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					Queen’s Interactive Crisis Simulation 2011
Delegate Info Package: PRC


INDEX

1. General information ............................................................................................ 2
2. History ........................................................................................................................... 3
3. Political system .................................................................................................... 10
   3.1. General information ........................................................................................................10
   3.2. Overview ..............................................................................................................................10
   3.3. International organisation participation.................................................................10
4. Economy ..................................................................................................................... 11
   4.1. General information ........................................................................................................11
   4.2. Overview ..............................................................................................................................11
   4.3. Natural resources ............................................................................................................12
   4.4. Industry ................................................................................................................................12
   4.5. Agriculture ..........................................................................................................................13
5. Trade............................................................................................................................. 13
   5.1. Exports .................................................................................................................................13
   5.2. Imports..................................................................................................................................13
   5.3. Current account balance ..............................................................................................13
   5.4. Investment...........................................................................................................................13
6. Demographics ......................................................................................................... 14
7. Military........................................................................................................................ 15
   7.1. Military branches ..............................................................................................................15
   7.2. Military service age and obligation ..........................................................................15
   7.3. Manpower available for military service ................................................................15
   7.4. Manpower fit for military service ...............................................................................15
   7.5. Military expenditures ......................................................................................................15
8. FOREIGN RELATIONS ........................................................................................ 17
   8.1 Overview ...............................................................................................................................17
   8.2 International disputes .....................................................................................................19
   8.4. Trafficking in persons ....................................................................................................20
   8.5. Country relations .............................................................................................................20
     8.5.1. Sudan- People's Republic of China relations ......................................................... 20
     8.5.2. Ethiopia- People's Republic of China relations...................................................... 23
     8.5.3. Eritrea- People's Republic of China relations ......................................................... 23
     8.5.4. Uganda- People's Republic of China relations ...................................................... 24
     8.5.5. Canada- People's Republic of China relations ...................................................... 25
     8.5.6. USA- People's Republic of China relations ............................................................. 26
     8.5.7. China- People's Republic of China relations........................................................... 26




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1. General information




Capital:             Beijing
Other major cities: Shanghai
Population:          1.3 Billion: 92% Han Chinese,

Area:                 9,640,821 km2
Terrain:
Climate:              dominated by dry seasons and wet monsoons, which leads to
temperature differences in winter and summer. The climate in China differs from
region to region because of the country's extensive and complex topography.
Land use:             Arable land: 13%




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2. History

Civilization in what is now China has existed since 13th century BC, various
Dynasties ruled various areas of China with the last dynasty being the Qing. The Qing
dynasty ruled at its height all of what is now modern China and Mongolia and existed
from around 1636 to 1911.
In 1901 Empress Dowager Cixi issued an imperial edict calling for reform proposals
from the governors-general and governors and initiated the era of the dynasty's "New
Policy", also known as the "Late Qing Reform". The edict paved the way for the most
far-reaching reforms in terms of their social consequences, including the creation of a
national education system and the abolition of the imperial examinations in 1905.
However, Cixi and the Guangxu emperor both died in 1908, leaving a relatively
powerless and unstable central authority. Puyi, the eldest son of Zaifeng, Prince Chun,
was appointed successor at age two, leaving Zaifeng with the regency. This was
followed by the dismissal of General Yuan Shikai from his former positions of power.
In April 1911 Zaifeng created a cabinet, in which there were two vice-premiers.
Nevertheless, this cabinet was also known by contemporaries as "The Royal Cabinet"
because among the 13 cabinet members, 5 were members of the imperial family or
Aisin Gioro relatives. This brought a wide range of negative opinions from senior
officials like Zhang Zhidong.
The Wuchang Uprising succeeded on October 10, 1911, and was followed by a
proclamation of a separate central government, the Republic of China, in Nanjing
with Sun Yat-sen as its provisional head. Numerous provinces began "separating"
from Qing control. Sun Yat-sen is considered the father of the Modern Chinese nation
by both the PRC and the ROC.
Sun Yat-sen's government wanted Republican constitutional reform, aiming for both
the benefit of China's economy and populace. With permission from Empress
Dowager Longyu, Yuan began negotiating with Sun Yat-sen, who decided that his
goal had been achieved in forming a republic, and that therefore he could allow Yuan
to step into the position of President of the Republic. In 1912, after rounds of
negotiations, Longyu issued the Imperial Edict bringing about the abdication of the
child emperor Puyi.
The collapse of the Qing dynasty in 1912 brought an end to over 2,000 years of
imperial China and began an extended period of instability of warlord factionalism.
The unorganized political and economic systems combined with a widespread
criticism of Chinese culture led to questioning and doubt about the future. China's
turbulent history since the overthrow of the Qing may be understood at least in part as
an attempt to understand and recover significant aspects of historic Chinese culture
and integrate them with influential new ideas that have emerged within the last
century.

The Second Sino-Japanese War (July 7, 1937 – September 9, 1945) was a military
conflict fought primarily between the Republic of China and the Empire of Japan.
From 1937 to 1941, China fought Japan with some economic help from Germany (see
Sino-German cooperation (1911–1941)), the Soviet Union (1937–1940) and the
United States (see American Volunteer Group). After the Japanese attack on Pearl
Harbor, the war merged into the greater conflict of World War II as a major front of
what is broadly known as the Pacific War. The Second Sino-Japanese War was the



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largest Asian war in the 20th century.[7] It also made up more than 50% of the
casualties in the Pacific War if the 1937–1941 period is taken into account.
Although the two countries had fought intermittently since 1931, total war started in
earnest in 1937 and ended only with the surrender of Japan in 1945. The war was the
result of a decades-long Japanese imperialist policy aiming to dominate China
politically and militarily and to secure its vast raw material reserves and other
economic resources, particularly food and labour. At the same time, the rising tide of
Chinese nationalism and self-determination stoked the fires of war. Before 1937,
China and Japan fought in small, localized engagements, so-called "incidents". Yet
the two sides, for a variety of reasons, refrained from fighting a total war. In 1931, the
Japanese invasion of Manchuria by Japan's Kwantung Army followed the Mukden
Incident. The last of these incidents was the Marco Polo Bridge Incident of 1937,
marking the beginning of total war between the two countries.

On August 6, an American B-29 bomber dropped the first atomic bomb used in
combat on Hiroshima. On August 9, the Soviet Union renounced its non-aggression
pact with Japan and attacked the Japanese in Manchuria, fulfilling its Yalta
Conference pledge to attack the Japanese within three months after the end of the war
in Europe.
In less than two weeks the Kwantung Army, which was the primary Japanese fighting
force, consisting of over a million men but lacking in adequate armour, artillery, or air
support was destroyed by the Soviets. On August 9, a second atomic bomb was
dropped by the United States on Nagasaki. Japanese Emperor Hirohito officially
capitulated to the Allies on August 15, 1945, and the official surrender was signed
aboard the battleship USS Missouri on September 2.
After the Allied victory in the Pacific, General Douglas MacArthur ordered all
Japanese forces within China (excluding Manchuria), Formosa and French Indochina
north of 16° north latitude to surrender to Chiang Kai-shek, and the Japanese troops in
China formally surrendered on September 9, 1945.

The Chinese Civil War was a civil war fought between the Kuomintang (KMT or
Chinese Nationalist Party), the governing party of the Republic of China and the
Communist Party of China (CPC) for the control of China which eventually led to
China's division into two Chinas, Republic of China (now commonly known as
Taiwan) and People's Republic of China (Mainland China). The war began in April
1927, amidst the Northern Expedition.[7]
The war represented an ideological split between the Nationalist KMT, and the
Communist CPC. In mainland China today, the last three years of the war (1947 -
1949) is more commonly known as the War of Liberation.
The civil war continued intermittently until the Second Sino-Japanese War interrupted
it, resulting in the two parties forming a Second United Front. Japan's campaign was
defeated in 1945, marking the end of World War II, and China's full-scale civil war
resumed in 1946. After a further four years, 1950 saw a cessation of major military
hostilities—with the newly founded People's Republic of China controlling mainland
China (including Hainan Island), and the Republic of China's jurisdiction being
restricted to Taiwan, Penghu, Kinmen, Matsu and several outlying Fujianese islands.
To this day, since no armistice or peace treaty has ever been signed, there is
controversy as to whether the Civil War has legally ended. Today, the two sides of the
Taiwan strait have close economic ties.[9]


