LVMH Moët Hennessy • Louis Vuitton S.A.

Type	Société Anonyme
Traded as	Euronext: MC
Industry	Apparels, accessories
Predecessor(s)	Moët Hennessy Louis Vuitton
Founded	1987 (1987)
Headquarters	Paris, France
Area served	Worldwide
Key people	Bernard Arnault (Chairman & CEO) Antonio Belloni (Managing director)
Products	Clothing, cosmetics, fashion accessories, jewelry, perfumes, spirits, watches, wines
Services	Department stores
Revenue	€20.32 billion (2010)[1]
Operating income	€4.169 billion (2010)[1]
Profit	€3.032 billion (2010)[1]
Total assets	€37.16 billion (2010)[1]
Total equity	€18.20 billion (2010)[1]
Employees	83,540 (2010)[1]
Parent	Christian Dior (via Financière Jean Goujon)
Subsidiaries	List of subsidiaries
Website	LVMH.com

LVMH Moët Hennessy • Louis Vuitton S.A., better known as LVMH, is a French multinational apparels and accessories company headquartered in Paris, France. The company was formed after the 1987 merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger between the champagne producer Moët & Chandon and Hennessy, the cognac manufacturer.^[2][3][4] It controls around 60 subsidiaries that each manage a small number of prestigious brands. The subsidiaries are often managed independently.

Christian Dior, the luxury goods group, is the main holding company of LVMH, owning 42.36% of its shares, and 59.01% of its voting rights.^[5] Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH.^[6] Arnault's successful integration of various famous aspirational brands into the group has inspired other luxury companies into doing the same. Thus Gucci (now part of the French conglomerate PPR) and Richemont have also created extended portfolios of luxury brands. The oldest of the LVMH brands is wine producer Château d'Yquem, which dates its origins back to 1593.^[7]

Financial data[link]

Corporate structure[link]

LVMH is based in 30 avenue Hoche in the 8th arrondissement, Paris, France.^[2] The company is listed on the Euronext Paris exchange,^[9] and is a constituent of the CAC 40 index. As of 2010, the group had revenues of €20.3 billion with a net income of just over €3 billion.^[1] The group currently employs more than 83,000 people.^[1] 30% of LVMH's staff work in France. LVMH operates over 2,400 stores worldwide.^[10] Its current business plan aims to tightly control the brands it manages in order to maintain and heighten the perception of luxury relating to their products. For example, Louis Vuitton products are sold only through Louis Vuitton boutiques found in upmarket locations in wealthy cities or in concessions in other luxury goods shops (such as Harrods in London). This practice contrasts greatly with less exclusive brands which can be bought in shopping malls around the world.

Shareholders[link]

At the end of 2010, the only declared major shareholder in LVMH was Groupe Arnault, the family holding company of Bernard Arnault. The group's control amounted to 47.64% of LVMH's stock (with 42.36% held through Christian Dior S.A. and 5.28% held directly) and 63.66% of its voting rights (59.01% by Dior and 4.65% directly).^[5] A further 2.43% of shares were declared as treasury stock, with the remainder being free float.^[5] LVMH hold 66% of the drinks division, Moét Hennessy, with the remaining 34% held by Wong Yuchin J.P.^[11]

Subsidiaries[link]

A partial list including some of LVMH's most well known brands and subsidiaries:^[10]

On 7 March 2011, LVMH announced the acquisition of the 50.4% family-owned shares of the Italian jeweller Bulgari and the intention to make a tender offer for the rest (publicly owned).^[12] The transaction is about $5.2 billion.^[13]

References[link]

External links[link]

Wikimedia Commons has media related to: Moët Hennessy Louis Vuitton

	Companies portal
	Paris portal

• Official website

v t e CAC 40 companies of France Accor Air Liquide Alcatel-Lucent Alstom ArcelorMittal AXA BNP Paribas Bouygues Capgemini Carrefour Crédit Agricole EADS EDF Essilor France Télécom GDF Suez Groupe Danone L'Oréal Lafarge Legrand LVMH Michelin Pernod Ricard PSA Peugeot Citroën PPR Publicis Renault Safran Saint-Gobain Sanofi Schneider Electric Société Générale STMicroelectronics Technip Total Unibail-Rodamco Vallourec Veolia Environnement VINCI Vivendi

Bernard Arnault
Born	(1949-03-05) 5 March 1949 (age 63) Roubaix, France
Residence	Paris, France
Nationality	French
Alma mater	École Polytechnique
Occupation	Chairman & CEO of LVMH Chairman of Christian Dior S.A.
Net worth	US$ 41 billion (2012)[1]
Religion	Christian[2]
Spouse	Hélène Mercier (Pianist)
Website
LVMH.com

Bernard Arnault (pronounced: [bɛʁnaːʁ aʁno]) (born 5 March 1949) is a French business magnate best known as the chairman and CEO of the LVMH, the largest luxury-products company in the world.^[3][4][5] According to Forbes magazine, Arnault is the world's 4th and Europe's richest person, with a 2011 net worth of US$41 billion.^[6] He has also been named by Forbes as "the fashion person of 2011".^[7]

In 2007 Arnault was named Commander of the Legion of Honour, France’s highest order. The same year, he was featured in Time magazine’s annual Time 100 issue as one of the 100 most influential people in the world.

Early life and career[link]

Bernard Jean Étienne Arnault was born March 9, 1949, in Roubaix. His father Jean Leon Arnault was a manufacturer, owner of a civil engineering company, Ferret-Savinel. After graduating from the Maxence Van Der Meersch High School in Roubaix, Bernard Arnault was admitted to the École Polytechnique (X1969) from which he graduated with an engineering degree in 1971.

Bernard Arnault has been married twice, and is the father of five children. As the director for LVMH, his daughter Delphine Arnault is actively involved in the management of the luxury group. His son Antoine Arnault is Head of Communications for Louis Vuitton. His second wife, Hélène Mercier, is a pianist from Quebec. The couple has three sons. His nephew Harry Seaman is also involved in LVMH, overseeing sales and he is currently researching in the U.K.

Bernard Arnault was a witness at President Nicolas Sarkozy's wedding to Cécilia Ciganer-Albéniz. In January 2007 Kathryn Blair, the daughter of former British Prime Minister Tony Blair, completed an intensive French language and culture course at France's Sorbonne University. Tony Blair has been criticised for accepting an invitation on her behalf from Bernard Arnault. During Kathryn Blair's course, which ran from 12 October 2006 to 26 January 2007, she is thought to have been provided with an accommodation, security and transport package worth around £80,000.^[8]

Férinel[link]

After graduation, in 1971, he joined his father's company. In 1976, he convinced his father to liquidate the construction division of the company for 40 million French francs, and to change the focus of the company to real estate. Using the name Férinel, the new company developed a specialty holiday accommodation. Named director of company building in 1974, he became CEO in 1977. In 1979, he succeeded his father as president of the company. In 1981, Bernard Arnault emigrated to the United States and created Ferinel Inc. which developed condominiums in Florida.^[9]

Christian Dior[link]

Three years later, when the French Socialists switched to a more conservative economic course, Bernard Arnault returned to France and became the CEO of Financière Agache, a luxury goods company. With the help of Antoine Bernheim, a senior partner of Lazard Frères et Cie., the Paris office of Lazard Frères & Co., and government subsidies conferred in exchange for a promise not to downsize, Bernard Arnault acquired Boussac, a textile company in turmoil. Boussac owned Christian Dior, the department store Le Bon Marché, the retail shop Conforama and the diapers industrial Peaudouce. The Arnault family put up just $15 million of their own money, with Lazard supplying the rest of the reported $80 million purchase price.^[10] Following receipt of about 2 billion francs from the state in exchange of the promise to safeguard 16,000 jobs in the group, Bernard Arnault sent a letter to Laurent Fabius. In the letter he stated: “I will personally handle the management of DBSF and I will proceed to the setting up of the industrial and social plan as it was communicated to the administration.” Bernard Arnault sold nearly all the company's assets, keeping only the prestigious Christian Dior brand, and Le Bon Marché department store.^[11] In 1987, the group had to refund a part of the 51,5 million Euros it had benefited. These procedures did not reach Bernard Arnault who focused on Christian Dior’s development and on his acquisitions in the luxury sector (he became CEO of Christian Dior in 1985 and gathered the perfume and fashion departments in 1989).

