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intercepting systems in the world. The PRC's armoured and rapid-reaction forces have been updated with enhanced electronics and targeting capabilities. In recent years, much attention has been focused on building a navy with blue-water capability.

Largest cities

The PRC has dozens of major cities, including 3 of the 55 global cities.

Economy

Beginning in late 1978 the Chinese leadership has been reforming the economy from a Soviet-style centrally planned economy to a more market-oriented economy but still within a rigid political framework of Communist Party control. To this end the authorities have switched to a system of household responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprise in services and light manufacturing, and opened the economy to increased foreign trade and investment. Prices controls were also relaxed. This has resulted in mainland China's shift from a command economy to a mixed economy with both communist and capitalist tendencies.

The government has tended to not emphasize equality as when it first began and instead emphasized raising personal income and consumption and introducing new management systems to help increase productivity. The government also has focused on foreign trade as a major vehicle for economic growth, for which purpose it set up 5 Special Economic Zones (SEZ: Shenzhen, Zhuhai, Shantou, Xiamen, Hainan Province) where investment laws are relaxed in order to attract foreign capital. The result has been a quadrupling of GDP since 1978. In 1999, with its 1.25 billion people and a GDP of just $3,800 per capita, the PRC became the sixth largest economy in the world by exchange rate and third largest in the world after the European Union and the U.S. by purchasing power. The average annual income of a Chinese worker is $1,300. Chinese economic development is believed to be among the fastest in the world, about 7-8% per year according to Chinese government statistics. China is now a member of the World Trade Organization.

Mainland China has a reputation as being a low-cost manufacturer, particularly due to its abundant non-unionised inexpensive labor. An unskilled worker at a Chinese factory in the rural area costs a company under $1/hour, however, the prices of goods and services in China are lower than in more developed countries. Furthermore, many Chinese workers do not join trade unions. Employers may find this helpful as labor relations are different in most other parts of the world. A possible reason for this could be work ethics, or it is also conceivable it is driven by a fear that unions will be abused by the Communist Party of China to identify dissidents. (See list of Chinese dissidents.) Template:China regional economic strategies

Another aspect of the Chinese economy that is often overlooked is the low cost of non labor inputs. This is due in part to an overly competitive environment with many producers and a general tendency towards an oversupply and low prices. There is also the continued existence of price controls and supply guarantees left over from the former Soviet style command economy. As State owned enterprises continue to be dismantled and workers shift to higher productivity sectors, this deflationary effect will continue to put pressure on prices in the economy.

Preferential tax incentives are also given as a direct fiscal incentive to manufacture in China, whether for export or for the local market of 1.3 billion. China is attempting to harmonize the system of taxes and duties it imposes on enterprises, domestic and foreign alike. As a result, preferential tax and duty policies that benefit exporters in special economic zones and coastal cities have been targeted for revision.

China's high growth in the global markets has caused notable disputes, especially the trade imbalance with the United States. The discrepancy is largely attributed to the fact that Chinese corporations can produce many products desired in the US far more cheaply than other parts of Asia or Latin America, and expensive products produced in America are in large part uncompetitive compared to European or Asian goods. Another factor cited by some people was the unfavorable exchange rate between the Chinese yuan and the United States dollar to which it used to be pegged. On July 21, 2005 the People's Bank of China announced that it would move to a floating peg (managed float), allowing its currency to move against the United States dollar by 0.3% a day. The yuan's trading band against other currencies is 3% a day. Many high tech American companies have difficulty exporting to China due to federal government restrictions. This may also have contributed to the widening trade gap between the 2 countries. With the elimination of clothing quotas, China stands to take over a large chunk of the worldwide textile industry. ,

In 2003, China's GDP in terms of purchasing power parity reached $6.4 trillion, becoming the second-largest in the world. Using conventional measurements, China's GDP is expected to become the world's fourth-largest in 2005. With its large population this still gives an average GNP per person of only an estimated $5,000, about 1/7th that of the United States. The officially reported growth rate for 2003 was 9.1%. As of 2006 China also became the largest technology exporter in the world.

