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Information about China

Country: China 1) Capital: Beijing 2) Political system:
The People¶s Republic of China was founded by the Communist Party of China which is the leader of the Chinese people. The Communist Party is the sole party in power in China. Founded in 1921, the Communist Party of China (CPC) established the People¶s Republic of China in 1949 through years of armed struggle. The CPC now has more than 60 million members in more than 3 million grassroots organizations. The CPC has established formal (through elections within the Party) and informal (appointed by the organization of the higher level) organizations within the Chinese government and various levels and walks of life in the country. Nature of the Communist Party of China (CPC): The CPC is the vanguard of the Chinese working class, the faithful representative of the interests of the Chinese people of all ethnic groups and the core of leadership over the socialist cause of China. CPC¶s maximum program of long objective is to realize the Communist social system and the minimum program at present is to build socialism with Chinese characteristics. The CPC takes Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory as the guidance of its actions. The CPC¶s basic line for the primary stage of socialism is to unite with and lead the people of all ethnic groups in the endeavour to build China into a prosperous, strong, democratic and highly civilized modern socialist state by taking economic development as the central task, adhering to the Four Cardinal Principles (adherence to the socialist road, the people¶s democratic dictatorship, the leadership of the Communist Party, and Marxism-Leninism and Mao Zedong Thought), persisting in reform and opening up, developing the spirit of selfreliance and pioneering enterprises with painstaking efforts. 3) Currency Fluctuations: Renminbi The Renminbi (Chinese: ) is the official currency of the People's Republic of China (PRC). It is the legal tender in mainland China, but not in Hong Kong and Macau. It is abbreviated as RMB, and the units for the Renminbi are the Yuan ( ), Jiao ( ), and Fen ( ): 1 Yuan = 10 Jiao = 100 Fen. Fen have almost disappeared, so the coins in circulation are one yuan, five jiao, and one jiao. Banknotes range from five jiao to one hundred yuan, and vary both in size and color. The distinction between the Renminbi and the Yuan is similar to the distinction between the British Sterling and Pound. Renminbi refers to the whole Chinese money system whereas Yuan is the base unit of Renminbi. Yuan is used to denominate bills, and is the unit in which prices are measured. Note: 1 CNY=7.7Rs
By Sailesh Kapoor Rollno:201070

27 yuan per USD from 1997 to 2005. Nicolas Sarkozy and Stephen Harper.50 yuan in 1980 to 8. it was appreciated until it reached 1. But China 're-pegged' its currency to the dollar as the financial crisis intensified in July 2008. By Sailesh Kapoor Rollno:201070 .S. June 21 following China's announcement. dollar On July 21. 2010. The PBoC maintained there would be no "large swings" in the currency. The futures are cash-settled at the exchange rate published by the People's Bank of China. leading these other nations to invest in dollars to keep their own currencies down[. The RMB rose to its highest level in five years and markets worldwide surged on Monday.11 per USD. However China has simply shifted their reserves from dollar accounts to accounts in their competitor nation. The exchange rate against the euro stood at 10. Improving current account balance during the latter half of the 1990s enabled the Chinese government to maintain a peg of 8. Futures market Renminbi futures are traded at the Chicago Mercantile Exchange.07060 yuan per euro. Thus. However the peg was reinstituted unofficially when the financial crisis hit: "Under intense pressure from Washington. dollar at 2. 2005." The news was greeted with praise by world leaders including Barack Obama. When China's economy gradually opened in the 1980s. officials have pushed for years to help repair the massive trade deficit with China. the People¶s Bank of China released a statement simultaneously in Chinese and English indicating that they would "proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility. China's leaders raised the yuan to tame inflation. a step U. China took small steps to allow its currency to strengthen for three years starting in July 2005.S. yuan's exchange rate at 6. dollar²its highest official level since a currency revaluation in 2005.38 to the U.46 yuan per USD (note: during the 1970s. the peg was finally lifted.62 yuan by 1994 (lowest ever on the record). Depegged from the U. the official RMB/USD exchange rate declined from 1.50 yuan per USD in 1980).Information about China 4) Currency valuations: For most of its early history." On June 19. 2011. which saw an immediate one-off RMB revaluation to 8.S. As of August 30. the RMB was devalued in order to improve the competitiveness of Chinese exports. The result has been an international currency war. the RMB was pegged to the U.S.

