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       </tr>}}{{#if:a. ^  General Information of the People's Republic of China, ChinaToday. Retrieved 21 February 2007. In addition to Mandarin, Cantonese is co-official in both Hong Kong and Macau. English is co-official in Hong Kong (SAR); correspondingly, Portuguese in Macau (SAR). Similarly, several minority languages are also co-official with Chinese (Mandarin) in minority areas, viz. Zhuang in Guangxi, Uyghur in Xinjiang, Mongolian in the classical alphabet in Inner Mongolia, Tibetan in Tibet, and Korean in Yanbian, Jilin.

b. ^  The role of the government, China, Encyclopaedia Britannica. Retrieved on 21-02-2007.

c. ^  Information for mainland China only. The Special Administrative Regions of the PRC: Hong Kong, Macau are excluded. In addition, the island territories under the control of the Republic of China, which includes the islands of (Taiwan, Kinmen, and Matsu) are also excluded.

d. ^  9,598,086 km² Excludes all disputed territories.
9,640,821 km² Includes PRC-administered area (Aksai Chin and Trans-Karakoram Tract, both territories claimed by India), Taiwan is not included.

China Daily website |<tr>

         <td colspan="3">a. ^  General Information of the People's Republic of China, ChinaToday. Retrieved 21 February 2007. In addition to Mandarin, Cantonese is co-official in both Hong Kong and Macau. English is co-official in Hong Kong (SAR); correspondingly, Portuguese in Macau (SAR). Similarly, several minority languages are also co-official with Chinese (Mandarin) in minority areas, viz. Zhuang in Guangxi, Uyghur in Xinjiang, Mongolian in the classical alphabet in Inner Mongolia, Tibetan in Tibet, and Korean in Yanbian, Jilin.

b. ^  The role of the government, China, Encyclopaedia Britannica. Retrieved on 21-02-2007.

c. ^  Information for mainland China only. The Special Administrative Regions of the PRC: Hong Kong, Macau are excluded. In addition, the island territories under the control of the Republic of China, which includes the islands of (Taiwan, Kinmen, and Matsu) are also excluded.

d. ^  9,598,086 km² Excludes all disputed territories.
9,640,821 km² Includes PRC-administered area (Aksai Chin and Trans-Karakoram Tract, both territories claimed by India), Taiwan is not included.

China Daily website</td>

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The People's Republic of China (Template:Zh-stp File:Loudspeaker.svg listen{{#ifeq:|no|| (help·info)}}), commonly known as China, is the largest country in East Asia and the third or fourth largest country in the world.<ref>Area rank is disputed with the United States and is either ranked third or fourth. See List of countries and outlying territories by area for more information.</ref> With a population of over 1.3 billion, it is the most populous country in the world.

The Communist Party of China (CPC) has led the PRC under a single-party system since the state's establishment in 1949. The PRC is involved in a long-running dispute over the political status of Taiwan. The CPC's rival during the Chinese Civil War, the Kuomintang (KMT), retreated to Taiwan and surrounding islands after its civil war defeat in 1949, claiming legitimacy over China, Mongolia, and Tuva while it was the ruling power of the Republic of China (ROC). The term "Mainland China" is often used to denote the areas under PRC rule, but sometimes excludes its two Special Administrative Regions: Hong Kong and Macau.

Because of its vast population, rapidly growing economy, and large research and development investments, China is considered an "emerging superpower".<ref>{{

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}}{{#if:||.}} {{#if:|}}</ref> It has the world's fourth largest economy and second largest purchasing power parity. China is also a permanent member of the United Nations Security Council and Asia-Pacific Economic Cooperation.<ref>China Passes U.S. In Trade With Japan</ref><ref>Trade Policy Outlook for Second-term Bush Administration </ref><ref>China - Taiwan Economic Ties</ref><ref>Beijing's Growing Politico-Economic Leverage Over Ulaanbaatar</ref> Since 1978, China's market-based economic reforms have brought the poverty rate down from 53% in 1981 to 8% by 2001.<ref>Fighting Poverty: Findings and Lessons from China’s Success (World Bank). Retrieved August 10 2006.</ref> However, China is now faced with a number of other economic problems, including an aging population, an increasing rural-urban income gap, and rapid environmental degradation.<ref>Beijing’s Olympic Quest: Turn Smoggy Sky Blue - New York Times</ref><ref>BBC NEWS | Asia-Pacific | China fails environment targets</ref>

