Wayzata World Factbook 1996/The World Factbook - 1996 Edition - Wayzata Technology (3079) (1996).iso/pc/text/backgrd/china.bkg

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U.S. Department of State
Background Notes:  China, November 1995
Bureau of Public Affairs

November 1995
Official Name:  People's Republic of China

PROFILE

Geography

Total Area: 9.6 million sq. km. Slightly larger than U.S.; world's
third-largest country (after Russia and Canada).
Cities: Capital--Beijing. Other major cities--Shanghai, Tianjin,
Guangzhou, Shenyang, Wuhan, Chengdu.
Terrain: Mostly mountainous, high plateaus, deserts in west; plains,
deltas, and hills in east.
Climate: Tropical in south to subarctic in north.

People

Nationality: Noun and adjective--Chinese (sing. and pl.).
Population (1993): About 1.2 billion
Growth rate (1993): 1.4%.
Health (1993): Infant mortality rate--3/1,000. Life expectancy--68 yrs.
male, 72 yrs. female.
Ethnic groups: Han Chinese 93%; Zhuang, Uygur, Hui, Yi, Tibetan, Miao,
Manchu, Mongol, Buyi, Korean, and other nationalities 6.7%.
Religion: Officially atheist; most important elements of religion are
Confucianism, Taoism, and Buddhism; Muslim 2%-3%, Christian 1%.
Language: Standard Chinese (Putonghua, or Mandarin) plus many local
dialects.
Education: Years compulsory--nine.  Literacy--73%. Attendance (est.)--
80%.
Work force (650 million): Agriculture and forestry--60%. Industry--22%.
Services, including commerce--8%.

Government

Type: Communist party-led state.
Constitution: December 4, 1982.
Independence: Unification under the Qin (Ch'in) Dynasty 221 BC; Qing
(Ch'ing or Manchu) Dynasty replaced by  a republic on February 12, 1912;
People's Republic established October 1,1949.
Branches: Executive--president, vice president, State Council, premier.
Legislative--unicameral National People's Congress.
Judicial--Supreme People's Court.

Economy

GNP (1993): $322 billion.
Per capita GDP: $268.
Annual real growth rate (1993): 13%.
Natural resources: Coal, iron ore, crude oil, mercury, tin, tungsten,
antimony, manganese, molybdenum, vanadium, magnetite, aluminum, lead,
zinc, uranium, world's largest hydroelectric potential.
Agriculture: among the world's largest producers of rice, potatoes,
sorghum, peanuts, tea, millet, barley, and pork; commercial crops
include cotton, other fibers, and oilseeds; produces variety of
livestock products; basically self-sufficient in food.
Trade (1993): Exports--$91.8 billion:  textiles; garments;
telecommunications and recording equipment; petroleum; minerals.
Partners--Hong Kong, Japan, EU, U.S., ASEAN. Imports--$103.9 billion:
specialized industrial machinery; chemicals; manufactured goods; steel;
textile; yarn; fertilizer. Partners--Hong Kong, Japan, EU, U.S., ASEAN.

U.S.-CHINA RELATIONS

The United States seeks constructive relations with a strong, stable,
open, and prosperous China that is integrated into the international
community and acts as responsible member of that community. The U.S.
needs a constructive working relationship with China because:

--  The People's Republic of China (P.R.C.) plays a major role in the
post-Cold War world;
--  It is the world's most populous nation (about 1.2 billion people)
and the third-largest in land mass (after Russia and Canada);
--  It has nuclear weapons, is a growing military power, and plays a key
role in regional stability;
--  As one of the five permanent members of the UN Security Council,
China has veto power over Security Council resolutions dealing with key
multilateral issues, including international peacekeeping and the
resolution of regional conflicts; and
--  China is undergoing extraordinary economic growth and promises to be
a preeminent economic power early in the next century.