LVMH[link]

In 1987, shortly after the creation of LVMH, the new luxury group resulting from the merger between two companies, Mr Arnault exploited a growing conflict between Alain Chevalier, Moët Hennessy's CEO, and Henri Racamier, president of Louis Vuitton. Moët Hennessy held Moët & Chandon Champagne, Ruinart Champagne, Champagne Mercier, Canard-Duchêne and Hennessy cognac. Louis Vuitton was the owner of Louis Vuitton Malletier, Givenchy, Veuve Clicquot Ponsardin Champagne. The new group held property rights to Dior perfumes, which Bernard Arnault craved to incorporate into Dior Couture. He created a holding company of which he owned 60% and Guinness, who had a distribution agreement with Moët-Hennessy, owned 40%. Following the October 1987 stock market crash, he capitalized on the lower quoted price and soon owned 43% of LVMH. In 1988, the group was looking for other investors. Henri Racamier, CEO at that time, asked Bernard Arnault to invest in the company. With more than 25% of shares, Bernard Arnault became one on the main shareholders of the group.

During this period, the management met difficulties because of the differences of view regarding the group’s strategic choices. Alain Chevalier was considering the sale of the wine and spirits department to other groups, whereas minor shareholder Henri Racamier wanted to restore Louis Vuitton’s independence. In this context, Bernard Arnault believed the group had to follow a unique direction and tried to take the leadership of LVMH. To take the control of the group, Bernard Arnault launched a takeover bid. In July 1988, he became LVMH’s first shareholder and, with the help of Lazare Bank and Crédit Lyonnais, majority shareholder in January 6, 1989. Alain Chevalier left the group and on the January 13th 1989, Bernard Arnault was unanimously elected chairman of the executive management board. Henri Recamier tried to cancel Bernard Arnault takeover bid.^[12] However, on 16 May 1989, French stock market regulator legitimated the operation.

He then consolidated his position by purging executives from both companies and declared himself linchpin for the group’s future. He also appointed his father Jean Leon Arnault Chairman of the Supervisory board before officially taking over as Chairman & CEO in 1989.^[13]

Since then, Bernard Arnault led the company through an ambitious development plan, turning it into one of the largest luxury groups in the world, alongside Swiss luxury giant Richemont and French based PPR Group. In eleven years, LVMH value has been multiplied by fifteen. In the meantime, the sales and profit progressed by 500%. Bernard Arnault promoted the decisions decentralization concerning the brands of the group. The brands are now considered as firms with their own familial history.

Bernard Arnault thinks LVMH has “shared advantages”: the strongest brands help financing those that are growing. Bernard Arnault has a portfolio of major brands from the luxury sector for which the stability is secured. This solidity allows new acquisitions and the group development. Thanks to this strategy, Christian Lacroix could open his own fashion house.

In July 1988, Bernard Arnault acquired Céline. In 1993, LVMH acquired Berluti and Kenzo. In the same year, Bernard Arnault bought out the French economic newspaper La Tribune. He could not turn it around, in spite of the 150 million Euro of investment. He sold La Tribune in November 2007 in order to buy the other French economic newspaper Les Échos, for 240 million Euros.

In 1994, LVMH acquired the perfume firm Guerlain. In 1996, Bernard Arnault bought out Loewe and it was followed by Marc Jacobs and Sephora in 1997. Were also integrated to the group: Thomas Pink in 1999, Emilio Pucci in 2000 and Fendi, DKNY and La Samaritaine in 2001.

Among other companies, Arnault also owned the art auction house Phillips de Pury & Company from 1999 to 2003.^[14] He also bought out the first French auctioneer Tajan.^[15]

Between 1998 and 2001, he had a passion for new economy and invested in boo.com, Libertysurf and Zebank through his holding Europatweb. The March 2000 Internet crash and 9/11 attacks convinced him to leave the sector.

In the 1990s, Bernard Arnault decided to gather his activities in a unique building in New York in order to symbolize LVMH’s strength and grandeur in the United States. He chose Christian de Portzamparc^[16] to realize this project, in which he also committed himself.^[17] On December 8, 1999, LVMH tower was unveiled in front of Hillary Clinton.^[18]

In 2005, he became the richest man in France. According to the Forbes list of Billionaires 2006, he pushed in front of his fellow-countrywoman Liliane Bettencourt, with a $30 billion fortune.

In 2007, he acquired 10.69% of France's largest supermarket retailer and the world's second largest food distributor, Carrefour through his Blue Capital, which is jointly owned by California property firm Colony Capital.

In 2008, he invested into the yacht business and bought Princess Yachts for 253 million Euros. He then took control of Royal van Lent for an almost identical sum.^[19]

Arnault's main business competitors are:

• French businessman François-Henri Pinault, whose holding company PPR owns Gucci, Yves Saint Laurent, Stella McCartney, Sergio Rossi, Bottega Veneta, Boucheron, Roger & Gallet, Bédat & Co and Christie's.

• Swiss-based Richemont, which owns Cartier, Van Cleef & Arpels, Net-a-Porter, Piaget, Baume et Mercier, IWC, Jaeger-LeCoultre, A. Lange & Söhne, Officine Panerai, Vacheron Constantin, Dunhill, Lancel, Montblanc, Old England, Purdey, Chloé, and Shanghai Tang.

Patronage[link]

Mr Arnault is a noted art collector. To develop his patronage actions, Bernard Arnault appealed to Jean-Claude Claverie, Jack Lang’s former counsellor in French Ministry of Culture. Thanks to their impulse, LVMH became a major agent in French patronage.

The group supported about ten exhibitions as “Le grand monde d’Andy Warhol”^[20] and “Picasso et les maîtres”^[21] at le Grand Palais in Paris. LVMH also endorsed the patronage of “l’atelier d’Alberto Giacometti” and “Yves Klein” at Centre Georges Pompidou.

In addition, LVMH foundation created the “young creators LVMH award”, an international competition opened to French and international beaux-arts students.^[22] Each year, six grants are allocated to the winners.

The group also lends Stradivarius violins to young talented musicians. Maxim Vengerov and Laurent Korcia already the loan of instruments.