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The Great Leap Forward of the People's Republic of China (PRC) was an economic
and social campaign of the Chinese Communist Party (CCP), reflected in planning
decisions from 1958 to 1961, which aimed to use China's vast population to rapidly
transform the country from an agrarian economy into a modern communist society
through the process of agriculturalization, industrialization, and collectivization. Mao
Zedong led the campaign based on the Theory of Productive Forces, and intensified it
after being informed of the impending disaster from grain shortages.
Chief changes in the lives of rural Chinese included the introduction of a mandatory
process of agricultural collectivization, which was introduced incrementally. Private
farming was prohibited, and those engaged in it were labeled as counter
revolutionaries and persecuted. Restrictions on rural people were enforced through
public struggle sessions, and social pressure. Rural industrialization, officially a
priority of the campaign, saw "its development … aborted by the mistakes of the
Great Leap Forward."[1] The Great Leap ended in catastrophe, resulting in tens of
millions of excess deaths. Recent research puts the death toll somewhere between 36
and 45 million. Historian Frank Dikötter asserts that "coercion, terror, and systematic
violence were the very foundation of the Great Leap Forward" and it "motivated one
of the most deadly mass killings of human history."[5]
In subsequent conferences in 1960 and 1962, the negative effects of the Great Leap
Forward were studied by the CPC, and Mao was criticized in the party conferences.
Party members less economically left-wing like Liu Shaoqi and Deng Xiaoping rose
to power, and Mao was marginalized within the party, leading him to initiate the
Cultural Revolution in 1966.
The Great Proletarian Cultural Revolution, commonly known simply as the Cultural
Revolution, was a violent revolutionary social movement that took place in the
People's Republic of China from 1966 through to 1976. Designed to purge capitalist
thought from the country, it was instituted by the government in order to further
advance socialism within the nation.[1] In doing so, it involved major changes being
made to the political, economic and social nature of China.
It was launched by Mao Zedong, the chairman of the Communist Party of China, on
May 16, 1966; he alleged that bourgeois elements were permeating the party and
society at large and that they wanted to restore capitalism. Mao insisted, in
accordance with his theory of permanent revolution, that these elements should be
removed through revolutionary violent class struggle by mobilizing China's youth
who, responding to his appeal, then formed Red Guard groups around the whole
country. The movement subsequently spread into the military, urban workers, and the
party leadership itself. Although Mao himself officially declared the Cultural
Revolution to have ended in 1969, its active phase lasted until the death of Lin Biao in
a plane crash in 1971. The power struggles and political instability between 1969 and
the arrest of the Gang of Four in 1976 are now also widely regarded as part of the
Revolution.
After Mao's death in 1976, forces within the party that opposed the Cultural
Revolution, led by Deng Xiaoping, gained prominence, and most of the political,
economic, and educational reforms associated with the Cultural Revolution were
abandoned by 1978. The Cultural Revolution has been treated officially as a negative
phenomenon ever since, and the people involved in instituting the policies of the
Cultural Revolution were persecuted. In its official historical judgment of the Cultural
Revolution in 1981, the Party assigned chief responsibility to Mao Zedong, but also
laid significant blame on Lin Biao and the Gang of Four for causing its worst


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excesses. Despite this denouncement from the post-Mao Chinese government, the
Revolution has still been viewed positively by a large percentage of working class
Chinese.[3]
As anticipated after Mao’s death, there was a power struggle for control of China. On
one side was the left wing, who wanted to continue the policy of revolutionary mass
mobilization. On the other side was the right wing opposing these policies.
Reformers, led by Deng Xiaoping, wanted to overhaul the Chinese economy based on
market-oriented policies and to de-emphasize the role of Maoist ideology in
determining economic and political policy. Eventually, the reformers won control of
the government. Deng Xiaoping, with clear seniority over Hua Guofeng, defeated
Hua in a bloodless power struggle a few years later.
Deng repudiated the Cultural Revolution and, in 1977, launched the "Beijing Spring",
which allowed open criticism of the excesses and suffering that had occurred during
the period. Meanwhile, he was the impetus for the abolition of the class background
system. Under this system, the CPC put up employment barriers to Chinese deemed to
be associated with the former landlord class; its removal allowed Chinese capitalists
to join the Communist Party.
Deng gradually outmaneuvered his political opponents. By encouraging public
criticism of the Cultural Revolution, he weakened the position of those who owed
their political positions to that event, while strengthening the position of those like
himself who had been purged during that time. Deng also received a great deal of
popular support. As Deng gradually consolidated control over the CPC, Hua was
replaced by Zhao Ziyang as premier in 1980, and by Hu Yaobang as party chief in
1981. Deng remained the most influential of the CPC cadre, although after 1987 his
only official posts were as chairman of the state and Communist Party Central
Military Commissions.
Originally, the president was conceived of as a figurehead of state, with actual state
power resting in the hands of the premier and the party chief, both offices being
conceived of as held by separate people in order to prevent a cult of personality from
forming (as it did in the case of Mao); the party would develop policy, whereas the
state would execute it.
Deng's elevation to China's new number-one figure meant that the historical and
ideological questions around Mao Zedong had to be addressed properly. Because
Deng wished to pursue deep reforms, it was not possible for him to continue Mao's
hard-line "class struggle" policies and mass public campaigns. In 1982 the Central
Committee of the Communist Party released a document entitled On the Various
Historical Issues since the Founding of the People's Republic of China. Mao retained
his status as a "great Marxist, proletarian revolutionary, militarist, and general", and
the undisputed founder and pioneer of the country and the People's Liberation Army.
"His accomplishments must be considered before his mistakes", the document
declared. Deng personally commented that Mao was "seven parts good, three parts
bad." The document also steered the prime responsibility of the Cultural Revolution
away from Mao (although it did state that "Mao mistakenly began the Cultural
Revolution") to the "counter-revolutionary cliques" of the Gang of Four and Lin Biao.

In November 1978, after the country has stabilized following political turmoil and
facing an impending aggression from communist Vietnam, Deng visited Singapore
and met with Prime Minister Lee Kuan Yew, who advised Deng to open up and



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institute reforms, as well as to stop exporting Communist ideologies in Southeast
Asia.
Since 1979, the economic reforms accelerated the capitalist type, while maintaining
the Communist-style rhetoric. The commune system was gradually dismantled and
the peasants began to have more freedom to manage the land they cultivate and sell
their products on the market. At the same time, China's economy opened to foreign
trade. On 1 January of that year, the United States went to diplomatically recognize
the People's Republic of China, leaving the Taiwan authorities, and business contacts
between China and the West began to grow.
In early 1979, Deng Xiaoping undertook an official visit to the United States during
which he met President Jimmy Carter in Washington and several congressmen, and
visited the Johnson Space Center in Houston, as well as the headquarters of Coca-
Cola and Boeing in Atlanta and Seattle, respectively. With these visits so significant,
Deng made it clear that the new Chinese regime's priorities were economic and
technological development

True to his famous phrase "do not care if the cat is black or white, what matters is it
catches mice", spoken in 1961, and that had caused so much criticism, Deng
Xiaoping, along with his closest collaborators, such as Zhao Ziyang, who in 1980
relieved Hua Guofeng as premier, and Hu Yaobang, who in 1981 did the same with
the post of party chairman, took the reins of power and the purpose of advancing the
"four modernizations" (economy, agriculture, scientific and technological
development and national defense) put up an ambitious plan of opening and
liberalization of the economy. The last position of power retained by Hua Guofeng,
the chairman of the Central Military Commission, was taken by Deng in 1981.
From 1980, Deng led the expansion of the economy and in political terms, took over
negotiations with the United Kingdom to return the territory of Hong Kong, meeting
personally with British prime minister Margaret Thatcher. The result of these
negotiations was the Sino-British Joint Declaration signed on 19 December 1984,
states that the United Kingdom should return Hong Kong to China by 1997. The
Chinese government pledged to respect the economic system and civil liberties of the
then British colony for fifty years after the return. In 1987, Portugal, under pressure
from the Chinese authorities agreed to arrange the return of its colony of Macau by
1999, with an agreement roughly equal to that of Hong Kong. The return of these two
territories was based on political principle formulated by Deng himself called "one
country, two systems", which refers to the coexistence under one political authority
areas with different economic systems, communism and capitalism. Although this
theory was applied to the cases of Hong Kong and Macau, it seems that Deng
Xiaoping was intended to present it as an attractive option to the people of Taiwan for
eventual incorporation of that island, claimed as Chinese territory.
In the economic sphere, the rapid growth faced several problems. On the other hand,
the 1982 population census had revealed the extraordinary growth of the Chinese
population, which already exceeded one billion people. Deng Xiaoping continued the
plans initiated by Hua Guofeng to restrict birth to only one child, a reason why most
couples could only have one child under the pain of administrative penalties. On the
other hand, the increasing economic freedom was being translated into a greater
freedom of opinion and critics began to arise with the system, including the famous
dissident Wei Jingsheng, who coined the term "fifth modernization" to refer to
democracy, missing element renewal plans of Deng Xiaoping. In late 1980s,


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dissatisfaction with the authoritarian regime and the growing inequalities caused the
biggest crisis to Deng Xiaoping's leadership.
In October 1987, at the Plenary Session of the National People's Congress, Deng
Xiaoping was re-elected as Chairman of Central Military Commission, but he
resigned as Chairman of the Central Advisory Commission and he was succeeded by
Chen Yun. He continued to chair and developed the reform and opening up as the
main policy, put forward the three steps suitable for China's economic development
strategy within 70 years: the first step, to double the 1980 GNP and ensure that the
people have enough food and clothing, was attained by the end of the 1980s; second
step, to quadruple the 1980 GNP by the end of the 20th century, was achieved in 1995
ahead of schedule; the third step, to increase per capita GNP to the level of the
medium-developed countries by 2050, at which point, the Chinese people will be
fairly well-off and modernization will be basically realized.