In the 1972 Shanghai Communique signed during President Nixon's historic
trip to China, the United States adopted a "one-China policy." This
policy acknowledges that Chinese on both sides of the Taiwan Strait
maintain that there is only one China and that Taiwan is part of China.
In 1979, the United States established relations with the P.R.C. and
transferred diplomatic recognition from Taipei to Beijing. A 1979 Joint
Communique reflected this change, and Beijing agreed that the American
people would continue to carry on commercial, cultural, and other
unofficial contacts with the people of Taiwan. The 1979 Taiwan Relations
Act, and a third Joint Communique signed in 1982, further defined the
U.S.-China relationship as well as unofficial U.S. relations with the
people of Taiwan.

In September 1993, President Clinton launched a policy of comprehensive
engagement with China to pursue U.S. interests through intensive, high-
level dialogue with the Chinese. This policy seeks:

--  Constructive Chinese participation in the UN Security Council and in
the resolution of regional conflicts to enhance global peace and
security;
--  Active participation by China in multilateral nonproliferation
regimes, which is necessary to halt the spread of weapons of mass
destruction and their delivery systems;
--  Economic and trade relations with China that meet U.S. economic
interests;
--  Respect for internationally recognized standards of human rights and
the rule of law in China; and
--  Chinese cooperation on global issues, particularly to combat alien
smuggling and narcotics trafficking and to improve protection of the
environment.

Regional security remains a key issue in the U.S.-China relations. The
United States has a long-term interest in peace and stability in Asia;
there are approximately 100,000 American soldiers stationed in the Asia-
Pacific region. China plays a key role in regional security issues,
including resolving the North Korean nuclear issue, reaching a peaceful
settlement of the territorial dispute over the South China Sea and
Spratly Islands, and building democracy and peace in Cambodia. The
United States supports China's active participation in evolving regional
security institutions, most prominently the ASEAN--Association of
Southeast Asian Nations-Regional Forum and the Northeast Asia Security
Dialogue.

With regard to other nuclear and security issues, the United States and
China have agreed to work together to try to achieve an international
convention banning the production of fissile materials for nuclear
weapons or other nuclear explosive devices. China is a signatory to the
Nuclear Non-Proliferation Treaty (NPT), has declared it will sign a
nuclear test ban treaty in 1996, and has banned the exports of
intermediate and long-range missiles. In May 1995, China voted in favor
of indefinite extension of the NPT, a top priority in U.S. foreign
policy.  The United States continues to urge China to cease nuclear
tests immediately and sign a zero-yield comprehensive test ban treaty
(CTBT); stop all nuclear cooperation with Iran's nuclear power
generation program; become a member of the Missile Technology Control
Regime (MTCR) to further restrict transfers of missile components and
technology; and control strictly exports of chemical and biological
weapon precursors.

Trade and Investment

China's economy will soon be among the world's largest. The country has
a quarter of the world's population--a vast pool of potential consumers
for U.S. products and services--and market-oriented reforms have
recently helped generate very rapid economic growth. The World Bank has
predicted that China's economy will grow  8%-10% per year until the year
2000 and has estimated that China's economic output will reach $10
trillion dollars by early in the next century.

With this rapid economic expansion, China's market will be increasingly
important for United Sates commercial interests. The U.S. currently
grants China most-favored-nation trading status (see Government and
Political Conditions). In some sectors, access to the Chinese market has
become a critical element of U.S. producers' growth strategies. U.S.-
China trade has continued to climb, reaching $47.7 billion in 1994--up
from $40.3 billion the previous year. Recently, however, China's exports
to the U.S. have accounted for most of the growth in bilateral trade.
The U.S. merchandise trade deficit with China was about $29.4 billion in
1994, exceeded only by the U.S. bilateral trade deficit with Japan. In
order to build a balanced and sustainable bilateral trading
relationship, it will be essential to obtain greater market access for
U.S. products and services in China

Seeking to participate in China's rapid economic growth, major
multinational corporations from around the world have shown great
interest in investing in China. The United States is the third-largest
source of such investment, after Hong Kong and Taiwan. Globally, China
is second only to the United States as recipient of foreign direct
investment.

The increasingly important U.S. economic and trade relations with China
are key to the Administration's "comprehensive engagement" strategy. In
economics and trade, this strategy has two main elements.

