Understanding China  Professor WANG Guo-An (Andrew) 王国安  Part-time Chairman, Dept. of International Trade  Zhijiang College  Zhejiang University of Technology,   Mobile:  htm htm

Basic facts about China  History of over 5000 years  Nationalities: 56  Population: over 1.3 billion, one-child policy  Languages: Mandarin and its dialects, English  Religion: freedom of belief  Reform and opening-up since 1978

Basic facts about China  Fastest growing economy, annual growth rate about 9.5% since 1978  GDP:US$6.56 trillion in 2010  No. 2 largest trading nation  Largest exporter and second largest importer  No.2 economic power in 2010  Largest foreign exchange reserves

Major cities and tourist attractions  Beijing, center of politics and education  Shanghai: center of international business, shipment and finance, host of World Expo in 2010  Guangzhou/Canton: southern gate to China, Chinese Import and Export Fair twice a year  Xi’an: ancient capital of China  Hangzhou: beautiful gardens and West Lake  Guilin: river and mountain  Yellow Mountain  Chang Jia Jie in Hunan….

History  More than 5000 years.  China’s ancient scientific contributions to the world: four great inventions, namely, compass, printing, gun powder and paper making.  Foreign aggressors have invaded China many times, but never swallowed it.

Culture  The Chinese culture is the dominating culture in East Asia and Confucianism has had great influence in East Asia and southeast Asian countries. For example, the Chinese characters in Japan and Koreas originated in China.  Over 300 Confucius Institutes ( all over the world to promote the teaching of the Chinese language and cultures and China study.

Education  Preschool education: from 3 years  Elementary school:6 years: compulsory and free  Junior high school: 3 years, compulsory and free  Senior high school: 3 years  Bachelor program:4 years  Master program: 2-3 years  Ph. D. program:3-5 years  Public schools: most of them  Private schools: allowed in recent years

Education  Medium of instruction: Mandarin/Chinese  National and provincial scholarships available to international students; for example,11000 national scholarships in 2007  5000 national scholarships to Chinese students or scholars to study abroad every year during

Education  Thousands of Chinese students studying all over the world, most of them supported by their families; 39,921 Chinese students went to USA in 2009; 128,000 Chinese students studying in the USA in 2010, accounting for 18% of the foreign students population in the USA  International students studying in China: 240,000 in 2010; 500,000 in 2020 数据显示，从 1978 年到 2010 年底，我国各类出国留学人员 总数达 万人，共有 万留学人员学成后选择回 国发展。 2010 年回国 万人 。

Reform and opening-up policies since 1978  Change from the rule by man into the rule by law  Change from the centralized planning economy into the socialist market economy  Special Economic Zones  Foreign direct investment in China: the biggest recipient of FDI among the developing countries for the last 16 years.  China’s FDI overseas amounted to US$$48 billion in 2009 and US$59 billion in 2010.

Objective picture of the present China  Economic growth at the annual rate of about 9.5%, three times as fast as the USA  World’s second largest economy in terms of GDP. Its GDP is expected to surpass USA in 2019; but its GDP per capita is only US$3800 in 2010, only 12% of Japan’s and 10% of USA’s, ranking after 100 th in the world.  150 million Chinese live under the poverty line.

Objective picture of the present China  No. 2 trading power and biggest exporter in the world, its trade volume amounted to US$2.207 trillion in China maintains a large trade surplus with USA, but 60% of its exports to the USA are produced by US companies in China.  Largest manufacturer in the world after USA was the largest for 110 years, but most of the foreign companies’ R &D and marketing centers are in developed countries, such USA, EU and Japan. Chinese workers are paid only a very low salary and are exploited and its environment polluted and natural resources exhausted.

Objective picture of the present China  The economic miracle in China in the last 32 years, but it is made by the world. China is only a small shareholder in the economic miracle, most of the profits have gone to the transnational companies from developed countries. Foreign companies in China have contributed a lot to China’s GDP.

Objective picture of the present China  Largest consumer of natural resources, increasing at the rate of 8.9% in the last 10 years.  Second large financial revenue in the world, but China’s medical expenditure accounts for only 1.2% of its GDP. Most of the farming population have no medical or social insurance.

Objective picture of the present China  Olympic Games hosted in Beijing in  Manned spaceship launched in 2003, 2005 and  Foreign exchange reserves: trillion US$ (Aug 2010),No. 1 in the world.  World Expo hosted in Shanghai in 2010  Fastest bullet train in the world 2010  Biggest investor overseas among developing countries US$25 billion during ) A peacefully rising power in Asia and in the world

China’s problems  The official corruption: About 4,000 corrupt officials fled the country with at least US$50 billion between 1978 and 2003 according to a report by the Ministry of Commerce showed. Many of these officials sent their spouses and children abroad first before transferring their money from China.

China’s problems  The largest population  The Increasing contrast between the rich and the poor and the sharpening economic differences between the east and the west  The worsening environment

China’s core interests  Taiwan issue  Tibetan issue  Xinjiang (East Turkistan)  Territory integrity

China’s future  One of the most attractive FDI destinations in the world  Change from MADE in China into INVENTED or DESIGNED in China  Change into the rule by law  More prosperous, democratic, harmonious, just, fair and clean

Any questions? Thank you for your attention. Full-time Professor Guo An (Andrew) Wang Dept. of International Trade Zhejiang Gongshang University, ： Mobile: m