in infant and adult mortality have led to significant increases in overall life expectancy, which stood
at 69 years in 1990 and reached 76.1 years in 2015.

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4.5 EDUCATION SYSTEM

In China, the education is divided into three categories: basic education, higher education, and adult
education. By law, each child must have nine years of compulsory education from primary school (six
years) to junior secondary education (three years).
Basic Education
Basic education in China includes pre-school education (usually three years), primary education (six
years, usually starting at the age of six) and secondary education (six years).
Secondary education
It has two routes: academic secondary education and specialized/vocational/technical secondary

education. Academic secondary education consists of junior (three years) and senior middle schools
(three years). Junior middle school graduates wishing to continue their education take a locally
administered entrance exam, on the basis of which they will have the option of i) continuing in an
academic senior middle school; or ii) entering a vocational middle school (or leave school at this point)
to receive two to four years of training. Senior middle school graduates wishing to go to universities
must take National Higher Education Entrance Exam (Gao Kao). According to the Chinese Ministry
of Education, in June 2015, 9.42 million students took the exam.
Higher Education
Higher education is further divided into two categories: 1) universities that offer four-year or five-year
undergraduate degrees to award academic degree qualifications; and 2) colleges that offer three-year
diploma or certificate courses on both academic and vocational subjects. Postgraduate and doctoral
programmes are only offered at universities.
Adult Education
The adult education ranges from primary education to higher education. For example, adult primary
education includes Workers’ Primary Schools, Peasants’ Primary Schools in an effort to raise literacy
level in remote areas; adult secondary education includes specialized secondary schools for adults; and
adult higher education includes traditional radio/TV universities (now online), most of which offer
certificates/diplomas but a few offer regular undergraduate degrees.
ADVANCED
China has established one of the largest higher education systems in the world. For example, Chinese
universities and colleges have accommodated the largest numbers of undergraduate students
worldwide, with more than 30 million students on campuses. China’s gross enrolment ratio for higher
education reached 48% of the 18-year-old population in 2018. This indicates that its higher education
system will soon offer near-universal access to higher education according to United States sociologist
Martin Trow’s definition.

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Also, it produced and trained more than 60,000 doctoral graduates in 2018. This number is even larger
than that for US universities. Further, the status of several Chinese universities has kept moving
upwards in the major global university ranking tables since the early part of the 21st century. For
example, in the Times Higher Education World University Rankings 2020, Tsinghua and Peking
universities and the University of Science and Technology of China are listed among the top 100, with
four other Chinese universities in the top 200. However, little is known of what the most striking
characteristics of China’s higher education are or what higher education systems China has formed
over the last 70 years.
Technical and professional
China announces major reform to vocational education sector. On 13 February 2019, the Chinese State
Council published its “Implementation plan on National Vocational Education Reform” (in Chinese),
signalling a significantly strengthened focus on vocational education, which was reinforced in early
March 2019 by Chinese Premier Li Keqiang. In his 2019 Government Work Report, Premier Li
announced the transfer of 100 billion RMB (20 billion AUD) in funding from the unemployment
insurance fund into vocational training to support 15 million people to upgrade their skills. The plan
prioritises reform of vocational education in China to better equip the labour force to meet the demands
of the economy now and into the future. It contains 7 priority objectives and 20 detailed actions. A
high level summary of the plan and an unofficial translation of the objectives are included below. In
2018, China had 26.9 million total vocational education students and annual commencements of 9.3
million. The proposed reform of the vocational education sector follows a reported decline in China’s
labour force over recent years – largely due to China’s well publicised aging population. China’s
working age population shrank by almost 3 % between 2011 and 2018, and accounts for around 65%
of China’s 1.4 billion population. This percentage is estimated to further reduce to 57% in 2030. The
reform plan is also quite timely in the lead up to Shanghai playing host to the World Skills Competition
2021.
4.6 CULTURAL ETIQUTTE

Language
There are seven major groups of dialects of the Chinese language, which each have their own variations,
according to Mount Holyoke College. Mandarin dialects are spoken by 71.5 percent of the population,
followed by Wu (8.5 percent), Yue (also called Cantonese; 5 percent), Xiang (4.8 percent), Min (4.1
percent), Hakka (3.7 percent) and Gan (2.4 percent).
Chinese dialects are very different, according to Jerry Norman, a former professor of linguistics at the
University of Washington and author of "Chinese (Cambridge Language Surveys)" (Cambridge
University Press, 1988). "Chinese is rather more like a language family than a single language made
up of a number of regional forms," he wrote. "The Chinese dialectal complex is in many ways
analogous to the Romance language family in Europe. To take an extreme example, there is probably
as much difference between the dialects of Peking [Beijing] and Chaozhou as there is between Italian
and French."

