Chinese Economy in 1978
Economic reforms introducing capitalist market principles began in 1978 and were carried out in two stages. The first stage, in the late 1970s and early 1980s, involved the de-collectivization of agriculture, the opening up of the country to foreign investment, and permission for entrepreneurs to start up businesses. However, most industry remained state-owned. The second stage of reform, in the late 1980s and 1990s, involved the privatization and contracting out of much state-owned industry and the lifting of price controls, protectionist policies, and regulations, although state monopolies in sectors such as banking and petroleum remained. The private sector grew remarkably, accounting for as much as 70 percent of China GDP by 2005,[4] a figure larger in comparison to many Western nations[citation needed]. From 1978 to 2010, unprecedented growth occurred, with the economy increasing by 9.5% a year. China's economy became the second largest after the United States and is projected to become the world's largest economy by 2025.

Natural Resources
Land Resources - China has 9.6 million square kilometres land area, accounting for 22.1% of the land area of the Asian continent, and accounting for 6.4% of the world's land area, it is one of the countries which have a vast area of land. China's abundant land resources has two significant geographical features. The share of mountains which have higher elevations and greater volatility (including hill, mountainous and tableland) over the plains (plains and the high plains), as the ratio of two-thirds and one-third. In complex and diverse ecological environment, formed the features of more grassland, limited arable land, low forest percentage and the percentage of land which difficult to use is high. At present, grassland accounts for 37.4% of the total land area of China, farmland accounts for 10.4%, woodland accounts for 12.7%, and the land such as desert, Gobi, high and cold desert, tor, mountain glaciers and permanent snow which are difficult to use accounted for 20.5%. Nevertheless, it still has great potential for further rational use of land resources in China, in addition to the existing lawn, woodland and farmland, it is estimated that there are still about 33 million hectares of uncultivated lands suitable for agriculture, more than 6,000 million hectares of grazing land and more than 9,000 million hectares of barren hills, wasteland and woodland suitable for forest to be developed and utilized.
Energy resources - China has full range of conventional energy resources, it is one of the major energy resources countries in the world. Rich in coal resources and the coal tenure amounted to 901.453 billion tons by the end of 1990, which tops the list of world; Particular rich in waterpower resources, the academic reserves are 6.76 million kilowatts, which ranks first in the world; In addition to its proven oil reserves, it is very optimistic about the long-term reserves on land and sea in china.
Mineral resources - China is one of the few countries in the world which have many mineral species, widely distributed, large reserves and the majority of mineral resources can self-sufficiency. By the end of 1990, China’s proved mineral species which have some reserves had reached 148. Nonferrous metals have some advantages, the reserves of tungsten, antimony, tin, mercury, molybdenum, and zinc, copper, bismuth, vanadium, titanium, rare earth, Lithium and others are among the largest in the world. The reserves of tungsten in china is more than three times than the other world's total reserves, the reserves of rare earth accounts for more than half of the world's total reserves, the reserves of antimony accounts for 44% of the world's total reserves. The reserves of lead, iron, silver, manganese, nickel and others would have global significance. The reserves of iron and manganese rank three in the world, but lean ore more than rich ore; In addition, it has many associated minerals. Such as in the iron ore of Panzhihua, it associates with vanadium, titanium and nickel. In non-metallic mineral, pyrite and magnetite are among the largest in the world, phosphate ranks two and asbestos is the highest in the world.
Water resources - a preliminary estimate of china’s water resources is 27115 billion cubic meters. The mean annual runoffs of China’s river equal to 5.8% of the world’s total runoffs.
Forest Resource - China now has 124 million hectares of forest area, ranks eight in the world, but the forest coverage rate is only 12.98%; The reserves of forest is 9.141 billion cubic meters, ranks five in the world, and among which have a variety of excellent quality, high economic value species.
Biological resources - China is very rich in biological resources, only the species of seed plants reach 24,500, inferior to Malaysia and Brazil, ranks three in the world. Among these various plants, the species of economic plants (one uses a single) reach 2,411, not only provide food, medicines, fibres and a variety of other industrial raw materials, and may protect and improve the natural conditions. The species of fish in aquatic resources are about 2,400, among which marine fishes account for three-fifths, the others are freshwater fishes. Additionally, there are crustaceans, shellfish and seaweed etc.

