Very Slight Importance |
People's Republic of China
China's economy during the
last quarter century has changed from a
centrally planned system that was largely closed to international trade
to a more market-oriented economy that has a rapidly growing private
sector and is a major player in the global economy.
Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment.
China has generally implemented reforms in a gradualist or piecemeal fashion, including the sale of minority shares in four of China's largest state banks to foreign investors and refinements in foreign exchange and bond markets in 2005. After keeping its currency tightly linked to the US dollar for years, China in July 2005 revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. Cumulative appreciation of the renminbi against the US dollar since the end of the dollar peg reached 15% in January 2008. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis, China in 2007 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income. Annual inflows of foreign direct investment in 2007 rose to $75 billion. By the end of 2007, more than 5,000 domestic Chinese enterprises had established direct investments in 172 countries and regions around the world.
The Chinese government faces
several economic development challenges: (a) to sustain adequate job
growth for tens of millions of workers laid off from state-owned
enterprises, migrants, and new entrants to the work force; (b) to
reduce corruption and other economic crimes; and (c) to contain
environmental damage and social strife related to the economy's rapid
transformation.
Economic development has been more rapid in coastal provinces than in the interior, and approximately 200 million rural laborers have relocated to urban areas to find work. One demographic consequence of the "one child" policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the north - is another long-term problem. China continues to lose arable land because of erosion and economic development.
In 2007 China intensified government efforts to improve environmental conditions, tying the evaluation of local officials to environmental targets, publishing a national climate change policy, and establishing a high level leading group on climate change, headed by Premier WEN Jiabao. The Chinese government seeks to add energy production capacity from sources other than coal and oil as its double-digit economic growth increases demand. Chinese energy officials in 2007 agreed to purchase five third generation nuclear reactors from Western companies. More power generating capacity came on line in 2006 as large scale investments - including the Three Gorges Dam across the Yangtze River - were completed. (3)
China News
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China Issues Nationwide Alert
After Virus Kills 23 Children |
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Russia: 6 Powers Want Iran to
Halt Nuclear Work 'Only' During Talks |
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Dalai Lama's Envoys to Hold
Talks Sunday with Chinese Officials |
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More Countries Are Named for
Violation of Religious Freedom |
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Major Powers Make New
Incentives Offer to Iran |
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US, North Korean Critics
Accuse China of Mistreating Korean Refugees |
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South Korea Says Multinational
Nuclear Talks May Resume This Month |
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Dalai Lama's Envoys Depart for
Meeting in China |
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Thousands Cheer Olympic Torch
Relay in Hong Kong |
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Fueling World Ivory Trade
Spells New Threat to Africa's Elephant Population |
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Rice Doubts Iran Incentives
Will Work |
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Writers Demand China Release
Imprisoned Writers |
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US Lawmaker: China Seeks to
Spy on International Visitors at Olympics |
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Bush Requests More Food Aid
for Global Poor |
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Poll: Most People Want Free
News Media, Unrestricted Internet Access |
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Azerbaijan Releases Russian
Nuclear Shipment to Iran |
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In India, Infrastructure Falls
Short as Economy Moves Forward |
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Chinese Stage Protests in
Front of French Retail Outlet Stores |
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US Agency Calls for Controls
on Tainted Imports |
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Stalemate At UN Leaves
Zimbabwe Post-Election Crisis Festering |
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World Anti-Doping Agency
Praises China's Drug Testing Programs for Summer Olympics |
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Chinese Authorities Link Train
Crash to Olympic Construction |
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Azerbaijan to Release Russian
Nuclear Shipment to Iran Soon |
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Asia Faces Financial Pinch
From Higher Oil Prices |
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Philippines Bans Kidney
Transplants for Foreigners in Attempt to Stem Illegal Organ Trade |
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Tibetan Exiles, Chinese
Authorities Report on Unrest in Qinghai |
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China Begins 100-Day Countdown
to Beijing Olympics |
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Hong Kong Authorities Bar at
Least 7 Activists From Olympic Torch Relay |
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US FDA Officials Ask for