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The official national language of China is, a type of Mandarin spoken in the capital Beijing, according
to the Order of the President of the People's Republic of China. Many Chinese are also fluent in English.
Customs and celebrations
The largest festival — also called the Spring Festival — marks the beginning of the Lunar New Year.
It falls between mid-January and mid-February and is a time to honor ancestors. During the 15-day
celebration, the Chinese do something every day to welcome the new year, such as eat rice congee and
mustard greens to cleanse the body, according to the University of Victoria. The holiday is marked
with fireworks and parades featuring dancers dressed as dragons.
Many people make pilgrimages to Confucius' birthplace in Shandong Province on his birthday, Sept.
28. The birthday of Guanyin, the goddess of mercy, is observed by visiting Taoist temples. It falls
between late March and late April. Similar celebrations mark the birthday of Mazu, the goddess of the
sea (also known as Tianhou), in May or June. The Moon Festival is celebrated in September or October
with fireworks, paper lanterns and moon gazing.
There are many styles of cooking in China, but Chinese chefs have identified eight culinary traditions
as the best. These have set the course of how Chinese cook food, and are looked to as models. Each of
these schools has a distinct style and different strengths.
CUISINE
Guangdong/Cantonese Cuisine
Duck Soup
Making a great variety of soup is a feature of Cantonese cuisine. Sweeter, favoring braising and
stewing, adding various mild sauces Cantonese food is the most popular style internationally.
Guangdong Province and Hong Kong are noted for fine seafood dishes and rice dishes. They eat a very
wide variety of foods. The dishes they serve don't have strong flavors since it is lightly seasoned, and
they often tend to be a little sweet. More on Yue cuisine...
Sichuan Cuisine
Spicy and bold, often mouth-numbing, using lots of chili, garlic, ginger, and peanuts Sichuan Province
produced the most widely served cuisine in China. Their dishes are famous for their hot-spicy taste
and the numbing flavor of Sichuan peppercorn that is rare in other regional cuisines. It is the food of
Chengdu and Chongqing (which used to be part of Sichuan). More on Chuan cuisine...
Jiangsu Cuisine
sweet-and-sour spare ribs Su cuisine features sweet foods. Sweet and sour spare ribs is a famous dish
from Jiangsu. Fresh, moderately salty and sweet, precise cooking techniques, favoring seafood, soups
and artistic, colorful presentation Jiangsu Province and China's biggest city, Shanghai, have a very
refined gourmet cuisine that is often served at government banquets.

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Zhejiang Cuisine
Mellow, using fresh seafood, freshwater fish, and bamboo shoots, and a wide variety of cooking
methods. Zhejiang Province is the province south of Jiangsu, and it borders on Shanghai too, so their
style is similar to theirs, but it is less elaborately prepared. They focus more on serving fresh food.
Fujian/Min Cuisine
Lighter, with a mild sweet and sour taste, using ingredients from the sea and the mountains Fujian
Province is known for great seafood and soups and the precise use of scintillating but not tongue
numbing spices. Adding much wild exotic delicacies from the sea and mountains makes their dishes
have unusual flavors. It is like a culinary wild adventure. More on Min cuisine.... Hunan Cuisine
Fish ,People in the Hunan region can't seem to live without chilies; no dish is complete without chilies
in Hunan cuisine. Quite spicy, with a hot and sour taste, favoring sauting, stir-frying, steaming and
smoking If you like Sichuan food, you'll probably like Hunan food too since it is even hotter. It is
tastier and more delicious because they don't use peppercorn that numbs the mouth. It is a rich
agricultural area that produces a broad range of vegetables and herbs, and these are served up. More
on Xiang cuisine...
Anhui Cuisine
Uses many wild plants and animals as ingredients, favoring stewing and more oil Anhui cuisine is
even wilder than Fujian cuisine. It is inland, and big mountains such as the Yellow Mountains are the
source of lots of different wild foods and herbs. It is basically a hearty mountain peasant food. Some
of the best dishes incorporate wild food for an unusual taste. Some dishes are sweet from added sugar.
More on Hui cuisine...
Shandong Cuisine
Salty and crispy, favoring braising and seafood Shandong was one of the first civilized areas, and it
set the pattern for northern styles of cooking. With a long coast, seafood is its forte. They preserve the
original taste of the seafood by using simple ingredients and braising, and they like vinegar and salt.
Unlike southern cuisines, they serve much more wheat food, including their noodles.
Clothing
Traditional Chinese Clothing
With a world reputation of exquisite silk producing nation, Chinese clothing enjoys a time-honored
culture. China was the first country in the world to cultivate silkworms and develop silk weaving.
According to archaeologists, Chinese has acknowledged weaving since Neolithic ages 5000 to 6000
years ago. Till 3,000 years ago, sericulture and silk weaving were already significantly developed in
ancient China.
Chinese clothing has many types and suits according to various occasions. We have traditional
Zhongshan suit, Cheongsam and many other suits created by ethnic groups scattered on this vast
ancient civilization land. Each type of clothe has their unique way of making and sewing methods and

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lucky pattern exquisites. They were not only evolving over time but also transforming dramatically
following dynastic changes or the imperial decree of a new ruler.
In ancient feudal society, people's rank and social status could easily be figured out from their daily
dressing, especially for the ordinary people and the upper-class. Among the upper dominating classes,
only the Emperor was assigned the colour yellow and the dragon emblem on traditional Chinese
imperial dress as an exclusive affirmation of their power. As for the ministers, generals, councilors
and their wives, their uniforms were also restrictively regulated for how many lions or cranes etc can
be embroidered on.
There is no "typical" Chinese costume, although today, if any style of clothing epitomizes "Chinese",
it would be the Cheongsam, or call it Qipao, which has evolved from ancient clothing of the Manchu
ethnic minority. Cheongsam is Popular because it fits the Chinese female figure well, and has simple
lines and looks elegant. It is suitable for wearing all the year round for both young and elderly group.
And it can either be long or short.
Cheongsam is recognized around the world and has inspired many foreign adaptations because of its
simple yet exotic lines. It is popularly worn in North China as the wedding dress, traditionally in red.
Cheongsam is usually embroidered with elaborate gold and silver designs. Brides in southern China
wear Qipao or a two-piece dress name Qungua or Kwa, which is elaborately adorned with a gold
dragon and phoenix pattern. Dragon and phoenix Kwa (longfeng kwa) is a traditional wedding dress
favored by Chinese brides nowadays.
4.7 FAMOUS PERSONALITIES

China is one of the most heavily populated countries in the world. Out of these billions of residents,
the country has produced quite a few notable names. They have helped to shape the culture, the
appearance and the daily life of Chinese people today. From architects and artists to scholars, athletes
and movie stars, here are just a few famous Chinese people that you should know about.
Ai Weiwei
This Beijing-born artist and activist is well known for both his contemporary works of art as well as
his openly critical opinion of the Chinese government. Throughout his career, he has collaborated with
foreign architects for buildings such as the Beijing National Stadium and has also led undercover
investigations to expose corruption around China. He has also been arrested due to his actions and
outward opinions of the Chinese government.Son of a controversial poet, Ai Weiwei has experienced
exile as a child and liberation by the Cultural Revolution in China. Studying animation at the Beijing
Film Academy, he went on to create renowned exhibits that were featured in an old prison hospital.
He spent much time in New York City, where he went to school, befriended famous poets and become
a professional Blackjack dealer in Atlantic City. In regards to his works, Ai Weiwei is quite diverse
with a collection of photography, documentaries, videos, voice recordings, architecture, and music.

