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AUTHOR Reams, Joanne Reppert TITLE :qBackground Notes.Series. INSTITUTION Department of State, Washington, D.C. REPORT NO DOS-7751 PUB DATE Dec 83 NOTE 17p. AVAILABLE FROMSuperintendent of Doduments, U.S. Governmcat Printing Office, Washington, DC 20402 (Order No. 7751, $2.00). PUB TYPE Reports - Descriptive (141)

EDRS PRICE MF01/PC01 Plus Postage. DESCRIPTORS *A.,:ea Studies; Asian History; *Asian Studies; Comparative Education; *Cultural Awareness; Economics; Educational Practices; Foreign Countries; Government (Administrative Body); International Relations; International Trade; Physical Geography; Resource Materials; Travel IDENTIFIERS *China; Taiwan; United States

-ABSTRACT Concise background information on the People's Republic of China is provided. The publication begins with a profile of the country, outlining the people, geography, economy, and membership in international organizations. The bulk of the document then discusses in more detail China's. people, geography, history, government, education, economy, and-foreign relations; U.S.-China relations are specifically examined. Taiwan is discussed. A map of China is provided. Charts list the Chinese dynasties, the principal Chinese government and perty officials, China's top 50 trading partners, ana useful China-related addresses, e.g., Chinesc foreign trade contacts, travel contacts, and cultural exchange groups. Statistical information is prcvided concerning the economy, the 1982 commodities composition, Chinese trade by areas and selected countries, and transportation and telecommunications. The system of romanization is discussed, and travel notes are provided. A selected bibliograptly concludes the publication. (RM)

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*********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. ***************************************************************,******* c.

Ti background China a , United States Department of State December 1983

Bureau of Public Affairs U.S. DEPARTMENT OF EDUCATION NATIONAL INSTITUTE OF EDUCATION EOUCATIONAL RESOURCES INFORMATION CENTER IERICI $.Thisciocument hasbeen reproduced U received from the person or organization originating it. Ll Minor changes have been made 14 improve reproduction quality.

Points of view oropinionsstated in this docu. ment do not necessarily represent official NIE position or policy.

Geography Natural resources: Coal, Iron, petroleum, mercury, tin, tungsten, antimony, Area: 9.6 million sq. km. (3.7 million sq. mi.); manganese, molybdenum, vanadium, US is 9.3 million sq. km. Land: Agricul- magnetite, aluminum, lead, zinc, uranium, tural;--11%. Forest and woodland-12.7%. world's largest hydroelectric potential. Cities: CapitalBeijing (pop. 5.6 million). Agriculturck: Productsrice, wheat, Other citiesShanghai (6.3 million), Tianjin. other grains, cotton. Arable land-11%. (5.1 million), Guangzhou (3.1 million), Industries: Iron, steel, coal, machinery, Shenyang (4 million), Wuhan (3.2 million), light industrial nroducts, armaments, Chengdu (2.5 million). Terrain; Varied. petroleum. Gross value of industrial output Climate: Varied continental. (1982): $294.2 billion. Heavy/light industry proportion is about equal. Government Trade (1982): Exports $23.5 billion: agricultural goods, textiles, light industrial Type; People's republic. Constitution: 1982 products, nonferrous metals, petroleum, iron, (earlier versions: 1954, 1975, 1978). steel, machine tools, and weapons. Ira- Established: October 1, 1949. Party Con- ports$20.8 billion: grain, chemical fer- gresses: 1956 (8th), 1969 (9th), 197-3 (10th), tilizer, industrial raw materials, machinery 1977 (11th), 1982 (12th). National People's and equipment. Major marketsHong Kong, Congresses: 1954 (1st), 1458 (2d), 1964 (3d), Official Name: Japan, US, Singapore, FRG. Major sup- People's Republic of China 1975 (4th), 1978 (5th), and 1983 (6th). pliersJapan, US, Hong Kong, FRG, Administrative subdivisions: 21 prov- Canada. inces, 5 autonomous regions, 3 special Average exchange rate (1982): 1.895 municipalities. yua.n-US$1 PROF ILE Political parties: Chinese Communist, Party, about 40 million members; 8 minor parties. Suffrage: Universal over age 18. Membership in International People Central government budget (1982): Organizations Revenues$56.8 Expenditures Noun and adjective: Chinese (sing.,and pl.) -UN and its specialized agencies, INMARSAT, -Population (1982): Just over i.008 billion. $58.3 billion. INTELSAT, International Committee of the Defense (1982): 8%-9% of GNP (1982 Annual growth rate (1982): 1.5%. Ethnic Red Cross, and others. groups: Han Chinese, 93.3%; others include est.). Zhuang, Uygur, Hui, Yi, Tibetan, Miao, Man- National holidays: Spring Festival (Chinese New Year)late January/early Published by the United States Department chu, Mongol, Buyi, Korean. Religions: Of- of StateBureau of Public AffairsOffice ficially atheist, but there are Muslims, Bud- February, 4 days; May 1International of Public CommanicationEditorial DM- dhists, Lamaists, Christians, and adherents to Socialist Workers' Day; October 1National sionWashington, D.C.December 1983 Chinese folk religions (varying amalgams of Day. Editor: Joanne Reppert Reams Buddhism, Confucianism, Daoism, and Flag: Five yellow stars, one large and Department of State PP' lication 7751 ancestor worship). Language: Standard ,four small, in the upper left corner of a red Background Notes SeriesThis material is field. 41 the public domain and may be reproduced Chinese (Putonghua) or Mandarin (based on without permission; citation of this source the dialect). Education: l'ParN row- would be appreciated. puLiory-5; 1990 goal is universal elemen- Economy tary school education. First grade Prtr011 For sale by the Superintendent of Docu- GNP (1981): $301 billion. Annual growth ment~, U.S. Government Printing Office, 171P7li93%. Literaryover 75%. Life ex- Washington, D.C. 20402 pectancy-68. Work force (447.1 million): rate (1980-82): 7.4%. Per capita GNP (1982): A gr-ulture-7 4.4%. Industry and rom- $298. Avg. inflation rate (1982 Chinese, merce-15.1%, Otiwr estimate): 2,2%. BEST COPY2 J..: )

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PEOPLE The Pinyin System of Rominizatlop China's population is just over 1 billion; on a census conducted in 1982. On January 1, 1979, the Chinese Government officially adopted the "pinyin" systerrefor spell- abasedGovernment, authorities endorsed birth ing Chinese names and places in Roman letters. A system of romanization invented by the control in the 1950s, played it down in Chinese, pinyin has long been widely us41 in China on street and commercial signs as well as 1958, and began to promote it again in in eleryentary Chinese textbooks as an aid in learning Chinese characters. Variations of pinyin 1962. The present family planning pro- de also used as the written forms of several minority languages. t, gram began in the early 1970s and has Pinyin hb, now replaced the familiar conventional spellings in China's English-language publications. The US Government has also adopted the pinyin system for all PRC names and . become more fully mobilized, with places. For example, the capital of China is now spelled "Beijing' rather than "Peking." 'stricter guidelines. since 1979. Today, In the pinyin system, letters are pronounced much as they would be in AmericaftEnglisb with family planning vigorously pursued, with the following exceptions. the target population growth rate of 1% may already have been attained in major Complex initial sounds Final sounds cities but not in rural areas. Overall clike the is in it's elike the oo in book population growth dropped from 2.3% in qlike the ch in cheap englike the ung in lung 1973 to 1.5% in 1978. The Chinese Gov- xbetween the s in see and the shin she aias in aisle ernment is calling for a target family zlike the ds in lids ui--like the ay in way size of three and has introduced incen- zhlike the j in just uailike the wi in wide 0 tives to limit the number of children per ilike the i in skin* , , family to one or two. The one-child fami- ' When zh, ch, sh, are followed by an i, the i is pronounced like an T. ly would bring about zero growth by the year 2000. Officials aim for a total population not to exceed 1.2 billion by thattime. GEOGRAPHY cultures. Chinese civilization was further By far the largest ethnic group is strengthened by the development of a the Han Chinese, who constitute 93.3% The People's Republic of China, located Confucian state ideology and a common of the total population. The remainder in eastern Asia, is almost as large as the written language that bridged the gap are concentrated mainly along the European Continent. It is the world's between the country's ,many local Chinese frontiers and include: third largest country in total area, after languages and dialects. Whenever China Uygurs (5.96 million) and Hui the Soviet Union and Canada. Countries was conquered by nomadic tribes, as it (7.22 million) in the northwest; sharing its 24,000-kilometer (14,000-mi.) was. by the Mongols in the 13th century, Hui, Mongols '0.41 million), border include Korea, the U.S.S.R., the conquerors quickly adopted the ways Koreans (1.76 trillion), and Manchus Mongolia, Afghanistan, Pakistan, India, of the "higher" Chinise civilization and staffed the bureaucracy with Chinese. 4110(4.30 million) in the north and northeast; Nepal, Bhutan, Burma, Laos, and Viet- Zhuangs (13.3 million), Yi (5.4 s. nam. Hong Kong and Macau are on In 1644, the nomadic Manchus over- million), and Miao (5.03 million) in the China's southern. coastline. threw the native Ming dynasty and south; and Two-thirds of China's area is moun- established the Qing (Ch'ing) dynasty Tibetans (3.9 million) in the far tainous or semidesert; only about one- with Beijing as its capital. At great ex- west and southwest. tenth is cultivated. Ninety percent of the pense in blood and treasure, the Man- s. people live on one-sixth of the land, chus gained control of many border The national language of China is areas over the next half century, in- "Putonghua" (standard Chinese), also primarily in the fertile plains and deltas of the east. cluding Xinjiang, Yunnan, Tibet, and known as Mandarin and based on the The Country 1;a, almost entirely in Taiwan. The impressive success of the Beijing dialect. Other principal dialects the temperate zone. Only portions of the. early Qing period was based on the com- include Cantonese, Shanghainese, Fu- southernmost areaYunnan and bination of Manchu martial prowess and jianese, and Hakka. Chinese is the only Guangdong,Provinces and the Guangxi traditional Chinese bureaucratic skills. modern language written entirely in Zhuang Autonomous Regionare within During the 19th century, China ex- nonphonetic ideographs. Many peoples the tropics. The climate is heavily af- perienced the challenge of Western com- in China have their own languages, writ- fected by the regional monsoon. Sum- mercial penetration, widespread social ten in Roman, Arabic, or indigenous mers are hot and humid throughout strife, economic stagnation, and ex- alphabets. much of the country; winters are dry plosive population growth. Following the Religious activities have increased and unusually cool or cold for the given Opium War (1840-42), Britain and other significantly in the past several years. Western powers gained special More than 200 churches are said to be latitude. In summer, the heavy rains cause frequent floods. privileges in five designated "treaty open. There are about 4 million Chris- ports." The Taipir.g and Nian (Nien) tians yid more than 13 million Muslims rebellions, along with a Rtissian- in China, according to official estimates. HISTORY supported Muslim separatist movement More than several hundred mosques and in Xinjiang, drained Chinese resources many Buddhist and Lamaistic mon- and almost toppled the dynasty. As time asteries have been reopened. (Unofficial Early History went on, the Western powers, wielding estimates for all of these activities are China is the oldest continuous major superior military technology, gained markedly higher than official figures.) world civilization, with records dating more economic and political privileges. Authorities are now permitting clerical back about 3,500 years. Successive Reformist Chinese officials argued for training and domestic publication of dynasties developed a unique system of the adoption of Western technology to Bibles, hymnals, and other religious bureaucratic control, which gave the counter further Western advances, but works. agrarian-based Chines6 an advantage the Qing court played down the Western over neighboring nomadic and hill