Following the example of business man François Pinault, he created in 2006 a Louis Vuitton foundation for contemporary art. Designed by Frank Gehry, the construction of the foundation should open at the Jardin d'acclimatation in 2013.^[23]

Awards[link]

Bernard Arnault received the title of Commander of the French Legion of Honour on February 10, 2007. He was promoted to the dignity of Grand Officer of the French Legion of Honour on 14 July 2011.^[24]

See also[link]

• French Rich List

References[link]

External links[link]

• Being LVMH's Bernard Arnault- Profile story from WSJ Magazine
• A Guide to the Principal Holdings of Bernard Arnault also in WSJ Magazine
• New York Times, May 15, 2005

People's Republic of China 中华人民共和国 Zhōnghuá Rénmín Gònghéguó
Flag National Emblem
Anthem:  "March of the Volunteers" 《义勇军进行曲》 (Pinyin: "Yìyǒngjūn Jìnxíngqǔ")
Capital		Beijing 39°55′N 116°23′E / 39.917°N 116.383°E / 39.917; 116.383
Largest city		Shanghai[1][2]
Official language(s)		Standard Chinese[3]
Recognised regional languages		Mongolian, Tibetan, Uyghur, Zhuang, and various others
Official written language		Vernacular Chinese
Official script		Simplified Chinese[3]
Ethnic groups		91.51% Han;[4] 55 recognised minorities List of ethnic groups 1.30% Zhuang 0.86% Manchu 0.79% Uyghur 0.79% Hui 0.72% Miao 0.65% Yi 0.62% Tujia 0.47% Mongol 0.44% Tibetan 0.26% Buyei 0.15% Korean 1.05% other
Demonym		Chinese
Government		Nominally Marxist–Leninist single-party state[5][a]
-	President[b]	Hu Jintao
-	Congress Chairman	Wu Bangguo
-	Premier	Wen Jiabao
-	Conference Chairman	Jia Qinglin
Legislature		National People's Congress
Establishment
-	Unification of China under the Qin Dynasty	221 BC
-	Republic established	1 January 1912
-	People's Republic proclaimed	1 October 1949
Area
-	Total	9,640,821 km2 [c] or 9,671,018 km² [c](3rd/4th) 3,704,427 sq mi
-	Water (%)	2.8[d]
Population
-	2010 census	1,339,724,852[4] (1st)
-	Density	139.6/km2 (53rd) 363.3/sq mi
GDP (PPP)		2011 estimate
-	Total	$11.299 trillion[6] (2nd)
-	Per capita	$8,382[6] (91st)
GDP (nominal)		2011 estimate
-	Total	$7.298 trillion[6] (2nd)
-	Per capita	$5,413[6] (90th)
Gini (2007)		41.5[7]
HDI (2011)		0.687[8] (medium) (101st)
Currency		Renminbi (yuan) (¥) (CNY)
Time zone		China Standard Time (UTC+8)
Date formats		yyyy-mm-dd or yyyy年m月d日 (CE; CE-1949)
Drives on the		right, except for Hong Kong & Macau
ISO 3166 code		CN
Internet TLD		.cn[c] .中國[9] .中国
Calling code		+86[c]
a. ^ Simple characterizations of the political structure since the 1980s are no longer possible.[10] b. ^ As paramount leader, Hu Jintao holds four concurrent positions: General Secretary of the Communist Party of China, President of the People's Republic of China, and Chairman of the Central Military Commission for both state and party.[11] c. ^ 9,598,086 km2 (3,705,842 sq mi) excludes all disputed territories. 9,640,821 km2 (3,722,342 sq mi) Includes Chinese-administered area (Aksai Chin and Trans-Karakoram Tract, both territories claimed by India), Taiwan is not included.[12] d. ^ Information for mainland China only. Hong Kong, Macau, and territories under the jurisdiction of the Republic of China (Taiwan) are excluded.

China (ⁱ/ˈtʃaɪnə/; Chinese: 中国; pinyin: Zhōngguó; see also Names of China), officially the People's Republic of China (PRC), is the world's most-populous country, with a population of over 1.3 billion. Covering approximately 9.6 million square kilometres, the East Asian state is the world's second-largest country by land area,^[13] and the third- or fourth-largest in total area, depending on the definition of total area.^[14]

The People's Republic of China is a single-party state governed by the Communist Party of China.^[15] It exercises jurisdiction over 22 provinces, five autonomous regions, four directly controlled municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two mostly self-governing special administrative regions (Hong Kong and Macau).^[16] Its capital city is Beijing.^[17] The PRC also claims Taiwan—which is controlled by the Republic of China (ROC), a separate political entity—as its 23rd province, a claim controversial due to the complex political status of Taiwan and the unresolved Chinese Civil War. The PRC government denies the legitimacy of the ROC.

China's landscape is vast and diverse, with forest steppes and the Gobi and Taklamakan deserts occupying the arid north and northwest near Mongolia and Central Asia, and subtropical forests being prevalent in the wetter south near Southeast Asia. The terrain of western China is rugged and elevated, with the Himalaya, Karakoram, Pamir and Tian Shan mountain ranges separating China from South and Central Asia. The world's apex, Mt. Everest (8,848 m), lies on the China–Nepal border, while the world's second-highest point, K2 (8,611 m), is situated on China's border with Pakistan. The country's lowest and the world's third-lowest point, Lake Ayding (−154 m), is located in the Turpan Depression. The Yangtze and Yellow Rivers, the third- and sixth-longest in the world, have their sources in the Tibetan Plateau and continue to the densely populated eastern seaboard. China's coastline along the Pacific Ocean is 14,500 kilometres (9,000 mi) long—the 11th-longest in the world—and is bounded by the Bohai, Yellow, East and South China Seas.

The nation of China has had numerous historical incarnations. The ancient Chinese civilization—one of the world's earliest—flourished in the fertile basin of the Yellow River in the North China Plain.^[18] China's political system was based on hereditary monarchies, known as dynasties, beginning with the semi-mythological Xia of the Yellow River basin (approx. 2000 BC) and ending with the fall of the Qing Dynasty in 1911. Since 221 BC, when the Qin Dynasty first conquered several states to form a Chinese empire, the country has expanded, fractured and been reformed numerous times. The Republic of China, founded in 1911 after the overthrow of the Qing dynasty, ruled the Chinese mainland until 1949. In 1945, the ROC acquired Taiwan from Japan following World War II.

In the 1946–1949 phase of the Chinese Civil War, the Chinese Communist Party defeated the nationalist Kuomintang in mainland China and established the People's Republic of China in Beijing on 1 October 1949. The Kuomintang relocated the ROC government to Taiwan, establishing its capital in Taipei. The ROC's jurisdiction is now limited to Taiwan and several outlying islands, including Penghu, Kinmen and Matsu. Since 1949, the People's Republic of China and the Republic of China (now widely known as "Taiwan") have remained in dispute over the sovereignty of China and the political status of Taiwan, mutually claiming each other's territory and competing for international diplomatic recognition. In 1971, the PRC gained admission to the United Nations and took the Chinese seat as a permanent member of the U.N. Security Council. China is also a member of numerous formal and informal multilateral organizations, including the WTO, APEC, BRICS, the Shanghai Cooperation Organisation, the BCIM and the G-20. As of September 2011, all but 23 countries have recognized the PRC as the sole legitimate government of China.