China plays a major role in international trade. The country is the world's largest consumer of steel and concrete, using, respectively, a third and over a half of the world's supply of each.<ref>Center for International Trade in Forest Products China’s Building Boom. Retrieved December 2 2006,</ref> China is the biggest consumer of copper in the world.<ref>Bloomberg.com: Latin America</ref> Counting all products, China is the third largest importer and the second largest exporter in the world.<ref>The World Factbook, Rank Order - Imports.</ref><ref>WTO: China Daily</ref> Template:TOClimit

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History

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Major combat in the Chinese Civil War ended in 1949 with the Communist Party of China in control of the mainland, and the Kuomintang (KMT) retreating to Taiwan and some outlying islands of Fujian. On October 1, 1949 Mao Zedong proclaimed the People's Republic of China, declaring "the Chinese people have stood up".<ref>The Chinese people have stood up. UCLA Center for East Asian Studies. Retrieved April 16 2006.</ref> Red China was a frequent appellation for the PRC (generally within the Western Bloc) used from the time of Communist ascendance until the mid-late 1970s with the improvement of relations between China and the West.<ref> Justin Raimondo. "China and the New Cold War". 17 June 1999. Accessed 19 March 2007.</ref>

Following a series of dramatic economic failures (caused by the Great Leap Forward), Mao stepped down from his position as chairman in 1959, with Liu Shaoqi as successor. Mao still had much influence over the Party, but was removed from day-to-day management of economic affairs, which came under the control of Liu Shaoqi and Deng Xiaoping.

In 1966, Mao and his allies launched the Cultural Revolution, which would last 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. In 1972, at the peak of the Sino-Soviet split, Mao and Zhou Enlai met Richard Nixon in Beijing to establish relations with the United States. In the same year, the PRC was admitted to the United Nations, replacing the Republic of China for China's membership of the United Nations, and permanent membership of the Security Council.

After Mao's death in 1976 and the arrest of the Gang of Four, blamed for the excesses of the Cultural Revolution, Deng Xiaoping quickly wrestled power from Mao's anointed successor Hua Guofeng. Although Deng never became the head of the Party or State himself, his influence within the Party led the country to economic reforms of significant magnitude. The Communist Party subsequently loosened governmental control over citizens' personal lives and the communes were disbanded with many peasants receiving multiple land leases, which greatly increased incentives and agricultural production. This turn of events marked China's transition from a planned economy to a mixed economy with an increasingly open market environment, a system termed by many "market socialism". The PRC adopted its current constitution on December 4, 1982.

In 1989, the death of pro-reform official, Hu Yaobang, helped to spark the Tiananmen Square protests of 1989, during which students and others campaigned for several months for more democratic rights and freedom of speech. However, they were eventually put down on June 4 when PLA troops and vehicles entered and forcibly cleared the square by opening fire on protesters, resulting in numerous casualties. This event was widely reported and famously videotaped, which brought worldwide condemnation and sanctions against the government.

President Jiang Zemin and Premier Zhu Rongji, both former mayors of Shanghai, led post-Tiananmen China in the 1990s. Under Jiang Zemin's ten years of administration, China's economic performance pulled an estimated 150 million peasants out of poverty and sustained an average annual GDP growth rate of 11.2%.<ref>Nation bucks trend of global poverty (July 11 2003). China Daily.</ref><ref>China's Average Economic Growth in 90s Ranked 1st in World (March 1 2000). People's Daily Online.</ref> The country formally joined the World Trade Organization in 2001.

Although China needs economic growth to spur its development, the government has begun to worry that rapid economic growth has negatively impacted the country's resources and environment. Another concern is that certain sectors of society are not sufficiently benefiting from China's economic development. As a result, under current President Hu Jintao and Premier Wen Jiabao, the PRC have initiated policies to address these issues of equitable distribution of resources, but the outcome remains to be seen.<ref>"China worried over pace of growth". BBC. Accessed 16 April 2006.</ref> For much of China's population, living standards have seen extremely large improvements, and freedom continues to expand, but political controls remain tight.

Politics

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While the PRC is regarded as a Communist state by many political scientists, simple characterizations of China's political structure since the 1980s are no longer possible.<ref>Boum, Aomar (1999). Journal of Political Ecology: Case Studies in History and Society. Retrieved May 5 2007.</ref> The PRC government has been variously described as authoritarian, communist, and socialist, with heavy restrictions remaining in many areas, most notably in the Internet and in the press, freedom of assembly, reproductive rights, and freedom of religion. However, compared to its closed door policies until the mid-1970s, the liberalization of the PRC is such that the administrative climate is much less restrictive than before, though the PRC is still far from the full-fledged democracy practiced in most of Europe or North America, according to most observers internationally.