 The strategy for achieving these aims of becoming a modern, industrial nation was
the socialist market economy. Deng argued that China was in the primary stage of
socialism and that the duty of the party was to perfect so-called "socialism with
Chinese characteristics", and "seek truth from facts". (This somewhat resembles the
Leninist theoretical justification of the New Economic Policy (NEP) in the 20s, which
argued that the Soviet Union hadn't gone deeply enough in to the capitalist phase and
therefore needed limited capitalism in order to fully evolve its means of production)
This interpretation of Maoism reduced the role of ideology in economic decision-
making and deciding policies of proven effectiveness. Downgrading communitarian
values but not necessarily the ideology of Marxism-Leninism himself, Deng
emphasized that "socialism does not mean shared poverty". His theoretical
justification for allowing market forces was given as such:
"Planning and market forces are not the essential difference between socialism and
capitalism. A planned economy is not the definition of socialism, because there is
planning under capitalism; the market economy happens under socialism, too.
Planning and market forces are both ways of controlling economic activity."
Political flexibility towards the foundations of socialism is strongly supported by
quotes such as:
We mustn't fear to adopt the advanced management methods applied in capitalist
countries The very essence of socialism is the liberation and development of the
productive systems Socialism and market economy are not incompatible We should
be concerned about right-wing deviations, but most of all, we must be concerned
about left-wing deviations.[26]
In the main move toward market allocation, local municipalities and provinces were
allowed to invest in industries that they considered most profitable, which encouraged
investment in light manufacturing. Thus, Deng's reforms shifted China's development
strategy to an emphasis on light industry and export-led growth. Light industrial
output was vital for a developing country coming from a low capital base. With the
short gestation period, low capital requirements, and high foreign-exchange export
earnings, revenues generated by light manufacturing were able to be reinvested in
more technologically-advanced production and further capital expenditures and
investments.
Hu Jintao is the current Paramount Leader of the People's Republic of China. He has
held the titles of General Secretary of the Communist Party of China since 2002,


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President of the People's Republic of China since 2003, and Chairman of the Central
Military Commission since 2004, succeeding Jiang Zemin as the top leader of fourth
generation leadership of the Communist Party of China.
Hu possesses a low-key and reserved leadership style. His rise to the presidency
represents China's transition of leadership from old, hard-core communists to
younger, more pragmatic technocrats. Since his ascendancy, Hu has reinstated certain
controls on the economy relaxed by the previous administration, and has been highly
conservative in his attitude to political reforms. In foreign policy, Hu advocates for an
approach termed "China's peaceful development", pursuing soft power in
international relations. Through Hu's tenure, China's global influence in Africa, Latin
America, and other developing countries has increased.
Hu has been involved in the Communist party bureaucracy for most of his adult life,
notably as party chief for the Tibet Autonomous Region, and then later Secretary of
the Secretariat of CPC and Vice-President under Jiang Zemin. Hu's political
philosophy is summarily described as aiming to found a basis for Harmonious Society
domestically and for Peaceful Development internationally, the former generated by a
Scientific Development Concept, which seeks integrated solutions to tackle China's
various economic, environmental and social problems




3. Political system


3.1. General information
Official name: People’s Republic of China
Type: Single party Communist State
Political system: Single party-led republic
Suffrage: 18 years of age; universal
Principal Government Officials: President: Hu Jintao, Premier: Wen Jiabao,
NPCSC Chairman: Wu Bangguo, CPPCC Chairman: Jia Qinglin

3.2. Overview
All power within the government of the People's Republic of China is divided among
three bodies: the Communist Party of China, the state, and the People's Liberation
Army (PLA). This article is concerned with the formal structure of the state, its
departments and their responsibilities. Most, but not all, positions of significant power
in the state structure and in the army are occupied by members of the Communist
Party of China which is controlled by the Politburo Standing Committee of the
Communist Party of China, a group of 4 to 9 people, usually all older men, who make
all decisions of national significance. As the role of the Army is to enforce these
decisions in times of crisis, support of the PLA is important.
Power is concentrated in the Paramount Leader, currently Hu Jintao, who heads all
three bodies: He is General Secretary of the Communist Party and of the Politburo,
President of the People's Republic of China, and Chairman of the Central Military



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Commission. Recently, experts have observed growing limitations to the Paramount
Leader's de facto control over the government.
The legal power of the Communist Party is guaranteed by the PRC constitution and
its position as the supreme political authority in the PRC is realised through its
comprehensive control of the state, military, and media. According to a prominent
government spokesman:
We will never simply copy the system of Western countries or introduce a system of
multiple parties holding office in rotation, although China’s state organs have
different responsibilities, they all adhere to the line, principles and policies of the
party.
The primary organs of state power are the National People's Congress (NPC), the
President, and the State Council. Members of the State Council include the Premier, a
variable number of vice premiers (now four), five state councillors (protocol equal of
vice premiers but with narrower portfolios), and 29 ministers and heads of State
Council commissions. During the 1980s there was an attempt made to separate party
and state functions, with the party deciding general policy and the state carrying it
out. The attempt was abandoned in the 1990s with the result that the political
leadership within the state are also the leaders of the party, thereby creating a single
centralized focus of power.
At the same time there has been a move for having party and state offices be
separated at levels other than the central government. It is unheard of for a sub-
national executive to also be party secretary. This frequently causes conflict between
the chief executive and the party secretary, and this conflict is widely seen as
intentional to prevent either from becoming too powerful. Some special cases are the
Special Administrative Regions of Hong Kong and Macau where the Mainland
Chinese national laws do not apply at all and the autonomous regions where,
following Soviet practice, the chief executive is typically a member of the local ethnic
group while the party general secretary is non-local and usually Han Chinese.
Under the Constitution of the People's Republic of China, the NPC is the highest
organ of state power in China. It meets annually for about two weeks to review and
approve major new policy directions, laws, the budget, and major personnel changes.
Most national legislation in the PRC is adopted by the Standing Committee of the
National People's Congress. Most initiatives are presented to the NPCSC for
consideration by the State Council after previous endorsement by the Communist
Party's Politburo Standing Committee. Although the NPC generally approves State
Council policy and personnel recommendations, the NPC and its standing committee
has increasingly asserted its role as the national legislature and has been able to force
revisions in some laws. For example, the State Council and the Party have been
unable to secure passage of a fuel tax to finance the construction of freeways.




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3.3. International organisation participation: ADB, AfDB (nonregional member),
APEC, ARF, ASEAN (dialogue partner), BIS, CDB, CICA, EAS, FAO, FATF, G-20,
G-24 (observer), G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IFAD, IFC, IFRCS,
IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU,
LAIA (observer), MIGA, MINURSO, MONUC, NAM (observer), NSG, OAS
(observer), OPCW, PCA, PIF (partner), SAARC (observer), SCO, SICA (observer),
UN, UN Security Council, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO,
UNIFIL, UNITAR, UNMIL, UNMIS, UNMIT, UNOCI, UNTSO, UNWTO, UPU,
WCO, WHO, WIPO, WMO, WTO, ZC


4. Economy

4.1. General information

GDP: $5.745 trillion (2009 est.)

GDP per capita: $7,400 (2010 est.)

GDP composition by sector: Agriculture: 9.6%, Industry: 46.8%, Services: 43.6%
(2009 est.)

Labour force: 813.5 million (2009 est.)

Labour force by occupation:

Unemployment rate: In urban areas it is as low as 4.9% (2009 data) but with migrant
workers it could be as high as 9%

Population below poverty line: Poverty: 2.9% below absolute poverty line

Budget:
Revenues: $1.149 trillion,
Expenditures: $1.27 trillion (2009 est.)

Public debt: 17.5% of GDP (2010 est.)
External debt: $406.6 billion (31 December 2010 est.)


