China Final Project Final

8/9/2019 China Final Project Final

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BY

DISCOVERING CHINA

NIRAJ RAI

PGDM 1st Year

Jyotirmoy School of Business

Prof. Nikhil Barat

1st Trimester Exam


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DISCOVERING CHINANIRAJ RAI

CONTENTS:

1. Executive summary

2. History and Origin in China

3. Post Civil War 1949 Present0

4. Natural barriers isolated China from all other civilizations

5. China: Cultivating the Land

6. China: Size and Population

7. Philosophy and Religion

8. Activity and Contribution

8.1. Development in Writing

8.2. Technology

9. Objective and Goals

9.1. Economic Restructuring

9.2. Economic Development in China after Mao

9.3. Major achievement of China in the last 50 Years

10. India and China Trade relations

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11. . China India Comparison

12.Future Perspective of China

1. EXECUTIVE SUMMARY (SUMMARY OR ABSTRACT)

The aim of this report is to know about China its contribution in the fields of technology,agriculture and world economy also the future prospects of china. The reason for choosingChina is it is the second fastest growing Economies in the world.

China and India, Asia's largest emerging economies. The two Asian giants, China andIndia, with one-third of the world population, are set to enter the league of the mostpowerful economies within the next two to three decades, even if their per capita incomeswill remain well below those of the developed nations.

Their output would have expanded by not less than 300-400 per cent, with their combinedshare of world trade anywhere between 10 and 15 per cent. This is no doubt subject to thetwo countries sustaining high rates of growth of 8-10 per cent per annum in conditions of asupportive external environment.

Huge market potential,

Rich labor resources,

Comparative advantage in labor cost

Sound corporate governance

Stable government and society.

Bu the question lies that how China has become such a power-

What are the drivers for the change of the economy?

Who brought the changes?

How does history affect the modern economy?

To answer all these questions we had a comparative study of China?

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CHINA

HISTORY& ORIGIN

ACTIVITIES&

CONTRIBUTIO

N

OBJECTIVESAND GOALS

ECONOMICDEVELOPME

NY

ANALYSIS

FUTURE

PERSPECTIV E&

FORECASTING


2.

HISTORY AND ORIGIN OF CHINA

Archaeological evidence suggests that the earliest hominids in China date from 250,000 to2.24 million years ago. A cave in Zhoukoudian (near present-day Beijing) has fossils datedat somewhere between 300,000 to 550,000 years. The fossils are of Peking Man, anexample ofHomo erectus who used fire.

The earliest evidence of a fully modern human in China comes from Liujiang County,Guangxi, where a cranium has been found and dated at approximately 67,000 years old.Although much controversy persists over the dating of the Liujiang remains, a partialskeleton from Minatogawa in Okinawa, Japan has been dated to 16,600 to 18,250 yearsold, so modern humans probably reached China before that time.

Dynastic rule

Xia Dynasty

Chinese tradition names the first dynasty Xia, but it was considered mythical untilscientific excavations found early bronze-age sites at Erlitou in Henan Province in 1959.Archaeologists have since uncovered urban sites, bronze implements, and tombs inlocations cited as Xia's in ancient historical texts, but it is impossible to verify that theseremains are of the Xia without written records from the period.

Shang Dynasty

The second dynasty, the loosely feudal Shang, settled along theYellow River in easternChina from the 18th to the 12th century BC. They were invaded from the west by theZhou, who ruled from the 12th to the 5th century BC, until their centralized authority wasslowly eroded by neighboring warlords. Many strong, independent states continuallywaged war with each other in the Spring and Autumn period, only occasionally deferring tothe Zhou king.

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Qin Dynasty

The first unified Chinese state was established by the Qin Dynasty in 221 BC, when theoffice of the Emperor was set up and the Chinese language was forciblystandardized. This state did not last long, as its legalist policies soon led to widespreadrebellion.

Han Dynasty

The subsequent Han Dynasty ruled China between 206 BC and 220 AD, and created alasting Han cultural identity among its populace that would last to the present day. TheHan Dynasty expanded the empire's territory considerably with military campaignsreaching Korea, Vietnam, Mongolia and Central Asia, and also helped establish the SilkRoad in Central Asia.

After Han's collapse, another period of disunion followed, including the highly chivalricperiod of the Three Kingdoms. Independent Chinese states of this period also opened

diplomatic relations with Japan, introducing the Chinese writing system there. In 580 AD,China was reunited under the Sui. However, the Sui Dynasty was short-lived after afailure in the Goguryeo-Sui Wars (598614) weakened it.

Tang and Song dynasties

Under the succeeding Tang and Song dynasties, Chinese technology and culturereached its zenith. The Tang Empire was at its height of power until the middle of the8th century, when the An Shi Rebellion destroyed the prosperity of the empire. The Songdynasty was the first government in world history to issue paper money and the first

Chinese polity to establish a permanent standing navy. Between the 10th and 11thcenturies, the population of China doubled in size. This growth came about throughexpanded rice cultivation in central and southern China, and the production of abundantfood surpluses. Within its borders, the Northern Song Dynasty had a population of some100 million people. The Song Dynasty was a culturally rich period in for philosophy and thearts. Landscape art and portrait painting were brought to new levels of maturity andcomplexity after the Tang Dynasty, and social elites gathered to view art, share their own,and make trades of precious artworks. Philosophers such as Cheng Yi and Chu Hsireinvigorated Confucianism with new commentary, infused Buddhist ideals, andemphasized a new organization of classic texts that brought about the core doctrine ofNeo-Confucianism.

Yuan Dynasty

In 1271, the Mongol leader and fifth Khagan of the Mongol Empire Kublai Khanestablished theYuan Dynasty, with the last remnant of the Song Dynasty falling to the

Yuan in 1279. Before the Mongol invasion, Chinese dynasties reportedly hadapproximately 120 million inhabitants; after the conquest was completed in 1279, the1300 census reported roughly 60 million people.

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Ming Dynasty

A peasant named Zhu Yuanzhang overthrew the Mongols in 1368 and founded the MingDynasty. Ming Dynasty thinkers such as Wang Yangming would further critique andexpand Neo-Confucianism with ideas ofindividualism and innate morality that would havetremendous impact on later Japanese thought. Chosun Korea also became a nominal

vassal state of Ming China and adopted much of its Neo-Confucian bureaucraticstructure. China's capital was moved from Nanjing to Beijing during the early MingDynasty. The Ming fell to the Manchus in 1644, who then established the Qing Dynasty.When Beijing was captured by Li Zicheng's peasant rebels in 1644, the last Ming EmperorChongzhen committed suicide.

Qing Dynasty

The Manchu then allied with Ming Dynasty general Wu Sangui and seized control ofBeijing, which became the new capital of the Qing dynasty.

The Qing Dynasty, which lasted until 1912, was the last dynasty in China. In the 19thcentury the Qing Dynasty adopted a defensive posture towards European imperialism,even though it engaged in imperialistic expansion into Central Asia. At this time Chinaawoke to the significance of the rest of the world, the West in particular. As China openedup to foreign trade and missionary activity, opium produced by British India was forcedonto Qing China. Two Opium Wars with Britain weakened the Emperor's control.

A corner tower of the Forbidden City at night; the palace was the residence for theimperial family from the reign of the Yongle Emperor of the Ming Dynasty in the 15thcentury until the fall of the Qing Dynasty in 1912.

Taiping Civil War

One result was the Taiping Civil War, which lasted from 1851 to 1862. It was led byHong Xiuquan, who was partly influenced by an idiosyncratic interpretation of Christianity.Hong believed himself to be the son of God and the younger brother of Jesus. Although theQing forces were eventually victorious, the civil war was one of the bloodiest in humanhistory, costing at least 20 million lives (more than the total number of fatalities in theFirst World War), with some estimates of up to two hundred million. Other costly rebellionsfollowed the Taiping Rebellion, such as the Punti-Hakka Clan Wars (185567), NienRebellion (18511868), Muslim Rebellion (186277), Panthay Rebellion (18561873) andthe Miao Rebellion (185473). These rebellions resulted in an estimated loss of several

million lives each and led to disastrous results for the economy and the countryside.[19][20][21]The flow of British opium hastened the empire's decline. In the 19th century, theage of colonialism was at its height and the great Chinese Diaspora began. About 35million overseas Chinese live in Southeast Asia today. The famine in 1876-79 claimedbetween 9 and 13 million lives in northern China. From 108 BC to 1911 AD, Chinaexperienced 1,828 famines, or one per year, somewhere in the empire.