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Jet Li
This international hero is both a film star and a champion martial artist. Born in Beijing, Jet Li
conquered his first national championship at the age of eleven. Retiring from martial arts at the young
age of 17, he went on to start his acting career after starring in the film, Shaolin Temple. Also, since
he could speak English, he has switched between English and Chinese films throughout his career.
Some of his most notable roles include The Forbidden Kingdom, Romeo Must Die and Kiss of The
Dragon.Showing his abilities for martial arts at a young age, his family enrolled him in a specialized
school to further his talents. Growing up in a poor family without a father, Li felt that the sports school
was a great decision, eventually helping him win championships, get out of China and visit over 45
countries at quite a young age. After gaining fame in the film scene, he went to Hong Kong to get
involved in more prominent martial arts films.
Dalai Lama
This well-known political leader has dedicated his life to making Tibet a democratic and independent
state away from China. While he was born a Chinese citizen, he has since been exiled, along with his
followers, to India. Gaining power at the young age of 15, he fled the country after the invasion of the
People’s Republic of China to avoid assassination.Known all over the world, the Dalai Lama has given
hundreds of workshops, conferences, and lectures to spread his humanitarian efforts and has also been
awarded the Nobel Peace Prize. Believed to be the reincarnation of those that came before him, he was
selected as the Dalai Lama at 2 years old. He now dedicates his life to fighting for peace regardless of
his exile and bad relations with China.
I.M Pei
While born in China, this famous architect moved to the U.S where he studied at MIT and Harvard.
He went on to form his own architectural firm and has worked on buildings such as the Rock and Roll
Hall of Fame, the Louvre’s glass pyramid and the Kennedy library. In fact, he met with Jackie Kennedy
herself after her husband’s assassination to talk about the plans for creating it.Pei has worked on the
west wing of Boston’s Museum of Fine Arts and has also designed China’s Fragrant Hill Hotel. Back
in 1983 he received the Pritzker Architecture Prize and used some of the money to start a scholarship
program for Chinese students to study architecture in U.S schools. While he hails from Guangzhou,
Pei spent time studying in Pennsylvania and worked for a well-known architectural firm in NYC. Even
in his old age, he continues to devise plans for new buildings and has quite the line up around the cities
of India.
Jack Ma
One of the world’s wealthiest people, Jack Ma gained his fortune by founding the well used TaoBao
website. Essentially the Amazon of China, citizens can find and order almost anything right to their
doorstep. He is both a successful entrepreneur and philanthropist and is the first mainland Chinese
person to appear on the cover of Forbes magazine. Showing drive and ambition at a young age, Jack
desired to learn English and rode his bike each day to a nearby hotel in order to practice with foreigners.
Eventually, he and his father started acting as tour guides to show visitors around their home city of
Hangzhou. Jack became pen pals with one of these foreign visitors, receiving his English name that he

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uses today. Later on in life, although Ma had failed his university entrance test three times, he
eventually got accepted and became student chairman and lecturer in English and International Trade.
After graduation, he was rejected by around 30 jobs, including KFC, but eventually got into computers
and design, starting his world famous TaoBao website.
Bruce Lee
Well known by an international audience, Bruce Lee is a Hong Kong/American actor, martial artist,
filmmaker, philosopher and founder of Jeet Kune Do martial arts. He is not only a 20th-century pop
icon but also considered one of the best martial artists to date. Appearing in multiple films as a child
actor, he grew up in the Hong Kong film scene but later moved to America to pursue a higher education.
During his time studying in Seattle, he began to teach martial arts, adding to his resume and eventually
changing the direction of his films. Some of his feature films include; Enter The Dragon, The Big Boss,
and Fist of Fury. Unfortunately, his life and career were cut short after his death in Hong Kong at the
young age of 32.
Yao Ming
This Chinese professional basketball player is one of the most renowned Chinese athletes. He has
played for the Shanghai Sharks and the Houston Rockets and was chosen to start in the NBA All-Star
Game eight times and named All-NBA for five times. After gaining great success in his CBA career,
he secured his release and was drafted by an NBA team, eventually reaching their finals 4 times. As
one of the best-known athletes in China, he has various scholarships, was the subject of a documentary
film and since 2016, he has been elected into the Basketball Hall of Fame alongside Allen Iverson,
Shaquille O’Neal.
Mao Zedong
Mao Zedong, also known as Chairman Mao was the founding father of the People’s Republic of China.
Mao Zedong was the chairman of the Communist Party of China from 1949 to his death in 1976.
There’s no doubt that he is one of the most important individuals in history. His take on Marxist -
Leninist theories, military strategies, and political policies are now known as Maoism. During his time,
Mao Zedong helped China come into world power, increased life expectancy, improved education and
health care, and promoted the status of women. To this day he is still one of the most famous men in
China, his face adorns everything from posters to coffee cups to t-shirts.