4.2. Overview
China's economy during the past 30 years has changed from a centrally planned
system that was largely closed to international trade to a more market-oriented
economy that has a rapidly growing private sector and is a major player in the global
economy. Reforms started in the late 1970s with the phasing out of collectivized
agriculture, and expanded to include the gradual liberalization of prices, fiscal
decentralization, increased autonomy for state enterprises, the foundation of a
diversified banking system, the development of stock markets, the rapid growth of the
non-state sector, and the opening to foreign trade and investment. Annual inflows of



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foreign direct investment rose to nearly $108 billion in 2008. China has generally
implemented reforms in a gradualist or piecemeal fashion. In recent years, China has
re-invigorated its support for leading state-owned enterprises in sectors it considers
important to "economic security," explicitly looking to foster globally competitive
national champions. After keeping its currency tightly linked to the US dollar for
years, China in July 2005 revalued its currency by 2.1% against the US dollar and
moved to an exchange rate system that references a basket of currencies. Cumulative
appreciation of the renminbi against the US dollar since the end of the dollar peg was
more than 20% by late 2008, but the exchange rate has remained virtually pegged
since the onset of the global financial crisis. The restructuring of the economy and
resulting efficiency gains have contributed to a more than tenfold increase in GDP
since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2009 stood as the second-largest economy in the world after the
US, although in per capita terms the country is still lower middle-income. The
Chinese government faces numerous economic development challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic demand
through increased corporate transfers and a strengthened social safety net; (b)
sustaining adequate job growth for tens of millions of migrants and new entrants to
the work force; (c) reducing corruption and other economic crimes; and (d) containing
environmental damage and social strife related to the economy's rapid transformation.
Economic development has been more rapid in coastal provinces than in the interior,
and approximately 200 million rural labourers and their dependents have relocated to
urban areas to find work. One demographic consequence of the "one child" policy is
that China is now one of the most rapidly aging countries in the world. Deterioration
in the environment - notably air pollution, soil erosion, and the steady fall of the water
table, especially in the north - is another long-term problem. China continues to lose
arable land because of erosion and economic development. In 2006, China announced
that by 2010 it would decrease energy intensity 20% from 2005 levels. In 2009, China
announced that by 2020 it would reduce carbon intensity 40% from 2005 levels. The
Chinese government seeks to add energy production capacity from sources other than
coal and oil, and is focusing on nuclear and other alternative energy development. In
2009, the global economic downturn reduced foreign demand for Chinese exports for
the first time in many years. The government vowed to continue reforming the
economy and emphasized the need to increase domestic consumption in order to
make China less dependent on foreign exports for GDP growth in the future.


4.3. Natural resources

Oil Production: 3.991 million bbl/day (2009 est.)
Oil Proved Reserves: 20.35 billion bbl (1 January 2010 est.)
Natural gas production: 82.94 billion cu m (2009)
Natural gas Proved Reserves: 3.03 trillion cu m (1 January 2010 est.)


4.4. Industry

Types: mining and ore processing, iron, steel, aluminum, and other metals, coal;
machine building; armaments; textiles and apparel; petroleum; cement; chemicals;


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fertilizers; consumer products, including footwear, toys, and electronics; food
processing; transportation equipment, including automobiles, rail cars and
locomotives, ships, and aircraft; telecommunications equipment, commercial space
launch vehicles, satellites
Industrial production growth rate: 11% (2009 est.)


4.5. Agriculture

Products: rice, wheat, potatoes, corn, peanuts, tea, millet, barley, apples, cotton,
oilseed; pork; fish




5. Trade


5.1. Exports

Total exports: $1.506 trillion (2010 est.)
Products:. electrical and other machinery, including data processing equipment,
apparel, textiles, iron and steel, optical and medical equipment
Oil exports: 388,000 bbl/day (2008 est.)
Major markets: US 20.03%, Hong Kong 12.03%, Japan 8.32%, South Korea 4.55%,
Germany 4.27% (2009)


5.2. Imports

Total imports: $1.307 trillion (2010 est.)
Products: electrical and other machinery, oil and mineral fuels, optical and medical
equipment, metal ores, plastics, organic chemicals
Major suppliers: Japan 12.27%, Hong Kong 10.06%, South Korea 9.04%, US
7.66%, Taiwan 6.84%, Germany 5.54% (2009)


5.3. Current account balance
$272.5 billion (2010 est.)


5.4. Investment
47.8% of GDP (2009 est.)




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6. Demographics

6.1. Age structure

0-14 years: 19.8% (male 140,877,745/female 124,290,090)
15-64 years: 72.1% (male 495,724,889/female 469,182,087)
65 years and over: 8.1% (male 51,774,115/female 56,764,042) (2010 est.)

6.2. Population growth rate
0.494% (2010 est.)

6.3. Birth rate
12.17 births/1,000 population (2010 est.)

6.4. Total fertility rate
1.54 children born/woman (2010 est.)

6.5. Infant mortality rate
total: 16.51 deaths/1,000 live births

6.6. Death rate: 6.89 deaths/1,000 population (July 2010 est.)

6.7. Life expectancy at birth
total population: 74.51 years
male: 72.54 years
female: 76.77 years (2010 est.)

6.8. Net migration rate
-0.34 migrant(s)/1,000 population (2010 est.)

6.9. Urban population
urban population: 43% of total population (2008)

6.10. HIV/AIDS adult prevalence rate
0.1% (2007 est.)
6.11. People living with HIV/AIDS
 700,000 (2007 est.)

6.12. Ethnicity
Han Chinese 91.5%, Zhuang, Manchu, Hui, Miao, Uighur, Tujia, Yi, Mongol,
Tibetan, Buyi, Dong, Yao, Korean, and other nationalities 8.5% (2000 census)

6.13. Religion
Officially atheist, Daoist (Taoist), Buddhist, Christian 3%-4%, Muslim 1%-2% (2002
est.)

6.14. Languages


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Standard Chinese or Mandarin (Putonghua, based on the Beijing dialect) (official),
Yue (Cantonese), Wu (Shanghainese), Minbei (Fuzhou), Minnan (Hokkien-
Taiwanese), Xiang, Gan, Hakka dialects, minority languages (see Ethnic groups
entry)

6.15. Education
Literacy: definition: age 15 and over can read and write
total population: 91.6%
male: 95.7%
female: 87.6% (2007)

School life expectancy: total: 11 years
male: 11 years
female: 12 years (2008)




7. Military


7.1. Military branches
People's Liberation Army (PLA): Ground Forces, Navy (includes marines and naval
aviation), Air Force (Zhongguo Renmin Jiefangjun Kongjun, PLAAF; includes
Airborne Forces), and Second Artillery Corps (strategic missile force); People's
Armed Police (PAP); PLA Reserve Force (2010)

7.2. Military service age and obligation
18-22 years of age for selective compulsory military service, with 24-month service
obligation; no minimum age for voluntary service (all officers are volunteers); 18-19
years of age for women high school graduates who meet requirements for specific
military jobs; in 2010, a decision was made to allow women in combat roles (2010)

7.3. Manpower available for military service
males age 16-49: 381,747,145
females age 16-49: 360,385,629 (2010 est.)

7.4. Manpower fit for military service
males age 16-49: 314,668,817
females age 16-49: 298,745,786 (2010 est.)

7.5. Military expenditures
4.3% of GDP (2006)


7.6. Overview


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PRC Area: 960 million sq km
PRC Land Boundaries: 22,117km
Coastline: 14,500km
GDP: US$4.222 trillion (2008)
Military Service: Selective compulsory
Service Age: 18~22 yr
Obligation: 24 months
Expenditure: 4.3% of GDP
PLA Total: 2,300,000
Ground Forces: 1,600,000
Navy: 255,000
Air Force: 400,000
Strategic Missile: 10,000
Paramilitary Manpower: PAP: 660,000, PLA Reserve: 800,000, Militia: 8~10
million

The People’s Republic of China (PRC) maintains the world’s largest military force,
based on its manpower. The armed forces of the PRC comprise three integral
elements – the People’s Liberation Army (PLA), the People’s Armed Police Force
(PAP), as well as the reserve forces and militia. The PLA, which encompasses the
Army, the Navy, the Air Force, and the Second Artillery Corps (strategic missile
force) is the regular army, totalling some 2.3 million troops. The PAP has a total
strength of 660,000 troops. Additionally, there are also 800,000 men in the reserve
forces and about ten million militia. The official defence budget for 2008 was
RMB417.77 billion (US$59 billion), though many believed that the actual military
expenditure could be 2~3 times higher.