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http://en.wikipedia.org/wiki/Zhu_Yuanzhanghttp://en.wikipedia.org/wiki/Ming_Dynastyhttp://en.wikipedia.org/wiki/Ming_Dynastyhttp://en.wikipedia.org/wiki/Wang_Yangminghttp://en.wikipedia.org/wiki/Individualismhttp://en.wikipedia.org/wiki/Joseon_Dynastyhttp://en.wikipedia.org/wiki/Nanjinghttp://en.wikipedia.org/wiki/Beijinghttp://en.wikipedia.org/wiki/Manchushttp://en.wikipedia.org/wiki/Qing_Dynastyhttp://en.wikipedia.org/wiki/Li_Zichenghttp://en.wikipedia.org/wiki/Chongzhenhttp://en.wikipedia.org/wiki/Suicidehttp://en.wikipedia.org/wiki/Wu_Sanguihttp://en.wikipedia.org/wiki/British_Indiahttp://en.wikipedia.org/wiki/Opium_Warhttp://en.wikipedia.org/wiki/Forbidden_Cityhttp://en.wikipedia.org/wiki/Yongle_Emperorhttp://en.wikipedia.org/wiki/Ming_Dynastyhttp://en.wikipedia.org/wiki/Qing_Dynastyhttp://en.wikipedia.org/wiki/Taiping_Rebellionhttp://en.wikipedia.org/wiki/Taiping_Rebellionhttp://en.wikipedia.org/wiki/Hong_Xiuquanhttp://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/Punti-Hakka_Clan_Warshttp://en.wikipedia.org/wiki/Nien_Rebellionhttp://en.wikipedia.org/wiki/Nien_Rebellionhttp://en.wikipedia.org/wiki/Dungan_revolthttp://en.wikipedia.org/wiki/Panthay_Rebellionhttp://en.wikipedia.org/wiki/China#cite_note-23http://en.wikipedia.org/wiki/China#cite_note-chineseciv-24http://en.wikipedia.org/wiki/China#cite_note-25http://en.wikipedia.org/wiki/Chinese_Diasporahttp://en.wikipedia.org/wiki/Overseas_Chinesehttp://en.wikipedia.org/wiki/Zhu_Yuanzhanghttp://en.wikipedia.org/wiki/Ming_Dynastyhttp://en.wikipedia.org/wiki/Ming_Dynastyhttp://en.wikipedia.org/wiki/Wang_Yangminghttp://en.wikipedia.org/wiki/Individualismhttp://en.wikipedia.org/wiki/Joseon_Dynastyhttp://en.wikipedia.org/wiki/Nanjinghttp://en.wikipedia.org/wiki/Beijinghttp://en.wikipedia.org/wiki/Manchushttp://en.wikipedia.org/wiki/Qing_Dynastyhttp://en.wikipedia.org/wiki/Li_Zichenghttp://en.wikipedia.org/wiki/Chongzhenhttp://en.wikipedia.org/wiki/Suicidehttp://en.wikipedia.org/wiki/Wu_Sanguihttp://en.wikipedia.org/wiki/British_Indiahttp://en.wikipedia.org/wiki/Opium_Warhttp://en.wikipedia.org/wiki/Forbidden_Cityhttp://en.wikipedia.org/wiki/Yongle_Emperorhttp://en.wikipedia.org/wiki/Ming_Dynastyhttp://en.wikipedia.org/wiki/Qing_Dynastyhttp://en.wikipedia.org/wiki/Taiping_Rebellionhttp://en.wikipedia.org/wiki/Taiping_Rebellionhttp://en.wikipedia.org/wiki/Hong_Xiuquanhttp://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/Punti-Hakka_Clan_Warshttp://en.wikipedia.org/wiki/Nien_Rebellionhttp://en.wikipedia.org/wiki/Nien_Rebellionhttp://en.wikipedia.org/wiki/Dungan_revolthttp://en.wikipedia.org/wiki/Panthay_Rebellionhttp://en.wikipedia.org/wiki/China#cite_note-23http://en.wikipedia.org/wiki/China#cite_note-chineseciv-24http://en.wikipedia.org/wiki/China#cite_note-25http://en.wikipedia.org/wiki/Chinese_Diasporahttp://en.wikipedia.org/wiki/Overseas_Chinese


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While China was wracked by continuous war, Meiji Japan succeeded in rapidly modernizingits military and set its sights on Korea and Manchuria. Influenced by Japan, Korea declaredindependence from Qing China's suzerainty in 1894, leading to the First Sino-JapaneseWar, which resulted in the Qing Dynasty's cession of both Korea and Taiwan to Japan.Following this series of defeats, a reform plan for the empire to become a modern Meiji-style constitutional monarchy was drafted by the Emperor Guangxu in 1898, but was

opposed and stopped by the Empress Dowager Cixi, who placed Emperor Guangxu underhouse arrest in a coup d'tat. Further destruction followed the ill-fated 1900 BoxerRebellion against westerners in Beijing. By the early 20th century, mass civil disorder hadbegun, and calls for reform and revolution were heard across the country. The 38-year-oldEmperor Guangxu died under house arrest on 14 November 1908, suspiciously just a daybefore Cixi's own death. With the throne empty, he was succeeded by Cixi's handpickedheir, his two year old nephew Puyi, who became the Xuantong Emperor. Guangxu'sconsort, who became the Empress Dowager Longyu, signed the abdication decree asregent in 1912, ending two thousand years of imperial rule in China. She died, childless, in1913.

Republic of China (191249)

On 1 January 1912, the Republic of China was established, heralding the end of the QingDynasty. Sun Yat-sen of the Kuomintang (the KMT or Nationalist Party) was proclaimedprovisional president of the republic. However, the presidency was later given to YuanShikai, a former Qing general, who had ensured the defection of the entire Beiyang Armyfrom the Qing Empire to the revolution. In 1915, Yuan proclaimed himself Emperor ofChina but was forced to abdicate and return the state to a republic when he realized it wasan unpopular move, not only with the population but also with his own Beiyang Army andits commanders.

After Yuan Shikai's death in 1916, China was politically fragmented, with an internationally

recognized but virtually powerless national government seated in Peking (Beijing).Warlords in various regions exercised actual control over their respective territories. In thelate 1920s, the Kuomintang, under Chiang Kai-shek, was able to reunify the country underits own control, moving the nation's capital to Nanking (Nanjing) and implementing"political tutelage", an intermediate stage of political development outlined in Sun Yat-sen's program for transforming China into a modern, democratic state. Effectively, politicaltutelage meant one-party rule by the Kuomintang.

The Sino-Japanese War of 19371945 (part of World War II) forced an uneasy alliancebetween the Nationalists and the Communists as well as causing around 20 millionChinese civilian deaths. With the surrender of Japan in 1945, China emerged victorious butfinancially drained. The continued distrust between the Nationalists and the Communists

led to the resumption of the Chinese Civil War. In 1947, constitutional rule wasestablished, but because of the ongoing Civil War many provisions of the ROC constitutionwere never implemented on the mainland.

Territories currently administered by two states that formally use the name China:the PRC (in purple) and the ROC (in orange).

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3.POST CIVIL WAR (1949PRESENT)

After its victory in the Chinese Civil War, the Communist Party of China (CCP) led by MaoZedong gained control of most of Mainland China. On 1 October 1949, they establishedthe People's Republic of China as a Socialist State headed by a "Democratic Dictatorship"with the CCP as the only legal political party, thus, laying claim as the successor state ofthe ROC. The central government of the Chinese Nationalist Party led by Chiang Kai-shekwas forced to retreat to the island ofTaiwan that it had occupied at the end of World WarII, and moved the ROC government there. Major armed hostilities ceased in 1950 but nopeace treaty has been signed. An estimated 36 million died during the Great ChineseFamine of 195861.

