The People‘s Republic of China
Area: 9,956,960 sq km (3.7m sq mi)
Population: 1.29 bn
Capital City: Beijing
People: Han Chinese are the majority people group.
There are 55 minority ethnic groups.
Official Language: Mandarin (Putonghua) with many local dialects.
Religion(s): China is officially atheistic, but there are five
State-Registered Religions: Daoism, Buddhism, Islam, Catholic and
Protestant Christianity.
Currency: Yuan or Renminbi (RMB)
Major political parties: Chinese Communist Party
Government: There are three major hierarchies in China: the Chinese
Communist Party (CCP), the government and the military. The supreme
decision-making body in China is the CCP Politburo and its 9-member
Standing Committee, which acts as a kind of ‘inner cabinet,
and is headed by the General Secretary of the Chinese Communist Party.
The National People‘s Congress (NPC) is China‘s legislative body.
It has a five-year membership and meets once a year in plenary session.
However, in practice it is the CCP who takes all key decisions.
Head of State and General Secretary of the CCP: President Hu Jintao
Chairman of the Standing Committee of the NPC: Wu Bangguo
Premier of the State Council: Wen Jiabao
Foreign Minister: Li Zhaoxing
Membership of international groups/organisations: United Nations
(including permanent membership of the UN Security Council),
ASEAN Regional Forum (ARF); Asia-Pacific Economic Cooperation
Forum (APEC); Asian Development Bank (ADB);
Shanghai Cooperation Organisation; World Trade Organisation (WTO).
GEOGRAPHY
With an area of 3,705,408 square miles (9,956,960 square km) China is
twice the size of Western Europe and the third largest country in
the world, after Russia and Canada. It has 31 provincial level
districts, including five ‘autonomous regions‘ and four city
municipalities.
Area: 9,956,960 sq km (3.7m sq mi)
Population: 1.29 bn
Capital City: Beijing
People: Han Chinese are the majority people group.
There are 55 minority ethnic groups.
Official Language: Mandarin (Putonghua) with many local dialects.
Religion(s): China is officially atheistic, but there are five
State-Registered Religions: Daoism, Buddhism, Islam, Catholic and
Protestant Christianity.
Currency: Yuan or Renminbi (RMB)
Major political parties: Chinese Communist Party
Government: There are three major hierarchies in China: the Chinese
Communist Party (CCP), the government and the military. The supreme
decision-making body in China is the CCP Politburo and its 9-member
Standing Committee, which acts as a kind of ‘inner cabinet,
and is headed by the General Secretary of the Chinese Communist Party.
The National People‘s Congress (NPC) is China‘s legislative body.
It has a five-year membership and meets once a year in plenary session.
However, in practice it is the CCP who takes all key decisions.
Head of State and General Secretary of the CCP: President Hu Jintao
Chairman of the Standing Committee of the NPC: Wu Bangguo
Premier of the State Council: Wen Jiabao
Foreign Minister: Li Zhaoxing
Membership of international groups/organisations: United Nations
(including permanent membership of the UN Security Council),
ASEAN Regional Forum (ARF); Asia-Pacific Economic Cooperation
Forum (APEC); Asian Development Bank (ADB);
Shanghai Cooperation Organisation; World Trade Organisation (WTO).
GEOGRAPHY
With an area of 3,705,408 square miles (9,956,960 square km) China is
twice the size of Western Europe and the third largest country in
the world, after Russia and Canada. It has 31 provincial level
districts, including five ‘autonomous regions‘ and four city
municipalities.
China is a highly diverse country and its terrain varies from
plains, deltas and hills in the east to mountains, high plateaux and
deserts in the west.
plains, deltas and hills in the east to mountains, high plateaux and
deserts in the west.
To the south its climate is tropical, whilst to the north it is
sub-arctic. Less than one-sixth of China is suitable for agriculture
and the most fertile areas lie in the eastern third of the country,
which is economically the most developed region.
HISTORY
Longer Historical Perspective
The Chinese imperial system came to an end in 1911, when the Qing
(Manchu) dynasty was overthrown and China was proclaimed a republic,
partly through the efforts of revolutionaries such as Sun Yat-sen.