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CHAPTER 5
ECONOMIC SYSTEM
5.1 SECTORAL DISTRIBUTION OF GROWTH
Distribution of GDP across economic sectors in China 2008-2018
This statistic shows the distribution of the gross domestic product (GDP) across economic sectors in
China from 2008 to 2018. In 2018, the agricultural sector had contributed around 7.2 percent to the
GDP of China, whereas 40.7 percent of the economic value added had originated from the industry
and 52.2 percent from the service sector, respectively.
Breakdown of GDP in China
The gross domestic product (GDP) serves as a primary indicator to measure the economic performance
of a country or a region. It is generally defined as the monetary value of all finished goods and services
produced within a country in a specific period of time. It includes all of private and public spending,
government spending, investments, and net exports which are calculated as total exports minus imports.
In other words, GDP represents the size of the economy.
With its national economy growing at an exceptional annual growth rate of above nine percent for
three decades in succession, China had become the worlds’ second largest economy by 2010,
surpassing all other economies but the United States. Even though China’s GDP growth has cooled
down in recent years, its economy was still expanding at nearly three-times the pace of the United
States’ in 2017.
When compared to other developed countries , the proportion of agriculture and industry in China’s
GDP are significantly higher. Even though agriculture is a major industry in the United States, it had
only accounted for about one percent of the economy as of 2013. While the service sector contributed
to more than 70 percent of the economy in most developed countries, the development of the tertiary
sector in China has been constrained by the country’s focus on manufacturing industry.
Distribution of the workforce across economic sectors in China 2018
The statistic shows the distribution of the workforce across economic sectors in China from 2008 to
2018. In 2018, 26.1 percent of the workforce were employed in agriculture, 27.6 percent in industry
and 46.3 percent in services.
Distribution of workforce in China
In 2012, China was the largest exporting country worldwide with an export value of about two trillion
U.S. dollars. China’s economic system is largely based on growth and export with the manufacturing
sector being a crucial contributor to the country’s export competitiveness. Economic development was
accompanied by a steady rise of labor costs, as well as a significant slowdown in labor force growth.

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These changes present a serious threat to the era of China as the world’s factory. The share of
workforce in agriculture also steadily decreased in China, while the agricultural gross production value
displayed continuous growth, amounting to approximately 4.7 trillion yuan in 2012. Since 2011, the
majority of China’s labor force has been employed in the service sector. However, compared with
developed countries, such as Japan or the United States where 69.7 and 81.2 percent of the work force
were active in services in 2010 respectively, the proportion of people working in the tertiary industry
in China has been relatively low. The new leadership elected by the National People’s Congress in
March 2013 aims to continue economic reform by moving from an emphasis on investment to
consumption, among other measures. This might lead to a stronger service economy. Meanwhile, the
share of urban middle class in the total population in China skyrocketed from 3.6 percent in 2005 to
10.8 percent in 2010. A growing number of affluent middle class consumers could promote
consumption and help China move towards a balanced economy.
5.2 NATURAL RESOURCES

China is burning through its natural resources
Land is the most important resources in agricultural production. Unlike other industries ,agricultural
production , especially crop production , cannot be carried out without land . Land is a physically fixed
and it is incapable of moving regions. As a result the productivity of land for a particular crop is
subjected to specific climate , topography ,soil and water conditions attached to the location.
Human Resources labour is another important production resource in developing countries that deserve
serious consideration when analysing resource reallocation .
Capital is usually treated as investment in fixed asset that may be in the production of long time.In
many empirical and theoretical studies , capital is also treated as production resource.
China is the world’s top mining country, but lack of local reserves of main mineral commodities forces
local companies to hunt for mining deals globally. Since nearly all essential production data has
became available to the public, this is a good time to determine the biggest mining countries throughout
the world in terms of their domestic mines output. Due to lack of a common methodology, a simple
principle of appreciated mining points credited to countries comprising the top 10 was used in this
preliminary estimation.
Of all commodities considered in this research, China is the leader in mining gold, zinc, lead,
molybdenum, iron ore, coal, tin, tungsten, rare earths, graphite, vanadium, antimony and phosphate,
and holds second place in mine production of copper, silver, cobalt, bauxite/alumina and manganese.
The only two main produced commodities of which China is out of the top 10 are gem diamonds and
chromium.
The remarkable accomplishment by China’s mining industry raises questions regarding its ability to
maintain its leading position longer term, keeping in mind that China’s growing economy remains
thirsty for sustainable supplies of raw materials. In this case, we have to consider another important

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indicator, which is the reserves-to-production (R/P) ratio that represents the “burn rate” of proven
reserves of mineral commodities in-situ when applying current levels of domestic mine production.
As can be seen, China is in the “red zone” for future supplies of nearly all crucial mineral commodities.
In order to overcome shortages of essential mineral commodities, as well as to secure long-term
sustainable supplies for its ambitious economic development strategy, the government of China
entitled a number of local state-owned and private companies to actively pursue mining deals
throughout the world. According to the recent Ernst & Young’s report, Chinese buyers topped the list
of acquirers by value, with $10.6 billion of deals executed in 2014, including the largest deal of the
year, the nearly $7 billion Las Bambas acquisition by MMG. Undoubtedly, we will see more mining
M&A deals led by Chinese corporations, keeping in mind the relentless expansion of China’s economy
combined with favorable conditions for assets acquisition due to lower commodity prices.
5.3 TRADE
DOMESTIC TRADE
Trade has become an increasingly important part of China’s overall economy, and it has been a
significant tool used for economic modernization. The direction of China’s foreign trade has
undergone marked changes since the early 1950s. In 1950 some three-fourths of the total was
accounted for by trade with noncommunist countries, but by 1954—one year after the end of hostilities
during the Korean War—the situation was completely reversed, and communist countries accounted
for about three-fourths. During the next few years, the communist world lost some of its former
importance, but it was only after the Sino-Soviet breach of 1960—which resulted in the cancellation
of Soviet credits and the withdrawal of Soviet technicians—that the noncommunist world began to see
a rapid improvement in its position. In 1965 China’s trade with other socialist countries made up only
about one-third of the total.
A significant part of China’s trade with the developing countries has been financed through credits,
grants, and other forms of assistance. At first, from 1953 to 1955, aid went mainly to North Korea and
North Vietnam and some other communist states; but from the mid-1950s large amounts—mainly
grants and long-term interest-free loans—were promised to politically uncommitted developing
countries. The principal efforts were made in Asia—especially to Indonesia, Burma (Myanmar),
Pakistan, and Ceylon (Sri Lanka)—but large loans were also granted in Africa (Ghana, Algeria,
Tanzania) and in the Middle East (Egypt). After Mao Zedong’s death in 1976, however, the Chinese
scaled back such efforts.
During the 1980s and ’90s, China’s foreign trade came full cycle. Trade with all communist countries
diminished to insignificance, especially with the demise of most socialist states. By contrast, trade with
noncommunist developed and developing countries became predominant. In general, China has had a
positive balance of trade with its trading partners since 1990. Hong Kong became one of China’s major
partners prior to its reincorporation into the country; it remains prominent in domestic trade, notably
in its reliance on the mainland for agricultural products. Taiwan also has become an important trading
partner.