Beginning in the late 1970s, the Republic of China began the implementation of full,multi-party, representative democracy in the territories still under its control (Taiwan, anda number of smaller islands including Quemoy and Matsu). Today, the ROC has activepolitical participation by all sectors of society. The main cleavage in ROC politics is theissue of eventual political unification with the Chinese mainland vs. formal independenceof Taiwan.

After the Chinese Civil War, mainland China underwent a series of disruptivesocioeconomic movements starting in the late 1950s with the Great Leap Forward andcontinuing in the 1960s with the Cultural Revolution that left much of its education systemand economy in shambles. With the death of its first generation Communist Party leaderssuch as Mao Zedong and Zhou Enlai, the PRC began implementing a series of political andeconomic reforms advocated by Deng Xiaoping that eventually formed the foundation formainland China's rapid economic development starting in the 1990s.

Post-1978 reforms on the mainland have led to some relaxation of control over manyareas of society. However, the PRC government still has almost absolute control over

politics, and it continually seeks to eradicate what it perceives as threats to the social,political and economic stability of the country. Examples include the fight againstterrorism, jailing of political opponents and journalists, custody regulation of the press,regulation of religion, and suppression of independence/secessionist movements. In 1989,the student protests at Tiananmen Square were violently put to an end by the Chinesemilitary after 15 days of martial law. In 1997, Hong Kong was ceded to the PRC by theUnited Kingdom, and in 1999, Macau was handed over by Portugal.

Today, mainland China is administered by the People's Republic of Chinaa one-partystate under the leadership of the Chinese Communist Partywhile the island ofTaiwanand surrounding islands are administered by the Republic of Chinaa democratic multi-party state. After the founding of the People's Republic in 1949, both states claimed to be

the sole legitimate ruler of all of China. After the Kuomintang retreat to Taiwan in 1949,the Republic of China had maintained official diplomatic relations with most states aroundthe world, but by the 1970s, a shift had occurred in international diplomatic circles and thePeople's Republic of China gained the upper hand in international diplomatic relations andrecognition count. In 1971, under resolution 2758, the representatives of Chiang Kai-shekto the United Nations were expelled from the intergovernmental organization. With theexpulsion of the representatives, and effectively the Republic of China, the representativesof the People's Republic of China were invited to assume China's seat on the UN SecurityCouncil, the UN General Assembly and other United Nations councils and agencies. Later

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attempts by the Republic of China to rejoin the UN have either been blocked by thePeople's Republic of China, which has veto power on the UN Security Council, or rejectedby the United Nations Secretariat or a United Nations General Assembly committeeresponsible for the General Assembly's agenda.

Since the relocation of its capital to Taiwan, the Republic of China has not formally

renounced its claim to authority over all of China, nor has it changed its official maps,which include the mainland and Mongolia. Following the introduction of full democracy,and the electoral victory of the DPP's Chen Shui-bian in the presidential elections, the ROChad adopted a policy of separating the state's identity from "China", while moving towardsidentifying the state as "Taiwan". However, the ROC has not made any formal moves tochange the name, flag, or national anthem of the state to reflect a Taiwanese identity dueto the lack of consensus within Taiwan, pressure from the United States and the fear ofinvasion or military action from the People's Republic of China against the island. TheRepublic of China during the DPP years did not actively pursue its claims on mainlandChina or Mongolia, however, following the electoral victory of the KMT's Ma Ying-jeou aspresident, the claim to mainland China has been reasserted.[30] The People's Republic ofChina claims to have succeeded the Republic of China as the sole legitimate governingauthority of all of China, which, from the official viewpoint of the People's Republic ofChina, includes the island ofTaiwan. Over the last 50 years, both the Republic of Chinaand the People's Republic of China have used diplomatic and economic means to competefor recognition in the international arena. Because most international, intergovernmentalorganizations observe the One-China policy of the People's Republic of China, the PRC hasbeen able to pressure organizations, such as the World Health Organization and theInternational Olympic Committee, to refuse to officially recognize the Republic of China.Due to the One-China policy, states around the world are pressured to refuse, or to cut offdiplomatic relations with the Republic of China. As a result, 23 U.N. member statescurrently maintain official diplomatic relations with the Republic of China, while the vastmajority of U.N. member states maintain official diplomatic relations with the People'sRepublic of China.

4. NATURAL BARRIERS ISOLATED CHINA FROM ALL OTHERCIVILIZATIONS

China ranges from mostly plateaus and mountains in the west to lower lands in the east.Principal rivers flow from west to east, including the Yangtze (central), the Huang He(Yellow river, north-central), and the Amur (northeast), and sometimes toward the south(including the Pearl River, Mekong River, and Brahmaputra), with most Chinese rivers

emptying into the Pacific Ocean.

In the east, along the shores of theYellow Sea and the East China Sea there are extensiveand densely populated alluvial plains. On the edges of the Inner Mongolian plateau in thenorth, grasslands can be seen. Southern China is dominated by hills and low mountainranges. In the central-east are the deltas of China's two major rivers, the Huang He and

Yangtze River. Most of China's arable lands lie along these rivers, and they were thecenters of China's major ancient civilizations. Other major rivers include the Pearl River,Mekong, Brahmaputra and Amur. Yunnan Province is considered a part of the Greater

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Mekong Sub region, which also includes Myanmar, Laos, Thailand, Cambodia, andVietnam.

Main geographic features and regions of China.

In the west, the north has a great alluvial plain, and the south has a vast calcareoustableland traversed by hill ranges of moderate elevation, and the Himalayas, containingEarth's highest point, Mount Everest. The northwest also has high plateaus with more ariddesert landscapes such as the Taklimakan and the Gobi Desert, which has beenexpanding. During many dynasties, the southwestern border of China has been the highmountains and deep valleys ofYunnan, which separate modern China from Burma, Laosand Vietnam.

The Paleozoic formations of China, excepting only the upper part of the Carboniferoussystem, are marine, while the Mesozoic and Tertiary deposits are estuarine andfreshwater, or else of terrestrial origin. Groups of volcanic cones occur in the Great Plain ofnorth China. In the Liaodong and Shandong Peninsulas, there are basaltic plateaus.

The climate of China varies greatly. The northern zone (containing Beijing) has summerdaytime temperatures of more than 30 degrees Celsius and winters of Arctic severity. Thecentral zone (containing Shanghai) has a temperate continental climate with very hotsummers and cold winters. The southern zone (containing Guangzhou) has a subtropicalclimate with very hot summers and mild winters.

Due to a prolonged drought and poor agricultural practices, dust storms have becomeusual in the spring in China. Dust has blown to southern China and Taiwan, and hasreached the West Coast of the United States. Water, erosion, and pollution control havebecome important issues in China's relations with other countries.

5. CHINA: CULTIVATING THE LAND

China is geographically divided into two parts. Outer China is a sparsely settled region ofhigh mountains, plateaus, steppes, and deserts. Agricultural China is where 95% of theChinese people live.

Under Communist rule, Chinas agricultural land and farmers were organized in tocollective farms in an attempt to increase agricultural production.

Introduction

In 1949, Chinas grain output was 113.18 million tons, and that of cotton 444,000 tons;the agricultural foundation was fragile. Between 1950 and 1953, the Chinese governmentcarried out a wide-ranging land reform in the rural areas. Peasants with little or no landwere given land of their own, greatly arousing their enthusiasm for production. During theperiod of the First Five-Year Plan (1953-57), the yearly gross output of agriculture

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increased by 4.5 percent, on average. This period was the first golden time for Chinasagricultural development.

From 1958 to 1978, Chinas agriculture developed slowly. During this period, Chinapracticed the cooperative and peoples commune systems in rural areas successively,which emphasized the effectiveness of centralized and unified management, but reduced

the efficiency of resource utilization and allocation. As a result, the peasants enthusiasmfor production was greatly dampened. In this period, the gross agricultural output valueincreased by only 2.3 percent, on average, every year.

