Country Report—China ——From Chunhua Guan Guangdong Provincial Department of Science and Technology

Content 1.Brief Introduction of China 2.Introduction of China ’ s Economy 3.The Strategic Opportunities and Challenges on Development 4.The Main Problem and Our Strategic Emphases and the Main Missions

1.Brief Introduction of China Land area With a landmass of 9,600,000 sq km, China is the third largest country in the world. Topography The topography varies greatly in China, a vast land of lofty plateau, large plains, rolling land and big and small basins surrounded by lofty mountains. Taking a bird's-eye view of China, the terrain gradually descends from west to east like a staircase. Taking a bird's-eye view of China, the terrain gradually descends from west to east like a staircase.

Climate Most of China lies in the north temperate zone, characterized by a warm climate and distinctive seasons, a climate well suited for habitation. Most of China lies in the north temperate zone, characterized by a warm climate and distinctive seasons, a climate well suited for habitation. Most of China has a continental monsoon climate. Most of China has a continental monsoon climate.Population The natural growth rate of population continued to decline. The natural growth rate of population continued to decline. Since the beginning of the 1970s when China adopted family planning policy, the fertility started to decline. Since the beginning of the 1970s when China adopted family planning policy, the fertility started to decline. At the end of 2003, China's total population in the mainland amounted to 1, million. At the end of 2003, China's total population in the mainland amounted to 1, million. 1.Brief Introduction of China

Urbanization is accelerated In 2003, the urban population reached million and the proportion of urban population is percent. In 2003, the urban population reached million and the proportion of urban population is percent. The rise of the urbanization in China is based on the expansion of the urban areas and the increase of the population. The rise of the urbanization in China is based on the expansion of the urban areas and the increase of the population. The increase of cities and expansion of urban areas promoted the urbanization level in China. The increase of cities and expansion of urban areas promoted the urbanization level in China.

2.Introduction of China’s Economy Economy System 1949~1979 planned economy system 1949~1979 planned economy system 1978~1984 reform in rural area 1978~1984 reform in rural area 1984~present reform in cities 1984~present reform in cities The pattern has basically been formed in which the public sector plays the main role alongside non-public sectors such as individual and private companies to achieve common development. The pattern has basically been formed in which the public sector plays the main role alongside non-public sectors such as individual and private companies to achieve common development.

2.Introduction of China’s Economy Diverse economic elements Before 1978, Before 1978, state-owned and collectively-owned enterprises ： 77.6% state-owned and collectively-owned enterprises ： 77.6% China's exclusively public-ownership economy: 22.4% China's exclusively public-ownership economy: 22.4% In 2004 In 2004 state-owned and state stock-holding enterprises: 42.4% state-owned and state stock-holding enterprises: 42.4% collectively-owned enterprises: 5.3 %, collectively-owned enterprises: 5.3 %, non-public enterprises （ including:enterprises with foreign, Hong Kong, Macao or Taiwan investments, and individual and private enterprises ）： 52.3% non-public enterprises （ including:enterprises with foreign, Hong Kong, Macao or Taiwan investments, and individual and private enterprises ）： 52.3%

2.Introduction of China’s Economy Diverse economic elements Small and medium-sized enterprises and non- public enterprises have become China's main job creators. Small and medium-sized enterprises and non- public enterprises have become China's main job creators. Private enterprises alone provided 50 percent of employment of the entire society. Private enterprises alone provided 50 percent of employment of the entire society.

2.Introduction of China’s Economy Three-Step Development Strategy Step One--to double the 1980 GNP and ensure that the people have enough food and clothing -- was attained by the end of the 1980s; Step One--to double the 1980 GNP and ensure that the people have enough food and clothing -- was attained by the end of the 1980s; Step Two--to quadruple the 1980 GNP by the end of the 20th century --was achieved in 1995 ahead of schedule; Step Two--to quadruple the 1980 GNP by the end of the 20th century --was achieved in 1995 ahead of schedule; Step Three--to increase per-capita GNP to the level of the medium-developed countries by the mid-21st century--at which point, the Chinese people will be fairly well-off and modernization will be basically realized. Step Three--to increase per-capita GNP to the level of the medium-developed countries by the mid-21st century--at which point, the Chinese people will be fairly well-off and modernization will be basically realized.

2.Introduction of China’s Economy Key national projects West-to-East Electricity Transmission West-to-East Electricity Transmission West-to-East Gas Transmission West-to-East Gas Transmission South-to-North Water Diversion South-to-North Water Diversion The Three Gorges Dam The Three Gorges Dam Qinghai-Tibet Railway Qinghai-Tibet Railway

3.The Strategic Opportunities and Challenges on Development The Strategic Opportunities on Development In 20 Years 1. The structure of consumption continued to upgrade, that create a large demand. 2. The structure of industry adjusts incessantly, provided a firm foundation of supply. 3. The urbanization has been greatly accelerated, a more wide space has been developed. 4. The progress of science and technology change with each passing day, provided a condition to realize leap-frogging development. 5. Economy globalization has been strengthened continuously, provided good chances to participate in international division of the work.

3.The Strategic Opportunities and Challenges on Development The challenges we will be faced in 20 years 1. The restriction of environment and resource is aggravated. 2. The social contradiction is stood out. 3. The pressure of international competition increasing. 4. There is still some insecurity factors in economy and the nation.

4.The Main Problem and Our Strategic Emphases and the Main Missions Main problems of regional development in economy, society and S&T: 1. The low capability of innovation in enterprises becoming the most important factor of restriction to the regional development. 2. The capability of S&T innovation in all regions is low. 3. The contradiction of division of regional S&T resource is far away from solved. 4. The system of division the work and competition between different regions is not founded.

4.The Main Problem and Our Strategic Emphases and the Main Missions Main problems of regional development in economy, society and S&T: 5. There is a big gap in economy and S&T between different regions. 6. The rate of development in counties is lower than the average level of the whole country. 7. It’s still a hard task to increase the farmers’ income. 8. The situation of ecological environment is still very stern. 9. There is still some insecurity factors in social security.

4.The Main Problem and Our Strategic Emphases and the Main Missions Our strategic emphases and the main missions: East part of China East part of China Yangzi-River Delta region Yangzi-River Delta region The big Pearl River Delta region The big Pearl River Delta region The middle area The middle area The northeast area The northeast area

biologic technique mobile communication New materials Great Capital area This region should carry out the strategy of upgrade the capability of regional competition, become the important base of national innovation. strategic emphases and the main missions software modern knowledge service East part of China

This region should carry out the strategy of central city, become one of the international base of innovation. IC aviation biomedical software Nanometer industry Yangzi-River Delta region strategic emphases and the main missions East part of China

strategic emphases and the main missions This region should carry out the strategy of integration with Hong Kong and Macao, become one of the most competitive regions, the precursor of the internationalization in high-tech industry. modern service trades electronic information advanced manufacturin g industry big Pearl River Delta region East part of China

strategic emphases and the main missions This region should carry out the strategy of integration with the talented person, capital and technology. modern agriculture base of material technique photoelectron Important commercial food supplies base advanced manufacturing industry middle area

strategic emphases and the main missions This area should carry out the strategy of innovation of system and technology. inlay soft digit control machine mega-whole set equipment modern agriculture base important commercial food supplies base northeast area