The country then entered a period of warlordism until in 1927 the
Nationalist Party or ‘Kuomintang‘ (KMT), under its leader
Chiang Kai-shek, established a central government in Nanjing.
The Chinese Communist Party (CCP) was founded in 1921 but broke with
the KMT and was forced to flee into the interior in the Long March
in 1934/35.
Both KMT and CCP forces opposed Japan during World War Two but a
civil war broke out from 1945-1949. CCP forces under Mao Zedong routed
their KMT opponents and in 1949 Mao announced the establishment of
the People‘s Republic of China. KMT elements fled to the island
of Taiwan.
The period between 1949 and Mao‘ death in 1976 was characterised
by an ambitious political and economic restructuring programme
which involved the collectivisation of industry, the establishment
of communes and the redistribution of land.
The Cultural Revolution from 1966-1976 brought enormous upheaval
in the political system and Mao had to rely on the armed forces to
maintain order and exercise control.
Recent History
In December 1978 the CCP, inspired by Deng Xiaoping, launched a
wide-ranging programme of economic and social reform which sought to
modernize the economy, develop China‘s external relations (the
‘open door policy‘) -especially with the West, and implement a gradual
and limited liberalization of Chinese society.
BBC Monitoring Timeline
POLITICS
Recent Political Developments
At the 16th Communist Party Congress in November 2002 Jiang Zemin
stepped down from his position as Party General Secretary to make way
for a new ‘fourth generation of leaders. Prior to this, he had pressed
ahead with a major political campaign, the ‘Three Representatives‘,
which addresses key concerns surrounding the Party‘s continuing role
and relevance at a time of major domestic and international change.
Jiang was succeeded as Party General Secretary by Hu Jintao.
The new State leadership positions were announced at the National People‘s
Congress (NPC), which met from 5-18 March 2003.
Hu Jintao was named President and Wen Jiabao became Premier.
Wu Bangguo replaced Li Peng as NPC Chairman.
The new leadership have made it clear that they will continue the current
policy main priorities of economic growth, internal stability and opening up
to the world.
Elections
China is in practice a one party state. The National People‘s Congress (NPC) is indirectly elected. Direct elections for village leaders
have also been conducted since 1988. They take place every three years,
although it is unclear how genuine and effective they are.
sub-arctic. Less than one-sixth of China is suitable for agriculture
and the most fertile areas lie in the eastern third of the country,
which is economically the most developed region.
HISTORY
Longer Historical Perspective
The Chinese imperial system came to an end in 1911, when the Qing
(Manchu) dynasty was overthrown and China was proclaimed a republic,
partly through the efforts of revolutionaries such as Sun Yat-sen.
The country then entered a period of warlordism until in 1927 the
Nationalist Party or ‘Kuomintang‘ (KMT), under its leader
Chiang Kai-shek, established a central government in Nanjing.
The Chinese Communist Party (CCP) was founded in 1921 but broke with
the KMT and was forced to flee into the interior in the Long March
in 1934/35.
Both KMT and CCP forces opposed Japan during World War Two but a
civil war broke out from 1945-1949. CCP forces under Mao Zedong routed
their KMT opponents and in 1949 Mao announced the establishment of
the People‘s Republic of China. KMT elements fled to the island
of Taiwan.
The period between 1949 and Mao‘ death in 1976 was characterised
by an ambitious political and economic restructuring programme
which involved the collectivisation of industry, the establishment
of communes and the redistribution of land.
The Cultural Revolution from 1966-1976 brought enormous upheaval
in the political system and Mao had to rely on the armed forces to
maintain order and exercise control.
Recent History
In December 1978 the CCP, inspired by Deng Xiaoping, launched a
wide-ranging programme of economic and social reform which sought to
modernize the economy, develop China‘s external relations (the
‘open door policy‘) -especially with the West, and implement a gradual
and limited liberalization of Chinese society.
