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China Welcome

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China Welcome

Country File

Political Status
- Geographical Situation- Economy & Statistics
- Industry

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CHINA ( Relocation, International Movers, City Guide news, Aparthotel, Real Estate, Moving, ... )

1 - Political Status

Political Organization :
Nowadays the People's Republic of China has only one political party, the Communist party, with a President, Mr Jiang Zemin and a Prime Minister, Mr Li Peng, and a National People's Congress, composed of 2978 delegates elected for five years by the Local People's Congress and by the People's Liberation Army. The Constitution, in effect since 1954, was revised in March 1978. The regime can be defined in the following way : 'a people's democratic state led by the working class and based on the alliance of workers and peasants' or alternatively 'a dictatorship of the proletariat.' The Constitution authorizes private property independently of the state and cooperatives. Power is divided between the Standing Committee, the National People's Congress and local Congresses (provincial, district, cantonal). Members of the cantonal Congresses are elected by the people, while the members of the upper Congresses are elected by the members of the lower Congresses.Since the death of Mao Tse-tung (Sept. 76) the main objective is the struggle against poverty and the acceleration of the modernization of China.

Administrative subdivisions :

Capitals km2 hab H/km2
Beijing - 17.800 8.000.000 449
Tien Tsin - 11.000 7.100.000 645
Shanghai - 5.800 10.000.000 1724
Capitals km2 hab H/km2
Autonomous regions
Kouang Si Nan Ning 230.000 31.300.000 136
Inner Mongolia Kouei Souei 450.000 8.500.000 18,9
Ningsia Hui Yin Tchouan 170.000 3.000.000 17,6
Sin Kiang Ouroumtchi 1.600.000 10.500.000 6,6
Tibet Lhassa 1.200.000 1.700.000 1,4
China Beijing 9.334.600 907.000.000 97

Administrative subdivisions (next) :
Capitals km2 hab H/km2
Ngan Houei Ho Fei 130.000 -45.000.000 - 346
Tche Kiang Hang Tchéou 100.000 36.000.000 360
Ching Hai Si Ning 720.000 3.400.000 4,7
Fou Kien Fou Tchéou 120.000 24.000.000 200
Hei Long Kiang Pin Kiang 710.000 32.400.000 46
Ho Nan Tchen Tchéou 160.000 68.700.000 429
Ho Pei TchiKiaTchouang 190.000 49.400.000 260
Hou Nan Tchang Cha 210.000 49.600.000 236
Hou Pei Wou Han 180.000 41.300.000 229
Kan Sou Lan Tchéou 530.000 18.000.000 34
Kiang Si Nan Chang 160.000 29.400.000 184
Kiang Sou Nan Kin 100.000 55.000.000 550
Kirin Tchang Tchoun 290.000 23.000.000 79
Kouang Toung Canton 220.000 54.100.000 246
Kouei Tchéou Kouei Yang 170.000 24.800.000 146
Liao Ning Chen Yang 230.000 35.700.000 155
Chan Si Tai Yuan 150.000 23.000.000 153
Chang toung Tsi Nan 150.000 70.000.000 467
Chen Si Si Ngan 190.000 26.500.000 139
Se Tchouan Tcheng Tou 560.000 89.500.000 160
Yunnan Kun Ming 390.000 28.000.000 74

Historical Outline :
In 1842 after the Anglo-Chinese war called the Opium war, China had to give Hong Kong to Great Britain and open up its ports to international trade. There were peasant uprisings in the interior of the country.
At this time, the Europeans who had already settled in the coastal areas were steadily leading a reorganization amongst the middle classes.
In 1895 China was obliged to give Korea and Formosa to Japan.
In 1900 the situation was deteriorating, and the Boxer revolution against foreigners started, causing international retaliation and finally wiping out the prestige of the Emperor.
In 1912 the Imperial family renounced the throne and a Republic was proclaimed. Sun Yat-sen founded the Nationalist Party (Kuomintang). In 1921 the Communist Party was created. In 1927 General Tchang Kai-chek, head of the Kuomintang, pursued his struggle against the generals from the north.
Japan invaded Manchuria in 1931. Powerless in front of the Japanese, the Kuomintang were forced to change their capital.
After the Second World War, Japan capitulated but the hostilities between Kuomintang and the communists started up again. In 1949 the communists entered Peking, Tchang Kai-chek took refuge in Taiwan.
On 1st Octobre Mao Tse-Tung created the first government of the People's Republic of China. It was acknowledged in 1971 by the Assembly General of the United Nations. China became a member of the Security Council with the same rights as the USA, URSS, Great Britain and France.
It is a major world power and has its own nuclear weapons.
1989 was marked by the bloody night in the Tien An Men Square.