The Chinese armed forces are given three fundamental roles: to defend the country
against foreign invasions; to maintain internal security and stability; and to engage in
the economic development of the country. Under the Constitution of the PRC, the
armed forces are under the absolute leadership of the Chinese Communist Party
(CCP). The Party guarantees its control over the military through a political system
consisting of Party branches, political officers, and the political department implanted
at every level of the armed forces. The armed forces receive order from the Central
Military Commission (CMC) through the General Staff, General Political, General
Logistics, and General Armament Departments.
The Chinese leadership has been trying to modernise the country’s military since the
mid-1980s. The PLA has undergone three major force reduction programmes in 1984,
1997, and 2003, dropping its total strength from 4 million to the current level of 2.3
million. At the same time, older weapon systems and equipment that came into
service in the 1960s and 1970s were gradually phased out and replaced by new
designs. The PLA has also been reforming its organisational structure, doctrine,
education and training, and personnel policies in order to fulfil its initiative of
―fighting and winning a local war under the informationised condition‖.

The current military modernisation process has three main focuses. First, the PLA has
paid close attention to the performance of the US ground forces in Afghanistan and
Iraq and is learning from the success of the US military in information-centric


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warfare, joint operations, C4ISR, hi-tech weaponry, etc. Second, the PLA is gradually
building up its power projection capabilities, which will allow it to deploy forces not
only within China, but also in peripheral regions. Third, the PLA is quietly
developing the capability of rivalling a technologically superior military power
through so-called ―asymmetric warfare‖, in order to deter U.S. intervention in case of
war with Taiwan.

The PLA currently has two small forces in Sudan (one in Darfur and one in South
Sudan) Limited power projection capabilities means that the PLA is only able to ―lift‖
one full division by ship (10,000 men) or air lift some 5000 men by plane. Military
conflict should only ever be undertaken by proxy if at all. As China’s capabilities for
local and regional operations have increased in
Certain areas since 2000, a number of limitations appear to have persisted. The PLA
has developed new doctrine for joint war fighting and implemented organizational
changes, such as including service commanders on the Central Military Commission,
to facilitate the transition to a more ―joint‖ force. However, joint integration still lags.
Similarly, PLA air and amphibious lift capacity has not improved appreciably since
2000 when the Department of Defence assessed the PLA as capable of sealift of one
infantry division.        Likewise, China’s current ability to deliver about 5,000
parachutists in a single lift (less if equipment is carried at the same time) is similar to
previous assessments. China’s at-sea replenishment has improved with experience
since 2000, but the PLA Navy today remains limited by a small number of support
vessels – much as it did then. In 2000, the Department of Defence projected aerial
refuelling as an operational capability by 2005. Today, while China has a few aerial
refuelling aircraft, it does not have the number of tankers, properly equipped combat
aircraft, or sufficient training to employ this capability for power projection. The
absence of a true expeditionary logistics capability will limit the PLA’s ability to
project and sustain military operations at locations distant from the mainland. First
among these limitations is the capability to transport and sustain more than one
division of ground troops and equipment by sea or air. The PLA Navy’s total
amphibious lift capacity has been estimated to be one infantry division of
approximately 10,000 troops and equipment at one time. The PLA’s force projection
capabilities will remain limited over the next decade as the PLA replaces out-dated
aircraft and maritime vessels and adjusts operational doctrine to encompass new
capabilities. These changes will require tailored logistics equipment and training that
will take time and funding to develop. Although foreign-produced or civil sector
equipment and maintenance parts may help to fill near-term gaps, continued reliance
on non-organic assets will hinder PLA capabilities to sustain large-scale operations




8. FOREIGN RELATIONS

8.1 Overview

―The traditional friendship and relations of good cooperation between China and
African countries have stood the test of time and gone through the trial of
international turbulent events. This relationship, being a good example to the


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developing countries, has been further consolidated and developed under the present
new situation.

China maintains close political relations with African countries through frequent
exchanges of high-level visits. To establish a long-term and stable relationship of full
cooperation between China and African countries in the 21 century, President Jiang
Zemin put forward five principles of guidance during his visit to Africa in 1996,
namely sincere friendship, equality, solidarity and cooperation, common development
and being oriented to the future. Other Chinese leaders such as Premier Zhu Rongji,
Chairman Li Ruihuan and Vice President Hu Jingtao visited Africa successively in
the recent years. Since 1997, over 40 chiefs of state and heads of government from
various African countries have visited China. China and African countries have
conducted fruitful bilateral and multilateral dialogues. The brilliant example is the
Forum on China-Africa Cooperation--Ministerial Conference held in Beijing in
October 2000, which adopted a program towards the creation of a new-type, long-
term and stable strategic partnership between China and Africa based on equality and
mutual benefit. The Foreign Ministry of China has set up workable consultation
mechanism with a dozen of their African counterparts. African countries firmly
support China in its endeavor for national unification. And most of them support
China's "one China" policy. China and African countries have carried out many
exchanges in the fields of parliament and political parties. Regular consultation and
mutual support in international affairs between China and African countries is further
strengthened. In particular, close cooperation has been established in international
forums while handling the issue of human rights and other important issues. In those
forums they made joint efforts to maintain the lawful rights of developing countries
and push forward the creation of a new, fair and just political and economic order in
the world.

China has provided African countries with great assistance since their independence,
with a view to help them develop national economy and advance the social progress,
which has achieved good results and welcome by African countries and people. In the
past few years, the economic and trade relations have been further developed. The
Chinese government made many efforts to create new forms and ways for expanding
the existing cooperation on the basis of equality and mutual benefit in the fields of
economy and trade. While continuing to provide them with economic assistance
within its capacity and with no political strings attached, China encourages and
supports companies and enterprises from both sides engaging in mutual-benefit
cooperation and expanding their investment in Africa and increasing the trade
volume. The total trade volume between China and Africa reached 10.6 billion US
Dollars in 2000, greatly surpassing that of 1999. China, noting with concern the heavy
debts of African countries, is ready to make its own contribution to help relieve their
debt burden. In this connection, China announced for the first time during the Forum
on China-Africa Cooperation--Ministerial Conference 2000 that the Chinese side
undertook to reduce or cancel debt amounting to 10 billion RMB yuan owed by the
heavily indebted poor countries and least developed countries in Africa in the coming
two years.

Their cooperation in education, public health, culture and other fields maintains a
good momentum. In addition, both sides have strengthened cooperation in human


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resources development. Continuing to grant scholarships to African students every
year to study in China, the Chinese government hosted various study and training
courses to help African countries forming professional contingents. Among which
were the classes of advanced-studies for both Chinese and African management
personnel and the training courses for young and mid-aged African diplomats. China
also organized study-tours for high-ranking African diplomats to visit China and
exchange experiences. China announced to establish an African Human Resources
Development Fund during the Forum on China-Africa Cooperation--- Ministerial
Conference 2000 to help African countries train more professionals of different
disciplines. Medical personnel and teachers dispatched to Africa by the Chinese
government are widely welcome by the recipient countries and people.‖ –Chinese
Foreign Ministry

8.2 International disputes
Continuing talks and confidence-building measures work toward reducing tensions
over Kashmir that nonetheless remains militarized with portions under the de facto
administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan
(Azad Kashmir and Northern Areas); India does not recognize Pakistan's ceding
historic Kashmir lands to China in 1964; China and India continue their security and
foreign policy dialogue started in 2005 related to the dispute over most of their
rugged, militarized boundary, regional nuclear proliferation, and other matters; China
claims most of India's Arunachal Pradesh to the base of the Himalayas; lacking any
treaty describing the boundary, Bhutan and China continue negotiations to establish a
common boundary alignment to resolve territorial disputes due to cartographic
discrepancies; Chinese maps show an international boundary symbol off the coasts of
the littoral states of the South China Seas, where China has interrupted Vietnamese
hydrocarbon exploration; China asserts sovereignty over Scarborough Reef along
with the Philippines and Taiwan, and over the Spratly Islands together with Malaysia,
the Philippines, Taiwan, Vietnam, and Brunei; the 2002 "Declaration on the Conduct
of Parties in the South China Sea" eased tensions in the Spratly's but is not the legally
binding "code of conduct" sought by some parties; Vietnam and China continue to
expand construction of facilities in the Spratly's and in March 2005, the national oil
companies of China, the Philippines, and Vietnam signed a joint accord on marine
seismic activities in the Spratly Islands; China occupies some of the Paracel Islands
also claimed by Vietnam and Taiwan; China and Taiwan continue to reject both
Japan's claims to the uninhabited islands of Senkaku-shoto (Diaoyu Tai) and Japan's
unilaterally declared equidistance line in the East China Sea, the site of intensive
hydrocarbon exploration and exploitation; certain islands in the Yalu and Tumen
rivers are in dispute with North Korea; North Korea and China seek to stem illegal
migration to China by North Koreans, fleeing privations and oppression, by building a
fence along portions of the border and imprisoning North Koreans deported by China;
China and Russia have demarcated the once disputed islands at the Amur and Ussuri
confluence and in the Argun River in accordance with their 2004 Agreement; China
and Tajikistan have begun demarcating the revised boundary agreed to in the
delimitation of 2002; the decade-long demarcation of the China-Vietnam land
boundary was completed in 2009; citing environmental, cultural, and social concerns,
China has reconsidered construction of 13 dams on the Salween River, but energy-
starved Burma, with backing from Thailand, remains intent on building five hydro-
electric dams downstream despite regional and international protests; Chinese and


