Diplomatic representation in US:
chief of mission: Ambassador LI Daoyu
chancery: 2300 Connecticut Avenue NW, Washington, DC 20008
telephone: [1] (202) 328-2500 through 2502
consulate(s) general: Chicago, Houston, Los Angeles, New York, and
San Francisco
US diplomatic representation: chief of mission: Ambassador James R. SASSER embassy: Xiu Shui Bei Jie 3, 100600 Beijing mailing address: PSC 461, Box 50, FPO AP 96521-0002 telephone: [86] (10) 5323831 FAX: [86] (10) 5326422 consulate(s) general: Chengdu, Guangzhou, Shanghai, Shenyang
Flag: red with a large yellow five-pointed star and four smaller yellow five-pointed stars (arranged in a vertical arc toward the middle of the flag) in the upper hoist-side corner
Economy ———-
Economic overview: Beginning in late 1978 the Chinese leadership has been trying to move the economy from a sluggish Soviet-style centrally planned economy to one that is more market-oriented, but still within a rigid political framework of Communist Party control. To this end the authorities switched to a system of household responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprise in services and light manufacturing, and opened the economy to increased foreign trade and investment. The result has been a strong surge in production. Agricultural output doubled in the 1980s, and industry also posted major gains, especially in coastal areas near Hong Kong and opposite Taiwan, where foreign investment and modern production methods helped spur output of both domestic and export goods. GDP has more than tripled since 1978. On the darker side, the leadership has often experienced in its hybrid system the worst results of socialism (bureaucracy, lassitude, corruption) and of capitalism (windfall gains and stepped-up inflation). Beijing thus has periodically backtracked, retightening central controls at intervals. In 1992-95 annual growth of GDP accelerated, particularly in the coastal areas - averaging more than 10% annually according to official figures. In late 1993 China's leadership approved additional long-term reforms aimed at giving still more play to market-oriented institutions and at strengthening the center's control over the financial system; state enterprises would continue to dominate many key industries in what was now termed "a socialist market economy." In 1995 inflation dropped sharply, reflecting tighter monetary policies and stronger measures to control food prices. At the same time, the government struggled to (a) collect revenues due from provinces, businesses, and individuals; (b) reduce extortion and other economic crimes; and (c) keep afloat the large state-owned enterprises, most of which had not participated in the vigorous expansion of the economy. From 60 to 100 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-pay jobs. Popular resistance, changes in central policy, and loss of authority by rural cadres have weakened China's population control program, which is essential to the nation's long-term economic viability. One of the most dangerous long-term threats to continued rapid economic growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. The amount of arable land continues to decline because of erosion and economic development, the cumulative loss since the Communist takeover in 1949 being more than 15%. The next few years will witness increasing tensions between a highly centralized political system and an increasingly decentralized economic system.
GDP: purchasing power parity - $3.5 trillion (1995 estimate as extrapolated from World Bank estimate with use of official Chinese growth figures for 1993-95; the result may overstate China's GDP by as much as 25%)
GDP real growth rate: 10.3% (1995 est.)
GDP per capita: $2,900 (1995 est.)
GDP composition by sector: agriculture: 19% industry: 48% services: 33% (1994 est.)
Inflation rate (consumer prices): 10.1% (December 1995 over
December 1994)