Since the introduction of market-based economic reforms in 1978, China has become the world's fastest-growing major economy.^[19] As of 2012, it is the world's second-largest economy, after the United States, by both nominal GDP and purchasing power parity (PPP),^[20] and is also the world's largest exporter and second-largest importer of goods. In per capita terms, China ranked 90th by nominal GDP and 91st by GDP (PPP) in 2011, according to the IMF. China is a recognized nuclear weapons state and has the world's largest standing army, with the second-largest defense budget. In 2003, China became the third nation in the world, after the former Soviet Union and the United States, to independently launch a successful manned space mission. China has been characterized as a potential superpower by a number of academics,^[21] military analysts,^[22] and public policy and economics analysts.^[23]

Etymology[link]

China
Chinese name
Simplified Chinese:	中国
Traditional Chinese:	中國
Literal meaning:	Middle Kingdom[24][25]
Transliterations Gan - Romanization: Tung-koe̍t Kejia - Romanization: Dung24 Gued2 Mandarin - Hanyu Pinyin: Zhōngguó - Wade-Giles: Chung-kuo - Bopomofo ㄓㄨㄥ ㄍㄨㄛˊ Min - Hokkien POJ: Tiong-kok - Min Dong BUC: Dṳ̆ng-guók Wu - Romanization: Tson平 koh入 Yue - Jyutping: Zung1 gwok3 - Yale Romanization: Jūnggwok
People's Republic of China
Alternative Chinese name
Simplified Chinese:	中华人民共和国
Traditional Chinese:	中華人民共和國
Transliterations Gan - Romanization: Chungfa Ninmin Khungfokoet Hakka - Romanization: Dung24 fa11 ngin11 min11 kiung55 fo11 gued2 Mandarin - Hanyu Pinyin: Zhōnghuá Rénmín Gònghéguó Min - Hokkien POJ: Tiong-hôa jîn-bîn kiōng-hô-kok - Min Dong BUC: Dṳ̆ng-huà Ìng-mìng Gê̤ṳng-huò-guók Wu - Romanization: Tson平 gho平 zin平 min平 gon去 ghu平 koh入 Yue - Jyutping: Zung1 waa4 jan4 man4 gung6 wo4 gwok3 - Yale Romanization: Jūngwàh Yàhnmàhn Guhngwòhgwok
Mongolian name
Mongolian:
Tibetan name
Tibetan:	ཀྲུང་ཧྭ་མི་དམངས་སྤྱི མཐུན་རྒྱལ་ཁབ
Transliterations - Wylie: krung hwa mi dmangs spyi mthun rgyal khab - Zangwen Pinyin: Zhunghua Mimang Jitun Gyalkab
Uyghur name
Uyghur:	جۇڭخۇا خەلق جۇمھۇرىيىت
Transliterations - Latin Yëziqi: Jungxua Xelq Jumhuriyiti - Yengi Yezik̡: Junghua Həlk̡ Jumh̡uriyiti - SASM/GNC: Junghua Hälk̂ Jumĥuriyiti - Siril Yëziqi: Җуңхуа Хәлқ Җумһурийити
Zhuang name
Zhuang:	Cunghvaz Yinzminz Gunghozgoz

This article contains Chinese text. Without proper rendering support, you may see question marks, boxes, or other symbols instead of Chinese characters.

The word "China" is derived from Cin (چین), a Persian name for China popularized in medieval Europe by the account of the 13th-century Venetian explorer Marco Polo.^[26][27] The first recorded use in English dates from 1555.^[28] The Persian word is, in turn, derived from the Sanskrit word Cīna (चीन),^[29] which was used as a name for China as early as AD 150.^[30] There are various scholarly theories regarding the origin of this word. The traditional theory, proposed in the 17th century by Martino Martini, is that "China" is derived from "Qin" (秦), the westernmost of the Chinese kingdoms during the Zhou Dynasty, or from the succeeding Qin Dynasty (221–206 BC).^[31] The word Cīna is used in two Hindu scriptures – the Mahābhārata of the 5th century BC and the Laws of Manu of the 2nd century BC – to refer to a country located in the Tibetan-Burman borderlands east of India.^[32][33]

In China, common names for the country include Zhōngguó (Chinese: 中国; literally "the Central State(s)") and Zhōnghuá (Chinese: 中华), although the country's official name has been changed numerous times by successive dynasties and modern governments. The term Zhongguo appeared in various ancient texts, such as the Classic of History of the 6th century BC,^[34] and in pre-imperial times it was often used as a cultural concept to distinguish the Huaxia from the barbarians. The term, which can be either singular or plural, referred to the group of states in the central plain. It was only in the nineteenth century that the term emerged as the formal name of the country. The Chinese were not unique in regarding their country as "central", since other civilizations had the same view.^[35]

History[link]

Prehistory[link]

Archaeological evidence suggests that early hominids inhabited China between 250,000 and 2.24 million years ago.^[36] A cave in Zhoukoudian (near present-day Beijing) exhibits fossils dated at between 300,000 and 780,000 BC.^[37][38][39] The fossils are of Peking Man, an example of Homo erectus who used fire. There are also remains of Homo sapiens dating back to 18,000–11,000 BC found at the Peking Man site.^[40]

Early dynastic rule[link]

Jade deer ornament dating from the Shang Dynasty.

Chinese tradition names the first dynasty Xia, but it was considered mythical until scientific excavations found early Bronze Age sites at Erlitou in Henan Province in 1959.^[41] Archaeologists have since uncovered urban sites, bronze implements, and tombs in locations cited as Xia's in ancient historical texts, but it is impossible to verify that these remains are of the Xia without written records from the period.

Some of the thousands of life-size Terracotta Warriors of the Qin Dynasty, ca. 210 BC.

The Great Wall of China was built by several dynasties over two thousand years to protect the sedentary agricultural regions of the Chinese interior from incursions by nomadic pastoralists of the northern steppes.

The first Chinese dynasty that left historical records, the loosely feudal Shang (Yin), settled along the Yellow River in eastern China from the 17th to the 11th century BC. The oracle bone script of the Shang Dynasty represent the oldest forms of Chinese writing found and the direct ancestor of modern Chinese characters used throughout East Asia. The Shang were invaded from the west by the Zhou, who ruled from the 12th to the 5th century BC, until their centralized authority was slowly eroded by feudal warlords. Many independent states eventually emerged out of the weakened Zhou state, and continually waged war with each other in the Spring and Autumn Period, only occasionally deferring to the Zhou king. By the time of the Warring States Period, there were seven powerful sovereign states, each with its own king, ministry and army.

Imperial China[link]

The first unified Chinese state was established by Qin Shi Huang of the Qin state in 221 BC. Qin Shi Huang proclaimed himself the "First Emperor" (始皇帝), and imposed many reforms throughout China, notably the forced standardization of the Chinese language, measurements, length of cart axles, and currency. The Qin Dynasty lasted only fifteen years, falling soon after Qin Shi Huang's death, as its harsh legalist and authoritarian policies led to widespread rebellion.^[42][43]

The subsequent Han Dynasty ruled China between 206 BC and 220 AD, and created a lasting Han cultural identity among its populace that extends to the present day.^[42][43] The Han Dynasty expanded the empire's territory considerably with military campaigns reaching Korea, Vietnam, Mongolia and Central Asia, and also helped establish the Silk Road in Central Asia. China was for a large part of the last two millennia the world's largest economy.^[44] However, in the later part of the Qing Dynasty, China's economic development began to slow and Europe's rapid development during and after the Industrial Revolution enabled it to surpass China.