In 1978, China introduced the household contract responsibility system, linkingremuneration to output, and started to dismantle the peoples commune system,eliminating the links between organizations of state power and economic organizations.Contracting land out to peasants altered the distribution form of land and mobilized thepeasants* enthusiasm for production. In 1985, a second reform was carried out, whicheliminated the state monopoly of purchase and marketing of agricultural products, andimplemented the system of purchase according to contracts. The reform made the marketplay a basic role in adjusting the supply and demand situation for agricultural productsand allocating resources, and aroused the peasants creativeness and enthusiasm forproduction. Commodity production and circulation in rural areas developed at anunprecedented scale and rate. Meanwhile, through more than ten years of adjustment, theindustrial structure in rural areas is becoming more complete with each passing day: theproportion of primary industry has declined markedly, while the proportion of thesecondary and tertiary industries has risen. The proportion of agriculture in primaryindustry has also declined markedly, while that of animal husbandry and fisheries hasgrown; the proportion of cash crops in farm production has gone up, while that of graincrops gone down. Meanwhile, the proportion of secondary industry has dropped, while thatof tertiary industry has risen.

For 21 years, the average growth rate of Chinas agricultural gross output value reached6.5 percent, the highest being 12.3 percent in 1984, which surpassed the worlds averagedevelopment level for the same period. In 1999, Chinas agricultural production continuedto develop in an all-round way, and the outputs of grain, cotton and oil-bearing crops were508.39 million tons, 3.83 million tons and 26.012 million tons, respectively, increases of66.7, 76.7 and 400 percent over 1978; the output of meat amounted to 59.61 million tons,or seven times that of 1978; and that of aquatic products 41.224 million tons, an increaseof 8.8 times over 1978. As a result, the chronic shortage of major agricultural productswas finally overcome. Now the annual average quantities of meat, eggs and milk perperson are 50, 17 and 6.6 kg, which are close to or surpass the worlds average. Theproblem of shortages of food, which troubled Chinese peasants for hundreds of years, has

been solved at last.

The rise of township enterprises has promoted the all-round development of theagricultural economy. In 1987, the gross output value of township enterprises exceededthat of farming; in 1990, the township enterprises earned 13 billion US dollars fromexports, about 23.8 percent of the national gross value of foreign exchange earned fromexports. Thousands of towns are playing an important role in eliminating the differencesbetween urban and rural areas, and promoting the integration of urban and rural areas.

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The per capita net income of peasants increased from 134 yuan in 1978 to 2,210 yuan in1999

CROP CULTIVATION

Chinas main grain crops are rice, wheat, corn, soybeans and tuber crops. Paddy rice is themajor grain crop in China, grown mainly in the Yangtze River valley and southern China,and on the Yunnan-Guizhou Plateau. Its output accounts for two-fifths of the total grainoutput. The output of wheat accounts for slightly more than one fifth of the total output ofgrain; it is planted throughout China but mainly on the North China Plain. The output ofcorn, grown in the provinces of northeastern, northern and southwestern China, accounts

for one fourth of the total grain output. Soybeans are grown on the Northeast China Plainand the plains along the Yellow and Huaihe rivers. Sweet potatoes are grown widely inChina, but mainly in the Pearl River valley, along the middle and lower reaches of the

Yangtze River, the lower reaches of the Yellow River and in the Sichuan Basin.

Cash crops include cotton, peanuts, rape, sesame, sugarcane, tea, tobacco, mulberry andfruit. Cotton is grown mainly along the Yellow River and the middle and lower reaches ofthe Yangtze River, and in the Manas River valley in Xinjiang. Peanuts are grown inShandong, Guangdong, Guangxi and Liaoning. Rape is produced along the middle andlower reaches of the Yangtze River, and in the Sichuan Basin. Sugarcane is grown insouthern China. Beets are grown for the most part in Heilongjiang, Jilin and Inner Mongolia

6. CHINA: SIZE ANDPOPULATION

304,059,724POPULATION*1,330,044,544 POPULATION*

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The population of China is more than one billion people, the largest national group in the

world. Two-thirds of the Chinese people are farmers, but only 4% of Chinas land can be

cultivated

In an effort to balance the relationship between land and people, China adopted a one-

couple, one-child policy in the 1980s.

*Data from US & Chinese census as per July 2008.

CHINA'S POPULATION PROBLEM

The Chinese government has taken the enforcement of family planning and birthrate laws

to an extreme by violating the civil rights of its citizens, which has had bad effects on the

morale of its people (Whyte 161). China's population has grown to such an enormous size

that it has become a problem to both the people and government. China, the most

populous country in the world, has an estimated population of about one thousand-one

hundred-thirty three point six million (Hsu 1). Ninety-four percent of the population thrives

in the eastern half of China, which composes about forty-three percent of China's total

area (Hsu 1). The eastern half of China contains its most populous cities like Beijing,

Shanghai, and Tianjin. However these cities have a low fertility rate due to recent

bandwagons of birth control. The average density in the eastern half of China averages

around two-hundred and thirty-six people per square kilometer, whereas the density in the

west half averages around ten point six people per square kilometer (Hsu 1). Current

enforcement of Chinese laws prevents migration between provinces without proper

authorization, as the citizens in the west half of China have a desire to live in a more ur

7. CHINA: PHILOSOPHY AND RELIGION

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CONFUCIANISM

5 Sacred Relationships

Wife obeys husband, Children obey parents, Younger children obey

older children, Friend is loyal to Friend, all People obey Emperor Ancestor Worship

Confucius (K'ung Fu-tzu), born in the state of Lu (northern China), lived from 551 to 479 B.C. He was a brilliantteacher, viewing education not merely as the accumulation of knowledge but as a means of self-transformation.His legacy was a system of thought emphasizing education, proper behavior, and loyalty. His effect on Chineseculture was immense.

The teachings of Confucius are contained in theAnalects, a collection of his sayings as remembered by hisstudents. They were further developed by philosophers such as Mencius (Meng Tse, fl. 400 B.C.). Confucianismis little concerned with metaphysical discussion of religion or with spiritual attainments. It instead emphasizesmoral conduct and right relationships in the human sphere.

Cultivation of virtue is a central tenet of Confucianism. Two important virtues arejen, a benevolent andhumanitarian attitude, and li, maintaining proper relationships and rituals that enhance the life of the individual,the family, and the state. The five relations, between king and subject, father and son, man and wife, older andyounger brother, and friend and friend, are of utmost importance. These relationships are reinforced byparticipation in rituals, including the formal procedures of court life and religious rituals such as ancestor worship.

Confucius revolutionized educational thought in China. He believed that learning was not to be focused only onattaining the skills for a particular profession, but for growth in moral judgment and self-realization. Confucius'sstandards for the proper conduct of government shaped the statecraft of China for centuries. Hundreds of templesin honor of Confucius testify to his stature as sage and teacher.

Confucianism was far less dominant in 20th-century China, at least on an official level. The state cult of

Confucius was ended in 1911. Still, Confucian traditions and moral standards are part of the cultural essence ofChina and other East Asian countries

TaoismFounder Lao Tzu

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TRIPOD OF CHINA

CONFUCIANISM TAOISM OR LAOTSE Buddhism


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Tao (pronounced "Dow") can be roughly translated into English aspath, orthe way. It is basically indefinable. Ithas to be experienced. It "refers to a power which envelops, surrounds and flows through all things, living andnon-living. The Tao regulates natural processes and nourishes balance in the Universe. It embodies the harmonyof opposites (i.e. there would be no love without hate, no light without dark, no male without female.)" 2

The founder of Taoism is believed by many religious historians to be Lao-Tse (604-531 BCE), whose life

overlapped that of Confucius (551-479 BCE). However other historians suggest that he is a synthesis of a numberof historical figures. Others suggest that he was a mythical figure. Still others suggest that he lived in the 4thcentury BCE.

He was searching for a way that would avoid the constant feudal warfare and other conflicts that disrupted societyduring his lifetime. The result was his book: Tao-te-Ching (a.k.a. Daodejing). Others believe that he is a mythicalcharacter.