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INTERNATIONAL TRADE
It has been used to bring in new equipment and technologies and to meet scarcities in the domestic
economy since China has sought to modernize its economy. Exports have been used as a means of
producing foreign earnings to pay for the imports. The state has sought to maintain an even balance of
trade so that the country can pay for imports rather than buying on credit. With 1.2 billion people and
the world's fastest growing major economy, China is hailed as potentially the "market of all markets,"
which has helped to attract investments from around the world at such a magnitude that China is now
the second largest recipient of foreign capital (next only to the United States). However, it has also
given the government more reasons to carefully guard its market. The issue of market entry has been
a contentious one, bogging down its negotiations to join the General Agreement on Tariffs and Trade
and the World Trade Organization for over a decade.The total volume of China's exports was US$232
billion ( f.o.b. , 2000), according to the CIA World Fact-book. The country's principal commodities
are machinery and equipment, textiles and clothing, footwear, toys and sporting goods, and mineral
fuels. The United States bought 21 percent of China's exports, Hong Kong 18 percent, and Japan 17
percent; Germany, South Korea, the Netherlands, the United Kingdom, Singapore, and Taiwan are
other main export partners.
China exports agricultural commodities and goods (about one-third of total exports) and manufactured
goods (about half), as well as mineral products such as oil and coal. Foodstuffs account for about 6
percent of total imports, and industrial supplies and materials such as crude steel and chemicals account
for about 50 percent. The remainder consists chiefly of expensive capital goods such as machinery,
precision instruments, and transportation equipment.
In 1998, machinery and transport equipment took the first place among the exports, amounting to 50.2
billion dollars. The proportion of it is 48.4 percent, much higher than the proportion of light and textile
industrial products (26.5 percent). On the other hand, export structure of machinery and transport
equipment is changing for the better. The proportion of more technologically-intensive products is
growing up, and labor-intensive products are slowing down. Also, the interim structure of traditional
export products, such as light and textile industrial products, changed tremendously. Resource and
labor-intensive, low value-added, low-technological products declined, lower labor-extensive but
higher technological and value-added products increased.
China imports a total volume of US$197 billion (2000). The principal commodities China imports are
machinery and equipment, mineral fuels, plastics, iron and steel, and chemicals. Japan provides the
main source (20 percent) of China's imports. The United States provides 12 percent, Taiwan 12
percent, and South Korea 10 percent. Other trading partners include Germany, Hong Kong, Russia,
and Singapore.
The 5 top import products of China during the first semester in 1999 included mechanical and electrical
products at US$35 billion (up 28 percent from 1998); plastics in primary form at US$4.1 billion (up
3.9 percent from 1998); steel products at US$3.4 billion (up 14.6 percent from 1998); computer parts
at US$1.8 billion (up 18.7 percent from 1998); and crude petroleum oil at US$1.6 billion (down 23.6
percent from 1998). The commodities China imports are materials essential to modernizing China's
economy and increasing export-oriented industries.

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Most of China’s imports consist of machinery and apparatus (including semiconductors, computers,
and office machines), chemicals, and fuels. The main import sources are Japan, Taiwan, South Korea,
Australia, the countries of the European Union (EU), and the United States. Regionally, almost half of
China’s imports come from East and Southeast Asia, and some one-fourth of its exports go to the same
countries. The great bulk of China’s exports consists of manufactured goods, of which electrical and
electronic machinery and equipment and clothing, textiles, and footwear are by far the most important.
Agricultural products, chemicals, and fuels are also significant exports. The United States, Hong Kong,
Japan, EU countries, and South Korea are the principal export destinations.
Services
The service sector constitutes about one-third of China’s annual GDP, second only to manufacturing;
likewise, only agriculture employs a larger share of the workforce than services. However, its
proportion of GDP is still low compared with the ratio in more-developed countries. Public
administration has long been a main component of the sector, as has wholesale and retail trade.
Tourism has become a significant factor in employment and as a source of foreign exchange.
TARRIFS
A tarrif is a tax on import and export between sovereign states. It is a form of regulation of foreign
trade and policies that taxes foreign products to encourage or safeguard domestic industry.China
imposed 5% to10% tarrifs on one third of the 5,078 goods it imports from America, With tariffs on the
remainder scheduled for December 15. China already has tariffs in place on about $110 billion worth
of us products ranging from 5% to 25% including soybeans ,beef, pork, sea food, vegetable, liquefied
natural gas, whiskey and ethanol .
INCENTIVES
It provide a clear explanation of incentives in China for foreign investors:
Incentives in China for foreign investors-HR One Incentives in China for foreign investors-HR One
.Explanation of several welfare incentives and sectors for increasing foreign direct investment.
With the intention of increasing foreign direct investment (FDI) in China, the government has taken
numerous measures to facilitate the same. This has led to an introduction of many welfare and
incentives schemes conducive to foreign investors in certain industries and sectors. Some of them have
been explained below: Small-sized and low-profit foreign companies, high technology and new
technology companies are eligible to lower income tax rates. It is 20% for small-sized and low-profit
companies, high technology and new technology companies while the normal corporate income tax
rate is 25%.
TASE – includes Information Technology Outsourcing (ITO), Business Process Outsourcing (BPO)
and Knowledge Process Outsourcing (KPO), are qualified for income tax benefits: eligible for a
preferential Corporate Income Tax (CIT) rate of 15% and a higher education expense deduction cap
of 8%. Income resulting from the offshore service contracts falling within this scope are entitled to
Business Tax Exemption.