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1' threat. Finally, chint. At in 1895 by Shikai (Yuan Shih-k'ai), was chosen as Dulling the long march, the court'. Japan, which had adopter, Western the republic's first president. Before his munists reorganized under a new leader, techndogy Ad other elements of death in 1916, Yuan unsuccessfully at- (Mao Tsetung). The bitter_ Western culture, shod.1 Chinese of- temptedstp name himself emperor. In Struggle between the Kl1tT and the CCP ficialdom and some of Qing court. the aftermath, the republican govern- continued openly or clandestinely The country embarked on a crash re- ment was all but shattered, ushering in throug3'out the 14 years of Japanese in- formist program until the effort was the era of the "warlords" when China vasion (1931-45), even though the two stymied by conservative reaction in tha was ruled and ravaged by shifting coali- parties nominally formed a united front Qing court. Anti-foreign and anti- tions of provincial military leaders. to oppose the Japanese invadersin 1937. Christian groups rampaged northern In the 1920s, Sun Yat-sen estab- The civil war between the two parties China in what became known as the lished a revolutionary base in southern resumed after the Japanese d efeat. in Boxer Rebellion, which was eventually China and set out to unite the 1945, and by 1949 the CCP occupied crushed by expeditionary forces of the fragmented nation. With Soviet , most of the country. Chiang Kai-shek foreign powers. assistance, he organized his partythe fled with the remnants of his KMT Kuomintang (KMT or "Chinese Na- government and military forces to tionalist Party"), along Leninist lines Taiwar "where he proclaimed Taipei to 20th Century China and entered into a close alliance with the be China's "provisional capital" and Frustrated by the Qing court's blocking fledgling Chineie Communist Party vowed to reconquer, the Chinese of reform, young military officers and (CCP). After Sun's death in 1925, one of maibland. The KMT authoiities on_ studentsinspired by the revolutionary his proteges, Chiang Kai-shek, seized Taiwan still call themselves the ideas 6f Surr Yat-senbegan to ad- control of the KMT and succeeded in "Republic of China" and assert' that they vocate the overthrow of the Qing dynas- bringing most of central China under its constitute the sole legal government of ty and the establishment of a republic. A rule. In 1927, Chiang destroyed the all China, including Taiwan. revolutionary military uprising on Oc- CCP's party organization and executed tober 10, 1911, received reformist sup- many of its leaders, The remnants fled The People's Republic of China port and led to the abdication of the last into the mountains of eastern China. Qing monarch. As part of a compromise Finally, driven out of their mountain On October , 1949, Mao Zedong pro- to overthrow the dynasty without a civil bases in 1934, the CCP's forces em- claimed the People's Republic of China war, the revolutionaries andreformers barked on a "long march" that took in Beijing. The new government as- allowed high Qing officials to retain. them across China's most desolate ter- sumed control of a people exhausted by prominent positions in the new republic. rain to the northwest, where they two generations of war andsocial con- One of these figures, General Yuan established a guerrilla base at Yan'an in flict and an economy ravaged by high in- Shaanxi Province. nation and disrupted transportation. A new political andeconomic'brder mod- eled on the Soviet example was quickly .installed. In the early 1950s, China achieved Travel Notes impressive economic and social . The Chinese Government receives tens of travel has also been relaxed, so that a well- rehabilitation. The new leaders gained thousands of visa requests annually from US planned private trip is now feasible. popular support by curbing inflation, citizens but cannot accommodate all of them However, Chinese language capability is restoring the economy, and rebuilding because thadnumber of hotels, interpreter- recommended except for the most traveled many war-damagedindustrial plants. guides, and other facilities, although increas- reas. Persons interested in tourist travel The CCP's authority reached into almost ing, limited. According to Department should inquire at travel agencies and airlines every phase ofChinese life. Party con- of State estimates, more than 300,000 Ameri- that offer tours in China. Visas for tot& trol was assured by strong, politically cans have visited China since the beginning members are usually obtained by the loyal security and military forces, a of 1982. Chinese travel to the US has also organization arranging the tour. To qualify been extensive. In 1982, 5,547 Chinese of- for a visa, the individual traveler must write government apparatus responsive to ficial business representatives or delegates first to obtain a "letter of confirmation" from party direction, and ranks of party traveled to the US. This figure has been China International Service (Luxingshe), members in labor, women's, and other almost matched during the first 7 months of [Xidan Building, Beijing, China (tell 522-033); mass organizations. 1983. New York address, 60 E. 42nd St. (tel. Business visas are issued on the basis of 212-867-0271)] or one must obtain an invita- an invitation from a Chinese foreign trade tion from an individual or institution in The Great Leap Forward and the organization. Those who intend to visit China China. Sino-Soviet Split for business should correspond directly with Tour members with special interests, the appropriate organization in China (such such as visits to hospitals or universities, In 1958, Beijing broke with the Soviet as the China National Machinery Import- should notify the tour organizer to arrange model and announced a new economic Export Corporation). A list of/oreign trade for such visits. Persons transiting China must program, the "Great LeapForward," organizations is included in the U.S. Depart- have in their possesiion a valid Chinese visa, aimed at rapidly raising the industrial ment of Commerce publication Doing even if they do not leave the aircraft. Other- and agricultural production above the Business With China. wise, a $1,000 fine can be levied against impressive gains already attained. It Ao Until recently, tourist visas were difficult them. believed that latent potential could be to obtain except for members of a tour Persons in Hong Kong may take short tapped by industrial decentralization and group. Since November 1982, 29 major tours to Guangzhou (Canton) and other loca- a greater degree ofcollectivization of Chinese urban and tourist centers have been tions in China. Space on these tours is some- China's countryside. Giant cooperatives opened to unrestricted travel. Since times available on short notice. Written in- mid-1982, official policy toward individual quiries maybe sent to any of the various (communes) were formed and backyard private travel agencies in Hong Kong. factories dotted the Chinese landscape. The results were disastrous, as normal market mechanisms were disrupted and

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0 r 0 Li* China's people wer^ exhausted produc- premier. Deng acid other veteran of- , , ficials dominated the Fourth National . . mg shoddy, unsaleablegoolis. Within 1 The Chinese Dynasties year, theChinese leadership retreated, People's Congress in January 1975. As blaming poor planning and the weather. Premier Zhou Efilai's health slipped, Xia(Hsia) DynastyC. 21st-16th centuriesBC =Later, they also blamed the Sovietsfor Deng acted as Zhou's alter ego. c. 16th century-1066BC The conflict between veteran of- Shang Dynasty economic sabotage. C. 1066-221 BC The already strained Sino-Soviet ficials and the radicals reemerged with a Zhou (Chou) Dynasty 1975.1/Lao's wife, Western Zhou (Chou) c. 1066-771 BC relations deteriorated sharply in 1959 vengeance in late c. 770-256 BC Jiang Qing, and three closeCultural Eastern Zhou (Chou) vign the Soviets started to restrict the Spring and Autumn Period 772-481 BC flow of scientific and technological infor- Revolution-era associates (later dubbed Warring States Period . 403-221 BC the "Gang of Four") launched amedia mation to China. The dispute escalated 221-206 BC and the Soviets withdrew all of their campaign against Deng. When Zhou Qin Dynasty - personnel from China. In 1960, the died it January 1976, it was assumed Han Dynasty 206 BC-AD 220 that Deng would take over the premier- Soviets.and the Chinese began to spar Six Dynasties openly over their ideological differences. ship. Instead, Minister of PublicSecurity 220-316 premier Three Kingdoms Period was named acting State of Wei 220-266 in February. On April 6, when the State of Shu 221-263 The Cultural Revolution Beijing populace staged a spontaneous State of Wu 222-280 In the early 1960s, State President Liu demonstration in Beijing's Tiananmen Western Jin (Tsin) Dynasty 265-316 Square in Zhou's memorywith strong Eastern Jin (Tsin) Dynasty and Shaoqi and his protege, Party General 304-435 Secretary , took over political overtones in support of 16 States Dengthe authorities forcibly sup- Eastern Jin (rain) , 317-420 direction of the party and adopted 304-439 pragmatic economic policies at variance pressed the demonstration. Deng was 16 States z,with Mao's revolutionary vision. In the blamed' for the disorder and strippedof Southern and Northern Dynasties all official positions, although he rev Southern. Dynasties spring of 1966, dissatisfied with the new 420-429 policies, Party Chairman Mao launched tained his party membership. Song (Sung) QI (Ch'i) 429-502 the "Great Proletarian Cultural Revolu- Liang 502-557 tion," rallying popular opposition to Liu Mao's Death and Chen (Ch'en) 557-589 and Deng. The result was political and Present Directions social anarchy lasting for almost a Northern Dynasties Mao's death in September 1976removed Northern Wei 386-634 .decade. In the early stages of the 634-660 cultural revolution, Mao and his "^losest a towering figurefrom Chinese politics -Eastern Wei and set off a scramble for succession. v. Northern Qi (Ch'i) 550-577 comrade in arms," People's Liberation' Western Wei 535-557 Army.(PLA) strongman Lin Iliac), Hua Gliofeng was quickly confirmed as Northern Zhou (Chou) 557-681 party chairman and premier.A month charged other top party and governmen- 581-618 tal leaders with dragging China back after Mao's death, Hua, backed by the Sui Dynasty toward'capitalism. Radical youth orga- PLA, arrested Jiang Qing and other Tang (T'ang) Dynasty 618-907 nizations called Red Guards attacked members of the "Gang of Four." After leader- Five Dynasties and 10 Kingdoms party and state organizations atall extensive deliberations, the CCP 902-979 ship reinstated Deng Xiaoping to allof Period levels. Social disorder spread rapidly as. Later Liang 907-923 .political factions and special interest his previous posts at the 11th Party Later Thng (T'ang) 923-936 groups attemated to manipulatethe Congress in August 1977. This symbo- Later Jin (Tsin) 936-946 situation. Pn ftction to the near anar- lized the growing consolidation of con- Later Han 947-950 chy, some local PLA commanders and trol by veteran party officialsstrongly Later Zhou (Chou). 951-960 ?- 902-979 other officials rhetorically supported opposed to the radicalism of the 10 Kingdoms Mao and the radicals while reining in ex- previous two decades. SKig (Sung) Dynasty 960-1279 The post -11th Party Congress cessive radical activity. Gradually, Red 907-.1126 Guard and other radical activity subsid- leadership has emphasized economic Liao (Kitan) Dynasty ed and the Chinese political situation development and renounced the mass Western X ia (Hsia) Dynasty 1032-1227 political movements of prior years. Im- reached a precarious equilibrium along Jin (Nurchen) Dynasty 1115-1233 complex factional lines. The -leadership portant educational reforms weremade conflict took a new turn in September in early 1978. At the pivotal December Yuan (Mongol) Dynasty 1279-1368 Central 1971 when, according to theofficial 1978 Third Plenum (of the 11th Ming Dynasty 1368-1644 Committee), the leadership adopted new ,Chinese version, Party ViceChairman 1644-1911 and Defense Minister staged an agrarian policies aimed at expanding Qing (Ch'ing or Manchu) Dynasty abortive coup against Mao. In the after- rural income and incentives, endorsed Republic' 1912-1949 e:zperiments in enterprise economy, math, Lin allegedly died in a plane crash People's Republic established 1949 in Mongolia while trying to escape to the tempered central planning with economic regulation by market forces, Soviet Union. The Taiwan authorities are recognized After the Lin Biao incident, many and approved direct foreign investment of decided by about 23 countries as the "Republic officials criticized and dismissed during in China. The Third Plenum also China." the 1966-69 period were reinstated. ,to posh the pace of legalreform, Chief among these was Deng Xiaoping, culminating in the passage of several who reemerged in 1973 and was con- new legal codes by theNational People's firmed in 1975 to the concurrent posts Congress in June 1979. Since 1979, the Chinese leadership of Politburo Standing Committee posi- member, PLA chief of staff, and vice , has moved toward more pragmatic tions in almost all fields. The party en- couraged artists, writers, and journalists