Taoism started as a combination of psychology and philosophy but evolved into a religious faith in 440 CE whenit was adopted as a state religion. At that time Lao-Tse became popularly venerated as a deity. Taoism, along withBuddhism and Confucianism, became one of the three great religions of China. With the end of the Ch'ingDynasty in 1911, state support for Taoism ended. Much of the Taoist heritage was destroyed during the nextperiod of warlordism. After the Communist victory in 1949, religious freedom was severely restricted. "The newgovernment put monks to manual labor, confiscated temples, and plundered treasures. Several million monkswere reduced to fewer than 50,000" by 1960. 3 During the cultural revolution in China from 1966 to 1976, muchof the remaining Taoist heritage was destroyed. Some religious tolerance has been restored under Deng Xiao-pingfrom 1982 to the present time.

Taoism currently has about 20 million followers, and is primarily centered in Taiwan. About 30,000 Taoists livein North America; 1,720 in Canada (1991 census). Taoism has had a significant impact on North Americanculture in areas of "acupuncture, herbalism, holistic medicine, meditation and martial arts

Taoism, native to China, has a history of more than 1,700 years. China now has over 1,500Taoist temples and more than 25,000 Taoist priests and nuns.

Legalism

Founded by Han Fei Tzu Believed in strict, clear laws and a powerful, authoritariangovernment. Favored severe punishments, and believed everyone should takeresponsibility for obeying the law.Political dissent was a high crime punishable by death.

BUDDHISM SPREAD TO CHINA FROM INDIA.

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Buddhism is a religion and philosophy based on the teachings of the Buddha. Buddhismgradually spread from India throughout Asia to Central Asia, Sri Lanka , Tibet , SoutheastAsia, as well as to East Asian countries such as China , Korea , and Japan.Withapproximately 360 million followers, Buddhism is considered a major world religion.

Buddhism arrived in China at the start of the 1st century from Central Asia by way of the

Silk Road. The year 67 saw Buddhism's official introduction to China with the coming ofthe two monks Moton and Chufarlan.

Nevertheless most of the Chinese gentry were indifferent to these Central Asian travelersand their religion. Not only was their religion unknown but much of it seemed alien andamoral to Chinese sensibilities. Concepts such as monasticism and individual spiritualenlightenment directly contradicted the core Confucian principles of family and emperor.Confucianism promoted social stability, order, strong families, and practical living. Chineseofficials questioned how a monk's personal attainment of nirvana benefited the empire.Buddhism was less antithetical to Daoism, the other major religion of China, but at its coreDaoism sought harmony with the natural world while Buddhism sought to master the innerworld.

To thrive in China , Buddhism had to transform itself into a system that could exist withinthe Chinese way of life. Thus obscure Indian sutras that advocated filial piety became coretexts in China . Buddhism was made compatible with ancestor worship and participation inChina 's hierarchical system. Works were written arguing that the salvation of an individualwas a benefit to that individual's society and family and monks thus contributed to thegreater good.

It is conjectured that the shocking collapse of the Han Dynasty in 220 and the resultingperiod of social upheaval and political unrest known as the Three Kingdoms period mayhave helped the spread of Buddhism.

It is instructive that Buddhism propagated faster in northern China than in the south.Social upheaval in northern China worked to break down cultural barriers between theelite ruling families and the general populace, in contrast to the south where elite clansand royal families firmly monopolized politics. Daoist and Confucian political ideology hadlong consolidated the political status of elite clans in the south. Support of another religionwould have unknown and possibly adverse effects, for which these clans would not risktheir privileges. Furthermore pro-Buddhist policy would not be backed by the bureaucracy,which had been staffed by members of the clans. Southern rulers were in weaker positionsto strive for their legitimacy - some were even installed by the clans. It was not until thereign of Emperor Wu of the Liang Dynasty that saw the official support of Buddhism. ButBuddhism spread pretty well in the peasant populace, both in the north and the south.

The popularization of Buddhism in Tang Dynasty is evident in the many scripture-filledcaves and structures surviving today. The Mogao Caves near Dunhuang in Gansuprovince, the Longmen Grottoes near Luoyang in Henan and the Yungang Grottoes nearDatong in Shanxi are the most renowned of the Northern, Sui and Tang Dynasties. TheDiamond Sutra of AD 868, a Buddhist scripture discovered in AD 1907 inside the MogaoCaves , was the first dated example of block printing.

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As the first external religion and one of the three major schools of thought in China ,

Buddhism plays a very important role in China religion. It has affected and been affected

by Chinese culture, politics, literature and philosophy for almost two millenia.

Buddhism has a history of 2,000 years in China. Currently China has 13,000-some

Buddhist temples and about 200,000 Buddhist monks and nuns. Among them are 120,000

lamas and nuns, more than 1,700 Living Buddhas, and 3,000-some temples of Tibetan

Buddhism and nearly 10,000 Bhiksu and senior monks and more than 1,600 temples of

Pali Buddhism.

8. ACTIVITIES AND CONTRIBUTION

8.1. DEVELOPMENT OF WRITING

The earliest examples of Chinese writing are found on oracle bones. Shang dynasty rulers

consulted the gods through the use of oracle bones, animal bones and tortoise shells on

which priests scratched questions for the gods. The priest applied a hot poker to the

bones which cracked and then interpreted the cracks to see how the gods answered the

question.

The Chinese writing system is not alphabetic like English. It used symbols for words called

characters. Each character stands for an idea, not a sound. The characters are read

vertically in columns (down and up). The written language is not linked to the spoken

language, so people all over China could learn the same system of writing, even if they

spoke different languages.

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8.2 TECHNOLOGY

Bronze

During the Shang dynasty, Chinese artisans learned to make beautiful objects from

bronze to be used in religious ceremonies

Iron

Ancient Chinese learned how to build blast furnaces that allowed them to produce cast

iron used for weapons and agricultural tools such as the mold board plow.

Silk

Silk cloth was made by drawing the fine threads from the cocoon of a silkworm, spinning

the fiber into yarn, and weaving them into fabric.

Printing & Paper

Papermaking is known to have been traced back to China about 105 CE, when Tsai Lun, anofficial attached to the Imperial court during the Han Dynasty (202 BCE-220 CE), created asheet of paper using mulberry and other bast fibres along with fishnets, old rags, andhemp waste. However a recent archaeological discovery has been reported from nearDunhuang of paper with writing on it dating from 8 BCE, while paper had been used in

China for wrapping and padding since the 2nd century BCE. Paper used as a writingmedium became widespread by the 3rd century, and by the 6th century toilet paper wasstarting to be used in China as well. During the Tang Dynasty (618-907 CE) paper wasfolded and sewn into square bags to preserve the flavor of tea, while the later SongDynasty (960-1279 CE) was the first government on Earth to issue paper-printed money.Modern papermaking began in the early 1800s in Europe with the development of theFourdrinier machine, which produces a continuous roll of paper rather than individualsheets. These machines have become very large, up to 500 feet (~150 m) in length,producing a sheet 400 inches (~10 m) wide, and operating at speeds of over 60 mph (100

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km/h). In 1844, both Canadian inventor Charles Fenerty and German inventor F.G. Kellerhad invented the machine and process for pulping wood for the use in papermaking. Thiswould end the nearly 2000-year use of pulped rags and start a new era for the productionof newsprint and eventually all paper out of Gunpowder Magnetic compass

Gunpowder:

Gunpowder, also called black powder, is a mixture ofsulfur, charcoal, andpotassium nitrate. Known in Chineseas "Huo Yao", it is one of the Four Great Inventions of ancient China.[1] It burns rapidly, producing volumes ofhot solids and gases which can be used as apropellantin firearms and as apyrotechnic compositionin fireworks.The term gunpowder also refers broadly to any propellant powder. Modern firearms do not use the traditionalgunpowder (black powder) described in this article, but instead use smokeless powder. Antique firearms orreplicas of antique firearms are often used withblack powder substitute.