Due to its size and ancient culture, China has a tradition of being a leading economy in the world. Trying to regain some of that glory is certainly a strong motivation for many Chinese.

The economic regions of Mainland China covered under the strategies promulgated by the central government.

The disparity in wealth between the coastal strip and the remainder of the country remains wide. To counter this potentially destabilizing problem, the government has initiated the China Western Development strategy (2000), the Revitalize Northeast China initiative (2003), and the Rise of Central China policy (2004), which are all aimed at helping the interior of China to catch up.

Transportation

Transportation in the mainland of the People's Republic of China has improved remarkably starting in the late 1990s as part of a government effort to link the entire nation through a series of expressways known as the National Trunk Highway System. Private car ownership is increasing but remains uncommon, in large part due to government policies designed to make car ownership expensive through the use of taxes and toll roads.

Air travel has increased considerably, although remains out of reach for most ordinary mainland Chinese. Long distance transportation for most mainland Chinese is still dominated by the railways and bus systems.

Cities are increasingly building underground or light rail systems, such as in Shanghai. Hong Kong has one of the most modern transport systems in the world.

Demographics

Ethnic and linguistic diversity

Officially the PRC views itself as a multi-ethnic nation with 56 recognized ethnicities. The majority Han Chinese ethnicity makes up about 92% of the population and is the majority over about half of the area of the PRC. The Han Chinese itself is relatively racially heterogeneous, and can also be conceived as a large category bringing together many diverse ethnic subgroups sharing common cultural and linguistic characteristics.

The majority Han Chinese speak varieties of spoken Chinese, which can be regarded as either one language or a family of languages. The largest subdivision of spoken Chinese is Mandarin Chinese, with more speakers than any other language on Earth. A standardized version of Mandarin based on the Beijing dialect, known as Putonghua, is taught in schools and used as the official language of the entire country.

Population control

The People's Republic of China, in an attempt to limit its population growth, has adopted a policy which limits urban families (ethnic minorities such as Tibetans are an exception) to one child and rural families to two children when the first is female. Because males are considered to be more economically valuable in rural areas, there appears to be a high incidence of sex selective abortion and child abandonment in rural areas to ensure that the second child is male. (See National Geographic's China's Lost Children). This policy only applies to the Han majority. There are numerous orphanages for the children that are abandoned, but approximately 98% of these children are not adopted, and stay in the orphanage until they are an adult. China has instituted a regulated program to permit international adoption, although this only affects a small percentage of the children.

By 2000 this has resulted in a sex ratio at birth of 117 boys being born for every 100 girls which is substantially higher than the natural rate (106 to 100) (but comparable to the ratios in places such as the Caucasus, Taiwan, Hong Kong and South Korea). Although some of this problematic ratio is attributable to sexism, recently, it has been found that it correlates with hepatitis as well. The PRC government is attempting to mitigate this problem by emphasizing the worth of women and has gone so far as to criminalize medical providers from disclosing to parents the sex of an expected baby. The result of the sex ratio bias is that there are now 30–40 million Chinese males who cannot marry Chinese women. Apart from emigration, this may cause an increase in prostitution. In some cases, this has led to kidnappings, where women are abducted from their families, and forcibly sold as wives in distant villages.

Education

To provide for its population in mainland China, the PRC has a vast and varied school system. There are preschools, kindergartens, schools for the deaf and blind, key schools (similar to college preparatory schools), primary schools, secondary schools (comprising junior and senior middle schools, secondary agricultural and vocational schools, regular secondary schools, secondary teachers' schools, secondary technical schools, and secondary professional schools), and various institutions of higher learning (consisting of regular colleges and universities, professional colleges, and short-term vocational universities).