BBC Monitoring Timeline
POLITICS
Recent Political Developments
At the 16th Communist Party Congress in November 2002 Jiang Zemin
stepped down from his position as Party General Secretary to make way
for a new ‘fourth generation of leaders. Prior to this, he had pressed
ahead with a major political campaign, the ‘Three Representatives‘,
which addresses key concerns surrounding the Party‘s continuing role
and relevance at a time of major domestic and international change.
Jiang was succeeded as Party General Secretary by Hu Jintao.
The new State leadership positions were announced at the National People‘s
Congress (NPC), which met from 5-18 March 2003.
Hu Jintao was named President and Wen Jiabao became Premier.
Wu Bangguo replaced Li Peng as NPC Chairman.
The new leadership have made it clear that they will continue the current
policy main priorities of economic growth, internal stability and opening up
to the world.
Elections
China is in practice a one party state. The National People‘s Congress (NPC) is indirectly elected. Direct elections for village leaders
have also been conducted since 1988. They take place every three years,
although it is unclear how genuine and effective they are.
The legislature remains subject to Party leadership. However, since 1987
the NPC has been building its oversight capacity over the actions of the
government.
ECONOMY
Economic indicators:
GDP: US$ 1.19 trillion (2003)
GDP per head: US$ 1090 (2003)
Annual Growth: 9.1 % (20031)
Inflation: 1.2 % (2003)
Exchange rate: 152.9 Renminbi = £1
China has been one of the world‘s economic success stories since reforms
began in 1978 and has recently overtaken Italy to become the sixth
largest economy in the world (in purchasing power parity terms,
China is the world‘s second biggest economy) Official figures
show that GDP grew on average by well over 10% per annum until the
mid-90s and currently stands at around 7-8% a year.
A growing share of China‘s economic growth has been generated in
the private sector as the government has opened up industries to domestic
and foreign competition, though the role of the state in ownership
and planning remains extensive. Foreign Direct Investment reached
$ 53.5 billion in 2003, overtaking the US to become the largest recipient of
FDI in the world. China is the world‘s 4th largest trading nation.
Its exports and imports of goods were valued at ($ 438bn and $413bn
respectively in 2002).
China‘s economic and social development challenges remain huge.
These include reforming ailing state-owned industries, overhauling the
financial sector and raising the incomes of China‘s rural population.
China‘s leaders have launched a campaign to develop China‘s western regions
as well as a drive to rejuvenate the old industrial bases in the Northeast.
These campaigns are part of an effort to slow down the widening income gaps
between China‘s more developed areas and the interior. China‘s entry into
the World Trade Organisation in December 2001 is further integrating China
into the global economy.
TAIWAN
The reunification of Taiwan with the rest of China remains one of the
Chinese government‘s key objectives. Following defeat in the Sino-Japanese
War in 1895, Taiwan and Penghu (Pescadores) Islands were ceded to Japan
under the Treaty of Shimonoseki. They remained under Japanese rule until
1945 when the Japanese surrendered and the islands were occupied by
Chinese Nationalist (KMT) forces. In December 1949, following the
Nationalists‘ defeat on the mainland, the government of the then
‘Republic of China‘ under President Chiang Kai-shek moved to Taiwan,
together with approximately two million supporters.
Although China has sought reunification through negotiation, the Chinese
have not renounced the threat of military action against Taiwan.
the NPC has been building its oversight capacity over the actions of the
government.
ECONOMY
Economic indicators:
GDP: US$ 1.19 trillion (2003)
GDP per head: US$ 1090 (2003)
Annual Growth: 9.1 % (20031)
Inflation: 1.2 % (2003)
Exchange rate: 152.9 Renminbi = £1
China has been one of the world‘s economic success stories since reforms
began in 1978 and has recently overtaken Italy to become the sixth
largest economy in the world (in purchasing power parity terms,
China is the world‘s second biggest economy) Official figures
show that GDP grew on average by well over 10% per annum until the
mid-90s and currently stands at around 7-8% a year.
A growing share of China‘s economic growth has been generated in
the private sector as the government has opened up industries to domestic
and foreign competition, though the role of the state in ownership
and planning remains extensive. Foreign Direct Investment reached
$ 53.5 billion in 2003, overtaking the US to become the largest recipient of
FDI in the world. China is the world‘s 4th largest trading nation.