The country is ruled under the Constitution of the People's Republic of China. Its incumbent President is Hu Jintao and its premier is Wen Jiabao.

The country is run by the Communist Party of China (CPC), which is guaranteed power by the Constitution.<ref>Constitution Of The People'S Republic Of China</ref> There are other political parties in the PRC, referred to in China as "democratic parties", which participate in the People's Political Consultative Conference and the National People's Congress. There have been some moves toward political liberalization, in that open contested elections are now held at the village and town levels,<ref name="poll">{{

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}}{{#if:||.}} {{#if:|}}</ref><ref>"Does China’s Land-Tenure System Discourage Structural Adjustment?" by Bryan Lohmar and Agapi Somwaru. 1 May 2006. USDA Economic Research Service. URL accessed 3 May 2006.</ref> and that legislatures have shown some assertiveness from time to time. However, the Party retains effective control over governmental appointments: in the absence of meaningful opposition, the CPC wins by default most of the time. Political concerns in China include lessening the growing gap between rich and poor and fighting corruption within the government leadership.<ref>China sounds alarm over fast-growing gap between rich and poor. Retrieved April 16 2006.</ref> The level of support that the Communist Party of China has among the Chinese population in general is unclear since there are no consistently contested national elections.<ref>Beijingers get greater poll choices</ref> According to a survey conducted in Hong Kong, where a relatively high level of freedom is enjoyed, the current CPC leaders have received substantial votes of support when residents were asked to rank their favorite leaders from the PRC and Taiwan.<ref>University of Hong Kong releases the latest ratings of the top 10 political figures in Mainland China and Taiwan as well as people's appraisal of past Chinese leaders". 4 April 2006. accessed May 3, 2006.</ref>

Foreign relations

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The People's Republic of China maintains diplomatic relations with most major countries in the world. Sweden was the first western country to establish diplomatic relations with China on 9 May 1950.<ref>China and Sweden</ref> In 1971, the PRC replaced the Republic of China as the sole representative of China in the United Nations and as one of the five permanent members of the United Nations Security Council.<ref>Eddy Chang (August 22 2004). Perseverance will pay off at the UN The Taipei Times.</ref> It is considered a founding member of the UN, though the PRC was not in control of China at the time. The PRC was also a former member and leader of the Non-Aligned Movement.

Under its interpretation of the One-China policy, the PRC has made it a precondition to establishing diplomatic relations that the other country acknowledges its claim to Taiwan and severs official ties with the Republic of China (ROC) government. The government opposes publicized foreign travels by former and present Taiwanese officials promoting Taiwan's independence, such as Lee Teng-hui and Chen Shui-bian, and other politically controversial figures, such as Tenzin Gyatso, the Dalai Lama of Tibetan Buddhism, in an official context.

China has been playing an increasing role in calling for free trade areas and security pacts amongst its Asia-Pacific neighbors. In 2004, China proposed an entirely new East Asia Summit (EAS) framework as a forum for regional security issues that pointedly excluded the United States.<ref>Dillon, Dana and John Tkacik Jr, "China’s Quest for Asia", Policy Review, December 2005 and January 2006, Issue No. 134. Accessed 22 April 2006.</ref> The EAS, which includes ASEAN Plus Three, India, Australia and New Zealand, held its inaugural summit in 2005. China is also a founding member of the Shanghai Cooperation Organisation (SCO), with Russia and the Central Asian republics.

Much of the current foreign policy is based on the concept of China's peaceful rise. Conflicts with foreign countries have occurred at times in its recent history, particularly with the United States; e.g., the U.S. bombing of the Chinese embassy in Belgrade during the Kosovo conflict in May 1999 and the U.S.-China spy plane incident in April 2001. Its foreign relations with many Western nations suffered for a time following the Tiananmen Square protests of 1989, though they have since recovered. The relationship between China and Japan has been strained at times by Japan's refusal to acknowledge its war-time past to the satisfaction of the PRC, e.g. revisionist comments made by prominent Japanese officials and in some Japanese history textbooks. Another point of conflict between the two countries is the frequent visits by Japanese government officials to the Yasukuni Shrine. However, Sino-Japanese relations have warmed considerably since Shinzo Abe became the new Japanese Prime Minister in September 2006. A joint historical study to be completed by 2008 of WWII atrocities is being conducted by China and Japan.