Public health

The PRC has several emerging public health problems: health problems related to air and water pollution, a progressing HIV-AIDS epidemic and hundreds of millions of cigarette smokers. The HIV epidemic, in addition to the usual routes of infection, was exacerbated in the past by unsanitary practices used in the collection of blood in rural areas. The problem with tobacco is complicated by the concentration of most cigarette sales in a government controlled monopoly. The government, dependent on tobacco revenue, seems hesitant in its response to the tobacco compared with other public health problems. Although China's tobacco authorities might encourage tobacco use for its supposed health benefits , the government has been strictly enforcing laws that restrict where smokers are allowed to smoke and the proper disposal of cigarette butts, such as prohiting smoking in airplanes and office buildings. Hepatitis B is endemic in mainland China, with a large percentage of the population contracting the disease; about 10% of these are seriously affected. A program initiated in 2002 will attempt over the next 5 years to vaccinate all newborns in mainland China.

In November 2002, the pneumonia-like SARS surfaced in Guangdong province. The epidemic spread into neighboring Hong Kong, Vietnam, and other countries via international travelers. The strains of avian flu outbreaks in recent years among local poultry and birds, along with a number of its citizens. While the virus is currently mainly animal-human transmissible, experts expect an avian flu pandemic that would affect the region, should the virus morph to be human-human transmissible. The recent pig-to-human transmission of Streptococcus suis bacteria, which has led to an unsually high number of deaths in and around Sichuan province.

Culture

China's traditional values were derived from the orthodox version of Confucianism/conservatism, which was taught in schools and was even part of imperial civil service examinations. However, the term Confucianism is somewhat problematic in that the system of thought which reached it high-water mark in Qing Dynasty imperial China was in fact composed of several strains of thought, including Legalism, which in many ways departed from the original spirit of Confucianism; indeed by the height of imperial China, the right of the individual ethical conscience and the right to criticise tyrannical governments and demand change had largely been prohibited by "orthodox" thinkers. Currently, there are neo-Confucians who believe that contrary to that line of thought, democratic ideals and human rights are quite compatible with traditional Confucian "Asian values". See

The leaders who directed the efforts to change Chinese society after the establishment of the People's Republic of China in 1949 were raised in the old society and had been marked with its values. PRC leaders sought to change some traditional aspects, such as rural land tenure, sexism, and Confucian education, while preserving others, such as the family structure. Some observers believe that the Communist period following 1949 is very much in continuity with traditional Chinese history, rather than revolutionary.

On the other hand, some observers believe that the Communist period following 1949 has fundamentally altered or damaged the foundations of Chinese culture. At various times in the history of the PRC, many aspects of traditional Chinese culture were labeled 'regressive and harmful' or 'vestiges of feudalism' by the regime or by prominent movements (e.g. by the Red Guards during the Cultural Revolution), such as Confucianism, traditional art, literature, and performing arts; for example, Beijing opera was "reformed" to conform to communist propaganda. The brutality of the Cultural Revolution itself has also been described as destructive to China's traditional moral values. The institution of the Simplified Chinese orthography reform is controversial as well, with some considering it harmless, and others viewing it as an assault on Chinese culture. However, China has since moved away from attempting to reform all of its traditional art forms. As time has progressed, the PRC government has accepted much of traditional Chinese culture as an integral part of Chinese society; current Chinese national policy often lauds these as important achievements of the Chinese civilization and emphasizes them as being integral to the formation of Chinese national identity. The PRC has also promoted feelings of nationalism in recent years, regarded by some observers as an effort to provide legitimacy for its rule.

Science & Technology

After the Sino-Soviet split, China started to develop its own indigenous nuclear deterrent and delivery systems. A natural outgrowth of this was a satellite launching program. This culminated in 1970 with the launching of Dong Fang Hong I, the first Chinese satellite. This made the PRC the fifth nation to independently launch a satellite.

In 1992 the current "Project 921" manned spaceflight program was authorised. On 19 November 1999, the unmanned Shenzhou 1 was launched, the first test flight of the program. After three more tests, Shenzhou 5 was launched on October 15, 2003, using a Long March 2F rocket and carrying Yang Liwei, making the PRC the third country to put a human being into space through its own endeavors. The second mission, Shenzhou 6 launched 12 October 2005. Some see China's space program as a response to the United States Air Force's efforts to militarize space.

China is actively developing in fields such as biotechnology, biomedicine, information technology, urban infrastructure and electronics.

Miscellaneous topics

External links

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