Gunpowder is classified as a low explosive because of its relatively slow decomposition rate and consequentlylow brisance. Low explosives deflagrate at subsonic speeds. High explosives detonate, producing a supersonicwave. The gases produced by burning gunpowder generate enough pressure to propel a bullet, but not enough todestroy a gun barrel. This makes gunpowder less suitable for shattering rock or fortifications, where highexplosives such as TNTare preferred.

Chinese Mathematics:

Mathematics in China emerged independently by the 11th century BC.[1]The Chinese independently developedvery large and negative numbers, decimals, adecimal system, abinary system,algebra,geometry,trigonometry.

Magnetic Compass:

A compass is an instrument containing a freely suspended magnetic element which displays the direction of thehorizontal component of the Earth's magnetic field at the point of observation. The magnetic compass is an old

Chinese invention, probaly first made in China during the Qin dynasty (221-206 B.C.). Chinese fortune tellersused lodestones (a mineral composed of an iron oxide which aligns itself in a north-south direction) to constructtheir fortune telling boards.

Few other Contributions:

Toilet paper, early seismologicaldetectors, matches,pound locks, the double-actionpiston pump,blastfurnace andcast iron, the iron plough, the multi-tubeseed drill, the suspension bridge, natural gas asfuel, the differential gearfor the South Pointing Chariot, the hydraulic-powered armillary sphere, thehydraulic-powered trip hammer, the mechanical chain drive, the mechanicalbelt drive, the raised-reliefmap, thepropeller, the crossbow, the cannon, the rocket, the multistage rocket, etc. Chinese astronomerswere among the first to record observations of a supernova. The work of the astronomerShen Kuo(103195) alone was most impressive, as he theorized that the sun and moon were spherical, correctedthe position of thepolestarwith his improved sighting tube, discovered the concept oftrue north, wroteof planetary motions such as retrogradation, and compared the orbital paths of the planets to points onthe shape of a rotating willow leaf.

9. OBJECTIVES AND GOALS

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http://en.wikipedia.org/wiki/Sulfurhttp://en.wikipedia.org/wiki/Charcoalhttp://en.wikipedia.org/wiki/Charcoalhttp://en.wikipedia.org/wiki/Potassium_nitratehttp://en.wikipedia.org/wiki/Potassium_nitratehttp://en.wikipedia.org/wiki/Four_Great_Inventions_of_ancient_Chinahttp://en.wikipedia.org/wiki/Four_Great_Inventions_of_ancient_Chinahttp://en.wikipedia.org/wiki/Gunpowder#cite_note-0http://en.wikipedia.org/wiki/Propellanthttp://en.wikipedia.org/wiki/Propellanthttp://en.wikipedia.org/wiki/Firearmshttp://en.wikipedia.org/wiki/Pyrotechnic_compositionhttp://en.wikipedia.org/wiki/Pyrotechnic_compositionhttp://en.wikipedia.org/wiki/Fireworkshttp://en.wikipedia.org/wiki/Smokeless_powderhttp://en.wikipedia.org/wiki/Black_powder_substitutehttp://en.wikipedia.org/wiki/Explosive_materialhttp://en.wikipedia.org/wiki/Explosive_materialhttp://en.wikipedia.org/wiki/Brisancehttp://en.wikipedia.org/wiki/Brisancehttp://en.wikipedia.org/wiki/Deflagrationhttp://en.wikipedia.org/wiki/Detonationhttp://en.wikipedia.org/wiki/Detonationhttp://en.wikipedia.org/wiki/Gun_barrelhttp://en.wikipedia.org/wiki/Gun_barrelhttp://en.wikipedia.org/wiki/Trinitrotoluenehttp://en.wikipedia.org/wiki/Trinitrotoluenehttp://en.wikipedia.org/wiki/Chinese_mathematics#cite_note-0http://en.wikipedia.org/wiki/Chinese_mathematics#cite_note-0http://en.wikipedia.org/wiki/Chinese_mathematics#cite_note-0http://en.wikipedia.org/wiki/Negative_numberhttp://en.wikipedia.org/wiki/Decimalhttp://en.wikipedia.org/wiki/Decimalhttp://en.wikipedia.org/wiki/Decimal_systemhttp://en.wikipedia.org/wiki/Decimal_systemhttp://en.wikipedia.org/wiki/Decimal_systemhttp://en.wikipedia.org/wiki/Binary_systemhttp://en.wikipedia.org/wiki/Algebrahttp://en.wikipedia.org/wiki/Algebrahttp://en.wikipedia.org/wiki/Geometryhttp://en.wikipedia.org/wiki/Geometryhttp://en.wikipedia.org/wiki/Trigonometryhttp://en.wikipedia.org/wiki/Trigonometryhttp://www.solarnavigator.net/geography/china.htmhttp://en.wikipedia.org/wiki/Seismometerhttp://en.wikipedia.org/wiki/Seismometerhttp://en.wikipedia.org/wiki/Pound_lockhttp://en.wikipedia.org/wiki/Pound_lockhttp://en.wikipedia.org/wiki/Piston_pumphttp://en.wikipedia.org/wiki/Blast_furnacehttp://en.wikipedia.org/wiki/Blast_furnacehttp://en.wikipedia.org/wiki/Blast_furnacehttp://en.wikipedia.org/wiki/Cast_ironhttp://en.wikipedia.org/wiki/Cast_ironhttp://en.wikipedia.org/wiki/Seed_drillhttp://en.wikipedia.org/wiki/Seed_drillhttp://en.wikipedia.org/wiki/Suspension_bridgehttp://en.wikipedia.org/wiki/Differential_(mechanical_device)http://en.wikipedia.org/wiki/Differential_(mechanical_device)http://en.wikipedia.org/wiki/South_Pointing_Chariothttp://en.wikipedia.org/wiki/Armillary_spherehttp://en.wikipedia.org/wiki/Armillary_spherehttp://en.wikipedia.org/wiki/Trip_hammerhttp://en.wikipedia.org/wiki/Chain_drivehttp://en.wikipedia.org/wiki/Belt_(mechanical)http://en.wikipedia.org/wiki/Raised-relief_maphttp://en.wikipedia.org/wiki/Raised-relief_maphttp://en.wikipedia.org/wiki/Propellerhttp://en.wikipedia.org/wiki/Crossbowhttp://en.wikipedia.org/wiki/Multistage_rockethttp://en.wikipedia.org/wiki/Astronomyhttp://en.wikipedia.org/wiki/Supernovahttp://en.wikipedia.org/wiki/Supernovahttp://en.wikipedia.org/wiki/Shen_Kuohttp://en.wikipedia.org/wiki/Polestarhttp://en.wikipedia.org/wiki/True_northhttp://en.wikipedia.org/wiki/True_northhttp://en.wikipedia.org/wiki/Retrogradationhttp://en.wikipedia.org/wiki/Retrogradationhttp://en.wikipedia.org/wiki/Sulfurhttp://en.wikipedia.org/wiki/Charcoalhttp://en.wikipedia.org/wiki/Potassium_nitratehttp://en.wikipedia.org/wiki/Four_Great_Inventions_of_ancient_Chinahttp://en.wikipedia.org/wiki/Gunpowder#cite_note-0http://en.wikipedia.org/wiki/Propellanthttp://en.wikipedia.org/wiki/Firearmshttp://en.wikipedia.org/wiki/Pyrotechnic_compositionhttp://en.wikipedia.org/wiki/Fireworkshttp://en.wikipedia.org/wiki/Smokeless_powderhttp://en.wikipedia.org/wiki/Black_powder_substitutehttp://en.wikipedia.org/wiki/Explosive_materialhttp://en.wikipedia.org/wiki/Brisancehttp://en.wikipedia.org/wiki/Deflagrationhttp://en.wikipedia.org/wiki/Detonationhttp://en.wikipedia.org/wiki/Gun_barrelhttp://en.wikipedia.org/wiki/Trinitrotoluenehttp://en.wikipedia.org/wiki/Chinese_mathematics#cite_note-0http://en.wikipedia.org/wiki/Negative_numberhttp://en.wikipedia.org/wiki/Decimalhttp://en.wikipedia.org/wiki/Decimal_systemhttp://en.wikipedia.org/wiki/Binary_systemhttp://en.wikipedia.org/wiki/Algebrahttp://en.wikipedia.org/wiki/Geometryhttp://en.wikipedia.org/wiki/Trigonometryhttp://www.solarnavigator.net/geography/china.htmhttp://en.wikipedia.org/wiki/Seismometerhttp://en.wikipedia.org/wiki/Pound_lockhttp://en.wikipedia.org/wiki/Piston_pumphttp://en.wikipedia.org/wiki/Blast_furnacehttp://en.wikipedia.org/wiki/Blast_furnacehttp://en.wikipedia.org/wiki/Cast_ironhttp://en.wikipedia.org/wiki/Seed_drillhttp://en.wikipedia.org/wiki/Suspension_bridgehttp://en.wikipedia.org/wiki/Differential_(mechanical_device)http://en.wikipedia.org/wiki/South_Pointing_Chariothttp://en.wikipedia.org/wiki/Armillary_spherehttp://en.wikipedia.org/wiki/Trip_hammerhttp://en.wikipedia.org/wiki/Chain_drivehttp://en.wikipedia.org/wiki/Belt_(mechanical)http://en.wikipedia.org/wiki/Raised-relief_maphttp://en.wikipedia.org/wiki/Raised-relief_maphttp://en.wikipedia.org/wiki/Propellerhttp://en.wikipedia.org/wiki/Crossbowhttp://en.wikipedia.org/wiki/Multistage_rockethttp://en.wikipedia.org/wiki/Astronomyhttp://en.wikipedia.org/wiki/Supernovahttp://en.wikipedia.org/wiki/Shen_Kuohttp://en.wikipedia.org/wiki/Polestarhttp://en.wikipedia.org/wiki/True_northhttp://en.wikipedia.org/wiki/Retrogradation