Equally bordering the most countries in the world alongside Russia, the PRC was in a number of international territorial disputes. China's territorial disputes have led to localized wars in the last 50 years, including the Sino-Indian War in 1962, the Sino-Soviet border conflict in 1969 and the Sino-Vietnamese War in 1979. In 2001, the PRC and Russia signed the Sino-Russian Treaty of Friendship,<ref>Treaty of Good-Neighborliness and Friendly Cooperation (March 21 2006). Retrieved April 16 2006.</ref> which paved the way in 2004 for Russia to transfer Yinlong Island as well as one-half of Heixiazi to China, ending a long-standing Sino-Russian border dispute. Other territorial disputes include islands in the East and South China Seas, and undefined or disputed borders with India, Tajikistan and North Korea.

While accompanying a rapid economic rise, the PRC since the 1990s seeks to maintain a policy of quiet diplomacy with its neighbors. Steadying its economic growth and participating in regional organizations and cultivating bi-lateral relations will ease suspicion over China's burgeoning military capabilities. The PRC has started a policy of wooing African nations for trade and bilateral co-operations.<ref>http://www.csmonitor.com/2005/0330/p01s01-woaf.html. Abraham McLaughlin, "A rising China counters US clout in Africa", The Christian Science Monitor, March 30, 2005 edition. Princeton N. Lyman. "China’s Rising Role in Africa", July 21, 2005 Council of Foreign Relations. Retrieved June 26 2007.</ref>

Population policy

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With a population of over 1.3 billion, the PRC is very concerned about its population growth and has attempted, with mixed results,<ref>The New England Journal of Medicine, September 2005</ref> to implement a strict family planning policy. The government's goal is one child per family, with exceptions for ethnic minorities and flexibility in rural areas, where a family can have a second child if the first is a girl or physically disabled. The government's goal is to stabilize population growth early in the twenty-first century, though some projections estimate a population of anywhere ranging from 1.4 billion to 1.6 billion by 2025. Hence the country's family planning minister has indicated that China will maintain its one-child policy until at least the year 2018.<ref>China to keep one-child policy - CNN.com</ref>

The policy is resisted, particularly in rural areas, because of the need for agricultural labor and a traditional preference for boys. Families who breach the policy often lie during the census.<ref>http://www.usembassy-china.org.cn/sandt/fertl2b.htm, </ref> Official government policy opposes forced sterilization or abortion, but allegations of coercion continue as local officials, who are faced with penalties for failing to curb population growth, may resort to forced abortion or sterilization, or manipulation of census figures.

The decreasing reliability of PRC population statistics since family planning began in the late 1970s has made evaluating the effectiveness of the policy difficult.<ref>http://www.usembassy-china.org.cn/sandt/fertl2b.htm</ref> Estimates by Chinese demographers of the average number of children for a Chinese woman vary from 1.5 to 2.0. The government is particularly concerned with the large imbalance in the sex ratio at birth, apparently the result of a combination of traditional preference for boys, and family planning pressure, which led to the ban of using ultrasound devices for the purpose of preventing sex-selective abortion.

Human rights

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Whilst economic and social controls have been greatly relaxed in China since the 1960s, political freedom is still tightly controlled by both central and local governments. The Constitution of the People's Republic of China states that the "fundamental rights" of citizens include freedom of speech, freedom of the press, the right to a fair trial, freedom of religion, universal suffrage, and property rights. However, these provisions do not afford significant protection against criminal prosecution by the State.

Censorship of political speech and information is openly and routinely used to silence criticism of government and the ruling Chinese Communist Party.<ref name=right>China Human Rights Fact Sheet (March 1995). Retrieved April 16 2006.</ref> In particular, press control is notoriously tight: Reporters Without Borders considers the PRC one of the least free countries in the world for the press.<ref name = "rsf.org-554">Reporters sans frontières - Annual Worldwide Press Freedom Index - 2005</ref> The government has a policy of limiting some protests and organizations that it considers a threat to social stability and national unity, as was the case with the Tiananmen Square protests of 1989. The Communist Party has had mixed success at controlling information: a very strong media control system faces very strong market forces, an increasingly educated citizenry and cultural change that are making China more open. In some cases, especially on environmental issues,<ref>1998 U.S. Embassy Beijing report "The Fading of Environmental Secrecy". Accessed February 4 2007</ref><ref>1997 U.S. Embassy Beijing report "Environmental NGOs in China: Green is Good, But Don't Openly Oppose the Party", Accessed February 4 2007</ref> China's leaders see expressions of public dissatisfaction as a catalyst for positive change.