5 6 to adopt more critical approaches, debate in closed sessions, and changes The large Discipline Inspection although open attacks on party authority.may be made to'accommodate alternate Commission charged with rooting out were not permitted. Former Sichuan views. corruption and malfeasance among Par- Party Chief succeeded Hua In late 1982, the Sixth NPC adopted ty cadres; and Guofeng as premier in 1980. Zhao had a reformist-oriented new constitution The Central Advisory Commission established a record of pragmatic and and enacted a new 5-year plan keyed to consisting of about 175 party elders. forceful leadership in Sichuan. The Con- Deng Xiaoping's economic modernization All are elected directly by the Party grega" also took other personnel policies, moving China .another step Central Committee. measures to strengthen governmental away from its Maoist past. The most re- organization and loosen party control cent session of this NPC, held in May- over routine decisionmaking at all levels. June 1983, was marked not by major in Legal System In late 1980, after a succession of earlier novations but rather by continued con- China's leaders are determined td attacks on the Cultural Revolution, the solidation by the reformers of control of develop a legal system that will prevent period was officially proclaimed to have governmental institutions. the recurrence of the unchecked exercise been a catastrophe. of official authority and revolutionary Deng's efforts to institutionalize his excess of the Cultural Revolution. In policies advanced one more step when November-December 1982, the Fifth protege replaced Hua The 40-million member CCP, Session of the Fifth National People's Guofeng as party chairman in June authoritarian in structure and intent, Congress adopted a new state constitu- 1981. The trend continued rot the 12th dominates virtually all sectors of na- tion that emphasizes a rule by law under Party Congress in September 1982 as tional society. Nevertheless, China's which even CCP members-will Deng appeared to benefit from internal geographical vastness and social diversi- theoretically be accountable. In keeping party changes. The Congress also ty frustrate any attempt to rule China's with the emphasis on predictability and highlighted the importance of the 1 billion people by fiat from Beijing. In- the law, the NPC delegates also passed . economic modernization drive by adopt- stead, party leaders rule by building con- a number of new statutes. One effect . ing a goal of quadrupling the nation's sensus for new policies among party will be to provide added assurances to gross national product (GNP) by the members, influential nonparty persons, foreigners transacting business with year 2000. Finally, the National People's and the population at large. China that agreements and contracts Congress (NPC) in December 1982 In periods of relative democratiza- will be honored and that arbitrary adopted a new state constitution, the tion, such as has been underway since behavior will not be sanctioned. fourth since 1949. This new constitution 1978, the influence of persons and orga- In other legal developments, the replaces a much more leftist document nizations outside the foimal party struc- first civil procedure law in the history of promulgated in 1978 by the now- ture tends to increase. Nevertheless, in the People's Republic of China was pro- disgraced Hua Guofeng; it provides a, all important government, economic, mulgated for provisional use in 1982, legal framework for the ongoing and cultural institutions in China, party filling a major gap in the legal system. reforms in China's social and economic committees work to guarantee that par- The government announced that more institutions and practices. ty and state policy guidance is followed than 300 laws and regulations, most of and that nonparty persoris do not them economic, have been implemented mobilize to create autonomous organiza- since 1979, when the drive to estab'ish a GOVERNMENT tions that could challenge CCP rule. Par- functioning legal system began. The use ty control is tightest in government of- of mediation committeesgroups of in- State Structure fices and in urban economic, industrial, formed laypeople who resolve about 90% and cultural settings. It is considerably of China's civil disputes and some minor The Chinese Government has always looser in the rural and national minority criminal cases, at no cost to the par- been subordinate to the CCP, its role be- areas, where 80% of the people live and tiescontinued to expand in 1982: ing to implement party policies. The work. There are mcke than 800,000 such com- primary instruments of state power are Theoretically, the highest body of5 mittees, in both rural and'urban areas. the State Council, an executive body cor- the CCP is the Party Congress, which is However, the dearth of lawyers and responding to a cabinet, and the NPC, a supposed to meet at least once every 5 trained legal aides in China complicates legislative body. Members of the State years. The most recent, the 12th Party the delivery of legal services. Law Council include a variable number of Congress, met in September 1982. It schools closed during the Cultural Ace premiers (now 4), the heads of adopted important policy and personnel Revolution decade have been reopen ministries (now 37 ministers), and the changes and elected the 12th Party Cen- and the Chinese Government is comma heads of other commissions and special tral Committee, a body of about 210 full ted to greatly expanded legal training. agencies attached to the State Council. and 138 alternate members. Under the Chinese constitution, the In terms of day-to-day power, the NPC is theoretically the state's leading hierarchy of the CCP includes, in de- EDUCATION government body. It meets annually for scending order of importance: about 2 weeks to review and pass on Although hampered by severe financial major new policy directions, laws, the The six-member Politburo Stand- ing Committee; and personnel problems, China has made budget, and major personnel changes. The Politburo, consisting of 24 full impressive progress in primary educa- These initiatives are advanced to the and 3 alternate members; tion since 1941. About 93% of eligible NPC for consideration by the State The Party Secretariat, the prin- children are 'e:irolled in first grade; Council after previous endorsement by cipal administrative mechanism of the though only 65% finish primary school. i.he Central Committee. Although the CCP, consisting of a party general China's goal is to .provide universal NPC generally approves State Council secretary and 8 secretaries; elementary school education by 1990. policy and personnel recommendations, The Party Military Commission, Beyond the primary level, the gap in various NPC committees hold active consisting of one chairman and four vice educational opportunity between China's chairmen;

6 w.

Party Officials Principal Chinese Government and O

Party Wang ZhenPresident, Central Party School EducationHe Dongchang Wei GuoqingVice Chairman, NPC Standing Electronics IndustryJiang Zemin Politburo Standing Committee Committee FinanceWang Bingqian fin rank order) Xi ZhongxunVice Chairman, NPC Standing Foreign AffairsWu Xueqian Committee Foreign Economic Relations and Trade Hu YaobangGeneral Secretary, Chinese Xu XiangqianVice Chairman, Central Milk Communist Party Central Committee tar Commission ForestryYang Zholig; (CCP-CC) - Zhang TingfaCommander, Air Force Geology and MineralsSun Dagua Ye JianyingV ice Chairman of the Central JusticeZou Yu Military Commission[s] Alternate Politburo Members Labor and PersonnelZhao Shot Deng XiaopingChairman, Central Advisory Light IndustryYarig Bo Commission and Central Military Com- Chen Muhua Minister of Foreign Economic Machine-Building IndustryZhou Jiannan mission Relations and Trade Metalurgical IndustryLi Dongye Zhao ZiyangPremier, State Council Qin JiweiCommander, Beijing Military' National DefenseZhang Aiping Li XiannianPresident, PRC Region Nuclear IndustryJiang Xinxiontt --First Secretary, Central Disci- ; -Vice Premier, State Council OrdnancA IndustryYu Yi pline Inspection Commission, CCP-CC Petroleum IndustryTang Ke Government Posts and TelecommunicationsWen Other Full Politburo Members PresidentLi Xiannian . Minsheng (not in rank order) Vice PresidentUlanh Public HealthCui Yueli Deng fingchaoChairman. CPPCC Chairman, NPC Standing Committee Public SecurityLiu Fuzhi Fang YiState Councilor; Minister in 'Radio and TelevisionWu Lengxi Charge of State Scientific and Techno- Premier, State CouncilZhao Ziyang RailwaysChen Puru logical Commission .Space IndustryZhang Jun HucQiaomuHonorary President, Chinese Vies Premiers State SecurityLing Ywi Academy of Social Sciences Textile IndustiyWu Wenying Li DeshengCommander of the Shenyang ,prban and .Rural Construction and Environ- Military Region Yao Yilin mental ProtectionIA Ximing Ni ZhifuChairman, All China Federr Lion Water Resources and Electric PowerQian of Trade Unions Zhengying Nie RongzhenVice Chairman, Central Mili- Ministers tary Commission Heads of Commissions Peng ZhenChairman, NPC Standing Agriculture, Animal Husbandry and Committee FishingHe Kang State Economic--Zhang Jingfu Song RenqiongMember, CCP-CC Astronautics IndustryZhang Zun State Family PlanningQian Xinzhong UlanhuVice President. PRC Auditor GeneralYu Mingtao State Nationalities AffairsYang Jingren . Yang ShangkunPermanent Vice Chairman Aviation IndustryMo Wenxiang State Physical Culture and Sports and Secretary General, Central Military Chemical IndustryQin Zhongda Li Menghua Commission[s] Civil AffairsCui Naifu State PlanningSong Ping Yu QiuliDirector, General Political Depart- Coal IndustryGao Yangwen State Restructuring of Economic System ment, PLA and Member Central Military CommerceLiu Yi Zhao Ziyang Commissionj sj CommunicationsLi Qing State Scientific and TechnologicalFang yi Wan LiVice Premier, State Council CultureZhu Muzhi