2 - Geographical situation
China is a similar size to all of Europe together but its population represents a quarter of the whole world population. It has the third biggest surface in the world after URSS and Canada. It stretches from Siberia in the north down to tropical seas, has the biggest desert in the world, the Gobi Desert, and the highest mountain range with the summit in the Himalayas.

China is an immense country of 9,596,961sq. kms. which stretches from the Pacific Ocean to central Asia, with the Democratic Republic of Korea to the east, Russia to the north-east and north-west, Mongolia in the north, Afghanistan and Pakistan in the south-west and India, Burma, Laos and Vietnam to the south.

In the north the coastline is bounded by the Yellow Sea, in the centre by the East China Sea and in the south the South China Sea.
China also possesses 3000 islands and islets in the South China Sea.
The autonomous territory of Hong Kong, off the south of China has been in British hands for a century but was restored to the People's Republic in 2000.

- Regions -
Eastern Region :
Eastern China with its great rivers, such as the Soungari-Lia Ho, the Houang-Ho (the Yellow River), the Yang-tse-kiang (the Blue River), the Si-Kiang (the River of Pearls).

Western Region
Western China is divided into 3 zones : Tibet-Chingai, Sin Kiang and Kan Sou, Inner Mongolia.

North East Region
North East China has the Great Khingan mountains to the west. In the north runs the River Amour, in the East the Oussouri near the Tchang Pei Chand mountains. An impressive forest vegetation flourishes in the mountains, while on the plains and in the hills the land is farmed. The climate is cold (-4° to 10° in winter).

Northern Region
In Northern China flows the River Houan Ho. The Kan Ho and the Ouei Ho basins are in this region. The northern and western boundaries are fixed by the Mongol plateau, the eastern ones by the Yellow Sea and the East Chinese Sea. In the north are the biggest plains in the country where the populations have concentrated since the origins of Chinese civilisation. The loess (a yellow a dust deposited by the wind) makes the soil extremely fertile.

Centre :
Central Region

The centre is crossed by the Yang Tse Kiang River, the 4th longest river in the world (5552 kms). This region is known for its mountain ranges, hills, valleys and tributaries of the Yang-Tse-kiang and the lakes Toung Ting, Pou Yang and Tai. The soil is less fertile than in the north, but heavy rainfall and a mild climate give good harvests.

Southern Region
The southern region which goes down to the sea is bordered by the Yunnan Plateau in the west at an altitude of 1000 to
2000 m. Tributaries of the River Si Kiang meet in the Canton delta, the only plain in the region. The climate is hot and temperate.

Tibet-Chingaï is the region with the highest altitudes, the Himalayas, the Karakoram range, Mt Se Tchouan, Mt Min Chan, the Altyntag and the Nan Chans.

Sin Kiang Region
This region covers all the western part of outer China. The climate in the centre of the Tarim basin is desert, arid, the Takla Makan has less than 50 mm of rain a year. In the mountains it rains up to 500 mm with temperatures going from -20°C (January in Dzoungarie) and 28° in July.

Inner Mongolia is situated to the south of the People's Republic of Mongolia, it is a vast semi-desert region.

3 - Economy & Statistics
At present there exists three forms of economy in the country :
-a modern economy run by foreign investments (2% of the GNP) which supplies 40% of the exports
-a capitalist economy with workers working at home, which is the backbone of the light industry
-a communist system, especially in the north east.
Contact : HEC Eurasia Institute, : (01) 39 67 70 25.
With its economic expansion at more than 10% a year and rapid modernization, China offers numerous opportunities for French enterprises.
Contact : HEC Eurasia Institute 01 39 67 70 25.