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Hong Kong authorities met in March 2008 to resolve ownership and use of lands
recovered in Shenzhen River channelization, including 96-hectare Lok Ma Chau
Loop; Hong Kong developing plans to reduce 2,000 out of 2,800 hectares of its
restricted Closed Area by 2010


8.4. Trafficking in persons

China is a source, transit, and destination country for men, women, and children
trafficked for the purposes of sexual exploitation and forced labor; the majority of
trafficking in China occurs within the country's borders, but there is also considerable
international trafficking of Chinese citizens to Africa, Asia, Europe, Latin America,
the Middle East, and North America; Chinese women are lured abroad through false
promises of legitimate employment, only to be forced into commercial sexual
exploitation, largely in Taiwan, Thailand, Malaysia, and Japan; women and children
are trafficked to China from Mongolia, Burma, North Korea, Russia, and Vietnam for
forced labor, marriage, and prostitution; some North Korean women and children
seeking to leave their country voluntarily cross the border into China and are then
sold into prostitution, marriage, or forced labor tier rating: Tier 2 Watch List - China
is on the Tier 2 Watch List for the fourth consecutive year for its failure to provide
evidence of increasing efforts to combat human trafficking, particularly in terms of
punishment of trafficking crimes and the protection of Chinese and foreign victims of
trafficking; victims are sometimes punished for unlawful acts that were committed as
a direct result of their being trafficked, such as violations of prostitution or
immigration/emigration controls; the Chinese Government continued to treat North
Korean victims of trafficking solely as economic migrants, routinely deporting them
back to horrendous conditions in North Korea; additional challenges facing the
Chinese Government include the enormous size of its trafficking problem and the
significant level of corruption and complicity in trafficking by some local government
officials (2008)



8.5. Country relations
China is a member of the FOCAC, which was jointly proposed and established by
China and more than 40 African countries in 2000. It consists of meetings at three
levels: the ministerial conference, senior officials meeting, and talks between the
Chinese Follow-up Committee of the Forum and the African Diplomatic Mission in
Beijing. The first ministerial conference was held in Beijing in October 2000. The
second was held in Addis Ababa, capital of Ethiopia, in December 2003 and the third
in Beijing in November 2006. – PRC Embassy to Arab Republic of Egypt

8.5.1. Sudan- PRC relations
Sudan: The PRC government has at times used its influence with the Sudanese
government to address in a positive way international concerns over Darfur, yet has
also continued to provide political support for Khartoum. China sells arms to Sudan
despite the passage of UN Security Council resolutions 1556 (2004) and 1591 (2005),
both of which call for the prevention of the transfer of arms to Darfur. The PRC



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argues that arms sales constitute part of normal commercial relations, and that the
arms supplied by Chinese companies were not meant for use in Darfur. Between 2004
and 2006, China made up an average of 90 per cent of small arms sales to Sudan.
In March 2005, the U.N. requested that China sends a peacekeeping unit to join the
UNMIS. A unit of 435 troops was created in the Jinan Military Region in September.
The first batch of 135 troops departed for Sudan in May 2006. They were deployed in
Sector 2 of the UN peacekeeping force, which include the states of Western Bahr el
Ghazal, Northern Bahr el Ghazal, Warab and Al Buhairat. They are scope of their
missions include logistics, engineering, and medical support for the UN mission.
Currently the Chinese peacekeeping troops in UNMIS include a 275-man engineer
company, a 100-man transport unit, and a 43-man medical unit. Additionally, there
are also 25 officers serving as command staffs and military observers in the mission
headquarters. On 31 July 2007, the United Security Council passed Resolution 1769
to authorise the establishment of the African Union - United Nations Hybrid
Operation in Darfur (UNAMID) to bring stability to the war-torn Darfur region of
Sudan while peace talks on a final settlement continue. The mission was to create a
joint peacekeeping force of 26,000 troops, including 9,000-strong African Union
Mission in Sudan (AMIS). The peacekeepers was allowed to use force to protect
civilians and humanitarian operations.
China was invited to contribute to the mission in April 2007. The Chinese
government has long been criticised by United States, European Union and human
rights groups for turning a blind eye to the on-going conflict and genocide in the
Darfur region, where 450,000 people have died from violence and disease and about
2.5 million have fled their homes. Beijing rejected ideas of international sanctions
against the Sudanese government. China won credit in early 2007 for persuading
Omar al-Bashir, Sudan's president, to accept a peace plan proposed by the former
U.N. secretary general Kofi Annan.
A unit of 315 engineer and medical staffs selected from an engineer regiment and a
mechanised infantry division of the Jinan Military Region, and a water supply
regiment of the Beijing Military Region was formed in June 2007. The unit was
equipped with 6 armoured personnel carriers and 219 vehicles and machinery
including bulldozers, grabs, and other construction machineries, as well as small arms
for self-defence. As well as the basic military and engineering training, the troops
have also received training in English language, local customs, and operations in
Sudan’s heat and dry conditions.
Currently China has a 315-man engineer unit in Darfur. Their main responsibility is to
build roads and bridges and dig wells to prepare for the deployment of the hybrid
international forces for Darfur. Due to the harsh environments and poor living
conditions, this mission was regarded as the most challenging peacekeeping operation
ever for the PLA. About 3.9 million voters start a week of balloting on Jan. 9 on
whether to remain part of Sudan or form the world’s newest nation, 54 years after
Africa’s biggest country by area gained independence from the U.K. A majority and a
60 per cent turnout are required for a valid result, which is scheduled to be announced
on Feb. 1. A vote for independence will give the south control of about 80 per cent of
Sudan’s current oil production of 490,000 barrel a day, pumped mainly by China
National Petroleum Corp. Sudan’s output is close to a quarter of the volume produced
by Nigeria, Africa’s top producer. Independence would be declared on July 9. The
authorities in Khartoum, Sudan’s capital, and in the south have pledged to ensure that
oil production isn’t disrupted and to work out how to share oil revenue. About 8


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million of Sudan’s 42 million people live in the southern region. While most of the oil
is in the south, export pipelines, the port and refineries are in the north. In addition to
oil and gold, he said, the region is believed to have ―abundant‖ deposits of minerals
including marble, gypsum and chromite, which is used to make ferrochrome, an
ingredient in stainless steel marble. Southern Sudan would be free of the restrictions
imposed on Sudan since 1997 because the U.S. classifies it as a sponsor of terrorism.
The authorities in Juba are in talks with Toyota East Africa to construct an oil pipeline
to Kenya’s Lamu port. The pipeline would take three to four years to complete. A
return to war would cost more than $100 billion, about two-thirds of Sudan’s gross
domestic product, in lost economic output and humanitarian and peacekeeping aid.
Sudanese President Umar al-Bashir, in his last visit to Juba before the vote, pledged to
respect the results of the referendum. ―If the south chooses independence, we will
come and congratulate and celebrate with you,‖ he said on Jan. 4. Al-Bashir’s
government in Khartoum and the Sudan People’s Liberation Movement, which
governs the south, must negotiate border demarcation, responsibility for the country’s
$38 billion foreign debt and the status of Abyei, a disputed border region whose own
plebiscite on whether to join the north or south has been postponed indefinitely.
Southern Sudan is one of the poorest regions in Africa. Half of the population lives on
less than a dollar a day, 85 per cent of the adult population is illiterate and one in
seven women who become pregnant may die from pregnancy-related causes.
According to the power-sharing agreement of the January 2005 Comprehensive Peace
Agreement (CPA) that ended a 21-year civil war between North and South Sudan, the
Government of South Sudan (GoSS), based in Juba, is to receive 50% of net oil
revenues from southern oil fields, which hold 80% of the country's oil. The
Government of Sudan (GoS), based in Khartoum, holds the majority of power in the
coalition government, which is formally known as the Government of National Unity
(GNU).
From 1999, when Khartoum began exporting crude oil, the oil industry has fueled the
country’s economy. In 2006, Sudan exported $5.7 billion worth of goods, with oil
constituting 90% of its export revenue.1 Sudan’s total revenue that year was
approximately $7.2 billion, and oil accounted for over 50% of that total.2 In 2007,
Sudan is expected to earn $7.8 billion in export revenue; if, like in 2006, oil revenue
constitutes 90% of export revenue, which seems probable, Sudan will bring in $7
billion alone from the oil industry.3 Before the CPA, the GoS spent 70% of oil
revenue on military expenditures.4 Given the conflict in Darfur and Khartoum’s arms
importations, there is no reason to think this percentage has declined.5 In 2000,
foreign direct investment (FDI) in Sudan as a whole was $128 million; in 2006, it will
be $2.3 billion. Sudan’s Minister for Investment states that 70% of this money goes to
Khartoum.
Four foreign companies have come to dominate Sudan's oil industry. The companies
operate through Sudan-based consortia that have control over specific oilfield blocks
for exploration, drilling, production, and services.
•       China National Petroleum Corporation (CNPC)
•       China Chemical and Petroleum Corporation (Sinopec Corp.)
•       Petroliam Nasional Berhad (Petronas)
•       Oil and Natural Gas Corporation of India-Videsh (OVL)

CNPC is state-owned, and Sinopec Corp is a privatized arm of Sinopec Group, a
Chinese state-owned company.