A number of foreign governments and NGOs routinely criticize the PRC, alleging widespread human rights violations including systematic use of lengthy detention without trial, forced confessions, torture, mistreatment of prisoners, restrictions of freedom of speech, assembly, association, religion, the press, and labor rights.<ref name=right>China Human Rights Fact Sheet (March 1995).</ref> China leads the world in capital punishment, accounting for roughly 90% of total executions in 2004.<ref>http://www.commondreams.org/headlines05/0405-07.htm 5 April 2005. Accessed 23 June 2006. The Independent/UK article, republished.</ref> Human rights issues are one of the factors driving independence movements in Tibet and Xinjiang. In the Reporters Without Borders' Annual World Press Freedom Index of 2005,<ref name = "rsf.org-554"/> the PRC ranked 159 out of 167 places. PRC journalist He Qinglian in her 2004 book Media Control in China<ref>Media Control in China published 2004 by Human Rights in China, New York. Revised edition 2006 published by Liming Cultural Enterprises of Taiwan</ref> documents government controls on the Internet and other media in China.

The PRC government has responded by arguing that the notion of human rights should take into account a country's present level of economic development, and focus more on the people's rights to subsistence and development in poorer countries.<ref name = "yqlgro">"China's Progress in Human Rights" July 2005, Accessed: April 18 2008.</ref> The rise in the standard of living, literacy and life expectancy for the average Chinese in the last three decades is seen by the government as tangible progress made in human rights.<ref>"China's reform and opening-up promotes human rights, says premier". 11 December 2003. Embassy of the People's Republic of China in the United States. Accessed 28 April 2006.</ref> Efforts in the past decade to combat deadly natural disasters, such as the perennial Yangtze River floods, and work-related accidents are also portrayed in China as progress in human rights for a still largely poor country.<ref name = "yqlgro"/>

Political divisions

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The People's Republic of China has administrative control over twenty-two provinces and considers Taiwan to be its twenty-third province.<ref>Gwillim Law (April 2 2005). Provinces of China. Retrieved April 15 2006.</ref> There are also five autonomous regions, each with a designated minority group; four municipalities; and two Special Administrative Regions that enjoy considerable autonomy. The twenty-two provinces, five autonomous regions and four municipalities can be collectively referred to as "mainland China", a term which usually excludes Hong Kong and Macau.

Template:PRC provinces small imagemap/province list

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China is the second largest country in Asia by area after Russia, and is considered the third or fourth largest<ref>"The People's Republic of China" (September 7 2005). Foreign & Commonwealth Office</ref> in the world in respect to land-and-sea area. The uncertainty over size is related to (a) the validity of claims by the PRC on territories such as Aksai Chin and Trans-Karakoram Tract (both territories also claimed by India), and (b) how the total size of the United States is calculated: The World Factbook gives 9,826,630 km²,<ref>{{

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}}{{#if:||.}} {{#if:|}}</ref> A recent change in the method used by the United States to calculate its surface area adds to the confusion as to the actual size of the United States.<ref>"Rank Order — Area" (March 29 2006). CIA World Factbook.</ref> China borders 14 nations (counted clockwise from south): Vietnam, Laos, Burma, India, Bhutan, Nepal, Pakistan,<ref>China's border with Pakistan falls in the disputed Kashmir province. The area under Pakistani-administration is claimed by India.</ref> Afghanistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia, Mongolia and North Korea. Additionally the border between PRC and ROC is located in territorial waters.

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}}{{#if:||.}} {{#if:|}}</ref> While the regulations are fairly stringent, they are frequently disregarded by local communities while seeking economic development. Twelve years after the law, only one Chinese city was making an effort to clean up its water discharges.<ref>Sinkule, Barbara J., Implementing Environmental Policy in China, Praeger Publishers, 1995, ISBN 0-275-94980-X</ref> This indicates that China is about twenty years behind the U.S. schedule of environmental regulation.

Water pollution has increased as an issue along with industrial production. The Chinese government has chosen a discharge standard measuring the concentration of a pollutant rather than the total pollutant load (as is done in the U.S. and many Western countries). As a result many industrial dischargers in China simply dilute the effluent with river water taken from the same source as the receiving waters. Consequently the outcome has been to create considerable water pollution in many of the country's rivers.

With regard to carbon emissions, China has ratified the Kyoto Protocol but it is not required to reduce carbon emissions because of its status as a developing country. However, with rapid industrialization, China is fast becoming one of the world's top emitters of carbon gases and possibly a major contributor to global warming.