--  First, the United States seeks to fully integrate China into the
global, market-based economic and trading system. China's participation
in the global economy will nurture the process of economic reform and
increase China's stake in the stability and prosperity of East Asia.
--  Second, the United States seeks to expand U.S. exporters' and
investors' access to the Chinese market. As China grows and develops,
its needs for imported goods and services will grow even more rapidly.

China is now in its tenth year of negotiations for accession to the
World Trade Organization (WTO)--formerly the General Agreement on
Tariffs and Trade (GATT). All new WTO members are required to comply
with certain fundamental trading disciplines and offer substantially
expanded market access to other members of the organization.

Securing China's accession to the WTO on these terms is necessary for
China's economic transformation, for stability and growth in the U.S.
and other WTO-member economies, and for the integrity of the
international trading system. The United States continues to work with
China and other WTO members toward a commercially viable accession
protocol.

Many major trading entities--among them the United States, the European
Union, and Japan--have shared concerns with respect to China's
accession. These concerns include efforts to obtain satisfactory market
access offers for both goods and services, full trading rights for all
potential Chinese consumers and end-users, non-discrimination between
foreign and local commercial operations in China, the reduction of
monopolistic state trading practices, and the elimination of arbitrary
or non-scientific technical standards.

The United States and China also maintain a very active dialogue on
bilateral trade issues. In the past year, the two sides have concluded
agreements on the protection of intellectual property rights (IPR),
textiles, and satellite launches. Additional talks are scheduled this
year on civil aviation, export financing, maritime services, and a
variety of other commercial issues.

U.S. and Chinese negotiators meet regularly to review progress in
implementing these and other important commercial agreements, such as
the bilateral agreement on enforcement of intellectual property rights.
In areas where China has failed to comply with its international
commitments, the Administration has exercised its legislative authority
to conduct investigations and, when necessary, propose appropriate trade
sanctions. These efforts will not only expand the commercial
opportunities open to U.S. exporters in China but also contribute to
China's efforts to bring its trade regime into compliance with the WTO
and with other international commercial standards.

The United States continues to expand its export promotion efforts and
its scientific and technical exchange programs in China. During Energy
Secretary O'Leary's 1995 visit to China, the United States and China not
only witnessed the signing of commercial agreements that will facilitate
billions of dollars in new American exports but also established the
framework for scientific, technical, and economic cooperation in
developing China's sustainable energy development program. Commerce
Secretary Brown's visits to China have been equally successful in
helping to build long-term economic and business ties between China and
the United States.

The U.S. economic relationship with Hong Kong is closely tied to U.S.-
China relations. Under the 1984 Sino-British Joint Declaration, Hong
Kong will become a Special Administrative Region (SAR) of the P.R.C. on
July 1, 1997. U.S. concerns over this transition include economic and
investment issues. The United States has substantial economic and social
ties with Hong Kong, with an estimated $8 billion to $10 billion
invested there. There are 900,000 U.S. firms and 30,000 Americans
resident in Hong Kong. The United States is Hong Kong's largest market--
importing almost $10 billion in 1993--and Hong Kong is America's
fourteenth-largest trading partner--$9 billion in U.S. exports in 1993.

The United States and China both are members of the Asia-Pacific
Economic Cooperation forum (APEC). At the November 1994 APEC summit in
Bogor, Indonesia, President Clinton, Chinese President Jiang Zemin, and
the other APEC leaders pledged to meet the goal of free and open trade
and investment in the Asia-Pacific region by the year 2020.

Principal U.S. Embassy Officials

Ambassador--vacant
Charge d'Affaires--Scott S. Hallford
Political Officer--William A. Stanton
Economic Officer--Jack L. Gosnell
Commercial Officer--Ying Lam

The U.S. embassy in China is located at Xiu Shui Bei Jie 3, 100600,
Beijing; tel. [86] (10) 532-3831; fax [86] (10) 532-6422.

GOVERNMENT AND POLITICAL CONDITIONS

China has been a one-party state controlled by the Chinese Communist
Party (CCP) since 1949. The P.R.C. was founded that year following the
communist victory in a civil war with the ruling Nationalist Chinese;
the Nationalists fled to Taiwan.