Its exports and imports of goods were valued at ($ 438bn and $413bn
respectively in 2002).
China‘s economic and social development challenges remain huge.
These include reforming ailing state-owned industries, overhauling the
financial sector and raising the incomes of China‘s rural population.
China‘s leaders have launched a campaign to develop China‘s western regions
as well as a drive to rejuvenate the old industrial bases in the Northeast.
These campaigns are part of an effort to slow down the widening income gaps
between China‘s more developed areas and the interior. China‘s entry into
the World Trade Organisation in December 2001 is further integrating China
into the global economy.
TAIWAN
The reunification of Taiwan with the rest of China remains one of the
Chinese government‘s key objectives. Following defeat in the Sino-Japanese
War in 1895, Taiwan and Penghu (Pescadores) Islands were ceded to Japan
under the Treaty of Shimonoseki. They remained under Japanese rule until
1945 when the Japanese surrendered and the islands were occupied by
Chinese Nationalist (KMT) forces. In December 1949, following the
Nationalists‘ defeat on the mainland, the government of the then
‘Republic of China‘ under President Chiang Kai-shek moved to Taiwan,
together with approximately two million supporters.
Although China has sought reunification through negotiation, the Chinese
have not renounced the threat of military action against Taiwan.
In February 2000, the Chinese issued a White paper on the Taiwan question
which set out a further condition beyond a declaration of independence
which could precipitate an attack: indefinite delay by Taiwan in negotiating
unification.
The United Kingdom considers the Taiwan issue is one to be settled by the
people on both sides of the Taiwan Straits. We are strongly opposed to any
useof force and urge both sides to engage in constructive dialogue.
Despite the political stalemate, economic and people-to-people links
continue to develop at an impressive rate.. Although direct trade is still
prohibited, Taiwanese investment in China is substantial (by early 2001,
firms listed on the Taiwan stock exchange had invested NT$154bn in the
China). In 2002 exports with the mainland grew by 26% and imports by 31%.
Britain recognised the People‘s Republic of China in 1950.
In 1972, Britain and China upgraded relations to Ambassadorial level
and signed a joint communiqué in which Britain acknowledged the position of
the Government of the People‘s Republic of China that Taiwan
was a province of China and recognised the Government of the People‘s
Republic of China as the sole legal government of China.
The United Kingdom does not recognise Taiwan as a state and does not
have diplomatic relations with Taiwan. Further information about Taiwan can be
found on the Taiwan Profile.
INTERNATIONAL RELATIONS
CHINA‘S RELATIONS WITH THE INTERNATIONAL COMMUNITY
The PRC took over the China seat at the United Nations from Taiwan in 1971.
Since the launch of its ‘open door policy‘ in 1978 China
has begun to take a more active role in international organizations.
China‘s international political and economic weight
has continued to grow. It hosted summits of APEC (Asia-Pacific Economic
Co-operation) and ASEM (Asia-Europe Meeting) in 2001, and is active within
the ASEAN Plus Three (ASEAN countries plus China, South Korea and Japan)
grouping. It joined the World Trade Organisation in 2001, and is
increasingly active in the United Nations Security Council,
where it holds one of the five Permanent Seats. China supported
Security Council Resolution 1441 on Iraq.
CHINA‘S RELATIONS WITH THE UK
The British Government‘s broad objectives are:
to encourage and support China‘s closer integration into the international
system (including economic, financial and trade structures) as a responsible
and friendly partner, and to encourage a constructive approach to
international security issues and global challenges such as the environment,
drugs, terrorism and AIDS; to help China deliver economic reform and
eradicate poverty; to promote positive change in human rights, with a
particular emphasis on promoting the rule of law; to advance our commercial
interests; to fulfill our political and moral obligations to the people of
Hong Kong.
Although the Chinese government has made remarkable progress in lifting
as many as 300m people out of poverty since 1978, there are still more than
160m people in China who live on less than $1 per day (the international
standard which defines absolute poverty). The majority of the remaining
poor are located in the Western Provinces of China.