After the collapse of Han, another period of disunion followed, including the highly chivalric period of the Three Kingdoms.^[45] Independent Chinese states of this period such as Wu opened diplomatic relations with Japan,^[46] introducing the Chinese writing system there. In 580 AD, China was reunited under the Sui.^[47] However, the Sui Dynasty was short-lived after a failure in the Goguryeo-Sui Wars (598–614) weakened it.^[48][49]

Under the succeeding Tang and Song dynasties, Chinese technology and culture reached its zenith.^[50] The Tang Empire was at its height of power until the middle of the 8th century, when the An Shi Rebellion destroyed the prosperity of the empire.^[51] The Song Dynasty was the first government in world history to issue paper money and the first Chinese polity to establish a permanent standing navy.^[52] Between the 10th and 11th centuries, the population of China doubled in size. This growth came about through expanded rice cultivation in central and southern China, and the production of abundant food surpluses.

Within its borders, the Northern Song Dynasty had a population of some 100 million people. The Song Dynasty was a culturally rich period for philosophy and the arts. Landscape art and portrait painting were brought to new levels of maturity and complexity after the Tang Dynasty, and social elites gathered to view art, share their own, and trade precious artworks. Philosophers such as Cheng Yi and Chu Hsi reinvigorated Confucianism with new commentary, infused Buddhist ideals, and emphasized a new organization of classic texts that brought about the core doctrine of Neo-Confucianism.

Detail from Along the River During the Qingming Festival, a 12th-century painting showing everyday life in the Song Dynasty's capital city, Bianjing (today's Kaifeng).

In 1271, the Mongol leader and fifth Khagan of the Mongol Empire Kublai Khan established the Yuan Dynasty, with the last remnant of the Song Dynasty falling to the Yuan in 1279. Before the Mongol invasion, Chinese dynasties reportedly had approximately 120 million inhabitants; after the conquest was completed in 1279, the 1300 census reported roughly 60 million people.^[53]

Late dynastic rule[link]

A peasant named Zhu Yuanzhang overthrew the Yuan Dynasty in 1368 and founded the Ming Dynasty.^[54] Ming Dynasty thinkers such as Wang Yangming would further critique and expand Neo-Confucianism with ideas of individualism and innate morality that would have tremendous impact on later Japanese thought. Chosun Korea also became a nominal vassal state of Ming China and adopted much of its Neo-Confucian bureaucratic structure.

Under the Ming Dynasty, China enjoyed another golden age, developing one of the strongest navies in the world and a rich and prosperous economy amid a flourishing of art and culture. It was during this period that Zheng He led explorations throughout the world, possibly reaching America. During the early Ming Dynasty, China's capital was moved from Nanjing to Beijing. In 1644, Beijing was sacked by a coalition of rebel forces led by Li Zicheng, a minor Ming official turned leader of the peasant revolt. The last Ming Chongzhen Emperor committed suicide when the city fell. The Manchu Qing Dynasty then allied with Ming Dynasty general Wu Sangui and overthrew Li's short-lived Shun Dynasty, and subsequently seized control of Beijing, which became the new capital of the Qing Dynasty.

The Qing Dynasty, which lasted until 1912, was the last imperial dynasty of China. In the 19th century, the Qing Dynasty adopted a defensive posture towards European imperialism, even though it engaged in an imperialistic expansion of its own into Central Asia. At this time, China awoke to the significance of the rest of the world, the West in particular. As China opened up to foreign trade and missionary activity, opium produced by British India was forced onto Qing China. Two Opium Wars with Britain weakened the Emperor's control. European imperialism proved to be disastrous for China:

The Arrow War (1856–1860) [2nd Opium War] saw another disastrous defeat for China. The subsequent passing of the humiliating Treaty of Tianjin in 1856 and the Beijing Conventions of 1860 opened up more of the country to foreign penetrations and more ports for their vessels. Hong Kong was ceded over to the British. Thus, the "unequal treaties system" was established. Heavy indemnities had to be paid by China, and more territory and control were taken over by the foreigners.^[55]

A 19th-century painting depicting the Taiping Rebellion of 1850–1864.

The weakening of the Qing regime, and the apparent humiliation of the unequal treaties in the eyes of the Chinese people had several consequences. One consequence^{[according to whom?]} was the Taiping Rebellion, a civil war which lasted from 1851 to 1862. The rebellion was led by Hong Xiuquan, who was partly influenced by an idiosyncratic interpretation of Christianity. Hong believed himself to be the son of God and the younger brother of Jesus. Although the Qing forces were eventually victorious, the civil war was one of the bloodiest in human history, costing at least 20 million lives (more than the total number of fatalities in World War I), with some estimates of up to two hundred million. Other costly rebellions followed the Taiping Rebellion, such as the Punti-Hakka Clan Wars (1855–67), Nien Rebellion (1851–1868), Miao Rebellion (1854–73), Panthay Rebellion (1856–1873) and the Dungan revolt (1862–1877).^[56][57]

These rebellions resulted in an estimated loss of several million lives each and led to disastrous results for the economy and the countryside.^[58][59][60] The flow of British opium hastened the empire's decline. In the 19th century, the age of colonialism was at its height and the great Chinese Diaspora began; today, about 35 million overseas Chinese live in Southeast Asia.^[61] Emigration rates were strengthened by domestic catastrophes such as the famine of 1876–79, which claimed between 9 and 13 million lives in northern China.^[62] From 108 BC to 1911 AD, China experienced 1,828 famines,^[63] or one per year, somewhere in the empire.^[64]

While China was wracked by continuous war, Meiji Japan succeeded in rapidly modernizing its military, and set its sights on the conquest of Korea and Manchuria. At the request of the Korean emperor, the Qing government sent troops to aid in suppressing the Tonghak Rebellion in 1894. However, Japan also sent troops to Korea, leading to the First Sino-Japanese War, which resulted in Qing China's loss of influence in the Korean Peninsula as well as the cession of Taiwan (including the Pescadores) to Japan.

Following this series of defeats, a reform plan for the empire to become a modern Meiji-style constitutional monarchy was drafted by the Guangxu Emperor in 1898, but was opposed and stopped by the Empress Dowager Cixi, who placed Emperor Guangxu under house arrest in a coup d'état. Further destruction followed the ill-fated 1900 Boxer Rebellion against westerners in Beijing.

By the early 20th century, mass civil disorder had begun, and calls for reform and revolution were heard across the country. The 38-year-old Emperor Guangxu died under house arrest on 14 November 1908, suspiciously just a day before Cixi's own death. With the throne empty, he was succeeded by Cixi's handpicked heir, his two year old nephew Puyi, who became the Xuantong Emperor. Guangxu's consort became the Empress Dowager Longyu. In another coup de'tat, Yuan Shikai overthrew the last Qing emperor, and forced empress Dowager Longyu to sign the abdication decree as regent in 1912, ending two thousand years of imperial rule in China. She died, childless, in 1913.

Republic of China (1912–1949)[link]

This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (October 2011)

Sun Yat-sen, the father of modern China (seated on right), and Chiang Kai-shek, later President of the Republic of China.