It can be said that China's stability depends on the Western world, for it is not very present on world markets. For example, the state only taxes 11% of the GNP. It is one of the lowest rates in the world. The currency, the Yuan divided into Fen, has a stable parity against the dollar.
Inflation tends to be diminishing, according to the latest economic statistics :
In 1994 inflation was at 24.2%, in 1995 it was at 14.8% and in 1996 it was down to 7%.
This should stimulate the economy, especially since the government is pursuing its policy of lowering the price of cars and giving assistance to house purchasing.

Income in China :
An employee who works in town earns about 3855 yuan, i.e. 465 dollars. For example a secretary's salary is about 1700 FF.
Someone who is employed in the countryside earns about 1550 yuan, i.e. 186 dollars.
There is little unemployment in China and the rate has stayed fairly stable over the last few years, in 1995 it was at 3% in the towns and in 1996 at 3.2%.
Public works employ two-thirds of the urban work force and only represents one-third of production. There is a move to reform public work companies. Financial investments are on the increase. Over the period 1979-94 foreign investment already represented 100 billion US dollars.
Joint ventures are becoming more common and this opens up more opportunities on the Chinese market.

External trade
In general external trade has constituted a volume of 280.85 billion dollars (that is a rise of 18.6%), sub-contracting included.
French economic presence : big industrial contracts remain the basis of French trade with China, which explains the irregularity of exports (in 1993, 9 billion for 21.2 billion from imports).
Importations et exportations en milliards de dollars :
Imports and exports in billions of dollars :
 Année Imports Exports Evolution
Year Imports Exports Evolution

1991 63.81 71.9 +8.1%
1990 53.4 62.1 +8.7%
1989 59.1 52.5 -6.6%
1988 55.2 47.5 -7.5%

China is in full expansion for the last few years, due partly to the size of Chinese populations abroad who bring back western knowledge acquired in universities and in industry to China.
In 1995 imports represented 24.41 billion dollars (+48%).
Chinese imports are essentially made up of cereals, crude oil and its derivatives, food products and cotton.
In heavy industry the volume of chemical products imported came to 10.3 billion dollars in 1994.
In other sectors like petrol or steel the imports tend to be lessening, in 1994 -24.3% for steel and -25.2% for petrol.
237,000 motor vehicles were imported that same year, a drop of -51.3%.

Exports have risen, +22.9% in 1995. In fact the global volume for that year was 148.77 billion dollars.
The government is encouraging the creation of jobs and the rise in purchasing power. However China is one of the poorest nations, the GDP per inhabitant is 530 dollars a year.

Chinese Economy
(billions of $, GDP/p/$ and % in national currency)
global GDP 518 587 630 780 1318
GDP pp 470 490 530 610 22800
Var. vol. of GDP +13% +13% +11,8% +10,8% +2,2%
Aid +6,10 +9 +12,76 - -12,50
Ext. debts 74,6 89 93 110 -
Rate of inflation 6,3% 13% 21,7% 14,8% 1,7%
Unemployment rate 2,3% 2,6% 2,8% 2,9% 12,6%
Profits tourism 3,53 3,90 4,50 - 24,5
Rate US$ US 5,51 5,76 8,61 5,55 -
The external debt in 1996 was 106.6 billion dollars,the interest being 23.53 billion dollars (a rise of 27%).
Formerly the Chinese did not want to sell their machines to the West, according to an importer in Hong Kong. 20 years ago the Chinese could only choose between 2 colours for their clothes, khaki or blue. A bicycle was considered to be a luxury item.
In the space of one generation all this has changed. The towns are all lit by neon lighting, the streets blocked by traffic jams and computer manuals have replaced Mao's little red book.

The average income of the 300 million town dwellers is 5059 yuan (2980 FF) and the 65 million peasants have an annual income of 440 yuan (260 FF).