The Department for International Development (DFID) is working with the
Chinese Government to support their poverty reduction programmes.
They are active in areas of basic education, health (particularly health
policy, and in programmes to control TB and HIV/AIDS), economic reform
and water and sustainable livelihoods.
The main provinces in which DFID works are Gansu, Sichuan and Yunnan.
The DFID annual programme to China in 2004/2005 will be £45 million.
More information can be found on theDFID Website
Trade and Investment
UK trade with China grew exponentially in the 1990s.
UK direct exports to China in 2002 were £1, 505m – down 12.6% from 2001.
This was due to the global economic downturn and a drop in
telecommunications business, while the industry restructured.
UK exports to China have improved in 2003. Exports from January to
October 2003 stood at, £1.588.2, against £1,266.9 in January – October 2002
a rise of 25.4%. UK import figures from China for January to
October 2003 were £6,879.8m against £5,696.0 in January-October 2002,
a rise of 20.8%.
Outward Investment
Cumulative pledged investments in China by British companies amounted to
over US $ 18.46 billion by the end of 2002. We are the sixth largest foreign
investor in China and the leading EU investor there with more than 3,000
British-invested joint ventures. Although the largest share of British
investment capital until recently came from industrial giants such as BP
and Shell, a number of smaller, specialist British operators are continuing
to invest in the market.
Inward Investment
More than 150 companies have invested in the UK from mainland China.
Whilst the majority are in the banking, consultancy and trading sectors,
more companies are now looking at the UK‘s R&D capabilities
and service sector. The majority of Chinese companies are based in the
London area with new clusters to be found in the regions.
China is a priority market for UK Trade and Investment. Areas of
opportunities of potential interest to UK companies include the following
sectors: aerospace, energy, environment, education and training, financial
services, Healthcare, ICT, oil & gas and water. Commercial opportunities
continue to increase significantly after China‘s entry to the WTO in
December 2001.
Export controls implemented by the UK towards China
UK Trade & Investment Country Profile: China
The China-Britain Business Council (CBBC) is one of the
principal vehicles in the UK for the development of business with China.
The CBBC has offices in London, Glasgow and Newcastle and six offices in
China (Beijing, Shanghai, Shenzhen, Wuhan, Qingdao and Chengdu).
UK Trade and Investment provides approximately one third of the CBBC‘s
income through a grant-in-aid. See also the CBBC website
Cultural relations with the UK
There are strong and growing cultural and educational relations between
the UK and China. The British Council, which operates as the Cultural and
Education Section of the British Embassy in Beijing and the British Consulates-General in Shanghai, Guangzhou and Chongqing, has a wide-ranging programme
of activity covering areas such as the arts, education, science and technologyand
good governance.
It is also active in promoting UK education.
There are over 50,000 Chinese students studying in the UK, making China one
of the leading providers of overseas students in the UK.
The British Council also conducts over 60,000 English language examinations
in China annually from a network of 21 test centres throughout the country.
More information can be found on the British Council website.
The British Council, China
The British Chevening Scholarships Programme for China is the largest in
the world and is funded by the Foreign and Commonwealth Office.
For the academic year 2003-04 it will have provided over
170 scholarships for young Chinese students. Many former Chevening
scholars have gone on to achieve positions of influence in China.
The Great Britain-China Centre, founded in 1974 and part-funded by the Foreignand Commonwealth Office, promotes understanding
between Britain and China, particularly in the areas of legal and labour reform.
It manages exchange programmes with Chinese partners, provides information
and advice about China, and publishes the quarterly magazine China Review.
More information can be found at www.gbcc.org.uk
HEALTH
The overall health situation in China has improved considerably since 1949.
For example, between 1965 and 1995, China‘s infant mortality rate decreased
from 90 to 36 per 1,000 live births, and life expectancy at birth increased
from 55 to 69 years.
But these improvements have slowed since the 1980s. Economic reforms have
inadvertently led to the collapse of rural community financing of health
services.
Last reviewed - September 2004