Part of the price China is paying for increased prosperity is damage to the environment. Leading Chinese environmental campaigner Ma Jun has warned that water pollution is one of the most serious threats facing China. According to Ma the drinking water of 300 million peasants is unsafe and water quality in one fifth of the cities is not up to standard. This makes the crisis of water shortages more pressing, with 400 out of 600 cities short of water.<ref name="water">{{

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Military

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With 2.3 million active troops, the People's Liberation Army (PLA) is the largest military in the world.<ref>China Seeks to Allay U.S. Fears as Summit Nears (2006). Retrieved April 15 2006.</ref> The PLA consists of an army, navy, air force, and strategic nuclear force. The official announced budget of the PLA for 2007 was $45 billion. However, the United States claims China does not report its real military spending. The DIA estimates that the real Chinese military budget for 2007 could be anywhere from US$85 to US$125 billion.<ref>U.S. Department of Defense </ref>.

The PRC, despite possession of nuclear weapons and delivery systems, is widely seen by military researchers both within and outside of China as having only limited power projection capability; this is, among other things, because of the limited effectiveness of its navy. It is considered a major military regional power and an emerging military superpower.<ref>Nolt, James H. Analysis: The China-Taiwan military balance. Asia Times. Retrieved April 15 2006.</ref>

Much progress has been made in the last decade and the PRC continues to make efforts to modernize its military. It has purchased state-of-the-art fighter jets from Russia, such as the Sukhoi Su-30s, and has also produced its own modern fighters, specifically the Chinese J-10s and the J-11s.<ref>SinoDefence: Fighter Aircraft. Accessed 15 April 2006</ref> It has also acquired and improved upon the Russian S-300 surface-to-air missile systems, which are considered to be among the best aircraft-intercepting systems in the world,<ref>SinoDefence: Surface-to-air Missile System{{#if:||{{#if:Category:Articles with dead external links|[[Category:Articles with dead external links {{#if:March 2008|from March 2008}}]]{{#if:March 2008|{{#ifexist:Category:Articles with dead external links from March 2008||}}}}}}}}{{#if:|^{[{{#if:|{{{pre-text}}} }}[[Wikipedia:Cleanup|]]{{#if:| {{{post-text}}}}}]}|^{[{{#if: http://sinodefence.com/missile/airdefence/hq9.asp|dead link|dead link}}]}}} (2006). Accessed 15 April 2006.</ref> albeit Russia has since produced the new generation S-400 Triumf. The PRC's armored 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.<ref>SinoDefence: Aircraft carrier programme (2006). Accessed 15 April 2006</ref>

Economy

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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 that is still within a rigid political framework under Party control. The reforms replaced collectivization of Chinese agriculture with privatization of farmlands, increased the responsibility of local authorities and industry managers, allowed a wide variety of small-scale enterprises to flourish, and promoted foreign investment. Price controls were also relaxed. These changes resulted in mainland China's shift from a planned economy to a mixed economy.

The government emphasizes personal income and consumption by introducing new management systems to help increase productivity. The government also focuses on foreign trade as a major vehicle for economic growth, which led to five Special Economic Zones (SEZ: Shenzhen, Zhuhai, Shantou, Xiamen, Hainan) where investment laws are relaxed so as to attract foreign capital. Since the 1990s, SEZs and similar concepts have been expanded to major Chinese cities, including Shanghai and Beijing. The result has been a six-fold increase of GDP since 1978.

Chinese economic development is among the fastest in the world and has been growing at an average annual GDP rate of 9.4% for the past twenty-five years.<ref>Malik, Khalid (December 16 2005). "Launch of the China Human Development Report 2005"</ref>

Mainland China has a reputation of being a low-cost manufacturer, which caused notable disputes in global markets. This is largely because Chinese corporations can produce many products far more cheaply than other parts of Asia or Latin America and because expensive products produced in developed countries like the United States are in large part uncompetitive compared to European or Asian goods. Another factor is the unfavorable exchange rate between the Chinese yuan and the United States dollar to which it was pegged.

On July 21, 2005, the People's Bank of China announced that it would move to a floating peg, allowing its currency to move against the United States dollar by 0.5% (effective 18 May 2007, which was earlier 0.3%) a day, while 3% a day against other currencies.<ref>China widens yuan, non-dollar trading range to 3% (September 23 2005). Retrieved April 15 2006.</ref> Many high-tech American companies have difficulty exporting to China because of U.S. federal government restrictions, which exacerbated the trade gap between the PRC and the US, widespread software piracy and illegal copying of intellectual property (a major US export), and perceived low quality of US goods. At the end of 2005, the PRC became the fourth-largest economy in the world by exchange rate and the second-largest in the world after the United States by purchasing power parity at US$8,158 trillion.<ref>CIA Factbook</ref> But with its large population, this still gives an average GDP per person of only an estimated US$8,000 (2006).