China is ruled by a CCP Politburo and a shrinking circle of retired but
still powerful senior leaders such as Deng Xiaoping. Despite continued
official adherence to Marxism-Leninism, in recent years economic
decision-making has become less ideological, more decentralized, and
increasingly market-oriented. The P.R.C. Government position is that
China is developing a "socialist market economy with Chinese
characteristics."

The Chinese Government has always been subordinate to the CCP; its role
is to implement party policies.  The primary instruments of state power
are the State Council, an executive body corresponding to a cabinet; and
the National People's Congress (NPC), a legislative body.  Members of
the State Council include the premier, a variable number of vice
premiers, nine state councilors, the heads of ministries, and the heads
of other commissions and agencies attached to the State Council.

Under the Chinese constitution, the NPC theoretically is the state's
leading government body.  Members are elected by secret ballot for a
five-year term by provincial-level people's congresses. It meets
annually for about two weeks to review major new policy initiatives
presented to it by the State Council after endorsement by the Communist
Party's Central Committee. Although the NPC generally approves these
initiatives, NPC committees debate in closed sessions, and changes may
be made to accommodate alternative views.

Although traditionally not considered independent of the party and
government, China's judiciary continues to undergo rapid reform. The
drive to establish a functioning legal system first began in 1979.
China's 1982 constitution--adopted by the NPC--emphasizes the rule of
law under which even party leaders are held accountable. A mainstay of
China's legal system is the use of mediation committees, groups of
citizens who resolve about 90% of civil disputes and some minor criminal
cases at no cost to the parties. Trained lawyers and legal aides remain
scarce, complicating delivery of legal services in the courts. An
Administrative Procedure Law allows citizens to sue officials for abuse
of authority or malfeasance. The highest court of appeal for civil or
criminal cases is the Supreme People's Court.

Fundamental human rights provided for in China's 1982 constitution are
frequently ignored in practice, particularly when the citizens challenge
the CCP's political authority. Those charged with political offenses--as
opposed to common crimes--are frequently treated harshly and
arbitrarily. Freedom of association, religion, speech, and the press are
severely restricted in practice.

Following the P.R.C. Government's suppression of the democracy movement
at Tiananmen Square in June 1989, the U.S. and other nations imposed a
number of sanctions against China. Some of these Tiananmen-era U.S.
sanctions remain in place. The Trade Act of 1974--specifically, the
Jackson-Vanik amendment--requires an annual review of China's emigration
record for China to retain its most-favored-nation trading status (MFN).
This annual review remains in effect and, since 1990, has been the focus
of efforts in both the executive and legislative branches to assess our
overall relationship with China, including China's performance on human
rights issues.

In May 1993, President Clinton signed an Executive Order tying renewal
of China's MFN in 1994 to progress in several human rights areas.
Although China did not achieve "overall significant progress" in certain
areas identified in the Executive Order, the President decided to renew
China's MFN status on May 26, 1994. He noted that China met the two
mandatory requirements on immigration and prison labor.

Taking into account these results and other vital U.S. interests, and
convinced that the time had come for a new approach, the President
decided to de-link the annual MFN process from China's human rights
performance. At the same time, the President decided to adopt a new
human rights strategy, maintaining human rights concerns as an essential
part of our engagement with China but in a broader context. The
President also ordered a several additional steps to support those
seeking to foster the rule of law and a more open civil society in
China.

The United States and China have conducted seven rounds of bilateral
dialogue on human rights issues since October 1993. The United States
continues to press China on core human rights concerns: release of
prisoners of conscience and medical parole cases; resumption of
negotiations with the Dalai Lama on protecting the distinctive heritage
and culture of Tibet; and concluding an agreement with international
humanitarian organizations to permit visits to Chinese prisons and
prisoners. In addition, U.S. concerns over Hong Kong's transition to
Chinese rule in 1997 include ensuring continued respect for human rights
and the rule of law in Hong Kong.

The United States has been disappointed with China's progress on human
rights since MFN renewal in May 1994. The United States continues to
urge China to adhere to internationally recognized human rights
standards.