On 1 January 1912, the Republic of China was established, heralding the end of Imperial China. Sun Yat-sen of the Kuomintang (the KMT or Nationalist Party) was proclaimed provisional president of the republic. However, the presidency was later given to Yuan Shikai, a former Qing general, who had ensured the defection of the entire Beiyang Army from the Qing Empire to the revolution. In 1915, Yuan proclaimed himself Emperor of China, but was forced to abdicate and reestablish the republic in the face of popular condemnation, not only from the general population but also from among his own Beiyang Army and its commanders.

After Yuan Shikai's death in 1916, China was politically fragmented, with an internationally recognized but virtually powerless national government seated in Beijing. Regional warlords exercised actual control over their respective territories. In the late 1920s, the nationalist Kuomintang, under Chiang Kai-shek, was able to reunify the country under its own control with a series of deft military and political maneuverings, known collectively as the Northern Expedition. The Kuomintang moved the nation's capital to Nanjing and implemented "political tutelage", an intermediate stage of political development outlined in Sun Yat-sen's San-min program for transforming China into a modern democratic state. Effectively, political tutelage meant one-party rule by the Kuomintang, but the party was politically divided into competing cliques. This political division made it difficult for Chiang to battle the Communists, which the Kuomintang had been warring against since 1927 in the Chinese Civil War. This war continued successfully for the Kuomintang, especially after the Communists were forced to retreat in the Long March, until the Xi'an Incident and Japanese aggression forced Chiang to confront Imperial Japan.

The Second Sino-Japanese War (1937–1945), a part of World War II, forced an uneasy alliance between the Kuomintang and the Communists. The Japanese "three-all policy" in northern China—"kill all, burn all and destroy all"—led to numerous war atrocities being committed against the civilian population; in all, as many as 20 million Chinese civilians were killed.^[65][66] An estimated 200,000 Chinese were massacred in the city of Nanjing alone during the Japanese occupation.^[67] Japan unconditionally surrendered to China in 1945. Taiwan, including the Pescadores, was retroceded. China emerged victorious but war-ravaged and financially drained. The continued distrust between the Kuomintang and the Communists led to the resumption of the Chinese Civil War. In 1947, constitutional rule was established, but because of the ongoing Civil War many provisions of the ROC constitution were never implemented in mainland China.^{[citation needed]}

People's Republic of China (1949–present)[link]

Major combat in the Chinese Civil War ended in 1949 with the Communist Party in control of mainland China, and the Kuomintang retreating offshore, reducing the ROC's territory to only Taiwan, Hainan, and their surrounding islands. On 1 October 1949, Mao Zedong proclaimed the People's Republic of China,^[68] which was commonly known in the West as "Communist China" or "Red China" during the Cold War.^[69] In 1950, the People's Liberation Army succeeded in capturing Hainan from the ROC, occupying Tibet, and defeating the majority of the remaining Kuomintang forces in Yunnan and Xinjiang provinces, though some Kuomintang holdouts survived until much later.

Mao Zedong proclaiming the establishment of the People's Republic of China in 1949.

Mao encouraged population growth, and under his leadership the Chinese population almost doubled from around 550 million to over 900 million.^[70] However, Mao's Great Leap Forward, a large-scale economic and social reform project, resulted in an estimated 45 million deaths between 1958 and 1961, mostly from starvation.^[71] In 1966, Mao and his allies launched the Cultural Revolution, which would last until Mao's death a decade later. The Cultural Revolution, motivated by power struggles within the Party and a fear of the Soviet Union, led to a major upheaval in Chinese society. In October 1971, the PRC replaced the Republic of China in the United Nations, and took its seat as a permanent member of the Security Council. In that same year, for the first time, the number of countries recognizing the PRC surpassed those recognizing the ROC in Taipei as the government of China.^[72] In February 1972, at the peak of the Sino-Soviet split, Mao and Zhou Enlai met Richard Nixon in Beijing. However, the U.S. did not officially recognise the PRC as China's sole legitimate government until 1 January 1979.

After Mao's death in 1976 and the arrest of the Gang of Four, who were blamed for the excesses of the Cultural Revolution, Deng Xiaoping quickly wrested power from Mao's anointed successor Hua Guofeng. Although he never became the head of the party or state himself, Deng was in fact the Paramount Leader of China at that time, his influence within the Party led the country to significant economic reforms. The Communist Party subsequently loosened governmental control over citizens' personal lives and the communes were disbanded with many peasants receiving multiple land leases, which greatly increased incentives and agricultural production. This turn of events marked China's transition from a planned economy to a mixed economy with an increasingly open market environment, a system termed by some "market socialism";^[73] the Communist Party of China officially describes it as "socialism with Chinese characteristics". China adopted its current constitution on 4 December 1982.

The death of pro-reform official Hu Yaobang helped to spark the Tiananmen Square protests of 1989, during which students and others campaigned for several months, speaking out against corruption and in favour of greater political reform, including democratic rights and freedom of speech. However, they were eventually put down on 4 June when PLA troops and vehicles entered and forcibly cleared the square, resulting in numerous casualties. This event was widely reported and brought worldwide condemnation and sanctions against the government.^[74][75] The "Tank Man" incident in particular became famous.

The city of Shanghai has become a symbol of China's rapid economic expansion since the 1990s.

President Jiang Zemin and Premier Zhu Rongji, both former mayors of Shanghai, led the nation in the 1990s. Under Jiang and Zhu's ten years of administration, China's economic performance pulled an estimated 150 million peasants out of poverty and sustained an average annual gross domestic product growth rate of 11.2%.^[76][77] The country formally joined the World Trade Organization in 2001.

Although rapid economic growth has made the Chinese economy the world's second-largest, this growth has also severely impacted the country's resources and environment.^[78] Another concern is that the benefits of economic development has not been distributed evenly, resulting in a wide development gap between urban and rural areas. As a result, under President Hu Jintao and Premier Wen Jiabao, the Chinese government initiated policies to address these issues of equitable distribution of resources, though the outcome remains to be seen.^[79] More than 40 million farmers have been displaced from their land,^[80] usually for economic development, contributing to the 87,000 demonstrations and riots across China in 2005.^[81] Living standards have improved significantly but political controls remain tight.^[82]

Geography[link]

A composite satellite image showing the topography of China.

Longsheng Rice Terrace in Guangxi.

The Li River in Guangxi.