rural and urban areas is wide. More and the first 5 years of the cultural Revolu- 1983, 18 students received doctorates. better-funded middle schools are in tion, until about 1970, many colleges and Although China, has sent students to China's cities, including many key junior universities were shut down. In 1978, the West since the early 1970s, begin- and senior middle schools, which funnel for the first time since 1966, China's col- ning in 1978 the number of government- students on to college. About 65 million leges and universities chose entrants on sponsored students rose greatly. By late students are enrolled in China's 3-year the basis of standardized entrance ex- 1982, there were about 6,000 official junior and senior middle schools (ages aminations and academic criteria rather Chinese Government-sponsored students 11-17). Only about 5% (300,000 per than on political criteria. ,A majoreffort and research scholars and about 3,500 year) of senior middle school also was begun to restore the physical privately sponsored.students in the graduatesless than 1% of China's plants and personnel resources of col- United States. college-age population gain admission leges and universities to the pre-1966 to college. In 1983, 280,000 students level. In addition to more than 700 col- received bachelor's degrees. During the leges and universities, enrolling more ECONOMY course of the 5-year plan (1981-85), than 1 million students in 1982, other China aims to produce 1.5 million new facilities, includingshort-term col- Trends and Policies graduates at the bachelor level; new ad- leges and "TV" universities have been missions of full-time university students opened to provide additional oppor- When the People's Republic was are expected to reach 400,000 by 1985, tunities for higher education. Graduate established in 1949, China's economy dislocations up 42% over 1980. education vias reestablished, and by was suffering from severe China's higher education system suf- 1982 there were about 11,000 graduate caused by decades of war and inflation. fered great damage dui-ing the Cultural students, most in scientific and technical The new government's immediate con- Revolution decade (1966-76), and its full fields. Approximately 3,000 students restoration began only in 1978. During received master's degrees in 1983. In cerns were to consolidate power, "restoresand educatitifial systems, and interrupt, Poor economic performance during publicorder, and eliminate widespread ing foreign trade. 1978, however, produced a more sober unemployment and starvation; In 197k, Premier Zhou Enlai out- appraisal by the Chinese leadership of Most of these problemswire re- lined a new set of economic goals the gap between China's capabilities and solved by 1952,,and in 1953 China designed to elevate China to the status its ambitions. In late 1978, at thearhird laUnched the first 5-year plan. With na- of a `tfront rank" economic power by the Plenum of the CCP, the 10--year plan tional defense concerns foremost in year 2000. This multistaged effort, was replaceli by a more moderate, short- mind, andimpressed with the logic of described as the "four modernizations" term program aimed at improving the early Soviet experience, China program, aimed at achieving ambitious domestic 'conditions-insufficient energy centered its first plan on the rapid levels of production in Chinese production, poor transportation, and buildup of heavy industry. Many - agriculture, industry, science and . other infrastructure gaps-that con- -facilities were impOrted from the Soviet teshr.ology, and national defense. It strained economic development. The Union and install ?d with the aid of echoed a century-long Chinese search 1919-8i period was to be devoted to' . SOviet technicians. Agriculture, which for means to restore the country to economic "readjustment." Hundreds of furnished the greater share of the4GNP, relative "wealth and power" in a world industrial capital construction projects .received little state investment. of technologically advancedcivilizations. were canceled or postponed, as Since 1957, the economy has man-' In 1976, the death of Cl:Airman Mao, theresources were shifted away from heavy aged considerable growth (average 6.4% arrest of the G'ang of Four, and the industry toward light industry and per annum), despite major disruptions gradual establishment of a new agriculture. At the Bathe time, China's stemming from' political turmoil and moderate government under Denk leaders attempted to decentralize poor planning. The experiments,ef the Xiaoping and Hua Guofeng sharply economic decisionrnaking to the local Great Leap Forward plunged China into reduced the role pf ideology in Chinese government and enterprise level. a depression in the early 1960s. Corn- policy an thus removed the primary Decentralbation porked to some ex- pounding these domestic difficulties was source of the disorder that had plagued tent against the necessary "read- .the withdrawal of Soviet assistance and China for the past decade. The stage justments." Budget deficits, excessive technicians in August 1960 as the Sino- was set for a more pragiriatic look at the capital construction (pnetited largely Soviet'dispute broke into the open. Beij- political and economic problems facing at the local and enterrise level), and ing responded to these traumas by reem- the country. problems in controlling inflation led in phasizing its traditional determination to China's commitment to the "four 1981 to a strong austerity program. be "self-reliant" and began to direct a modernizations" was reaffirmed in 1978 Cdpital investment was cut back sharp- greater share of its investment toward at the Fifth National People's Congress. ly. Many foreign contracts for imported agriculture. After a brief period of A 10-year plan assigned a major role to plants and equipment were canceled or uninterrupted economic growth, massive imports of complete plants and postponed; inefficient factories were politics-this time the Cultural Revolu- technology from the West. By the end of closed, and acquisition of foreigri tion. and its aftermath-again disrupted the year, China had signed contracts technology was made more selective. the economy by injecting ideology into committing itself to foreign purchases Tighter central control 'was reintroduced

economic planning, damaging training_ totaling $7 billion. . to some aspects of economic planning 0110 Key Statistics

4. (estimates)1

1969 1970 19'1 1972 1973 1974 1976 1976 1977 1978 1979 1980 -1981 1982 . Industrial output index (1957.100) 266 316 349 385 436 455 502 508 581 -659 716 778 810. 872 Production Coal (M7 millions) 281.6 327.4 353.6 376.5 398.1 409 478 483 550 618 et 635 620 620 666 Crudeit (bpd millions) 0.43 0.6 0.77 0.9 1.14 1.36 1).54 1.74 1.87 2.08 ?.12 2.12 2.0 2.04 Electric power (kWh billions? 107.0 128.0 139.0 150.0 164.0 187 203.5 225.6 256:64281.9 300.6 309.3 3*.7 Steel (MT millions) 16 17.8 21 23 25 21 24 20.5 ° 23.7 31.8 34.5 37.1 35.6 35.5 Cotton,(MT .... 1.8 2.0 2.2 2.1 2.6 2.5 2.4 2.3 2.0 2.2 2.2 2.7 3.0 3.6

Cotton cloth (Meter billions) . 8.5 9.7 9 10.2 11 12.2 13.5 14.3 15.4 Grain (MT millions) 230 243 246 240 265 275 284 286 283 305 332 321 325 353.4 GNP (1980 $ billions) 252 282 301 312 351 364 388 395 429 479 520 272 280 301 Total foreign trade Current $ billions 3_9 4.4 4.6 5.8 9.7 13.5 13.9 12.9 14.8 20.5 27.9 38.2 39.6 39.2 Exports (f.o.b $ 2.1 2.2 2.5 3.2 5.1 6.8 7.1 7.13 8.2 10.2 13.5 18.9 21.6 22.4 Imports (t. i.f. $ 1.8 2.2 2.1 2.6 4.6 6.7 6.8 5.6 6.6 14.4 19.3 18 16.8 US-PRC trade US exports (f.o.b. $ 63 690 819. 304 135 171 818 1,700 3,750 3,600 2,900 US imports (f.o.b. $ millions) 5 32 64 115 158 202 203 324 592 592 1,900 2,300

'CIA estimates as of March 1983. 4- 2Blank indicates data.not available.