Principal Officials

President and Chinese Communist Party General Secretary--Jiang Zemin
Vice President--Rong Yiren
Premier of the State Council--Li Peng
Minister of Foreign Affairs--Qian Qichen
Ambassador to the U.S.--Li Daoyu
Ambassador to the UN--Qin Huasun

China maintains an embassy in the United States at 2300 Connecticut Ave.
NW, Washington, DC  20008; tel. [phone]/2502.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides
Travel Warnings and Consular Information Sheets. Travel Warnings are
issued when the State Department recommends that Americans avoid travel
to a certain country. Consular Information Sheets exist for all
countries and include information on immigration practices, currency
regulations, health conditions, areas of instability, crime and
security, political disturbances, and the addresses of the U.S. posts in
the subject country. They can be obtained by telephone at [phone]
or by fax at [phone]. To access the Consular Affairs Bulletin
Board by computer, dial [phone], via a modem with standard
settings. Bureau of Consular Affairs' publications on obtaining
passports and planning a safe trip aboard are available from the
Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402, tel. [phone].

Emergency information concerning Americans traveling abroad may be
obtained from the Office of Overseas Citizens Services at (202) 647-
5225.

Travelers can check the latest health information with the U.S. Centers
for Disease Control and Prevention in Atlanta, Georgia. A hotline at
[phone] gives the most recent health advisories, immunization
recommendations or requirements, and advice on food and drinking water
safety for regions and countries. A booklet entitled Health Information
for International Travel (HHS publication number CDC-94-8280, price
$7.00) is available from the U.S. Government Printing Office,
Washington, DC 20420, tel. [phone].

Information on travel conditions, visa requirements, currency and
customs regulations, legal holidays, and other items of interest to
travelers also may be obtained before your departure from a country's
embassy and/or consulates in the U.S. (for this country, see "Principal
Officials" listing in this publication).

Upon their arrival in a country, U.S. citizens are encouraged to
register at the U.S. embassy (see "Principal U.S. Embassy Officials"
listing in this publication). This may help family members contact you
en route in case of an emergency.

Further Electronic Information:

Consular Affairs Bulletin Board (CABB). Available by modem, the CABB
provides Consular Information Sheets, Travel Warnings, and helpful
information for travelers. Access at [phone] is free of charge to
anyone with a personal computer, modem, telecommunications software, and
a telephone line.

Department of State Foreign Affairs Network. Available on the Internet,
DOSFAN provides timely, global access to official U.S. foreign policy
information. Updated daily, DOSFAN includes Background Notes; Dispatch,
the official weekly magazine of U.S. foreign policy; daily press
briefings; directories of key officers of foreign service posts; etc.
DOSFAN is accessible three ways on the Internet:

Gopher: dosfan.lib.uic.edu
URL: gopher://dosfan.lib.uic.edu/
WWW: http://dosfan.lib.uic.edu/dosfan.html

U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly basis
by the U.S. Department of State, USFAC archives information on the
Department of State Foreign Affairs Network, and includes an array of
official foreign policy information from 1990 to the present. Priced at
$80 ($100 foreign), one-year subscriptions include four discs (MSDOS and
Macintosh compatible) and are available from the Superintendent of
Documents, U.S. Government Printing Office, P.O. Box 37194, Pittsburgh,
PA 15250-7954. To order, call [phone] or fax [phone].

Federal Bulletin Board (BBS). A broad range of foreign policy
information also is carried on the BBS, operated by the U.S. Government
Printing Office (GPO). By modem, dial [phone]. For general BBS
information, call [phone].

National Trade Data Bank (NTDB). Operated by the U.S. Department of
Commerce, the NTDB contains a wealth of trade-related information,
including Country Commercial Guides. It is available on the Internet
(gopher.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202)
482-1986 for more information.

==============================
Background Notes Series -- Published by the United States Department of
State -- Bureau of Public Affairs -- Office of Public Communication --
Washington, DC

This information is in the public domain and may be reproduced without
permission; citation of this source is appreciated.
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