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Companies or projects focusing on technical/high-tech development, environmental conservation or

protection, energy conservation, safeguarding of water resources may be eligible for various income
tax incentives.
Income earned by foreign enterprises though gains on stocks, interest, retirement pay, online work,
and capital gains (net rental income and income from a business in which the taxpayer does not
materially participate) from sources in China previously had to pay a withholding tax of 20%, which
has since been reduced to a concessionary rate of 10%.
Tax deductions for companies that reinvest their profits in China
Import VAT exemption or deduction for a company that imports goods if the finished goods made of
imported material is re-exported . Technology transfer, technology development, and related services
are exempted from business tax (BT) subject to the technical assessment of certain Science and
Technology Commission and approval of related tax authority.
If a foreign investor set up a company in one of China five Special Economic Zones, then the company
can be entitled to the following advantages:
Lower Corporate tax of 15%.
A benefit of “2 + 3 years” which means an exemption from tax for the first two years and tax at the
rate of 12.5% for the next three years.
For certain projects in basic infrastructure, environment protection and energy there is a “3+3” years
tax holiday. Under certain terms enterprises investing in integrated circuits, production can get a “5+5”
years tax holiday.
EXIM POLICIES
Exim is nothing but import and export .The import -export bank of china is one of the three institutional
banks in china chartered to implement the state policies in industry , foreign trade, economy, and
foreign aid to other developing countries and provide financial support so as to promote the export of
Chinese product and services.
TRADE PROTECTION ACT
The Trade Descriptions Act 1968 is an Act of the Parliament of the United Kingdom which prevents
manufacturers, retailers or service industry providers from misleading consumers as to what they are
spending their money on. This law empowers the judiciary to punish companies or individuals who
Applying a false trade description to goods is a strict liability offence: provided it is shown that the
description was applied and was false, the accused has to prove certain defences in order to escape
conviction. False descriptions as to services require the more normal proof of mens rea (guilty intent).
The Act excludes matters relating to land and buildings, which are now dealt with under the provisions
of the Property Misdescriptions Act 1991.

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BALANCE OF PAYMENT
China’s BoP: Capital Account data was reported at -240.239 USD mn in Sep 2019. This records a
decrease from the previous number of -58.514 USD mn for Jun 2019. China’s BoP: Capital Account
data is updated quarterly, averaging 14.497 USD mn from Mar 1998 to Sep 2019, with 87 observations.
The data reached an all-time high of 1.570 USD bn in Mar 2013 and a record low of -601.025 USD
mn in Jun 2014. China’s BoP: Capital Account data remains active status in CEIC and is reported by
State Administration of Foreign Exchange. The data is categorized under Global Database’s China –
Table CN.JF: Balance of Payments (BPM6): Quarterly.
BALANCE OF TRADE
China's Trade Balance recorded a surplus of 37.9 USD bn in Nov 2019, compared with a surplus of
43.0 USD bn in the previous month. China's Trade Balance data is updated monthly, available from
Jan 1981 to Nov 2019, with an averaged value of 2.1 USD bn. The data reached an all-time high of
63.3 USD bn in Jan 2016 and a record low of -31.5 USD bn in Feb 2012. The General Administration
of Customs provides monthly Trade Balance in USD. Trade Balance prior to January 1992 is sourced
from the International Monetary Fund. In the latest reports, China's Total Exports reached 221.3 USD
bn in Nov 2019, a decrease of 0.7 % year on year. Total Imports recorded 183.4 USD bn in Nov 2019,
an increase of 4.0 % year on year
5.4 ECONOMIC SYSTEM IN COMPARISION WITH INDIAN

ECONOMY
PARAMETERS CHINA INDIA
GDP $23.21 trillion(2017) $9.474 trillion(2017)

(purchasing power parity) $21.72 trillion(2016) $8.88 trillion(2016)
GDP 6.9%(2017) 6.7%(2017)

(Real growth rate) 6.7%(2016) 7.1%(2016)
GDP $16,700(2017) $7,200(2017)

(per capita income) $15,700(2016) $6,800(2016)
GDP Agriculture 7.9%(2017) Agriculture 15.4%(2017)

(composition by sector) Industry 40.5%(2017) Industry 23%(2017)
Services 51.6%(2017) Services61.5%(2017)
Population below poverty line 3.3%(2016) 21.9%(2011)
Consumption by percentage Lowest 10%: 2.1% Lowest 10%:3.6%

share Highest 10%:31.4%(2012) Highest 10%:29.8%(2011)

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Inflation rate 1.6%(2017) 3.6%(2017)

2%(2016) 4.5%(2016)
Labor force 806.7 million(2017) 521.9 million (2017)
Unemployment rate 3.9%(2017) 8.5%(2017)

4%(2016) 805%(2016)
budget Revenue: 2.553 trillion(2017) Revenue: 238.2 billion(2017)

