Location Occupying the entire 5,000-km spread from the Sea of Japan and the East China Sea in the east, to the Afghan border in the west, China has one of the longest international boundaries in the world. In the north and northwest, its border is shared with Mongolia, Russia, Tajikistan, Kyrgyzstan and Kazakhstan. In the west, it meets Afghanistan and Pakistan, while India, Nepal, Bhutan, Myanmar, Laos and Vietnam lie to the south. The capital is Beijing.
Head of state President Hu Jintao (2003)
Head of government Wen Jiabao (2003)
Ruling party Chinese Communist Party
Political structure All legislative authority is vested in the 3,000-member National People's Congress, which is elected every five years. The Congress, however, meets only once a year, and the Communist Party undertakes most political decisions.
Last elections In March 2003, Hu Jintao was elected President. At the same time, Wen Jiabao was elevated to head of government.
Political risk With 56 officially-recognised ethnic groups in the country, the unrest of some minorities is becoming a serious problem. The government has implemented a sweeping crackdown of Uighurs suspected of involvement in riots and terrorist plots. Discontent among Han residents of Xingjian is also a concern. China's pension system is chaotic, and the government must find remedies before a fast-ageing population turns the problem into a crisis. By 2015, the country will have over 146 million people over the age of 65, up from just 45 million in 1980. There is rampant evasion of pension contributions, while nearly half of urban employees are not covered. Another source of tension is the income gap between urban and rural inhabitants which continues to widen.
International disputes China is surrounded by 14 states with some borders still in dispute. No relations are more difficult than those with Taiwan. China also has several territorial disputes with other states involving the potentially hydrocarbon-rich Spratly Islands. Beijing's relations with pro-democracy supporters in Hong Kong are sometimes difficult. China and Japan have a dispute regarding the exploration for natural gas in the East China Sea. In 2008, Beijing finally reached an agreement on the entire length of its border with Russia. China has refrained from putting more pressure on North Korea to come to the negotiating table despite urging by the USA. Beijing fears a mass exodus of North Koreans across its border. Tensions between China and Washington have mounted over the former's refusal to let its currency appreciate. Washington believes the decision holds back the US recovery.
Main industries
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Agriculture accounts for 11.3% of GDP. As part of Beijing's fiscal stimulus, public investment in agriculture soared by more than 50% in 2009. The main objective was to increase farm yields and boost rural incomes. Agriculture also remains a favoured target for foreign investors who expect steady growth in purchasing power will be translated into a change in dietary habits. Northern China, which accounts for 58% of the country's food production, suffered its worst drought in half a century during 2009. Rice is the main food crop, but tea, sugar and fibre crops are also important cash earners. In addition, China is the world's biggest producer and consumer of cotton. Manufacturing accounts for 34.4% of GDP. Driven by public spending, investment in industry surged by 27% in 2009. Real growth of industrial output fell to 9.5% as exports slowed. The automobile industry has emerged as an important economic driver after the government approved a package of tax cuts and subsidies for small cars. During 2009, China became the world's largest car market and a rise in sales of 25% is predicted in 2010. Subsidies for purchasers of home appliances have led to a surge in demand in consumer markets. Services make up 22.6% of GDP. Growth in the sector is driven primarily by government policies to stimulate consumer spending. Public investment in services rose by 33% during 2009. Banks are now more commercially oriented and non-performing loans remain at modest levels. Banks have increased their capital but profitability has fallen as interest rates have dropped.
Economy After nearly three decades of uninterrupted growth, the world has become accustomed to China serving as one of its major engines for growth. However, the economy stumbled in 2009, when real GDP rose by 8.7% - the slowest pace in nearly a decade. An aggressive fiscal and monetary stimulus soon got the economy back on track. Driven by domestic demand and public investment, growth resumed during the second half of 2009. The real value of exports fell by 15.9% during the year but sales began to recover before the end of 2009. Beijing still faces some serious challenges. Officials are trying to alter the model they have followed for many years. On the demand side, the shift in strategy depends on consumption overtaking investment as the main economic driver. On the supply side, the service sector is expected to replace industry as the primary contributor to growth. So far, there is little or no evidence that any significant structural adjustments have occurred.
Energy China, the world's second largest consumer of petroleum products after the USA, has 15.4 billion barrels of proven oil reserves. The country's expanding energy needs represents more than a third of the world total increase in demand. Oil demand should reach 14.2 million barrels per day (bbl/d) by 2025, with net imports of 10.9 million bbl/d. Proven oil reserves stand at 15.4 billion barrels but Beijing claims to have at least 47 billion, a much higher figure than the estimates of international experts. Recent offshore oil exploration interest is focused on the Bohai Sea area, believed to hold more than 1.5 billion barrels in reserves, and the Pearl River Mouth area. The country has also been acquiring interests in exploration and production abroad. This includes oil concessions in Kazakhstan, Venezuela, Sudan, Iraq, Iran, Peru and Azerbaijan. China also has 2.7 trillion cubic metres of proven reserves of natural gas. China is also the world's largest producer and consumer of coal.
Statistical Summary 2004 Inflation (% change) Exchange rate (per US$) Lending rate GDP (% real growth) GDP (national currency millions) GDP (US$ millions) Population, mid-year ('000) Birth rate (per '000) Death rate (per '000) No. of households ('000) Total exports (US$ millions) Total imports (US$ millions) Tourism receipts (US$ millions) Tourism spending (US$ millions) Urban population ('000) Urban population (%) Population aged 0-14 (%) Population aged 15-64 (%) 4.1 8.28 5.6 10.1 2005 1.9 8.19 5.6 11.3 2006 1.5 7.97 6.1 12.7 2007 5.0 7.61 7.5 14.2 2008 6.3 6.95 5.3 9.6 2009 -0.7 6.83 5.3 9.1
Population aged 65+ (%) Male population (%) Female population (%) Life expectancy male (years) Life expectancy female (years) Infant mortality (deaths per '000 live births) Adult literacy (%)
8.6 51.5 48.5 70.8 74.1 29.2 93.1
9.1 51.5 48.5 71.0 74.3 28.5 92.6
9.2 51.5 48.5 71.2 74.5 28.1 93.0
9.3 51.5 48.5 71.3 74.8 27.5 93.3
9.4 51.5 48.5 71.5 75.0 27.3 93.6
9.6 51.5 48.5 71.6 75.2 26.8 94.0
Imports and Exports
Major export destinations Asia-Pacific Europe North America Africa and the Middle East Other countries Latin America 2008 Share (%) Major import sources 34.7 Asia Pacific 24.8 Other countries 19.2 Europe 7.6 Africa and the Middle East 7.1 North America 4.9 Latin America 2008 Share (%) 27.8 27.2 15.0 12.0 8.3 6.3