Political geography[link]

The People's Republic of China is the second-largest country in the world by land area after Russia^[13] and is either the third- or fourth-largest by total area, after Russia, Canada and, depending on the definition of total area, the United States.^[83] China's total area is generally stated as being approximately 9,600,000 km² (3,700,000 sq mi).^[84] Specific area figures range from 9,572,900 km² (3,696,100 sq mi) according to the Encyclopædia Britannica,^[85] 9,596,961 km² (3,705,407 sq mi) according to the UN Demographic Yearbook,^[86] to 9,596,961 km² (3,705,407 sq mi) according to the CIA World Factbook,^[87] and 9,640,011 km² (3,722,029 sq mi) including Aksai Chin and the Trans-Karakoram Tract, which are controlled by China and claimed by India.^[88] None of these figures include the 1,000 square kilometres (386.1 sq mi) of territory ceded to China by Tajikistan following the ratification of a Sino-Tajik border agreement in January 2011.^[89]

According to the Encyclopædia Britannica, the total area of the United States, at 9,522,055 km² (3,676,486 sq mi), is slightly smaller than that of China. Meanwhile, the CIA World Factbook states that China's total area was greater than that of the United States until the coastal waters of the Great Lakes was added to the United States' total area in 1996.^[90]

China has the longest combined land border in the world, measuring 22,117 km (13,743 mi) from the mouth of the Yalu River to the Gulf of Tonkin. China borders 14 nations, more than any other country except Russia, which also borders 14. China extends across much of East Asia, bordering Vietnam, Laos, and Burma in Southeast Asia; India, Bhutan, Nepal and Pakistan^[91] in South Asia; Afghanistan, Tajikistan, Kyrgyzstan and Kazakhstan in Central Asia; a small section of Russian Altai and Mongolia in Inner Asia; and the Russian Far East and North Korea in Northeast Asia.

Additionally, China shares maritime boundaries with South Korea, Japan, Vietnam and the Philippines. The PRC and the Republic of China (Taiwan) make mutual claims over each other's territory and the frontier between areas under their respective control is closest near the islands of Kinmen and Matsu, off the Fujian coast, but otherwise run through the Taiwan Strait. The PRC and ROC assert identical claims over the entirety of the Spratly Islands in the South China Sea, and the southern-most extent of these claims reach Zengmu Ansha (James Shoal), which would form a maritime frontier with Malaysia.

Landscape and climate[link]

Mount Everest, the world's highest mountain, in Tibet.

The South China Sea coast at Hainan.

The territory of China lies between latitudes 18° and 54° N, and longitudes 73° and 135° E. China's landscapes vary significantly across its vast width. In the east, along the shores of the Yellow Sea and the East China Sea, there are extensive and densely populated alluvial plains, while on the edges of the Inner Mongolian plateau in the north, broad grasslands predominate. Southern China is dominated by hills and low mountain ranges, while the central-east hosts the deltas of China's two major rivers, the Yellow River and the Yangtze River. Other major rivers include the Xi, Mekong, Brahmaputra and Amur. To the west, major mountain ranges, most notably the Himalayas, and high plateaus feature among the more arid landscapes of the north, such as the Taklamakan and the Gobi Desert. China's highest point, Mt. Everest (8848m), lies on the Sino-Nepalese border. The country's lowest point is the dried lake bed of Ayding Lake (−154m) in the Turpan Depression.

A major environmental issue in China is the continued expansion of its deserts, particularly the Gobi Desert, which is currently the world's fifth-largest desert.^[92][93] Although barrier tree lines planted since the 1970s have reduced the frequency of sandstorms, prolonged drought and poor agricultural practices have resulted in dust storms plaguing northern China each spring, which then spread to other parts of East Asia, including Korea and Japan. According to China's environmental watchdog, Sepa, China is losing a million acres (4,000 km²) per year to desertification.^[94] Water quality, erosion, and pollution control have become important issues in China's relations with other countries. Melting glaciers in the Himalayas could potentially lead to water shortages for hundreds of millions of people.^[95]

China's climate is mainly dominated by dry seasons and wet monsoons, which lead to a pronounced temperature differences between winter and summer. In the winter, northern winds coming from high-latitude areas are cold and dry; in summer, southern winds from coastal areas at lower latitudes are warm and moist. The climate in China differs from region to region because of the country's extensive and complex topography.

Biodiversity[link]

A giant panda photographed in Sichuan.

China is one of 17 megadiverse countries,^[96] lying in two of the world's major ecozones: the Palearctic and the Indomalaya. In the Palearctic zone, mammals such as the horse, camel, tapir, and jerboa can be found. Among the species found in the Indomalaya region are the Leopard Cat, bamboo rat, treeshrew, and various monkey and ape species. Some overlap exists between the two regions due to natural dispersal and migration; deer, antelope, bears, wolves, pigs, and numerous rodent species can all be found in China's diverse climatic and geological environments. The famous giant panda is found only in a limited area along the Yangtze River. China suffers from a continuing problem with trade in endangered species, although there are now laws to prohibit such activities.

China also hosts a variety of forest types. Cold coniferous forests predominate in the north of the country, supporting animal species such as moose and the Asian black bear, along with over 120 bird species. Moist conifer forests can have thickets of bamboo as an understorey, replaced by rhododendrons in higher montane stands of juniper and yew. Subtropical forests, which dominate central and southern China, support as many as 146,000 species of flora. Tropical and seasonal rainforests, though confined to Yunnan and Hainan Island, contain a quarter of all the plant and animal species found in China.

Environmental issues[link]

Wind turbines in Xinjiang. The Dabancheng project is Asia's largest wind farm.

In recent decades, China has suffered from severe environmental deterioration and pollution.^[97] While regulations such as the 1979 Environmental Protection Law are fairly stringent, enforcement of them is poor, as they are frequently disregarded by local communities and government officials in favour of rapid economic development.

Environmental campaigners such as Ma Jun have warned of the danger that water pollution poses to Chinese society.^[98] According to the Chinese Ministry of Water Resources, roughly 300 million Chinese do not have access to safe drinking water, and 40% of China’s rivers have been polluted by industrial and agricultural waste as of late 2011.^[99] This crisis is compounded by the perennial problem of water shortages, with 400 out of 600 surveyed Chinese cities reportedly short of drinking water.^[100][101]

However, China is the world's leading investor in renewable energy technologies, with $34.6 billion invested in 2009 alone.^[102][103] China produces more wind turbines and solar panels than any other country,^[104] and renewable energy projects, such as solar water heating, are widely pursued at the local level.^[105] By 2009, over 17% of China's energy was derived from renewable sources – most notably hydroelectric power plants, of which China has a total installed capacity of 197 GW.^[106] In 2011, the Chinese government announced plans to invest four trillion yuan (US$618.55 billion) in water infrastructure projects over a ten-year period, and to complete construction of a flood prevention and anti-drought system by 2020.^[107]

Politics[link]

The People's Republic of China, along with Vietnam, North Korea, Laos, and Cuba, is one of the five remaining official Communist states in the world.^[108][109] but simple characterizations of China's political structure since the 1980s are no longer possible.^[10] The Chinese government has been variously described as communist and socialist, but also as authoritarian, with heavy restrictions remaining in many areas, most notably on the Internet, the press, freedom of assembly, reproductive rights, and freedom of religion.^[110] Its current political/economic system has been termed by its leaders as "Socialism with Chinese characteristics".

Compared to its closed-door policies until the mid-1970s, the liberalization of China has resulted in the administrative climate being less restrictive than before. China is far different from liberal democracy or social democracy that exists in most of Europe or North America, and the National People's Congress (highest state body) has been described as a "rubber stamp" body.^[111] China's incumbent President is Hu Jintao, who is also the General Secretary of the Communist Party of China, and its Premier is Wen Jiabao, who is also a senior member of the CPC Politburo Standing Committee.

The Great Hall of the People in Beijing, where the National People's Congress convenes.