GDP by province in billions of yuan.
(1 F = 1,6 Yuan)
Xinjiang 67,3
Tibet 4,5
Qinghai 13,8
Mongolie intérieure 68,1
Inner Mongolia 68.1
Ningxia Hui 13,1
Gansu 45,1
Sichuan 277,7
Yunnan 97,4
Shanxi 85,3
Shaanxi 84,6
Guizhou 52,1
Guangxi 124,1
Hainan 33,1
Pekin 108,4
Hebei 214,7 - Henan 219,8 - Hubei 187,8 - Hunan 169,4 - Guangdong 424 - Heilongjiang 161,8 - Jilin 96,8 -
Liaoning 258,4 - Tianjin 72,5 - Shandong 387,2 - Fujian 168,5 - Anhui 148,8 - Zheijian 266,6 - Shangai 197,1
Shanghai - Jiangsu 405,7

Consumption (in francs per year and per person)

1980 1985 1990 1994
Rural 111 216 356 679
Urban 310 501 1053 2472

4 - Agriculture
In 1995 agricultural production represented 132.5 billion US dollars.
Agriculture, Fishing, Forestry :
The total farmable surface covers 96 million hectares.
Between 1957 and 1989 17 million hectares were lost while the population grew by 90%.
Three cereals are grown : rice (32%) with a production of 5738 kg/ha. Wheat (32%), 3318 kg/ha. Maize (21%) of which China is the second biggest producer in the world.
Livestock is made up of 425 million pigs (1995), 91 million cattle and 22 million buffalo.
There are 430 million ducks bred.
20 million tons of fish are fished a year, 40% of which are fresh water fish.
300 million cubic metres of wood can be cut each year.

Chinese agriculture
(in millions of tons, head, m3 for wood)
Rating 1994 1995 Rang
Bananas 3,10 3,10 5e
Wheat 102 100 1er
Timber - 2e
Cattle 90,9 100,9 4e
Sugar cane 65,7 65,7 3e
Cereals 393,2 403,1 1er
Cotton (fibre) 4,25 4,25 2e
Maize 99,6 107,4 2e
Millet 3,7 3,5 3e
Rating 1994 1995 Rang
Oranges 7 7 3e
Barley 3,2 3,2 13e
Sheep 111,6 122,7 2e
Fishing 20,72 - 1er
Potatoes 43,3 43,3 1er
Pigs 402,8 424,7 1er
Rice 178,0 180,0 1er
Tea 0,60 0,60 2e
Wine 0,36 0,36 13e

5 - Industry

The industrial production in 1995 represented 277 billion US dollars.
China is a major producer :
* of coal : 1,240,000 tons in 1995
* of petrol and natural gas
* of hydroelectricity : 132.5 billion kWh en 1992 and 168 billion kWh in 1994.

The industry is state organized and there are special economic zones where the entire production is made for export, particularly in the sector of machines and transportation material, and in the aerospacial sector (Australian satellite launched from Xichang on the 28th August 1994).

China's industrial production
(mining in thousands of tons, except natural gas in billion of m3, metals, energy in kWh)

Rating 1992 1993 1994 1995 rang

Silver 200 220 231 225 12e
Bauxite 6 661 6 500 6 500 6 500 5e
Coal 1 020 000 1 047 000 1 094 000 1 2240 000 1e
Copper 309 345 346 345 9e
Tin 43 49,1 54,1 54 1

Iron 97 020 117 366 119 478 125 000 2e
Natural gas 15,7 15,8 16,7 17,0 23e
Lignite 90 000 94 000 95 000 95 000 3e
Nickel 30 29,1 31,2 31 6e
Gold 118 127 130 130 6e
Petrol 141 566 144 200 146 896 148 838 5e
Phosphates 23 000 24 000 26 000 27 000 2e
Lead 3330 346 352 350 3e
Uranium 0,8 0,8 0,80 - 11e
Petrol reserves 3274 million tons
Coal reserves 4500 million tons
Energy production 725,9 479,99 786 - -
Energy consumption 700 708,87 - - 223,9
Electrical production 754,44 839,45 928 984 466,9
Nuclear part 0 1,7 14,2 12,1 360
Hydraulic part 132,5 151,8 168,1 - 72,3
In 1980 the price fixed for coal had not been revised since 1955. China was obliged to ease the restrictions on the coalmining prices as the steel industries and the nuclear power stations could no longer keep to the fixed prices.
In 1988 the state mining got permission to sell part of their production at free market prices and the price of the other part was blocked by Beijing.

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