Environmental Issues
Water resources
The water resources of China are affected by both severe water quantity shortages and severe water quality pollution. An increasing population and rapid economic growth as well as lax environmental oversight have increased water demand and pollution. China has responded by measures such as rapidly building out the water infrastructure and increased regulation as well as exploring a number of further technological solutions.
Deforestation
Although China's forest cover is only 20%, the country has some of the largest expanse of forested land in the world, making it a top target for forest preservation efforts. In 2001, the United Nations Environment Programme (UNEP) listed China among the top 15 countries with the most "closed forest," i.e., virgin, old growth forest or naturally regrown woods. 12% of China's land area, or more than 111 million hectares, is closed forest. However, the UNEP also estimates that 36% of China's closed forests are facing pressure from high population densities, making preservation efforts that much more crucial. In 2011, Conservation International listed the forests of south-west Sichuan as one of the world's ten most threatened forest regions.
According to the Chinese government website, the Central Government invested more than 40 billion Yuan between 1998 and 2001 on protection of vegetation, farm subsidies and conversion of farm to forests. Between 1999 and 2002, China converted 7.7 million hectares of farmland into forest.
Desertification
Desertification remains a serious problem, consuming an area greater than that taken by farmlands. Although desertification has been curbed in some areas, it still is expanding at a rate of more than 67 km² every year. 90% of China's desertification occurs in the west of the country. Approximately 30% of China's surface area is desert. China's rapid industrialization could cause this area to drastically increase. The Gobi Desert in the north currently expands by about 950 square miles (2,500 km2) per year. The vast plains in northern China used to be regularly flooded by the Yellow River. However, overgrazing and the expansion of agricultural land could cause this area to increase.
In 2001, China initiated a "Green Wall of China" project. It is a project to create a 2,800-mile (4,500 km) "green belt" to hold back the encroaching desert. The first phase of the project, to restore 9 million acres (36,000 km²) of forest, will be completed by 2010 at an estimated cost of $8 billion. The Chinese government believes that, by 2050, it can restore most desert land back to forest. The project is possibly the largest ecological project in history. It has also been criticized on various grounds such as other methods being more effective.
Climate change
The position of the Chinese government on climate change is contentious. China is the world's current largest emitter of carbon dioxide although not the cumulative largest. China has ratified the Kyoto Protocol, but as a non-Annex I country is not required to limit greenhouse gas emissions under terms of the agreement.
Pollution
Various forms of pollution have increased as China have industrialized which has caused widespread environmental and health problems. China has responded with increasing environmental regulations and a build-up of pollutant treatment infrastructure which have caused improvements on some variables.
Population
China currently has the world's largest population but population growth is very slow in part due to the one-child policy.
Energy efficiency
According to a 2007 article, during the 1980 to 2000 period the energy efficiency improved greatly. However, in 1997, due to fears of a recession, tax incentives and state financing were introduced for rapid industrialization. This may have contributed to the rapid development of very energy efficient heavy industry. Chinese steel factories used one-fifth more energy per ton than the international average. Cement needed 45 percent more power, and ethylene needed 70 percent more than the average. Chinese buildings rarely had thermal insulation and used twice as much energy to heat and cool as those in the Europe and the United States in similar climates. 95% of new buildings did not meet China's own energy efficiency regulations.
A 2011 report by a project facilitated by World Resources Institute stated that the 11th five-year plan (2005 to 2010), in response to worsening energy intensity in the 2002-2005 period, set a goal of a 20% improvement of energy intensity. The report stated that this goal likely was achieved or nearly achieved. The next five-year plan set a goal of improving energy intensity by 16%.

International environmental agreements
Compliance with the spirit of CITES Convention in relation to the continued importation of ivory, rhino horn and shark fins have been controversial issues for China.

Population Profile
1,343,239,923 (July 2012 est.) Age structure:

0-14 years: 17.4% (male 125,528,983/ female 107,668,285)
15-64 years: 73.5% (male 507,661,881/ female 480,115,760)
65 years and over: 9.1% (male 58,677,903/ female 63,587,111) (2012 est.) Median age:

total: 35.9 years male: 35.2 years female: 36.6 years (2012 est.) Population growth rate:

0.481% (2012 est.) Birth rate:

12.31 births/1,000 population (2012 est.) Death rate:

7.17 deaths/1,000 population (July 2012 est.) Net migration rate:

-0.33 migrant(s)/1,000 population (2012 est.) Urbanization:

urban population: 47% of total population (2010) rate of urbanization: 2.3% annual rate of change (2010-15 est.) Sex ratio:

at birth: 1.13 male(s)/female under 15 years: 1.17 male(s)/female
15-64 years: 1.06 male(s)/female
65 years and over: 0.92 male(s)/female total population: 1.06 male(s)/female (2011 est.)