Expenditure:3.008 Expenditure:329 billion(2017)
trillion(2017)
exports $2.216 trillion(2017) $304.1 billion(2017)

$1.99 trillion(2016) $268.6 billion(2016)
imports $1.74 trillion(2017) $452.2 billion(2017)

$1.501 trillion(2016) $376.1 billion(2016)
Current account balance $164.9 billion(2017) -$48.66 billion(2017)

$202.2 billion(2016) -$14.35 billion(2016)
Gross nation savings 45.8% of GDP(2017) 28.8% of GDP(2017)

45.9% of GDP(2016) 29.7% of GDP(2016)
5.5 INSTITUTION OF NATIONAL IMPORTANCE

The Institute of Intelligent Machines(IIM) , Chinese Academy of Sciences(CAS), was founded on
October 8, 1979. It lies in the east of the Science Island, Hefei, China, a peninsula well-known for its
fantastic location, beautiful scenery, harmonious humanities environments and strong academic
atmosphere. IIM’s predecessor was East China Institute of Components and Instruments for
Automation, Chinese Academy of Sciences, which was established in the 1950' s. After efforts of
several generations of scientists, IIM has developed to be a research institute that works for scientific
research and high-tech application, as well as postgraduate education.
IIM is one of the most important research divisions of Hefei Institutes of Physical Science, Chinese
Academy of Sciences. Focusing on the areas of sensor technology and artificial intelligence. IIM
insists of four research branches: Research Center for Biomimetic Sensing and Control, Research
Center for Biomimetic Functional Materials and Sensing Devices, Research Center for Intelligent
Information Systems and Research Center for Information Technology of Sports and Health. It also
has two administration offices: Office of General Affairs and Office of Research-project Management.
The Office of General Affairs includes editorial offices of International Journal of Information
Acquisition(IJIA, published abroad) and the Pattern Recognition and Artificial Intelligence(PR&AI,
indexed by EI Compendex)

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5.6 KEY ECONOMIC CHALLENGES

For the past 40 years, China has been one of the strongest performing economies – transforming itself
from a developing economy to an unprecedented level of prosperity.However, in recent years, there
have been concerns the rapid rate of growth in China is beginning to slow down and over the next few
years, economic challenges could lead to a slowdown and even recession.
Demographic changes.
As a result of its one-child family, China is facing a rapid change in its demographic patterns. The
ratio of old people to young workers is forecast to rise sharply.
china-age-profile
In the 1980s, Japan was often forecast to become the world’s largest economy. However, in the 1990s
and 2000s, the Japanese economic miracle came to an abrupt end. One reason was a shift in
demographics and a decline in the percentage of young working adults. China will still have a healthy
percentage of the population of working age, but the ratio of young people to elderly will fall
significantly, limiting opportunities for economic growth. High investment levels not sustainable. One
feature of Chinese economic growth is that it has been based on very high levels of investment. This
is partly due to relatively high saving rates, so it is not comparable to say the UK, with much lower
savings rates. However, it accounts for nearly half of GDP, which is unusual. In 2010, Gross
investment accounted for 48 per cent of Chinese
The trend rate of Chinese growth is forecast to fall over the next few years. The Chinese government
is worries lest this cause unemployment and stagnating wages amongst those who feel left behind by
the rapid growth.
Debt accumulation in China. Between 2004 and late 2008, Chinese gross debt was around 170% of
GDP. By 2018 this debt has risen to 300% of GDP. A paper by Sally Chen and Joong Shik Kang
suggests China’s credit boom is at risk of causing a crisis.
debt accumulation china
The authors suggest China has some mitigating factors, which reduce the concern over debt levels
“Several China-specific factors—high savings, current account surplus, small external debt, and
various policy buffers—can help mitigate near-term risks of a disruptive adjustment.” (IMF
publications, 2018/01/05) However, despite these factors working in China’s favour, China’s credit
boom is one of the longest in history and as the authors note Historical precedents of ‘safe’ credit
booms of such magnitude and speed are few and far from comforting.”
Trade conflict with the US
In addition to these longer-term factors, the recent trade war with the US has shown the risk to the
Chinese economy from a disruption on trade, which is an essential part of Chinese growth. More on
Trade war

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Pollution
China’s rapid industrialisation has come at a cost – increased pollution reducing living standards and
becoming a major public health hazard. There is a conflict between increasing economic output and
trying to reduce pollution levels.
The growing demand from the Chinese economy has placed great demands on China’s creaking power
infrastructure. This has led to the creation of projects like the Three Gorges Dam. This has been
criticised for creating environmental and social problems. Environmentalists fear that the dam will
severely impact on the natural habitats of many species.
Frozen domestic real estate market.
The Chinese domestic real estate market has been used to help finance both the central and local
governments. The constant rise in real estate prices has been treated as a “blood transfusion” for both
the local and central governments. But the end in price appreciation has been reached and continued
price inflation will lead to a bubble. But popping the bubble now would cut off necessary funds for the
government and would cause social problems in a population that has never experienced a real estate
crash. For that reason, China’s real estate policies are frozen in place.
RMB value is between a rock and a hard place.
The RMB weakened during 2018 and is now approaching 7.0 Yuan to the Dollar. The RMB is a
managed currency, so the central government has to decide: should it let its value rise or fall? The
pressure is intense to devalue, but that leads to some unpleasant results. With a weakened RMB, China
risks being branded a currency manipulator by the U.S. and others. A weakened currency further
encourages capital flight, which is already a problem for the Chinese economy. A weak RMB also
means higher prices for oil, coking coal and mineral ores. But maintaining the value of its currency
would require China make use of its dwindling foreign exchange reserves to support the RMB value.
GDP, debt and failure to deleverage
China currently maintains strong GDP growth by infusing debt into the economy. Even with this pump
priming, many Chinese and other economists believe China’s GDP is not growing at the stated rate of
6.5%. Some even believe its economy is not growing at all. This means its economy has stopped
responding to the debt infusion and yet the government continues to pump debt into the economy. This
will likely eventually lead to some form of debt-induced economic contraction. The alternative is to
start the deleveraging process now. But the economy is so bloated, any government induced
deleveraging will likely cause a recession, a result that will lead to social problems. So China is at a
crossroads on the debt issue. There are two roads to take, and both will likely lead to dead ends.
Local government debt.
Local governments in China are not permitted to impose taxes. They finance their infrastructure and
investment programs by issuing debt. Much of this debt is “off the books” debt issued by special
purpose financing entities ultimately owned by the local government. Though the official local debt is
estimated at about 20% of GDP, most economists think real number is closer to 100% (or more) of