8 46, earlier granted to local authOritiik In- dicationsbegan to appear that the. 'Commodities Compositioni 19821 original 3-year period of readjustment would be extended for several more $ million % of Total $ million % of Total years. k / a IMPORTS EXPORTS . Current Policies Total (- 216,081 100 Total 22,359 100 S ince 1978, the premise of China's Foodstuffs & live animals 33,485 21.0 Foodstuffs & live animals 3,635 economic policy has been that consumer Live anMials 201.01 Live animals 384 1.7 welfare; economic productivity, and - Meat andfish '783. 3.5 political stability are indivisible. Em- A Cereals and-cereal preps. . 2,477 15.0Cereil and cereal preps. 577 2.6 a Fruits and vegetables 99 0.6 Ftuit and vegetables 1,000 4.5 phasis has been placed on raising per- 1,5 sonal income and consumption and on Animal feedstuffs 35 0.2Coffee, tea, and spices 339 . 63 0.23 inttoducing new productivity incentive Misc. food preps. arkd products 817 6.0 Tobacco Beverages and tobacco 55 0.3 Other foodstuffs' 499 2.2 and management systems. . Leaders attending the third session Crude materials ';,27014.0 Crude materials CV,23932.0 Oilseeds and oilnuts 824.5 Hides and skins, undressed 73 0.3 of the'F-ifth National People'sCongress 253 1.0 in August 1980 pressed ahead with Crude rubber 310 2.0 Oilseeds and oilnuts Textile fibers ° 1,174 7.0Textile fibers 488 2.2 these plans. In an accelerated driVe 1.3 Metalliferous ores . 66 0.4 Crude fertilizer & minerals 289 toward readjustment and reform, they Crude fertiliz9rs & minerals 69 0.4Metalliferous ores 140 0.63 endoried a controversial reform package Misc. materials ' 669 3.5 Crude animal & vegetable that would reduce the role of central materials 476 2.1 Coal and coke %lib 580 2.6 management in favor of a mixed, . planned-market economy. Key elements Mineral fuels and products 157 0.9Petroleum products 4,820 22.0 are expanded self-management rights, Fixed vegetable oils 82 0.4 introduction of greater competition in Other materials 38 0.1 the marketplace, an easing-of the tax Chemicals 1,93812.0 Chemicals 1,302 6.0 burden on honstate enterprises, and a Elements and compounds 450 3.0 Elements and compounds 588 2.6 new policy facilitating direct contact be- Dyestuffs .125 0.8 Medicines 198 0.8 tween Chinese and foreign trading Manufactured fertilizers f148 3.0 Manufactured fertilizers 7 0.3 509 2.8 enterprises. Other chemicals 815 5.0Other products The sixth 5-year Man (1981-85), on- Semi-manufactured goods 4,02725.0 Semi-manufactured goods 5,21823.0 nounced in December 1982, presents in Papes.and paperboard 189 1.0Paper 173 0.8 detail the leadership's strategy for laying Textile yarn and fabrics 1,145 7.0Thetile yarn and fabrics 3,153 14.0 Mineral manufactures 467 2.0 a solid economic base to support the Mineral manufactures . . 106 0.6 Iron and steel 1,833 11.0Iron and steel 267 1.9 planned high growth of the late 1980s 1,158 5.2 and the i990s. The Chineie will make an Other products, 754 5.0 Other products ambitious attempt to control and direct Machinery and equipment 3,40121.0 Machinery, and equipment 756 4.0 growth while increasing the efficiency -of Non-electric machinery 1,637'10.0Non-electric machinery 311 1.4 management and investment spending. Electrical machinery' - 870 6.0Electric machinery 341 1.5 104 0.5 Planned budget and trade deficits, along Transport equipment 894 6.6Transport equipment with Premier Zhao's call.tor increased- Misc. manufactured goods 669 4.0Misc. manufactured goods 4,140 18.0 use of foreign funds; indicate thatChina Furniture 9 0.6Furniture 209 0.9 will depend more on foreign financing Clothing 49 0.3Clothing 2,441 11.0 Precision instruments 326 2.0" Precision instruments 136 0.6 and imports to meet its planned targets. 1,354 6,1 The regime has decided to move Other 285 2.0 Other cautiously on further implenientation of Other 134 0.6 Other 69 0.3 reforms, but it still must search for the best combination of central planning and 'Figures are rounded to nearest million. Because of rounding, compo may not add to market-oriented reforms that will in- totals shown in bold. Totals may not compare exactly withliirectionof trade data inn table monthly as part: *--4 "Trade byArea.and Selected Countries." Direction of trail! figures is revised crease productivity, living standards, available. Commodity data, however, are updated only and" technological quality without further ner countries make their trade statistics exacerbating inflation, unemployment, annually. and budget deficits. Prospects for suc- 'Source: CIA statistics available June 1983. cessfully reforming the Chinese economy VNIIIMb are limited; however, unless Beijing in- augurates a comprehensive program of since 1960, when about 70% was with price reform, which brings factory prices Trade and Aid and the Soviet bloc. Today, Eastern Europe more in line with production costs Although China has long favored a - and the Soviet Union have been replaced relative scarcities in tte economy. Until policy of "self-relian:e---the restriction largely by noncommunist states that ac- pricetreform is implemented, all in- and diversification of imports and count for more than 90% of China's dustrial reforms that attempt to improve foreign credits to avoid depend- trade: Foreign trade has expanded par- economic efficiency by making entrT- ence-the current leadership recognizes ticularly rapidly since 1.)78 and in 1982 r rises responsible for their profits and the need for foreign trade and technol- totaled almost $40 billion. losses will yield distorted results. ogy in China's modernization strategy. Import priorities are technology and China trades with more than 150 equipment for sectors that have impeded countries, The regional breakdown of China's trade has taken0 a dramatic turn n O

04,

1 Trade by Areas and Selipted Countries.____

mittion;0 1981

1 ,7. Total Exports Imports Balance .6. tI' Total (all countries) 39,587.4 21,642.9 17,944.5 3,698.4 Noncommunist countries 37,072.4 20,399.7 16,672.7 3,727,0 Developed countries 22,782.5 10,043.1 g12,739.4 -2,696.3 East Asia & Pacific 11,244.0 5,406.2 5,837.8-- ' -431.6 Australia 978.7 339.7 639.0 -299.3 Japan 10,107.8 5,031.8 5,076.0 44.2 North America 6,437.2 2,058.2 4,379.0 -2,320.8 O -1,727.8 L US 5,477.6 1,874.9 3,602.7 776.3 -693.0 Canada .959.6 183.3 Western Europe' 5,101.3 2,578.7 2,522.6 56.1 , Frarice 717.1 443,0 274.1 168.9 1,685.4 668:A 1,016.6 -347.8 Italy 679.3 348.6 330.7 17.9 UK 569.6 317.3 252.3 65.0 Leas Developed Countries 14,289.9 10,356.6 3,933.3 6,423,3 Southeast Asia2 9,853.9 7,319.6 2,534.3 4,785.3 Malaysia 349.8 261.4 , 88.4 173.0 Singapore 914.2 735.6 178.6 557.0 South Asia! 769.4 359.8 409.6 -49.8 Sri Lanka 82.8 37.4 45.4 8.0" Pakistan 443.6 171.7 271.9 ,-100.0 Middle East" 1,463.5 1,279.9 183.6 1,096.3 98.5 Kuwait 189.1 143.8 45.3 Syria 163.6 121.7 41.9 79.8 North Africa 317,8 222.6 95.2 .127.3 68.4 -1412 Egypt' 122.6 54.2 Tunisia 29.0 18.5 10.5 8.0 '.;ub-Stharan Africa' 733.9 545.8 188.1 357.7 Nigeria 40.6 40.6 .0 40.6 Sudan 81.5 44.8 -36.7 8.1 Latin America 1,151.5 629.0 522.5 106.5 Argentina 111,6 19.5 92.1 -72,7 290.7 Brazil 429.7 360.2 69.5 3,307.2 HungRom' 7,235.8 5,271.5 1,964.3 Communist countries 2,514.9 1,243.2 1,271.7 -28.5 15:8 USSR 0 246,6 131.7 115.9 Easter') Europe 1,447.2 746.4 45.6 11.1 Czechoslovakia 151.9 81.5 70.4 101.2 113.9 -412.7 GDR ". 215.1 Romani; 794.2 398.4 395.8 2.6 Other' .820.1 365.1 455.0 -89.9

'Iniluding Belgium, Netherlands, Spain, Sweden, and Switzerland. 2Includink Hong Kong, Indonesia, Philippines, and Thailand. aIncluding Bangladesh. 'Including Saudi Arabia, Iraq, United Arab Emirates, and Yemen Arabhvpublic. "Including Cameroon and Zambia. "Including Chile, Mexico, and Guatemala; 'Including entrepot trade with third countries. 6. "Including Hungary, Poland, and Yugoslavia. 'Including Kampuchea, Cuba, Mongoli-..n Republic,Laos, North Korea, andVietnam.

China's economic growth, including coal, and industrial materials, including largest less-developed country-China electric power, petroleum, building chemical fertilizers anc1 synthetic fibers. has obtained large lines of credit from materials, transportation, communica- In 1982, imports were $16.08 billion, foreign governments and international tions, and nonferrous metals. China also while exports reached $22.3 billion. financial institutions. In addition, imports substantial quanities of grain The importation of plant, equipment, specific policies encourage an incoming and technology *as required access to supply of foreign capital and foreign financing, and-as the world's simultaneous increase of China's export

10 11 e.

3 . .: . Trade by Areas and.. Selected Countries

($ million.i) 1982 z Total Ezpor's Imports Balance Total (all countries) 38,440.4 22,3.59.2 .16,081.2 6,278.1 Noncommunist countries 35,818.3 21,004.2 14,814.1 6,190.1 Developed countries 20,939.7 10,192.2 10,747.5 -555.3 East Asia & Pacific 9,801.5 5,412.3 4,389.2 1,023.1 Australia 1,103.0 288.7 814.3 -525.6 Japan 8,583.4 5,083.4 3,500.0 1,583.4 North America. 6,357.4 2,440.2 3,917 2 -1,477.0 US .5,186.9 2,274.9 2,912.0 -637.1 Canada 1,170.5 165.3 1,005.2 -839.9 Western Europe' 4,780.9 2,'339.8 2,441.1 -101.3 France 714.5 379.7 335.8 43.9 FRG 1,462.7 610.1 852.6 -242.5 Italy 372.1 210.3 161.8 UK 473.5 295.0 178.5 116.5 Less Dezietoped Countries 14,878.6 10,812.0 4,066.6 6,745 4. Southeast Asia2 10,911.8 7,827.4 3,084.4 4,743.0 Malaysia 407.0 262.4 113:4 148.9 Singapore 1,079.0 838.6 .240. 4 598.2 South Asia? . 588.6 _340.6 248.0 92.6 Sri Lanka 48.3 40.0 8.4 31.6 P4kistan 293.3 -141.5 '151.8 -10.3 Middle East' 1,494.4 1,352.6 141.8 1,210.8 Kuwait 191.6 178.7 12.9 165.8 Syria 176.3 141.0 35.3 105.7 Narth Africa 334.1 216.7 117.4 99.2 Egypt 115.6 55.1 60.5 -5.4 Tunisia 53.2 19.2 34.0 -14.7 Sub-Saharan Africa"- 632.2 493.4 138.8 354.6 Nigeria 41.3 41,3 .0 41.3 Sudan 78.0 45.5 82.5 13.0 Latin America" ' 917.6 1181.4 336.2 245.2 I ' Argentina 41 129.5 8.5 121.0 -112.5 Brazil 400.7 339.3 61.4 277.9 Hong Kong? 7,309.6 6,376.6 1,932.9 3,443.7 .r. Communist countries 2,622.1 1,355.0 1,267.1 88.0 USSR 307.8 142.6 165.2 -22.6 Eastern Europe" 1,540.4 841.2 699.2 142.0 Czechoslovakia 145.2 82.9 62.3 20.5 GDR 203.7 102.9 100.8 2.1 Romania' 755.3 405.0 350.3 54.7 Other° 773.9 371.2

'Including Belgium, Netherlands, Spain, Sweden, and Switzerland. 2Including Hong Kong, Indonesia, Philippines, and Thailand. 3Including Bangladesh. 'Including Saudi Arabia, Iraq, United Arab Emirates, and Yemen Arab Republic. 5Inauding Cameroon and Zambia. 6lncluding Chile, Mexico, and Guatemala. ' Including entrepot trade with-third countries. "Including Hungary, Poland, and Yugoslavia. 'Including Kampuchea, Cuba, Mongolian Republic, Laos, North Korea, and Vietnam.

capabilities. These policies include joint China's trade practices are cautious Although it is a developing country, ventures, trade compensation ar- conservative. Nevertheless, China is China has a modest program of foreign rangements, any establishment of moving rapidly_pward giteater economic aid designed to bolster national pride "special economic zones" for foreign in- interdependen9e with'industrialized and counter Soviet influence in the vestors interested in manufacturing for Western nations and, to a lesser extent, Third World. Asian and African develop- export to hard currency countries. wth the Third World.