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The Greater Nile Petroleum Operating Company (GNPOC) is the main oil-producing
consortium in Sudan. The Chinese state-owned CNPC holds 40% of GNPOC 6.The
Petrodar Operating Company Ltd. (PDOC) operates Blocks 3 and 7, which are in
Melut Basin in Upper Nile State, just inside South Sudan. Blocks 3 and 7 recently
began production with the completion of a new oil pipeline – only the second pipeline
in the country – to Port Sudan. CNPC owns 41% of PDOC6 10, Sinopec Corp. (a
privatized arm of Chinese state-owned Sinopec Group) owns 6%6, and the Al Thani
Corporation of the United Arab Emirates owns 5%12. The White Nile Petroleum
Operating Company Ltd (WNPOC) operates Block 5A on behalf of Petronas, which
owns 68.875%7; OVL, which owns 24.125% 13; and Sudapet, which owns 8%9.
WNPOC also operates Block 5B, of which Petronas owns 41%14, Lundin Petroleum
AB 24.5%15, OVL 23.5%13, and Sudapet 13%9. In addition, WNPOC operates
Block 8.

China has a vested interest in maintaining the flow of oil. Should Violence occur,
China must balance its long standing tradition of non-interference in internal matters
with its image in the World. It must also balance its interests in obtaining fuel from
Sudan with its ability to sell weapons to one of its largest military purchasers. In 2007
Sudan was responsible for providing 6% of China’s Oil imports.


8.5.2. Ethiopia- PRC relations
China is main trading partner of Ethiopia it is Ethiopia’s chief exporting and
importing partner. China has been supportive of the government in Khartoum in
North Sudan, Ethiopia must tread carefully in their actions so as not to upset China in
order to maintain good economic ties.On May 24, 2010 in Addis Ababa Ethiopia and
China signed a loan agreement amounting to 25.1 million USD. The loan will be used
to procure an electrical inspecting systems scanner for the Ethiopian Revenue and
Customs Authority. The equipment will help the Authority to scan imported
containers and vehicles. Finance and Economic Development Minister, Sufian Ahmed
and Chinese Ambassador to Ethiopia, Gu Xiaojie signed the agreement.

Ultimately the relations between these two countries are very warm, with Ethiopia
maintaining the ―One China‖ vision of foreign relations to the annoyance of Taiwan.
Massive cooperation are present at all levels of the state.


8.5.3. Eritrea- PRC relations

Eritrea and China’s friendly relationship dates back to 1993. China was in fact the
first country to establish diplomatic relations with sovereign Eritrea in May 1993, and
it has been contributing a great deal to various aspects of the Eritrean endeavours for
economic rehabilitation and national reconstruction.

From May 23-26, 1993, Yang Fuchang, Special envoy of the Chinese government,
Vice-minister of Ministry of Foreign Affairs attended the ceremony of the
independence of the Eritrea, and signed together with Mahmud Ahmed Sherifo,
Foreign Minister of Eritrea the joint communiqué on the establishment of diplomatic
relations of the two countries. In September, the same year, Qian Qichen, Vice-


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premier and concurrently Minister of Foreign Affairs met with President Afwerki, at
the 48th UN conference. This was the first time for the high level leaders to meet after
the establishment of the diplomatic relations of the two countries.
From 1992, China started to provide Eritrea with some aid and assistance of goods in
general and for calamity relief. In 1997, China began to provide it with monetary aid
for putting up a Asmara hospital in its capital city Asmara. It was formally started the
construction of the Asmara Oratta Hospital on October 24, 2000 and President Issya
headed in person many officials to attend the foundation stone laying ceremony.
Immediately after the independence of Eritrea, China began to carry on the mutually
beneficial cooperation with it. At present, there are five Chinese companies, such as
China Building Engineering (Group) Corporation, China Aviation Technology Import
and Export Corporation working for the undertaking businesses in Eritrea and they've
completed the road-construction and building projects. It has also seen a smooth
development of trade between the two countries. The exporting commodities from
China to Eritrea mainly include: vehicles and spare parts, bicycles, cement,
mechanical equipment and steel materials, etc. In 2002, the trade value of the two
countries came to US$ 6.029 million, of which the export from China was US$ 6.025
million. In 1993, China signed with Eritrea the "Agreement for Trade, Economic and
Technological Cooperation between the Government of the People's Republic of
China and the Government of Eritrea".
The military exchanges between the two countries include: the visits to China by,
Petros Solomon, Minister of Eritrean National Defence (November 1993), Sebhat
Ephrem (August 1997, December 2002; the visits to Eritrea by General Liu Jingsong,
Commander of Lanzhou Military Zone (November 1996). Requested by the Eritrean
Government China began to send 5 experts there for the training of the Eritrean
Military Band in July 2002, and in September an expert group of 14 persons was sent
for guiding the work of mine-detection and clearance.



8.5.4. Uganda-PRC relations
China and Uganda have a long diplomatic history dating as far back as the post-
independence era. During the period of 1962-1985, bilateral relations between the two
countries remained steady in spite of the regime changes in Uganda. Bilateral
relations between the two countries entered a new stage of development after the
National Resistance Movement came to power in 1986, with bilateral co-operation
expanding and mutual high-level exchanges increasing. Uganda backed China's
stance for two times at the sessions of the UN Human Rights Commission in 1996
and 1997. In 2000, Uganda supported the bill put forward by China on the
maintaining and observing of the Anti-Ballistic Missile Treaty in the UN.

Uganda provides China access to some important consumer goods such as coffee.
Issues between them include China’s lack of labour laws which impact Ugandan
employees working in Chinese owned firms in Uganda. Currently, over two hundred
large Chinese firms are involved in various activities in Uganda including agro
processing, manufacturing, energy, tourism, mineral exploration and construction
(UIA, 2007).




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In 2007 China waived Uganda’s US$17 million debt and promised to boost bilateral
economic ties. The agreements which were signed between China’s assistant minister
for commerce, Fu Ziying and Uganda’s finance minister Ezra Suruma included a
protocol on the US$17 million debt cancellation, an agreement to provide a grant of
US$ 6.8 million and a letter of exchange for the construction of a government office
block (New Vision News paper2007)

8.5.5. Canada- PRC relations
China seeks to maintain good relations with Canada as the country continues to be a
market both for fulfilling China’s growing energy needs and as an export for Chinese
manufactured goods. Recent criticism by the Canadian government concerning
Human rights has cooled relations somewhat, and while the PRC should not lose
faith, it should still seek to gain further access to Canadian raw material markets. It
should be kept in mind that Canada is firmly in the American camp and is firmly
entrenched in the idea of peacekeeping and maintain peace in foreign conflicts.
Canada-People's Republic of China relations were established in 1970 after Canadian
Prime Minister Pierre Trudeau recognized the People's Republic of China, becoming
one of the first Western countries to recognize the PRC. Canada has deep cultural
links with China being home to a large Chinese diaspora. Relations have generally
been stable since relations were established. China is currently Canada's second
largest trading partner and Canada is China's 13th largest. Although trade has grown
fast during the 2000s, they are still thought to be below their potential.

Since 2003, China has emerged as Canada's second largest trading partner, passing
Britain and Japan. China now accounts for approximately six per cent of Canada's
total world trade.

Canada is obviously tied militarily with NATO and NORAD and so any military
conflict involving China would see the Canada most likely aligning itself with
western interests.

There was a recent cooling of relations between the two countries as Prime minister
Stephen Harper’s government sought a stronger line on China’s human rights record.
This has since thawed somewhat with high level state visits. After Stephen Harper
and his Conservatives win the election in January, the federal government cools its
relations with China. Ottawa offends Beijing with a number of moves, including
awarding honorary Canadian citizenship to the Dalai Lama, criticizing China's human
rights record, accusing it of commercial espionage, long delaying a meeting between
foreign ministers and making favourable noises toward Taiwan. The Chinese
ambassador to Canada says the two nations can "handle their differences" and build
"mutual respect." However, in November 2006, China backs out of meeting between
Harper and the Chinese president in a move widely seen as a snub. Beijing later says
the meeting will go ahead.