3% (2010) I mports: $1. South Korea 9. iron and steel. apparel. Australia 4. textiles.8%.3% (2010) 6) Banking: State-owned commercial banks ± The µBig Four¶ In 1995.9%. The USD2. the Bank of China (BOC). and the Industrial and Commercial Bank of China (ICBC). such as infrastructure projects and urban housing development. total employees and total customers. oil and mineral fuels. the Agricultural Bank of China (ABC). including data processing equipment.5 times. optical and medical equipment . BOC Hong Kong (Holdings) was successfully listed on the Hong Kong Stock Exchange.6%.3%. The deal was a significant move in the reform of China¶s banking industry.Information about China 5) Export: Total Exports in the year 2010 and 2011 $1. Japan 7. Export partners: US 18%.327 trillion 2010 approx $954.4%.3 billion 2009 approx Commodities imported: Electrical and other machinery. By Sailesh Kapoor Rollno:201070 . ICBC differentiates itself from the other State Owned Commercial Banks by being second in foreign exchange business and 1st in RMB clearing business. plastics. metal ores. The Industrial & Commercial Bank of China (ICBC) is the largest bank in China by total assets. The Bank of China (BOC) specializes in foreign-exchange transactions and trade finance.581 trillion 2010 approximately $1. Hong Kong 13.6%. organic chemicals I mport partners: Japan 12.8 billion offering was over-subscribed by 7. Ger many 5. the China Construction Bank (CCB). optical and medical equipment.204 trillion 2009 approximately Commodities exported: Electrical and other machinery. In 2002.3%. US 7. Sout h Korea 4. The China Construction Bank (CCB) specializes in medium to long-term credit for long term specialized projects. the Chinese Government introduced the Commercial Bank Law to commercialize the operations of the four state-owned banks. It used to be the major supplier of funds to China's urban areas and manufacturing sector. Ger ma ny 4.

Taizhou City Commercial Beijing and Bank of Ningbo are examples for city commercial banks. were established in 1994 to take over the government-directed spending functions of the four state-owned commercial banks. They are also often the main shareholder behind village and township banks (VTB). Bank. and Chexim specializes in trade financing. there are smaller commercial banks. The city commercial banks market orientation is towards supporting the regional economy. In 1998. Second tier commercial banks In addition to the big four state-owned commercial banks. Guangdong Development Bank. Since 2005 some city commercial banks diversify their shareholders. the CDB specializes in infrastructure financing. the Agricultural Development Bank of China (ADBC). The first one was Shenzhen City Commercial Bank in 1995. Policy banks Three new "policy" banks. Bank of By Sailesh Kapoor Rollno:201070 . and the Export-Import Bank of China (Chexim). merging and cross-shareholding. China Development Bank (CDB). Since 2008 a strong trend has emerged for city commercial banks to extend business beyond their home region. inviting Chinese and international private companies to take minority shares. City commercial banks The third significant group in Chinese banking market is the city commercial banks. In 2005 there were 112 city commercial banks[1] in all of China. This number has increased through additional transformations to 140 in 2009. Many of them were founded on the basis of urban credit cooperatives.Information about China The Agriculture Bank of China (ABC) specializes in providing financing to China's agricultural sector and offers wholesale and retail banking services to farmers. China CITIC Bank. PBOC announced that all urban cooperative banks change their name to city commercial bank. but also towards financing local infrastructure and other government projects. Hua Xia Bank. ADBC provides funds for agricultural development projects in rural areas. Some have founded so called small loans units to serve smaller business clients better. These banks are responsible for financing economic and trade development and state-invested projects. The largest ones in this group include the Bank of Communications. township and village enterprises (TVEs) and other rural institutions. And there are 69 city commercial banks set up from 1995 to 1998. China Minsheng Bank. The second tier banks are generally healthier in terms of asset quality and profitability and have much lower non-performing loan ratios than the big four. China Merchants Bank. Most city commercial banks have strong ties to their local government and are majority or wholly state owned.China Everbright Bank. Shenzhen Development Bank. Shanghai Pudong Development Bank and Industrial Bank. Some of the banks have listed their shares.