12 . 11 Minerals. China's metal andmineral resources, thoughbelieved to be China's Top 10 TradingPartners substantial, are largely unexplored. China is a major producer and ekporiter Total trade in $ millions of tin, antimony, tungsten,fluorspar, and talc. China also exportsstrategic 1982 0 titanium, 1980. 1981 metals such as molybdenum, _ tantalum, and vanadium.China is 8,583.4 and 9,247 Japaf 10,107.9 .Japan evidently deficient in the reserves 1. Japan 7,309.5 5,649 Hong Kong 7,235.8 Hong Kong production of copper, chromite,nickel, 2. Hong Kong US 5,186.9 , 4,810 US 5,477.6 and zinc. 3. US 1,685.4 FRG 1,462.7 4. FRG 1,848 FRG 1,170.5 1,160 Australia 978.7 Canada 4d 5. Romania Australia 1,103.0 Australia 1,015 Ca a 959.6 6. 914.2 Singapore 1,079.0 FOREIGN RELATIONS . 874 Si gapore 7. UK Romania ,, 755.3 8. Canada 862 Romania 794.2 placed in- France 717.1 France 714.5 Since early 1982, China has 9. France 710 582.4 clober 709 Italy 679.3 Italy creasing importance on building 10.Italy ties with the Third Worldbut still em- phasizes the need to oppose \ "hegemonism" and to safeguardworld peace. These goals aredesigned to ing countries havebeen the primary Energy and Mineral Resources create a secure internationalstrategic beneficiaries, receiving Chinese grants China possesses vast, largelyuntapped environment for China and tofoster and credits amounting to morethan energy resources.Energy shortages good relations with countriesthat can $5 billion between 1953 and1981. Only resulting from past mismanagementwill aid the nation's economicdevelopment. about one-half of the amountextended probably impede China's economic To this end, China looked tothe West has been drawn down. Chineseaid is in- development for the next several years. Lot assistance with its modernization terest free, usually in theform of small, Chinese policies encourageinvestment in drive and for help in counteringSoviet labor-intensive, light industrial projects, energy explorationand development. expansionism, which it continued to of which textile mills are the most Domestic energy needs are suppliedby characterize as the greatestthreat to its popular. Terms require that anyChinese coal (70%), oil (24%),hydroelectric national security and to world peace. employed on the projects be paid atlocal power (3%), andnatural gas (3%). "These efforts flow from China's wage scales. Coal is by far China's mostimpor- is as an historic great poweriri Ettat tant Sburce of primary energy.With 540 and as the world's largestdevelop- and its con - Agriculture and Industry billion metric tons (MT) of identified ) uuntry. China maintained 7ecoverable reserves, China's totalcoal Qis ant oppobition to"superpower China's economy is dominated by resources are exceededonly by those of hegemonisrri," focusing on the expan- agriculture, although only 11% of the the United States and the SovietUnion. sionist actions of the SovietUnion and land is suitable for cultivation.Virtually The Chinese anticipate coal exportsof Soviet proxies such as Vietnamand all arable land is used for crops,and 10.8-14.4 billion MT per yearin the Cuba, but it also placed growing em- China is the world's largest producerof mid-1980s. but they will need toimprove phasis on a foreign policyindependent of. rice, potatoes, millet, peanuts,tobacco, the meager transportation facilities to both superpowers. In keepingwith its tea, and pork. Majorindustrial crops in- meet this goal. In 1982,China produced moderate repositioning towardthe Third clude cotton and other fibers, sugar,and 606 million MT of coal. World, China closely followseconomic various oilseeds. Although intensive Oil. China is the world's eighth and other positions of theNonaligned cultivation techniques already secure largest oil producer. Although mostis Moverent, although China is not afor- high yields on many of its major crops, consumed domestically, China also ex- mal rrWiber. China hopes to increase agricultural pro- ported 300,000 barrels ofpetroleum and Since its establishment the People'se duction even further through improved petroleum products per day in 1982and Republic has sought to gain interna- plant stocks and technology.Agricul- plans to maintain this level. tional recognition for its positionthat it tural exports furnish a largeportion of Natural Gas. China producedalmost is the sole legal Governmentof China, China's foreign trade revenue. 12 billion cubic Meters of natural gasin including Taiwan. Since the early1970s, An expanding but still inadequate 1982. H:Asever, Beijing hasannounced Beijing has essentially achievedthis manufacturing sector supplies China's no plat to expandnatural gas develop- goal, Beijing assumed the China seatin capital and consumer goods. Majorin- ment. the United Nations in 1971and became dustries are iron and steel, coal,machine Electric Power. China's electric increasingly active in multilateral building, armaments, and textiles.Short- power generation has grownfrom a organizations. The number of countries ages exist in themanufacture of com- level of 4.3 billion kilowatt hours(kWh) that have transferred diplomaticrela- plex machinery and equipment.The lack in 1949 to almost 328 billionkWh in tions from Taipei to Beijinghas risen to of a comprehensive transportation 1982. Generation, transmission, and con- 125, leaving only about 23that still con- system is a major hindrance toChina's trol technologies, however, arestill sider Taipei as the seat ofChina's de.. eloping industry. A betterrail 10-20 years behind thz West's,and local government. system and other transport-relatedproj- power shortages arefrequent. Although In the 1960s, after their falling out ects are part of an ongoingimprovement China has the world's greatest with the U.S.S.R., theChinese competed program. hydroelectric potential, only 3% of its with the Soviets for politicalinfluence capacity is being tapped. TheChinese among communistparties and in the are undertaking anambitious hydroe1ec- developing world generally.Following tric development program toexploit this potential and to lessen powershortages.