Resources, Authorities to Improve Drug Safety |
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Bush Underscores Support for
Afghanistan |
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Baxter Executive Says Heparin
Contamination Appears Deliberate |
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Olympic Torch Completes Relay
in Vietnam |
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China Denies Foreign Pressure
Led to Talks With Dalai Lama's Envoy |
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Analyst Likens South African
Foreign Policy on Zimbabwe to a Mental Illness |
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Divided Korean Peninsula Hosts
a Tale of Two Torch Relays |
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China Restores Rail Service
After High-Speed Collision Kills 70, Injures Over 400 |
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Olympic Torch Arrives in
Vietnam |
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China Imprisons 17 for Tibet
Riots |
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Export Curbs, Weak Dollar
Blamed for High Rice Prices |
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Small Business Administration
Partners with Business Alliance Promoting Indo-US Trade |
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Group Seeks to Mobilize Global
Political Action Through Internet |
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Economic Stresses, Biofuel
Production Add to Food Crisis Pressures |
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Overseas Education More
Attainable for Chinese Students |
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India Launches Multiple
Satellites Into Space |
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US Aircraft Carrier Kitty Hawk
Makes Last Port Call |
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North Korean Military Officer
Defects to South |
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70 Dead, 400 Injured in China
Train Collision |
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Olympic Torch Relay Held in
North Korea |
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US, S. Korean Nuclear Envoys
to Meet in Washington Monday |
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Massive Chinese Crowds
Overwhelm Olympic Torch Protests in South Korea |
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Special Olympic Flame Arrives
in Tibet for Everest Ascent |
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Olympic Torch Relay in Seoul |
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Afghan President Escapes
Assassination Attempt |
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Olympic Torch Relay Finishes
Japanese Leg, Heads to Seoul Next |
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Dalai Lama Cautiously Welcomes
Offer of Chinese Talks |
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Analysts: Rising Chinese
Inflation May Lead to Higher Export Prices |
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US Tea Connoisseur Tries to
Save Small-scale Chinese Tea Farmers |
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Speedy Speedo Swimsuit Source
of Olympic Controversy |
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Chinese Ship with Arms for
Zimbabwe Docks in Angola |
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Interpol: Terrorism at Beijing
Olympics a 'Real Possibility' |
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Indonesia Holds Massive Bird
Flu Drill |
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European Commission Head
Rejects Calls for Boycott of Olympic Games |
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China Offers to Meet with
Dalai Lama Representative |
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India,
China Laud Closer Ties VOA
15 Jan 2008 |
- US Military Leader Works to Build Trust in China VOA 15 Jan 2008 -- The head of the U.S. Pacific Command, Admiral Timothy Keating, is in China for a visit he says is aimed at further strengthening military relations, a task he personally began when he first visited China last May.
- US Pacific Commander Speaks With Chinese Officials in Beijing VOA 14 Jan 2008 -- The commander of U.S. forces in the Pacific is meeting with Chinese officials in Beijing Monday to discuss military ties, Taiwan and other issues.
- China set to carry out first spacewalk in 2008 RIA Novosti 28 Feb 2008 -- China is to carry out its first spacewalk in the second half of 2008, when a Chinese astronaut will step out into open space from the Shenzhou-7 spacecraft, the Xinhua news agency said on Thursday.
- China copies Su-27 fighter, may compete with Russia - paper RIA Novosti 21 Feb 2008 -- China has built a domestic copy of the famed Su-27 Flanker fighter and may compete with Russia on third-party markets if it sets up the full-scale production of the plane, a Russian daily said on Thursday.
- China Says US Plan to Shoot Down Satellite May Harm Security VOA 17 Feb 2008 -- China says it is concerned that U.S. plans to shoot down a malfunctioning spy satellite could undermine the security situation in space.
- Defense Employee, Two Others Charged With Passing Secrets to China AFPS 11 Feb 2008 -- A Defense Department employee was among three people arrested today for espionage after allegedly passing classified U.S. government documents and information to the People’s Republic of China, Justice Department officials announced.
- US Makes 4 Arrests in Chinese Espionage Cases VOA 11 Feb 2008 -- The U.S. Justice Department has announced arrests in two cases involving Chinese espionage, one of which involved secrets related to America's space shuttle program
- Moscow to present Sino-Russian space arms race control initiative RIA Novosti 11 Feb 2008 -- Russia will submit to a UN disarmament conference a joint Sino-Russian proposal for an international treaty to ban the deployment of weapons in outer space.
China Page Two