Infant mortality rate:

total: 15.62 deaths/1,000 live births male: 15.38 deaths/1,000 live births female: 15.9 deaths/1,000 live births (2012 est.) Life expectancy at birth:

total population: 74.84 years male: 72.82 years female: 77.11 years (2012 est.) Major infectious diseases:

degree of risk: intermediate food or waterborne diseases: bacterial diarrhoea, hepatitis A, and typhoid fever vector borne diseases: Japanese encephalitis and dengue fever soil contact disease: hantaviral haemorrhagic fever with renal syndrome (HFRS) animal contact disease: rabies note: highly pathogenic H5N1 avian influenza has been identified in this country; it poses a negligible risk with extremely rare cases possible among US citizens who have close contact with birds (2009) Obesity - adult prevalence rate:
2.9% (2002)

Government Type and Pressure Groups
Communist State - no substantial political opposition groups exist

Salient Features
Fast growth and low fluctuation

Main Features Involving Infrastructure

Main Disputes continuing talks and confidence-building measures work toward reducing tensions over Kashmir that nonetheless remains militarized with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas); India does not recognize Pakistan's ceding historic Kashmir lands to China in 1964; China and India continue their security and foreign policy dialogue started in 2005 related to the dispute over most of their rugged, militarized boundary, regional nuclear proliferation, and other matters; China claims most of India's Arunachal Pradesh to the base of the Himalayas; lacking any treaty describing the boundary, Bhutan and China continue negotiations to establish a common boundary alignment to resolve territorial disputes arising from substantial cartographic discrepancies, the largest of which lie in Bhutan's northwest and along the Chumbi salient; Burmese forces attempting to dig in to the largely autonomous Shan State to rout local militias tied to the drug trade, prompts local residents to periodically flee into neighbouring Yunnan Province in China; Chinese maps show an international boundary symbol off the coasts of the littoral states of the South China Seas, where China has interrupted Vietnamese hydrocarbon exploration; China asserts sovereignty over Scarborough Reef along with the Philippines and Taiwan, and over the Spratly Islands together with Malaysia, the Philippines, Taiwan, Vietnam, and Brunei; the 2002 Declaration on the Conduct of Parties in the South China Sea eased tensions in the Spratlys but is not the legally binding code of conduct sought by some parties; Vietnam and China continue to expand construction of facilities in the Spratlys and in March 2005, the national oil companies of China, the Philippines, and Vietnam signed a joint accord on marine seismic activities in the Spratly Islands; China occupies some of the Paracel Islands also claimed by Vietnam and Taiwan; China and Taiwan continue to reject both Japan's claims to the uninhabited islands of Senkaku-shoto (Diaoyu Tai) and Japan's unilaterally declared equidistance line in the East China Sea, the site of intensive hydrocarbon exploration and exploitation; certain islands in the Yalu and Tumen rivers are in dispute with North Korea; North Korea and China seek to stem illegal migration to China by North Koreans, fleeing privations and oppression, by building a fence along portions of the border and imprisoning North Koreans deported by China; China and Russia have demarcated the once disputed islands at the Amur and Ussuri confluence and in the Argun River in accordance with their 2004 Agreement; China and Tajikistan have begun demarcating the revised boundary agreed to in the delimitation of 2002; the decade-long demarcation of the China-Vietnam land boundary was completed in 2009; citing environmental, cultural, and social concerns, China has reconsidered construction of 13 dams on the Salween River, but energy-starved Burma, with backing from Thailand, remains intent on building five hydro-electric dams downstream despite regional and international protests; Chinese and Hong Kong authorities met in March 2008 to resolve ownership and use of lands recovered in Shenzhen River channelization, including 96-hectare Lok Ma Chau Loop; Hong Kong developing plans to reduce 2,000 out of 2,800 hectares of its restricted Closed Area by 2010