12 13 0

the 1968 Soviet invasion of Czechoslovakia and clashes in 1969 on Useful Addresses the Sino-Soviet border, Chinese opposi- tion to the Soviet Union increasingly Official Contacts , -reflected concern over Chiha's own (iS -China Trade Advice strategic position. In late 1978, the Office of Chinese Affairs US Department of Commerce Chinese also became concerned over US Department of State Industry and Trade Administration Vietnam's efforts to establish open con- Washington, DC 20520 Office of East-West Affairs trol over Laos and Kampuchea and to Tel. (202) 632-6330 PRC Affairs DivisionRoom 4044 4 American Embassy at Beijing Washington, DC 20230 exert pressure on Thailand. In response Tel. (202) 377-3583 to the Soviet-backed Vietnamese inva- 17" Guanghua Lu sion of Kampuchea, China fought a brief Beijing, People's Republic of China or Tel. 522-033 border war with Vietnam (February- Ambassador: Arthur W :' Hummel, Jr. Office of East-West Trade Development March 1979) with the stated purpose of Trade Development Assistancl Division "teaching Vietnam a lesson." The American Consulate General at Guangzhou Room 4816 Chinese were and are concerned about Dongfang Hotel Washington, DC 20230 Guangzhou, People's Republic of China e: expanding Soviet access to Vietnamese Tel. (202) 377-2836 l and other military facilities in Indochina. Tel. 61-582 Consul General: Weyer Gim National Council for US-China Trade Chinese anxiety about Soviet strategic 1050 17th Street NW advances was heightened following the American Consulate General at Shanghai Suite 350 Soviet Union's December 1979 invasion 1'469 Huaihai Zhong Lif Washington, DC 20036 of Afghanistan, which extended the Shanghai, People's Republic of China Tel. (202) 828-8300 Soviet encirclement of Chita and Tel. 373-103 threatened the security of Pakistan, its Consul General: Thomas S. Brooks Travel Contacts long-term ally. Sharp differernss be- Chinese Foreign Trade Contacts China Travel Service (Luxingshe) tween China and the Soviet Union per- Head Office: Xidan Building, Beijing sist over Soviet support for Vietnam's Embassy of the People's Republic of China Tel. 667-850 continued occupation of Kampuchea. the 2300 Connecticut Avenue NW Hong Kong: 77 Queens Road, Central Soviet invasion of Afghanistan, and the Washington, DC 20008 Tel. 5-259121 Tel. (202) 328-2520 Soviet military buildup along the Sino- Cultural Exchange Soviet border, including Mongolia. Sino- Consulate General of the People's Republic Soviet talks on these and other issues of China US-China Educational Clearinghouse began in October 1982. Subsequent 520 12th Avenue 1860 19th Street NW rounds were held in March and October New York, NY 10036 Washington, DC 20009 1983. These talks have produced no ap- Tel. (212) 279-4260 Tel. (202) 462-4811 parent breakthrough on major dif- Consulate General of the People's Republic (202) 389-6795 ferences, but bilateral trade and cultural of China at San Francisco Committee on Scholarly Communication with exhanges have increased. 1450 Laguna Street the People's Republic of Chihli China continued to make strong ef- San Francisco, CA 94115 National Program for Advanced Studies and Tel. (415) 563-4885 Research in China forts to reducetther border tensions by 2101 Constitution Avenue NW strengthening relations with North Consulate General'of the People's Republic of China at Houston Washington, DC 20418 Korea and maintaining close and cordial Tel. (202) 389-6136 ties with Japl It also cultivated a 3417 Montrose Blvd. more cooperative relationship with Houston, TX 77006 National Committee on US-China Relations Tel. (713) 524-0780 777 United Nations PlazaRoom 9B members of the Association of South New York, NY 10017 East Asian Nations (Malaysia, Tel. (212) 682-6848 Singapore, Thailand, Indonesia, and the Philippines), and began border talks and increased nonpolitical exchanges with In- dia. Further afield, Premier Zhao Ziyang's month-long visit to Africa in China's defense strategy seeks to the military through i parallel but in- 1982-83 under4cored the importance 'take advantage of the country's large terlocking chain of 'command of political China attaches to this region and to size and population. Chihese strategists commissars. The role of the. Ministry of strengthening Third World ties. envisage permitting enemy forces to National Defense is largely admin. penetrate deep inside China, eventually overwhelming them 'by conventional and The PLA maintains a diminished but DEFENSE guerrilla operations. An armed militia, still actin e role in party organizations. estimated at 7-9 million strong, backs The PLA sends a number of representa- China's armed forces number about 4.2 up regular PLA units. The PLA's tives to the NPC, and its most senior of- milliori-80% ground forcesand ab- capacity to wage large-scale operations ficers participate in leadership councils. sorb 7%-8% of China's GNF. Although is severely restriced, however, by limited China's nuclear weapons program, the People's' ration Army (PLA) is logistical resources and transport aided at an earlier stage by the Soviet chiefly a land*ed force, China has a facilities. Union, resulted in the detonation of a large payy, cohiposed mainly of coastal China is divided into 11 military nuclear device at Lop Nor in Western patrol craft along with a growing regions and further subdivided into 29 China on October 15, 1964..Since then, number of submarines and destroyers. military districts, which are subordinate the Chinese have conducted about two Although the Chinese Air Force is the to the PLA General Staff. Supreme dozen additional nuclear tests, including world's largest, it mainly compi-ises ag- command authority rests with the CCP three underground. China has deployed ing fighter and interceptor aircraft. and State Military Affairs Commissions, a modest force of medium-and which also exercise political control over 14 intermediate-range ballistic missiles and tion is based on the principle of self - The Liaison Office Era, 1973-78 limited-range intercontinental ballistic reliancer aided by selected imports from In an effort to regularize bilateral con- missiles. In May 1980, China teeted a the West to supplement its indigenous tact and build substantive relationships full-range intercontinental ballistic production. °toward the establishment of normal missile over an 8,046-kilometer (6,000 diplomatic relations, the United States mi.) course Jevelopment and deploy- and China agreed in 1973 to open non- ment of a baistic missile-carrying sub- U.S.-CHINESE RELATIONS diplomatic liaison offices in each other's marine is underway. China has declared capitals. The U.S. Liaison Office (USLO) that, in any conflict, it would never be 1949-72 in Beijing and a counterpart Chinese of- the first to use nuclear weapons. The fice in Washington, D.C., were set up in PLA leadership is attempting to update Although the American Embassy moved May 1973. In the years between 1973 its weaponry and develop greater pro- to Taipei with Chiang Kai-shek, U.S. and. 1978, such distinguished Americans fessionalism in the armed forces. The diplomats and consular officials re- as David Bruce, Thomas Gates,George pace of this effort is restricted by mained in China after the proclamation Bush, and Leonard Woodcock served as budgetary limitations and the PLA's of the People's Republic in October 1949.chief of USLO with the personal rank of ability to absorb sophisticated The new government was hostile to this ambassador. technology. China's military moderniza- official American presence, and all U.S. President Gerald Fordvisited China personnel were withdrawn in early 1950:in 1975 and reaffirmed the U.S. commit- Any remaining hope of normalizing rela- ment to the goal of normalized relations tions ended when U.S, and Chinese com-with Beijing. Shortly after taking office Commerce Handbook munist forces. fought on opposing sides in 1977, President Jimmy Carter also in the Korean conflict. endorsed this objective of the Shanghai .Beginning in 1954 and continuing The US Department of Commerce publishes a Communique. Finally, the United States handbook entitled Doing Business With until 1970, the United Stateli and China and China announced on December 16, China. It contains information on market re- held 136 meetings at the ambassadorial 1978 that the two governments had search, foreign trade corporations, contract level, first at Geneva and later at War- agreed to establish diplomatic relations negotiations, shipping and insurance, PRC saw. Although some progress wasmade as of January 1, 1979. tariffs, a section on travel in China, and other in early years, by the 1960s the talks topics of interest to Americans who want to were stalemated. Finally in the late do business with China. The publication may 1960s, U.S. and Chinese political leaders The Normalization Understanding 6'.4. be purchased from the Superintendent of decided that good bilateral relations In the Joint Communique on the Estab- Documents, US Government Printing Office, were in their common interest. In1969, Washington, DC 20402. lishment of Diplomatic Relations dated the United States initiated measures to January 1, 1979. the United States relax trade restrictions and other im- transferred diplomatic recognition from pediments to bilateral contact. On 'Taipei to Beijing.1 The U.S. reiteration I I al IN I IN July 15, 1971, President Richard Nixon of its Shanghai' Communique acknowl- announced that his Assistant for Na- edgment of the Chinese position that Transportation and tional Security Affairs, Dr. Henry there is only one China and that Taiwan Telecommunications Kissinger, had made a secret trip to Bei- is a part of China elicited agreement jing to initiate direct contact with the from Beijing that the American people Railroads: (1982) 50,500 km. (31,379 ini) Chinese leadership and that he, the would maintain commercial, cultural, President, had been invited to visit and other unofficial contacts with the Highways: 907,000 km. (563,599 mi.); about China. In February 1972, President 60% improved, 40% unimproved. people of Taiwan. The Taiwan Relations Nixon traveled to Beijing, Hangzhou, Act made the necessary changes in U.S. Inland waterways: 138,600 km. (67,481 mi.); and Shanghai. At the conclusion of his domestic law to permit such unofficial 136,000 km. navigable. trip, the U.S. and Chinese Governments relations with Taiwan to continue. Merchant marine: The third largest in the issued the "Shanghai Communique," a world. lengthy statement of the differences and Average ship size about 18,000 /NWT; similarities in the foreign policy views of U.S.-Chinese Relations Since Total tonnage about 11 million DWT. the two governments.1 In the communi- Normalization Ports: 15 major apd 180 minor. que, both nations pledged to work Vice Premier Deng Xiaoping's January toward the full normalization of 1979 visit to Washington, D.C.,initiated Aviation: diplomatic relations, The United States. high-level ex- 160 domestic routes serving more than acknowledged that all Chinese on either a series of important, 80 cities; changes. Out of these exchanges came 4 international airports served by 13 side of the Taiwan Strait maintain that many agreement's, especially,in the international carriers. there is only one China PA that Taiwan fields of scientific, technological, and is part of China and ag.eed not to Telephones: About 2.4 million in service. cultural interchange and in matters af- challenge this position. This statement fecting trade relations. On March 1, Television: 276 broadcast and rebroadcast enabled the two sides temporarily to set 1979, the United States and China for- stations; ovcr 15 million TV receivers. aside the "crucial question obstructing mally eStablished embassies in Beijing the normalization of relations" Radio: and Washington. During 1979, outstand- 300 AM, 10 FM transmitters; Taiwan and to open trade and other ing private claims were resolved and a 99 main broadcast stations; contacts. bilateral trade agreement was conclud- 60 million radio receivers; 140 million wired broadcast receivers. Tor the complete text of the Shanghai Communique, see the Department of State :For the full texts of the Joint Communi- Satellites: Three standard international com- Bulletin, March 20, 1972. que and the U.S. and P.R.C. statementsat munications ground stations. the time of normalization, see the Depart- ment of State Bulletin, January 1979. 15 14 a