In 2004, Chinese imports totalled $24.1 billion, making Canada China's second-
largest trading partner. Where toys once dominated imports from China, electronic
equipment and mechanical goods now lead. Then come consumer goods.




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Canada is also trying to attract Chinese investment in Canada. Some recent Chinese
interest in Canada, however, has attracted some concern from nationalists. In 2004, a
state-run Chinese company entered into talks to possibly buy Noranda, Canada's
oldest mining company. Noranda was purchased by Swiss-based Xstrata.


8.5.6. USA- PRC relations

The economies of the PRC and the USA are heavily dependent on one another. Yet
tensions are rising as America seemingly stagnates and the PRC continues its trend of
growth. The USA may seek to exploit any conflict in Sudan as the fault of Chinese
arms sales and lack of interference. China must seek to maintain close ties to the
United States while not losing access to a valuable source of oil and raw materials
from any conflict in Sudan. Further the USA is showing signs that it is concerned
about Chinese influence in Africa, as Chinese aid comes with no political strings
attached it is able to enter markets with less criticism than its American counter-part.
Africa’s vast resources are a competitive field between the Super Power and China.
Rumors of American provisions of equipment, funding and training to the South
Sudanese armed forces should be of concern if South Sudan gains control of the oil
rich territories of the country.

8.5.7. Libya – PRC relations

China and Libya established diplomatic relations in Aug. 1978. Since then, the
cooperation of the two countries in various fields has developed continuously.
According to Chinese Foreign Ministry, the states support each other in international
affairs and share a common understanding on Human Rights and other major
questions. Libya sticks to one-China policy on the question of Taiwan.The two
countries signed the first trade agreement and the agreement of cooperation on
economy, science and technology in Aug.1978, which came to force in Oct.1982.
Also in Oct.1982, the two countries signed the Agreement on Establishment of Sino-
Libyan Joint Committee on Economic, Trade, Scientific and Technological
Cooperation, and Sino-Libyan Mutual Cooperation Program. The mutually beneficial
business cooperation between China and Libya started in 1981. Chinese companies
entered Libya successively to make contracts in labour service market in construction
sites and infrastructure projects.

8.5.8. Egypt –PRC relations

Among the Arab and African states, Egypt is the first to establish diplomatic ties with
China, and the first to come into strategic cooperative relations with China. Since the
establishment of diplomatic ties, especially the formation of strategic cooperative
relations in 1999.China and Egypt established diplomatic relations on May 30, 1956.
And the relationship between the two countries has been developing very smoothly.
In the 1960s, Chinese Premier Zhou Enlai visited Egypt three times. Since then state
visits have occurred frequentl. In April 1999 Egyptian President signed a joint
communiqué with Chinese President Jiang Zeming on establishing strategic
cooperative relationship between Egypt and China.The two sides have signed several
agreements concerning trade, investment protection, avoidance of double taxation,


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etc., and a joint committee on trade and economic cooperation has had three meetings.
Besides, the two countries have cooperated for mutual benefits in the fields like
economic technology, labor contracting, etc. China has built many projects such as
Cairo International Conference Center for Egypt.In 1999, Sino-Egyptian trade volume
reached US$750.22 million, of which China's exports to Egypt were US$715.875
million and imports from Egypt US$34.363 million.
The total volume of Sino-Egyptian trade in 2001 was US$953.21 million, of which
the Chinese export was US$872.85 million, and import US$80.32 million.Over the
past few years, the two countries have made marked progress in cooperation in such
sectors as the car industry, pharmaceuticals and telecommunications.Over the past
decade since the two countries established strategic cooperative relations, with the
care of the leaders of the two countries and the efforts of people of different sectors,
China and Egypt, by supporting and complementing each other, have achieved
common progress. Their strategic cooperation has generated fruitful results,
delivering tangible benefits to the two peoples, and Sino-Egyptian relationship has
become a good example of the relationship between developing countries and South-
South cooperation. The fourth ministerial conference of the FOCAC will be held in
Egypt, which will provide a new opportunity for the development of China-Egypt
relations. China-Egypt mutually-beneficial cooperation has been deepened. The two-
way trade volume has increased from US $610 million ten years ago to over US $6.24
billion now, representing a growth of 10 times, of which Egypt's export to China has
grown from US $30 million to US $430 million, a growth of over 10 times; and
China's accumulated investment in Egypt exceeds US $500 million, creating over
3000 jobs. At present, the bilateral cooperation in economic and technological
exchanges, development of economic zones, infrastructure building, tourism, and
finance has also been deepened. China and Egypt are enjoying increasingly close
friendship. Last year, there were over 150,000 exchanges of visits between the two
sides. Chinese language and culture are becoming increasingly popular in Egypt and
vice versa. China has set up the major of Arab language in over 20 colleges, while the
Chinese department has also been set up in 5 Egyptian universities. Moreover, two
Confucius institutes have also been established in Egypt. The international financial
crisis has seriously affected developing countries, and China and Egypt are no
exception. China is of the view that this is a worldwide financial crisis, and to realize
economic recovery, the most urgent task is to strengthen coordination of different
countries' macroeconomic policies, promote the reform of the international financial
system, and actively uphold stability of multilateral trade system. To this end, China
and Egypt maintain close communication and coordination, and work to gather to
ensure global economic and financial stability and increase the representation and
voice of developing countries in the international financial system. In the area of
bilateral cooperation, in order to cope with the financial crisis, the two governments
have formulated large-scale investment plans, and provided more incentives for
foreign investors. The two sides can use this as an opportunity to bring into play their
advantages, tap market potential, continue to strengthen bilateral cooperation in the
areas of energy, communication, transport, and tourism, and explore new areas of
cooperation in infrastructure building, technological exchanges, service trade, and
finance, and implement important projects of strategic importance such as the Suez
economic and trade cooperation zone, so as to tide over the difficulty. VIV. Mr.
Assem Ragad, the Egyptian chairman of the General Authority for Investment and
Free Zone, said, "China is the first option for Egypt to seek investment". Can you talk


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about China's investment in Egypt over the past decade since the two countries
established diplomatic ties? The Egyptian government welcomes the growth of
China's investments in the country. Apart from Chairman Assem, Mahmoud
Mohieldin, the Egyptian minister of investment, also said on different occasions that
China's investment in Egypt is growing fast and better. Up till now, there are nearly
600 Chinese enterprises investing in Egypt, covering the areas of textile and garment,
oil services, telecommunication, food processing, and machinery manufacturing, with
the total investment exceeding US $500 million, 58 factories and enterprises built,
and generating over 3000 jobs. With the initiative of the Chinese government, TEDA
is building Suez Economic and Trade Cooperation Zone with the goal of building a
good platform for bilateral investment.

Egypt still depends on the USA for most of it’s military purchases and appears to be
firmly in the US camp of allies.


8.5.9. Kenya –PRC relations

China-Kenya relations date back to 14 December 1963, two days after the formal
establishment of Kenyan independence, when China became the fourth country to
open an embassy in Nairobi. Military exchange between the two countries has been
increasing in the past decade. General Liu Jingsong, commander of the Lanzhou
Military Region, led China's first military delegation to Kenya in December 1996;
Major General Nick Leshan, commander of the Kenyan air force, paid a return visit in
1997. Kenyan president Mwai Kibaki visited Beijing in August 2005. Bilateral trade
amounted to US$186.37 million in 2002; China exported US$180.576 million to
Kenya, while only importing US$5.798 million of Kenyan goods, mainly black tea,
coffee, and leather. Early in 2006 Chinese President Hu Jintao signed an oil
exploration contract with Kenya; the latest in a series of deals designed to keep
Africa's natural resources flowing to China's expanding economy. The deal allowed
for China's state-controlled offshore oil and gas company, CNOOC Ltd., to prospect
for oil in Kenya, which is just beginning to drill its first exploratory wells on the
borders of Sudan and Somalia and in coastal waters. No oil has been produced yet,
and there has been no formal estimate of the possible reserves. In April 2007, the
Jinchuan Group, a state-owned metal manufacturing group, became the first Chinese
company to enter Kenya's mining sector, purchasing a 20% stake in Tiomin Kenya.
PRC state-owned China Radio International has operated radio station CRI Nairobi
91.9 FM since 2006.In January 2010, it was announced that China will finance
several infrastructure projects to build transportation links between Kenya and other
countries in the region. High level delegations have had frequent exchanges.




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