Today, only ten percent of the Chinese population is below the poverty line. 90.9% of the population is relatively literate,<ref>CIA - The World Fact Book</ref> compared to 20% in 1950.<ref>Plafker, Ted, China's Long — but Uneven — March to Literacy International Herald Tribune</ref> The life expectancy in China is the third highest in East Asia, after Japan and South Korea. There is a large wealth disparity between the coastal regions and the remainder of the country. 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.

As of 2006, approximately 70% of China's growth came from the private sector. The private sector was dominated by about 200 large enterprises concentrated mostly in utilities, heavy industries, and energy resources.<ref>{{

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}}{{#if:||.}} {{#if:|}}</ref> China is undergoing major reforms in its financial sector, which has been plagued by nonperforming loans made in the 1980s and early 1990s to inefficient state-owned enterprises. The government has spent five years and more than US$400 billion cleaning bad loans off the books of the big four state-owned banks, helping prepare them to become shareholder corporations.<ref name="Barboza">China will list the Agricultural Bank of China, once restructured David Barboza, International Herald Tribune. Accessed: 11 February 2007.</ref> By the end of 2006, China had restructured three of its four largest banks and listed them publicly. China's largest bank, the Industrial and Commercial Bank of China (ICBC) in October 2006 raised US$21.6 billion in the world's largest initial public offering (IPO) in history. As of 2008, ICBC is now the world's largest bank in market value.

Science and technology

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After the Sino-Soviet split, China started to develop its own nuclear weapons and delivery systems, successfully detonating its first surface nuclear test in 1964 at Lop Nur. A natural outgrowth of this was a satellite launching program, which 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 Shenzhou manned spaceflight program was authorized.<ref>China's First Man-made Satellite (2003). Ministry of Culture. Retrieved April 16 2006.</ref> After four tests, Shenzhou 5 was launched on October 15, 2003, using a Long March 2F rocket and carrying Chinese astronaut Yang Liwei, making the PRC the third country to put a human being into space through its own endeavors.<ref>Wade, Mark. Shenzhou (6 January 2006). Retrieved April 16 2006.</ref> With the successful completion of the second manned mission, Shenzhou 6 in October 2005, the country plans to build a Chinese Space Station in the near future and achieve a lunar landing in the next decade.<ref>Wade, Mark. (30 March 2005)Project 921-2. Retrieved April 16 2006.</ref>

China has the world's second largest research and development budget, and is expected to invest over $136 billion this year after growing more than 20% in the past year.<ref>"China overtakes Japan on R&D" Financial Times. Accessed 3 December 2006.</ref> The Chinese government continues to place heavy emphasis on research and development by creating greater public awareness of innovation, and reforming financial and tax systems to promote growth in cutting-edge industries. President Hu Jintao in January 2006 called for China to make the transition from a manufacturing-based economy to an innovation-based one, and this year's National People's Congress has approved large increases in research funding. Stem cell research and gene therapy, which some in the Western world see as controversial, face minimal regulation in China. China has an estimated 926,000 researchers, second only to the United States's 1.3 million.<ref>OECD: China to spend $136 billion on R&D BusinessWeek. Retrieved 3 December 2006.</ref>

China is also actively developing its software, semiconductor and energy industries, including renewable energies such as hydro, wind and solar power.<ref>"Blinding Science: China's Race to Innovate" Bruce Einhorn, Business Week, 31 March 2006, accessed: 16 April 2006.</ref> In an effort to reduce pollution from coal-burning power plants, China has been pioneering the deployment of pebble bed nuclear reactors, which run cooler and safer, and have potential applications for the hydrogen economy.<ref>"China leading world in next generation of nuclear plants" Robert J. Saiget. DAGA. 5 October 2004. Accessed 16 April 2006. </ref>

Transportation

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Transportation in the mainland of the People's Republic of China has improved remarkably since 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 (NTHS). The total length of expressway is 45,000 km at the end of 2006, second only to the United States.<ref>China to build more highways in 2007</ref><ref>Expressways Being Built at Frenetic Pace</ref>

Private car ownership is increasing at an annual rate of 15%, though it is still uncommon because of government policies that make car ownership expensive, such as taxes and toll roads.<ref> "China's Car Drive" (June 13 2005). Earlywarning.</ref>

Air travel has increased, but remains too expensive for most. Long distance transportation is still dominated by railways and charter bus systems. The railways are still the vital carrier in China, and until this year steam locomotives were still a common sight. It is thought that some are still in use, especially on industrial networks.