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GDP. The central government has proposed resolving this problem by allowing local financing entities
to declare bankruptcy. With a debt level at 100% of GDP, the bankruptcy approach is not feasible
because of the negative impact this would have on the banking system and the local economies. But a
continuation of this debt is not sustainable, leaving local governments with no viable alternatives for
funding.
Collapse of non-bank capital markets.
Since private businesses and private citizens have little to no access to bank financing, a non-bank
capital market has grown in China as an alternative. In 2018, the three main components of that market
collapsed: a) P2P lending, b) private company corporate debt (bonds) and c) private equity funds. This
collapse has already resulted in some social unrest. More important, no alternative to this type of
funding has been proposed.
Collapse of public stock markets.
The Shanghai stock exchange was created to help funds selected stated owned enterprises (SOEs). It
later evolved into a system to extract money from private investors. Chinese stock prices have never
really been based on market factors. Prices have been set and manipulated by the central government.
Small private investors have remained in the system, treating the stock market as a casino that
ultimately favored the bettors. In 2018 it became apparent that it is not true that the government would
guarantee the stock market would always increase in value. When this became obvious, the “smart
money” quickly left the market. This then left only the private, small time investors and the government
controlled market makers. Again, when it became apparent that the market makers had lost their ability
to prop up the market, even the small private investors began exiting the market. This led to a sharp
decline in all public stock market indexes. Not only has this led to a decline in the market, the financing
provided by this market is also drying up.
The decline of the private sector.
Under the leadership of Zhu Rongji, the watchword for the Chinese economy at the turn of the
millennium was that “the private sector advances while the state retreats.” Over the past decade, this
policy has reversed. Under the current government, the watchword seems to be that “the state advances
while the private sector retreats.” The goal is for SOEs to control most of the more important sectors
of the Chinese economy. But Chinese SOEs are generally less profitable than private companies, this
transformation brings with it a decrease in entity profitability. Three engines of the economy become
three horse carts. Investment, domestic consumption and exports have for the past two decades been
the three engines of China’s economy and all suffered substantial decreases in 2018. The fall of one
pillar would be a significant blow, but the fall of all three at the same time has had a significant impact.
At the same time, the three burdens of the citizens have increased over the past decade: a) social
security in old age, b) education in youth and c) health care in between. With the three “turning to
horse carts” citizen unrest is starting to grow. Please note again that this list of ten comes from Chinese
economists and it was written in Mandarin for Chinese consumption. Though it is not my list, I (and
the other China lawyers at my law firm) have noted pretty much all of these factors present in China
in 2018.s

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Dept. of MBA, DR.AIT 2019-2020 Page 1

Dept. of MBA, DR.AIT 2019-2020 Page 2

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1.2 GEOGRAPHICAL SPREAD BY DIRECTION

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Capital and major cities

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1.3 Land Distribution

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1. The Yangtze River

2. The Yellow River

6. Yarlung Tsangpo River

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10. Liaohe River

Cultivable and non cultivable land

1.4 Environmental issues

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1.5 Natural hazards

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Xia dynasty (2070–1600 BC)

Shang dynasty (1600–1046 BC)

Zhou dynasty (1046–256 BC)

Spring and Autumn period (722–476 BC)

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Warring States period (476–221 BC)

Han dynasty (202 BC – AD 220)

Three Kingdoms (AD 220–280)

Jin dynasty (AD 266–420)

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Northern and Southern dynasties (AD 420–589)

Sui dynasty (AD 581–618)

Tang dynasty (AD 618–907)

Five Dynasties and Ten Kingdoms (AD 907–960)

Song, Liao, Jin, and Western Xia dynasties (AD 960–1234)

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Yuan dynasty (AD 1271–1368)

Ming dynasty (AD 1368–1644)

Qing dynasty (AD 1644–1911)

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2.2 IMPORTANT EVENTS OF NATION

Battle of Taierzhuang: The Japanese army was forced to withdraw

1938 Yellow River flood: KMT forces destroyed a major dyke in an

Hundred Regiments Offensive: Communist NRA soldiers

30 Battle of Changsha: A Japanese army began a general retreat after

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Battle of Changsha: A Japanese army crossed the Xinqiang River

Cairo Conference: Chiang, United States president Franklin D.

Battle of Changsha: The Japanese army launched a general offensive

Atomic bombings of Hiroshima and Nagasaki: As many as eighty

9 Surrender of Japan: Japanese forces in China formally surrendered

Surrender of Japan: China regains control

Campaign to Suppress Bandits in Northeast China:

1947 28 February 28 Incident: Nationalist forces violently suppressed an

1948 2 Liaoshen Campaign: The last ROC garrison in Manchuria,

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Korean War: The North Korean army launched a 135,000-man surprise

Great Chinese Famine: A famine began which would claim as many as

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1976 Tangshan earthquake: An earthquake with its epicenter

Chinese economic reform: Economic liberalization measures including