Still. In 2009. In recent years. centrally planned s ystem to a more market -orient ed one that plays a major global role . and opening to foreign trade and invest ment. the global economic downturn reduced foreign demand for Chines e exports for the first time in ma ny years." explicitly looking to foster globally competitive national cha mpions.Information about China 7) Economic System: Since the late 1970s China has moved from a clos ed. and (D) Containing environmental da mage and social strife related to the economy's rapid transfor mation. From mid 2005 to lat e 2008 cumulative appreciation of the renminbi against t he US dollar was more tha n 20%. (B) Sustaining adequate job growth for tens of millions of migrants and new entrants to the work force. The Chines e government faces numer ous economic challenges. per capita income is below the world average. China has implement ed refor ms in a gradualist fashion. lending credibility to the stimulus policies the regime rolled out during the global financial crisis. outperfor ming all other major economies in 2010 with GDP growth around 10%. The dollar values of China's agricultural and industrial output each exceed thos e of the US.1% against the US dollar and moved t o an exchange rate system that refer ences a basket of currencies. Refor ms bega n with the phasing out of collectivized agriculture. China is second to the US in the value of s ervices it produces. but the excha nge rate remained virtually pegged to the dollar from the onset of the global fina ncial crisis until June 2010. China has renewed its support for stateowned ent erpris es in sectors it considers important to "economic security. The economy appears set t o remain on a strong growt h trajectory in 2011. rapid growth of the private sector. The restructuring of the economy a nd r esulting efficiency gains have contribut ed to a more tha n t enfold increase in GDP since 1978. increased autonomy for state ent erprises. By Sailesh Kapoor Rollno:201070 . (C) Reducing corruption and other economic crimes. creation of a diversified banking system. but China rebounded quickly. After keeping its currency tightly linked to the US dollar for years. development of stock 2010 China became the world's largest export er. including: (A) reducing its high domestic savings rate and correspondingly low domestic demand. in July 2005 China revalued its currency by 2. and expanded to include the gradual liberalization of prices. when Beijing allowed resumption of a gradual appreciation. fiscal decentralization.

power. to continue refor ming the economy and emphasize the need to increase domestic consumption in order to ma ke the economy less dependent on exports for GDP growth in t he future. and. industry has been providing agriculture with farm machines. petroleum. silk. lat e in 2010. chemical fertilizers. Also apparent has been the spatial unevenness of recent industrial development. specialized electronic measuring instruments. rose by 13. means of transportation. High technology industries produce high-speed computers. and autos. food processing. 8) Technological System: China has achieved a rapid increase in the gross value of industrial output (used before China switched to GNP accounting in 1986). machine building. knitting wool. building materials. woollen piece goods. Major policy reforms of 1984 further accelerated the pace of industrial growth. 600 types of semiconductors. coal. partly as a result of the disruptions brought on by the collapse of the Great Leap Forward (which accompanied the withdrawal of Soviettechnicians in mid-1960) and of work stoppages and transportation disruptions during the Cultural Revolution. The greatest sustained surge in growth occurred during the first decade. cloth.1% from 1979 to 1985. China likely will make only mar ginal progress toward thes e rebalancing goals in 2011.Information about China The government vows. with growth concentrated mainly in Shanghai. the traditional hub of China's industrial activity. During 1961±74. increasingly.8% by 1988. in t he 12th Five-Year Plan adopted in March 2011. cement. surpassed the gover nment's target of 3% . which reached 20. which s welled as a result of stimulus policies. which. armaments. and is largely off-the-books and pot entially low-quality. accounting for 49% of total industrial output. jute bags. chemical fertilizers. and other essential By Sailesh Kapoor Rollno:201070 . China's cotton textile industry is the largest in the world.and local government debt. output from light industry includes footwear. Since 1961. but heavy industry and high technology took over in the late 1990s.3% annually between 1950 and 1979. Labor-intensive light industries played a prominent role in the industrial boom of the late 1980s and early 1990s. While approximately 50% of total industrial output still derives from the state-owned factories. However. Growth averaged 10% from 1970 to 1980 and 10. according to official Chinese statistics. insecticides. the yearly growth rate fell to about 6%. toys. and telecommunications equipment. producing yarn. Heavy industries include iron and steel. In addition to garments and textiles. and synthetic fibers. a number of new economic centers along the southern coast. with the rate averaging 22% annually during 1949±60. Two economic problems China currently faces are inflation . a notable feature of China's recent industrial history has been the dynamic growth of the collectively owned rural township and village enterprise as well as private and foreign joint-venture sectors. and consumer electronics.which.