ed. In September 1980, the United States.and China concluded agreements on maritime affairs, civil aviation links, Taiwan and textile matters, as well as a bilateral History: Taiwan was attached ad- CCP on the mainland and of the Soviet Com- consular convention. These were quickly ministratively to Fujian Province in 1683; the munist Patty that.tutored both, by the late followed by agreements on investment imperial Chinese Government made it a Taiwan's political life was evolving insurance and long-term grain trade. separate province in 1886. In 1895, as a away front the 1950s' rigid authoritarianism. During 1980, the two nations also result of the first Sino-Japanese War, China The island gradually emerged as an economic began consultations on a wide range of was forced to cede the island to the Japanese and social entity in its own right. With strong defense and strati matters. During Empire. Japanese rule continued on the economic ties with the US, Japan, and the island until 1945, when the Republic of China .flourishing economies of noncommunist Asia his tripto Beijing in January 1980, and Europe, Taiwan blossomed into a model Defense Secretary Harold Bro WTI began formally "repossessed" Taiwan and unilateral- ly proclaimed its retrocession to China under of successful developmental economics. The talks on the transfer of U.S. technology the'Cairo and Potsdam agreements. Chiang US ended all economic assistance to Taiwan to assist China's economic and defense Kai-shek's Chinese Government established in 1965 and phased out all military aid in the modernizations and announced that the control of the island, but not without opposi- mid-1970s. United States was prepared to consider tion from the inhabitants. After the victory Derecognition of Taiwan: The US recog- exporting to China certain military items of the Chinese Communist Party (CCP) in the nized the Republicof China at Taipei as the and technology. In March 1980, the 1949 civil war on the Mainland, the Kuomin- legal government of China until January 1, Department of State listed categories of tang (KMT) established a government-in-exile -1979, when recognition and diplomatic rela- materielincluding communciations end in Taipei. Its fall to the CCP was considered tions were transferred to the People's transport equipmentthe United States imminent in early 1950: the US decided not Republic of China at Beijing. Notice of the would consider, on a case-by-case basis, to intervene to prevent this outcome. .:erminatioh of the Mutual .Security Treaty for export to China.' US involvement: American disinterest ended with Taiwan was given on the same date; the During a series of high-level and wjth the June 1950 North Korean invasion of treaty expired on December 31, 1979. Since working-level contacts initiated in 1980, South Korea. The US interposed the Seventh then, the US has continued sales of carefully Fleet in the 160 km.-wide Taiwan Strait for selected defensive weapons to the island on a the U.S.-Chinese diplomatic dialogue two reasons: restrained basis despite Beijing's strong dis- came to cover global and regional strate- agreement with this policy. The August 1982 gic problems, politico-military questions, To prevent either party to the Chinese communique was an attempt to establish a civil war from widening the Korean conflict . UN and other multilateral organization framework for resolving US-China dif-g affairs, arms control, regional political into a general Asian war; and ference over this issue. To prevent Taiwan from falling into Cultural, commercial, and other unofficial and economic problems, and interna- hostile hands from which it might menace the tipnal narcotics matters. relations between the American people and security of American forces in Japan. the people of Taiwan are conducted by and In February 1981, the Reagan Ad- As the Korean conflict dragged on and through a nonprofit corporation, the Ameri- ministration reaffirmed the U.S corn the Chinese communists joined it, the US can Institute on Taiwan (AIT), operating mitment to respect the principles of the gradually resumed and ?xpanded its economic under the authority of the Taiwan Relations 1979 Communique on the Establishment and military aid to the KMT authorities on Act (PL 96-8). AIT maintains offices at of Diplomatic Relations, stating that Taiwan and extended a security commitment Taipei and Kaohsiung in Taiwan. to them. This commitment was formalized in continued efforts to normalize the describing U.S.- P.R.C. relationship, while maintain-, a 1954 Mutual Defense Treaty with the - Separate Background Not Republic of China. Taiwan's distinctive political, economic, and ing informal links with the people of social situation in detail, have been made Taiwan, are a strategic imperative for Taiwan's development: Under American available as a convenience to the public. They international stability and world peace. tutelage and protection, Taiwan's economy may be purchased from the Superintendent The positive developments that developed rapidly along capitalist lines. of Documents, U.S. Government Printing Of- followed normalization began to founder Although the KMT remained a Leninist par- fice, Washington, D.C. 20402. in late summer 1981 on the issue of U.S. ty, and its structure paralleled that of the arms sales to Taiwan, an historical prob- lem that was left unresolved at the time of normalization. Secretary of State Alexander Haig visited China in June Joint Communique of August 17, 1982.4 1983, both countries agreed on the im- 1981 in an effort to allay Chinese con- The purpose of the communig(ze was to portance of building strong, stable, and cerns about U.S. intentiohs toward provide a framework for addressing this enduring U.S.-China relations. However, Taiwan. However, the Vice Chief of important issue. In the communique, the China's decision to suspend official Staff of the Chinese Army canceled his Chinese described .1 a fundamental culturai and sports exchanges with the trip to the United States in the fall of policy their effort to strive for a peace- United States in retaliatibn for the U.S. 1981 pending a decision by the United ful solution to the Taiwan question. The granting of political asylum to a Chinese States whether to sell fighter aircraft, Uffited States stated that "its arms sales tennis player raisM questions about how known as the F-X, to Taiwan. The to Taiwan will not exceed, either in this objective would be pursued. United States decided against the sale of qualitative or in quantitative terms, the The most rapid expansion in the F-X but announced in January 1982 level of those supplied in recent. years" U.S.-Chinese relations during the post- that it would extend the co-production since normalization of U.S.-China rela- normalization period has been in com- on Taiwan of F5-E fighter aircraft. tions. and that "it intends to reduce merce. A broad series of economic The next 8 months of often conten- gradually its sales of-arms to Taiwan." agreementstrade, maritime, civil avia- tious negotiatione--a period that in- During Secretary of State George tion, textiles, grain, Export-Import cluded Vice PreaklOnt Busn's visit to Shultz's visit ..to Beijing in February Bank, a limited tax treaty, and OPIC China in Mayproduced the U.S.-China [Overseas Private. Investment Corpora- tion] investment insurancehave facili- 4For the complete text cf the August 17 tated trade and established a strong 'Munitions Control Newsletter No. 81. Joint Communique, see Current Policy No. 413, published by the State Department's framework for future economic inter- Bureau of Public Affairs, August 19E2.

15 16 so,

'change. The recently renewed bilateral trade agreement represents the key- Selected Bibliography stone to normal commercial relations

,.and provides for reciprocal, non- These titles are provided as an indication of Hsiao, Gene. Sino-American Normalization discriminatory treatment of each coun- material published on China. The Department and Its Policy Implications. New York: try's products, including most-favored- of State does not endorse unofficial publica- Praeger, 1983. tions. Hsiung, James C. and Samuel S. Kim. China nation treatment. in the Global Community. New York: The,development of U.S.-China com- Barnett, A. Doak. China's Economy in Praeger, 1980. mercial relations is facilitated by three Global Perspective. Washington, DC.: Hsueh, Chun tu. China's Foreign Relations: joint commissions that provide for high- New Perspectives. New York: Praeger Brookings, 1981. Publishers, 1982. level discussions and review on economic Bernstein, Richard. From the Center of the Summerfield, John. Fodor's People's Republic issues of importance to both sides. The ,Earth: The Search for the Truth About of-China Rev. and updad. New York: U.S.-China Joint Economic Committee China. Boston: Little, Brown & Co., 19.12. Fodur's Modern Guides, distributed by has met annually since the fall of 1980 Bonavii., David. The Chinese. New York: David McKay Co., 1981. to review the development Of the overall Lippincott & Crowell, 1980. The China Business Review. National Council economic relationship. A Science and Bunge, Frederica M., and Rinn-Sup Shinn, on U.S.-China Trade, 1050 17th St. NW, Technology Commission has also met an- eds. China: A Country Study. The Suite 350, Washington, D.C. 20036, bi-. nually to oversee the 21 scientific and American University, Foreign Area monthly. Studies. Washington, D.C.: U.S. Govern- Unger, Jonathan. Education Under Mach; . technical exchange programs being car- ment Pri,gting Office, 1981. ' Class & Competition in Canton Schools ried out under an umbrella science and , Butterfield, Fox. China Alive in the Bitter 1960-80. New York: Columbia University technology agreement. A new Joint Sea. New York: Times Books, 1982. Press, 1983. Commission on Commerce and Trade Congressional Quarterly, Inc. China; U.S. Zhongguo Luyou Chubanshe. The Official Policy Since 1945. Washington, D.C.: Guidebook of China. Ed. by China Travel met in 'Beijing in May 1983 to discuss Congressional Quarterly, Inc., 1980. trade policy, cooperation in industrial and Tour Press, Beijing. Edition autho- Council on Foreign -Ftelations, Inc. The China rized by China Internatinoal Travel Serv- fields, and trade-related legal and Factor. The American Assembly: Colum- ice. New York:"Books New China, 1981. regulatory matters. bia University, 1981. Since normalization of economic and De Keijzer, Arne J. and Frederic M. Kaplan. Selected Documents: The full texts of commercial relations, trade between the The China Guidebook. New York: Eurasia selected material concerning U.S. policy in United States and China has expanded Press,.1983 ed. China are printed in the Department of Fairbank, John K. The United States and State's Selected Documents No. 9 entitled ,rapidly. Total two-way trade, which had China 4th rev. ed. Cambridge: Harvard "U.S. Policy Toward China July 15, doubled between 1978 and 1979, and University Press, 1979. 1971-January 15,1979" (stock no. again betiveen 1979 and 1980, reached Garside, Roger. Coming Alive!: China after 044-000-01721-1). Copies of this 64-page $5.5 billion in 1981. The level of trade Mao. New York: McGraw-Hill, 1981. publication may be purchased from the Hsiao, Gene T. The Foreign Trade of China: Superintendent of Documents, IJ.S. Gbvern- declined slightly in 1982, reflecting a Policy, Law and Practice. Berkeley: ment Printing Office, Washington, D.C. slowdown in U.S. exports. as well as University of California Press, 1978. V402. (Orders of 100 or more copies of the moderation in the growth of U.S. im- same publication mailed to the same address ports from China. Agricultural com- are sold at a 25% discount_) modities are the major U.S. export to China. However, the share of agricultural products to China has declined from 70% in 1978 to 51% in under national security procedures, Hundreds of Americans are working, 1982, reflecting a more rapid expansion guidelines established under this policy researching, or studying in China. Since of U.S. nonagricultural expbrts. will identify the high technology items early 1979, the United States and,China Although future trade levels will be af- have initiated hundreds of joint research fected by economic factors in Cbina and that can he licensed expeditiously for China. projects and cooperative programs the United States, the success of China's U.S.-China relations took an upward under the agreement on cooperation in modernization program is expected to turn in the last half of 1983. Secretary science and technology. These programs lead to increased purchases from the Weinberger visited 'Beijing ir. are now in 21 fields, from high energy United States. Overall, China is the September. Plans were also announced physics to earthquake studies, and more united States' 20th world trading part- for Premier Zhao Ziyang to visit are under consideration. The Joint ner (counting European Community Washington in January 1984, the first Science and Technology Commission, countries separately), and the United such trip by a Chinese Premier to the which held its third annual meeting in States is China's third largest trading United States. In turn, President Beijing in May 1943, is primarily respon- partner, behind Japan and Hong Kong. sible for issues related to this program It is U.S. policy to continue to pro- Reagan accepted Premier Zhao's. invita- tion to visit Beijing in April 1984. of cooperation. mote the development of U.S.-China Beyond these high-level exchanges, a Diplomatic, consular, and trade trade and to support China's moderniza- facilitation services have been upgraded tion efforts. large and growing number of unofficial since 1979. The United States has estab-. Since 1980, U.S. export control cultural exchange activities have given the American and Chinese peoples broad lished consulates general at Guangzhou policy toward China has undergone (Canton) and Shanghai and plans to periodic review and liberalization. In exposure to each other's cultural, ar- tistic, and educational achievements. As open a consulate in Shenyang in the June 1983, the U.S. Government further near future. China maintains consulates liberalized policy in order to expand the many as 200 Chinese professional and official delegations visit the United general at Houston, San Francisco, and flow of U.S. technology to China. The New York. In the next few years, the move was intended to emphasize that States each month. More than 125,000 Americans visited China in 1982. More United States plans to open consulates sales to China should take place on a at Chengdu and Wuhan, and China plans basis similar to that with other friendly than 13,000 Chinese scholars and students have come to the United States to establish consulates at Chicago and countries. Although export license ap- Honolulu. plications will continue to be reviewed since the normalization of relations.

17i I4S.- 42 1-4 t.: Itpul4 I (.01it RN,It Sl PRINT 1St. (AI ik