Couple other interesting reads...
Chinese Defense Today
http://www.sinodefence.com/
CIA World Factbook on China as of 18 December, 2003
http://www.cia.gov/cia/publications/...k/geos/ch.html
Economy - Outlook
In late 1978 the Chinese leadership began moving the economy from a sluggish, Soviet-style centrally planned economy to a more market-oriented system. Whereas the system operates within a political framework of strict Communist control, the economic influence of non-state organizations and individual citizens has been steadily increasing. The authorities switched to a system of household and village 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 enterprises in services and light manufacturing, and opened the economy to increased foreign trade and investment. The result has been a quadrupling of GDP since 1978. In 2003, with its 1.3 billion people but a GDP of just $5,000 per capita, China stood as the second-largest economy in the world after the US (measured on a purchasing power parity basis). Agriculture and industry have posted major gains, especially in coastal areas near Hong Kong and opposite Taiwan, where foreign investment has helped spur output of both domestic and export goods. The leadership, however, often has experienced - as a result of its hybrid system - the worst results of socialism (bureaucracy and lassitude) and of capitalism (windfall gains and growing income disparities). China thus has periodically backtracked, retightening central controls at intervals. The government has struggled to (a) collect revenues due from provinces, businesses, and individuals; (b) reduce corruption and other economic crimes; and (c) keep afloat the large state-owned enterprises, many of which had been shielded from competition by subsidies and had been losing the ability to pay full wages and pensions. From 80 to 120 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-paying 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 maintaining long-term growth in living standards. Another long-term threat to growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. China continues to lose arable land because of erosion and economic development. Beijing says it will intensify efforts to stimulate growth through spending on infrastructure - such as water control and power grids - and poverty relief and through rural tax reform aimed at eliminating arbitrary local levies on farmers. Accession to the World Trade Organization helps strengthen China's ability to maintain strong growth rates but at the same time puts additional pressure on the hybrid system of strong political controls and growing market influences. China has benefited from a huge expansion in computer internet use. Foreign investment remains a strong element in China's remarkable economic growth.
Disputes - International
involved in complex dispute over the Spratly Islands with Malaysia, Philippines, Taiwan, Vietnam, and possibly Brunei; claimants in November 2002 signed the "Declaration on the Conduct of Parties in the South China Sea", a mechanism to ease tension but which fell short of a legally binding "code of conduct"; much of the rugged, militarized boundary with India is in dispute, but the two sides have participated in more than 13 rounds of joint working group sessions on this issue; India objects to Pakistan ceding lands to China in 1965 boundary agreement that India believes are part of disputed Kashmir; China, as well as Taiwan, claims Japanese-administered Senkaku-shoto (Diaoyu Tai) islands; negotiations with Tajikistan resolved the longstanding boundary dispute; China and Kazakhstan have resolved their border dispute and are working to delimit their large open borders to control population migration, illegal activities, and trade; Kyrgyzstan's constitutional court rules that 1,270 sq km ceded to China in 2000 delimitation agreement were legally transferred; certain islands in Yalu and Tumen rivers are in uncontested dispute with North Korea and a section of boundary around Mount Paektu is indefinite - China objects to illegal migration of North Koreans into northern China; China continues to seek a mutually acceptable solution to the disputed alluvial islands with Russia at the confluence of the Amur and Ussuri rivers and a small island on the Argun river as part of the 2001 Treaty of Good Neighborliness, Friendship, and Cooperation; boundary agreements signed in 2002 with Tajikistan cedes 1,000 sq km of Pamir Mountain range to China in return for China's relinquishing claims to 28,000 sq km; demarcation of land boundary with Vietnam continues but maritime boundary and joint fishing zone agreement remains unratified; China occupies Paracel Islands also claimed by Vietnam and Taiwan.