And that is why you will see that the international community must tread very carefully to maintain amicable relationships with the Chinese. Kyrgyzstan. Afghanistan.7 million units.Agricultural commodities . The industry underwent a major overhaul in the late 1990s in order to stimulate efficiency and production.Information about China commodities. Production of a variety of industrial goods has expanded. Pakistan. merchants. In addition to fertilizers. 7) President: Hu Jintao (2008-2012) 8) Regions surrounded to china: Vietnam.Cooking ingredients (spices) . and plastics. great emphasis has been placed on the manufacture of transportation equipment. buses. and bicycles.452. Laos. ethylene.Produce (fruits and vegetables) The ability to engage in market trading with China is extremely vital to the prosperity of the world as a whole? If China was to go into recession. 9) Role of Import in China: Plastics . Handicraft cooperatives also have been busy making hand-operated or animaldrawn implements. and China now produces varied lines of passenger cars. Do you realize that if one day. Bhutan. Russia. the entire world would suffer? Many nations across the world have become completely dependent upon China import products in order to maintain their quality of life. a sudden halt in By Sailesh Kapoor Rollno:201070 .Kitchen products .Fabrics . And that is very true. the chemicals industry produces calcium carbide. Output for 2009 was over 13. the effects for this would be felt throughout the rest of the world. output included 1.Electronics . India. Kazakhstan.Textiles . or wholesale distributors at all. trucks. Nepal.697 motor vehicles (more than double the 1991 figure). increasingly in order to supply the country's own expanding industrial base. In 1995.Raw materials for building . Tibet. Large numbers of joint ventures with foreign firms helped introduce new technology and management to the industry. Tajikistan. Since 1963. Mongolia and North Korea and Taiwan. This of course is not a bad thing for Chinese retailers. On the flip side. Burma. China were to halt the exporting of goods to countries in the global market place.

During the 19th century. the Chola incident in 1967. but is also credited for facilitating the spread the Buddhism from India to East Asia. Both nations have steadily built-up military infrastructure along border areas. also called Indo-China relations. Despite growing economic and strategic ties. India and China played a crucial role in halting the progress of Imperial Japan. resulting in three major military conflicts ² the Sino-Indian War of 1962. 11) Relations with India: Sino-Indian relations. By Sailesh Kapoor Rollno:201070 . surveys and trends have found that we are actually in a new economic bubble: Now it¶s the time of the dominance of China import and export trade activities. China and India are the world's most populous states and also fastest growing major economies. India harbours suspicions about China's strong strategic relations with its arch-rival Pakistan while China has expressed concerns about Indian military and economic activities in disputed South China Sea. The Silk Road not only served as a major trade route between India and China. China emerged as the largest trading partner of India and the two countries have also attempted to extend their strategic and military relations. Additionally. Cultural and economic relations between China and India date back to ancient times. Trade embargoes with China would not be a wise strategy under any circumstances! Many leading economic authorities pointing to market research. Relations between contemporary China and India have been characterized by border disputes. and the 1987 Sino-Indian skirmish. China's growing opium trade with the Indian Empire triggered the Opium Wars. During World War II. since late 1980s. India faces massive trade imbalance heavily in favour of China. The two countries have failed to resolve their long-standing border dispute and Indian media outlets repeatedly report Chinese military incursions into Indian territory. In 2008. several issues continue to strain Sino-Indian relations.[1] However. Though bilateral trade has continuously grown. both countries have successfully attempted to reignite diplomatic and economic ties. The resultant growth in China and India's global diplomatic and economic influence has also increased the significance of their bilateral relationship.Information about China sales of shipments to foreign customers abroad would spell economic disaster for China as well. China and India are two of the world¶s oldest civilizations and have coexisted in peace for millennia. refers to the bilateral relationship between the People's Republic of China (PRC) and the Republic of India.