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9.1 ECONOMIC RESTRUCTURING

The Third Plenary Session of the CPC 11th Central Committee, held in 1978, made the decision to shiftthe policy stress to socialist modernization, and implement the strategic decision on reform and openingto the outside world. The reform began in the countryside: The contracted household responsibility

system linking remuneration to output and the two-layer management system featuring the integration ofcentralization and decentralization began to be implemented; centralized and assigned purchases ofagricultural and sideline products were gradually eliminated, and controls on the prices of mostagricultural and sideline products were relaxed; the adjustment of the industrial structure in rural areas,the development of diversified operations and township enterprises mobilized the peasants socialistenthusiasm for production. The Third Plenary Session of the CPC 12th Central Committee, held in 1984,adopted the Decision on Restructuring the Economic System, which signaled the elevation of the reformof Chinas economic system to an urban-centered stage. The 14th National Congress of the CPC held in1992 established Deng Xiaopings theory of building socialism with Chinese characteristics as theguiding policy in China, and put forward the goal of Chinas economic reform as establishing a socialistmarket economy system. Its principal contents may be summarized as follows: Adopting a series of

macro-adjustment and control measures to carry out the reform in depth and in all aspects, publicownership will continue to be the main form of ownership as various types of ownership are jointlydeveloped; the operation mechanism of state-owned enterprises will be further transformed to meet therequirements of the market economy; the property rights and responsibilities of enterprises will beclearly defined, the functions of the government separated from those of enterprises, and enterprisesscientifically managed; an open and unified national market system will be established, closelyintegrating urban and rural markets, providing for reciprocal flows between domestic and internationalmarkets, and promoting the optimization of resource allocation; changing the government's functions ineconomic management and establishing an optimal macro-regulatory system chiefly employing indirectmeans; an income distribution system based on distribution according to work will be established inwhich efficiency is given precedence and fairness in distribution is taken into account; a multi-tier social

security system will be set up to accelerate the development of Chinas economy. The 15th NationalCongress of the CPC, held in 1997, put forward the viewpoint that the non-publicownership sector isan important component part of Chinas socialist economy. Encouraging essential production factors,such as capital and technology, to participate in the distribution of gains enables the reform of Chinaseconomic system to take bigger steps. By 1999, the reform had gone smoothly in every aspect, andremarkable progress had been made. For instance, much work had been done to deepen the reform of thegrain circulation system, the reform of state-owned enterprises and the reform of the banking system,and new achievements had been made. Reforms had been proposed for the housing and medicalinsurance systems; and plans for the reform of the investment, banking, financial and taxation systemswere being formulated. The institutional restructuring of the State Council has been going smoothly, andhas achieved important results. Now, Chinas socialist market economy system is being set up, the basic

functions of the market in resource allocation have been obviously strengthened, and the initialframework of the macro-adjustment and control system has taken shape. Moreover, the form ofeconomic growth is changing from the extensive to the intensive type. By 2010, China will haveestablished a comparatively sound socialist market economy, which will be comparatively mature by2020.

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9.2 ECONOMIC DEVELOPMENT IN CHINA AFTERMAO

THE FOUR MODERNIZATIONS

Although the Four Modernizations are associated with Deng Xiaoping this program was articulated by Zhou Enlaiin 1975. The Communist Party from Lenin was committed to industrialization but Maoism took a differentattitude, that modernization was a "road to capitalistic restoration." Zhou Enlai was suffering from cancer and waspolitically too weak to confront Mao's wife, Jiang Qing, on this issue. But Deng Xiaoping was more combative. Inthe fall of 1975 he published three documents which were to be the basis for the Four Modernizations. The Gangof Four labeled these documents "Three Poisonous Weeds" and made Deng the target of the "AntirightistDeviationist Wind Campaign." In his New Year's Message of 1976 Mao warned against emphasizing materialprogress. By April Deng had been dismissed for all his official posts.

By October of 1976 Mao was dead and the Gang of Four under arrest. Deng was rehabilitated and the FourModernizations promoted. By August 1977 Deng was reinstated and he delivered a speech to the Eleventh Party

Congrees stressing the Four Modernizations of :

Agricuture Industry Science and Technology National Defense

In practical terms this meant "electricity in the rural areas, industrial automation, a new economic

outlook, and greatly enhanced defense strength.

INTRODUCTION

Along with the coming of 2000, the PRC had undergone a glorious yet tortuous course of 50 years, amid greatchanges in Chinese society. Before the founding of New China in 1949, Chinas highest yearly outputs of majorindustrial and agricultural products were 445,000 tons of yarn, 2.79 billion meters of cloth, 61,880,000 tons ofcoal, 320,000 tons of crude oil, 6 billion kwh of electric energy production, 150 million tons of grain, and 849,000tons of cotton. Since the founding of New China, especially in the 21 years after the start of the reform andopening to the outside world in 1978, China has made great achievements in economic construction and socialdevelopment. In 1999, the GDP was 8,205.4 billion yuan, an increase of 6.4 times over 1978, at constant prices;the outputs of some major industrial and agricultural products, such as grain, cotton, meat, edible oil, coal, steel,cement, cloth and TV sets, leapt from a backward position to first place in the world.

In accordance with Deng Xiaopings theory of building socialism with Chinese characteristics, the 13th NationalCongress of the CPC, held in 1987, adopted the strategy of three stages for Chinas economic construction: First,

doubling the GNP of 1980 to end shortages of food and clothing, which was basically completed at the end of the

1980s; second, quadrupling the GNP of 1980 by the end of the century, which was achieved in 1995, ahead of

schedule. Thus, the Chinese government worked out the Ninth Five-Year Plan for National Economic and Social

Development and the Long-Term Objectives for the Year 2010, which put forward new objectives: Those for the

Ninth Five-Year Plan (1996-2000) were as followsComplete the second phase of the strategic plan for the

modernization drive in an all-round way and quadruple the per capita GNP of 1980 in 2000, when the population

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will have increased by about 300 million over that of 1980; raise the peoples living standard to that of a fairly

comfortable life, with poverty practically eradicated; and expedite the formulation of a modern enterprise system

and initially establish the basis of a socialist market economy. Third, basically realizing modernization in the mid

21st century, the GDP per capita reaching the level of the moderately developed countries, and people living a

well-off life. The objectives for the year 2010 are to double the GNP of 2000 so that the people will enjoy even

more comfortable lives, and bring a more or less complete socialist market economy into being. With the

fulfillment of these goals, Chinas productive forces, overall national strength and the peoples living standards

will have gone a big step further, and the countrys social and economic aspects will have undergone historic

changes, laying a solid foundation for the realization of modernization.