Cities such as Beijing and Shanghai are building subways or light rail systems. Hong Kong has one of the most developed transport systems in the world. Shanghai already has a Maglev system connecting downtown Shanghai to Pudong International Airport.

Demographics

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As of July 2006, there are 1,313,973,713 people in the PRC. About 20.8% (male 145,461,833; female 128,445,739) are 14 years old or younger, 71.4% (male 482,439,115; female 455,960,489) are between 15 and 64 years old, and 7.7% (male 48,562,635; female 53,103,902) are over 65 years old. The population growth rate for 2006 is 0.59%.<ref name=pop>CIA World Factbook. 20 April 2006. URL accessed 3 May 2006.</ref> The PRC officially recognizes 56 distinct ethnic groups, the largest of which are the Han Chinese, who constitute about 91.9% of the total population.<ref>CIA factbook (29 March 2006). Retrieved April 16 2006.</ref> Large ethnic minorities include the Zhuang (16 million), Manchu (10 million), Hui (9 million), Miao (8 million), Uyghur (7 million), Yi (7 million), Tujia (5.75 million), Mongols (5 million), Tibetans (5 million), Buyei (3 million), and Koreans (2 million).<ref>Stein, Justin J (Spring 2003). Taking the Deliberative in China. Retrieved April 16 2006.</ref>

In the past decade, China's cities expanded at an average rate of 10% annually. The country's urbanization rate increased from 17.4% to 41.8% between 1978 and 2005, a scale unprecedented in human history.<ref>Zhou Qun, Lin Yanhua. China's urbanization encounters "urban disease", Chinanews.cn (中国新闻网), November 11 2005. Accessed 21 April 2005.</ref> 80 to 120 million migrant workers work part-time in the major cities and return home to the countryside periodically with their earnings.<ref>China 2004 Migrant Workers, CBC Radio One, December 2004. Accessed: 21 April 2006</ref>

Today, the People's Republic of China has dozens of major cities with one million or more long-term residents, including the three global cities of Beijing, Hong Kong, and Shanghai. Major cities in China play key roles in national and regional identity, culture and economics.

Largest cities

The figures below are the 2001 estimates for the ten largest urban populations within administrative city limits; a different ranking exists when considering the total municipal populations (which includes suburban and rural populations). The large floating populations of migrant workers make conducting censuses in urban areas difficult;<ref>Francesco Sisci, "China's floating population a headache for census", The Straits Times, 22 September 2000.</ref> the figures below do not include the floating population, only long-term residents. Template:People's Republic of China cities

Education

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In 1986, China set the long-term goal of providing compulsory nine-year basic education to every child. As of 1997, there were 628,840 primary schools, 78,642 secondary schools and 1,020 higher education institutions in the PRC.<ref>Education (2002). Orasia co., ltd.</ref> In February 2006, the government advanced its basic education goal by pledging to provide completely free nine-year education, including textbooks and fees, in the poorer western provinces.<ref>China pledges free 9-year education in rural west (February 21 2006). China Economic Net.</ref> As of 2002, 90.9% (male: 95.1%; female: 86.5%) of the population over age 15 are literate.<ref name=pop>"Chinese People" (2005). TravelBlog. </ref> China's youth (age 15 to 24) literacy rate is 98.9% (99.2% for males and 98.5% for females) in 2000.<ref>Where And Who Are The World’s Illiterates: China</ref> In March 2007, China announced the decision of making education a national "strategic priority", the central budget of the national scholarships will be tripled in two years and 223.5 billion Yuan (28.65 billion US dollars) of extra funding will be allocated from the central government in the next 5 years to improve the compulsory education in rural areas.<ref>Premier Wen announces hefty educational investment (2007). Retrieved March 6 2007.</ref>

The quality of Chinese colleges and universities varies considerably across the country. The consistently top-ranked universities in mainland China are Peking and Tsinghua in Beijing; Fudan, Shanghai Jiao Tong University and East China Normal University in Shanghai; Xi'an Jiaotong University in Xi'an; Nanjing University in Nanjing; the University of Science and Technology of China in Hefei; Zhejiang University in Hangzhou and Wuhan University in Wuhan.<ref>2005 Chinese University Ranking unveiled (February 21 2005). China Daily. Retrieved April 16 2006.</ref><ref>All-around Ranking (2003). Retrieved April 17 2006.</ref>

Many parents are highly committed to their children's education, often investing large portions of the family's income on education. Private lessons and recreational activities, such as in foreign languages or music, are popular among the middle-class families who can afford them.<ref>"China's graft: Tough talk, old message" by Mary Hennock. 27 September 2004. BBC News. Accessed 2 May 2006.</ref>

Public health

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