9.3MAJOR ACHIEVEMENTS

During the past 50 years, China has made remarkable achievements in the fields of science and technology, asfollows:

The discovery of the Daqing Oilfield

In 1953, the leading geologist Li Siguang, based on his geomechanics theory and thorough geologicalinvestigation, pointed out that China had abundant oil and gas resources. In the morning of September 26, 1959,oil was extracted near Daqing City, Heilongjiang Province. Through the painstaking efforts of oil workers, it tookonly three years to construct the Daqing Oilfield, which soon reached the advanced world level, with an annualoutput of more than 50 million tons of crude oil. The Daqing Oilfield provided valuable experiences for thefurther development of the Chinese petroleum industry.

The building of the first atomic reactor

On June 30, 1958, China built her first heavy-water reactor and circular accelerator. This atomic reactor had athermal power of 7,000-10,000 kw, and its circular accelerator could accelerate alpha particles, making its energyoutput reach 25,000,000 EV. In December 1980, China built a high-flux atomic reactor, indicating that Chinesenuclear technology had reached the advanced world level.

The successful testing of atom and hydrogen bombsOn October 16, 1964, China successfully detonated an atomic bomb in Lop Nor in the Xinjiang UygurAutonomous Region, thus becoming the third country to possess the atom bomb, following the United States andthe former Soviet Union. In June 1967, China successfully detonated its first hydrogen bomb.

The synthesis of crystalline insulinAfter six years of arduous work, in cooperation with other research units, the Biochemistry Institute under theChinese Academy of Sciences, on September 17, 1965, synthesized crystalline bovine insulin, a bioactive protein.China thus became a world leader in this research field.

The positron and negatron electronic collider

In October 1988, the Beijing Positron-Negatron Electronic Collider was successfully installed, not only todevelop scientific research in particle physics, energy, materials, biology, chemistry and integrated circuits, butalso to produce products for export.

Nuclear power stations

In 1970, China began to design its first nuclear power station, the Qinshan Nuclear Power Station, in HaiyanCounty, Zhejiang Province. The first-stage project of this power station, with an installed capacity of 300,000 kw,began to be constructed at the beginning of 1985. Meanwhile, construction began on the Dayawan Nuclear PowerStation, 60 km east of Shenzhen, Guangdong Province, with an installed capacity of 1,800,000 kw.

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Carrier rockets

In May 1980, China successfully launched a carrier rocket to a predetermined area in the Pacific Ocean, whichwas the first time for China to launch a rocket to land in international waters from its territory. In 1982, a China-made rocket passed its first space flight test, thus making China the fourth country to possess new-type spacemicrothrust rocket engines, following the United States, the former Soviet Union and Japan. In October 1982,China successfully launched a carrier rocket from a submerged submarine, and in September 1988, from a nuclear

submarine. Chinese carrier rockets include the Long March carrier rockets and the Storm I carrier rocket.

SATELLITE LAUNCHING TECHNOLOGY

On April 24, 1970, the China-made Long March I carrier rocket successfully took the Dongfanghong I,

Chinas first man-made satellite, into orbit. This made China the fifth country in the world able to independently

develop and launch man-made satellites, following the former Soviet Union, the United States, France and Japan.

Later, China successfully developed and launched scientific experimental satellites, retrievable satellites and

stationary communication satellites, mastering the advanced techniques of satellite retrieval and multiple satellite

launching with a single carrier rocket and synchro-positioning technology. On April 7, 1990, at the Xichang

Satellite Launching Center, the Long March III carrier rocket successfully launched Asia I, the first foreignsatellite launched by China, marking the entry of China-made satellites into the international market.

10. INDIA CHINA ECONOMY - TRADE RELATIONS

Among the most encouraging recent developments in India China Economy and India-China ties is the rapidincrease in bilateral trade. A few years ago, India Inc had a fear of being swamped by Chinese imports. Today,India enjoys a positive balance of trade with China.In 2004, India's total trade to China crossed US $13.6 billion,with Indian exports to China touching $ 7677.43 million and imports from china at US $ 5926.67 million. Butmajor industry players in India feel there is no need to give the Chinese a free ride into the domestic market soearly. This is particularly, when India and China have been directly competing across several product categories.And that too, when both the applied and bound import tariffs are higher in India compared with China. Indianindustry's ambivalence over the proposed Indo-China FTA stems from concerns over previous FTAs signed bythe government. There's a feeling that some of these FTAs were signed in haste, and without adequate homework.Result: There has been confusion about the country of origin issue as well as the items to be put in the earlyharvest lists.

China and India established diplomatic relations on April 1, 1950. India was thesecond country to establish diplomatic relations with China among the non-socialistcountries. In 1954, Chinese Premier Zhou Enlai and Indian Prime Minister Nehru

exchanged visits and jointly initiated the famous Five Principles of Peaceful Coexistence.Indian Prime Minister, Rajiv Gandhi's visit to China in December 1988, facilitated awarming trend in relations. The two sides issued a joint statement that stressed the needto restore friendly relations on the basis of the Panch Sheel and noted the importance ofthe first visit by an Indian prime minister to China since Nehru's 1954 visit. India ChinaEconomy agreed to broaden bilateral ties in various areas, working to achieve a "fair andreasonable settlement while seeking a mutually acceptable solution" to the borderdispute.

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Rajiv Gandhi signed bilateral agreements on science and technology cooperation, on civilaviation to establish direct air links, and on cultural exchanges. The two sides also agreedto hold annual diplomatic consultations between foreign ministers, and to set up a jointministerial committee on economic and scientific cooperation and a joint working group onthe boundary issue. The latter group was to be led by the Indian foreign secretary and theChinese vice minister of foreign affairs. As the mid-1990s approached, slow but steadyimprovement in relations with China was visible. Top-level dialogue continued with theDecember 1991 visit of Chinese premier Li Peng to India and the May 1992 visit to Chinaof Indian president Ramaswami Venkataraman.

Border trade resumed in July 1992 after a hiatus of more than thirty years, consulates reopened in Bombay (orMumbai in the Marathi language) and Shanghai in December 1992, and, in June 1993, the two sides agreed toopen an additional border trading post. Though, Rajiv Gandhi's visit to China in December 1988 is usuallyidentified as a turning point and break-through in India-China relations, it should also be noted that many

years of previous effort had a contribution to it.. In 1976, the two countries decided to restore ambassadorial-level diplomatic ties after a gap of 15 years. The next major step was foreign minister Vajpayee's visit to China in

February 1979 -

The first high-level visit between the two countries since 1960. In 1984 India & China signed a Trade Agreement,providing for Most Favoured Nation Treatment. In 1994 the two countries signed the agreements on avoidingdouble taxation. Agreements for cooperation on health and medical science, MOUs on simplifying the procedurefor visa application and on banking cooperation between the two countries have also been signed.

The Chinese economy was decentralized in 1978 and major economic reforms were introduced which createdconditions for rapid economic growth and structural changes in China. In 1980, China's share in world trade wasless than one percent, and it started permitting foreign direct investment (FDI). In 1999, China had grown tobecome the world's second largest economy after US in terms of GDP. The high growth rate of China is attributedto high levels of trade and greater investment effort. Strong exports growth from China has helped push China's

economy to 9.1% growth rate in 2003-2004. China is the world's second largest recipient for FDI with total FDIinflows crossing US $ 53 billion in 2003. Growth in Special Economic Zones (SEZ) has also helped Chinaincrease its productivity.

Recently Chinese premier Wen Jiabao visited India, where he said that India and China must take their

trade to $30 billion level by 2010. Seeing the whopping growth in Sino-Indian trade, China outlined a five-pointagenda, including reducing rade barriers and enhancing multilateral cooperation to boost bilateral trade.

Chin

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