The country is ruled by the Communist Party of China (CPC), whose power is enshrined in China's constitution.^[112] The Chinese electoral system is hierarchical, whereby local People's Congresses are directly elected, and all higher levels of People's Congresses up to the National People's Congress (NPC) are indirectly elected by the People's Congress of the level immediately below.^[113] The political system is partly decentralized,^[114] with limited democratic processes internal to the party and at local village levels, although these experiments have been marred by corruption. There are other political parties in China, referred to in China as democratic parties, which participate in the National People's Congress and the Chinese People's Political Consultative Conference (CPPCC).

There have been some moves toward political liberalization, in that open contested elections are now held at the village and town levels,^[115][116] and that legislatures have shown some assertiveness from time to time. However, the Party retains effective control over government appointments: in the absence of meaningful opposition, the CPC wins by default most of the time. Political concerns in China include lessening the growing gap between rich and poor and fighting corruption within the government leadership.^[117]

The level of support to the government action and the management of the nation is among the highest in the world, with 86% of people who express satisfaction with the way things are going in their country and with their nation's economy according to a 2008 Pew Research Center survey.^[118]

Administrative divisions[link]

The People's Republic of China has administrative control over 22 provinces, and considers Taiwan to be its 23rd province, although Taiwan is currently governed by the Republic of China, which disputes the PRC's claim.^[119] China also has five subdivisions officially termed autonomous regions, each with a designated minority group; four municipalities; and two Special Administrative Regions (SARs), which enjoy a degree of political autonomy. These 22 provinces, five autonomous regions, and four municipalities can be collectively referred to as "mainland China", a term which usually excludes the SARs of Hong Kong and Macau.

Foreign relations[link]

Hu Jintao with former US President George W. Bush in 2006.

China has diplomatic relations with 171 countries and maintains embassies in 162.^[120] Its legitimacy is disputed by the Republic of China and a few other countries; it is thus the largest and most populous state with limited recognition. Sweden was the first western country to establish diplomatic relations with the People's Republic on 9 May 1950.^[121] In 1971, the PRC replaced the Republic of China as the sole representative of China in the United Nations and as one of the five permanent members of the United Nations Security Council.^[122] China was also a former member and leader of the Non-Aligned Movement, and still considers itself an advocate for developing countries.^[123]

Under its interpretation of the One-China policy, China has made it a precondition to establishing diplomatic relations that the other country acknowledges its claim to Taiwan and severs official ties with the government of the Republic of China. Chinese officials have protested on numerous occasions when foreign countries have made diplomatic overtures to Taiwan,^[124] especially in the matter of armament sales.^[125] Political meetings between foreign government officials and the 14th Dalai Lama are also opposed by China, as it considers Tibet to be formally part of China.^[126]

Much of China's current foreign policy is reportedly based on the Five Principles of Peaceful Coexistence of Zhou Enlai—non-interference in other states' affairs, non-aggression, peaceful coexistence, equality and mutual benefits. China's foreign policy is also driven by the concept of "harmony without uniformity", which encourages diplomatic relations between states despite ideological differences. This policy has led China to support states that are regarded as dangerous or repressive by Western nations, such as Zimbabwe, North Korea, and Iran.^[127] Conflicts with foreign countries have occurred at times in China's recent history, particularly with the United States; for example, the US bombing of the Chinese embassy in Belgrade during the Kosovo conflict in May 1999 and the US-China spy plane incident in April 2001. China's foreign relations with many Western nations suffered for a time following the military crackdown on the Tiananmen Square protests of 1989, although in recent years China has improved its diplomatic links with the West.^[128][129]

Trade relations[link]

In recent decades, China has played an increasing role in calling for free trade areas and security pacts amongst its Asia-Pacific neighbors. In 2004, China proposed an entirely new East Asia Summit (EAS) framework as a forum for regional security issues, pointedly excluding the United States.^[130] The EAS, which includes ASEAN Plus Three, India, Australia and New Zealand, held its inaugural summit in 2005. China is also a founding member of the Shanghai Cooperation Organisation (SCO), along with Russia and the Central Asian republics.

In 2000, the U.S. Congress approved "permanent normal trade relations" (PNTR) with China, allowing Chinese exports in at the same low tariffs as goods from most other countries.^[131] Both Bill Clinton and George W. Bush asserted that free trade would gradually open China to democratic reform.^[132] Bush was furthermore an advocate of China's entry into the World Trade Organization (WTO).^[133] China has a significant trade surplus with the United States, its most important export market.^[134] In the early 2010s, U.S. politicians argued that the Chinese yuan was significantly undervalued, giving China an unfair trade advantage.^[135]

Sinophobic attitudes often target Chinese minorities and nationals living outside of China. Sometimes, such anti-Chinese attitudes turn violent, as occurred during the 13 May Incident in Malaysia in 1969 and the Jakarta riots of May 1998 in Indonesia, in which more than 2,000 people died.^[136] In recent years, a number of anti-Chinese riots and incidents have also occurred in Africa and Oceania.^[137][138] Anti-Chinese sentiment is often rooted in socio-economics.^[139]

Territorial disputes[link]

Map depicting territorial disputes between the PRC and its neighboring regimes. For a larger map, see here.

China has been involved in a number of international territorial disputes, mostly resulting from the legacy of unequal treaties imposed on China during the historical period of New Imperialism. Since the 1990s, China has been entering negotiations to resolve its disputed land borders, usually by offering concessions and accepting less than half of the disputed territory with each party. China's only remaining land border disputes are a disputed border with India and an undefined border with Bhutan. China is additionally involved in more minor multilateral disputes over the ownership of several small islands in the East and South China Seas.^[140][141]

Sino-Japanese relations[link]

The relationship between China and Japan has been strained at times by Japan's refusal to acknowledge its wartime past to the satisfaction of China. Revisionist comments made by prominent Japanese officials and some Japanese history textbooks regarding the 1937 Nanjing Massacre have been a focus of particular controversy. Sino-Japanese relations warmed considerably after Shinzo Abe became the Prime Minister of Japan in September 2006, and a joint historical study conducted by China and Japan released a report in 2010 which pointed toward a new consensus on the issue of World War 2-era atrocities.^[142] However, in the early 2010s, relations cooled once more, with Japan accusing China of withholding its reserves of valuable rare earth elements.^[143]

China and the developing world[link]

A meeting of G5 leaders in 2007, with China's Hu Jintao second from right.

China is heavily engaged, both politically and economically, with numerous nations in the developing world. Most notably, they have followed a policy of engaging with African nations for trade and bilateral co-operation.^[144][145] Xinhua, China's official news agency, states that there are no less than 750,000 Chinese nationals working or living in Africa.^[146] China has furthermore strengthened its ties with major South American economies, becoming the largest trading partner of Brazil and building strategic links with Argentina.^[147][148] Along with Brazil, Russia, India and South Africa, China is a member of the BRICS group of emerging major economies, and hosted the group's third official summit at Sanya in Hainan Province in April 2011.^[149]

Emerging superpower status[link]

China is regularly hailed as a potential new superpower, with certain commentators citing its rapid economic progress, growing military might, very large population, and increasing international influence as signs that it will play a prominent global role in the 21st century. Others, however, warn that economic bubbles and demographic imbalances could slow or even halt China's growth as the century progresses.^{[150][151][152][153][154]}

Sociopolitical issues and reform[link]

The Chinese democracy movement, social activists, and some members of the Communist Party of China have all identified the need for social and political reform. While economic and social controls have been greatly relaxed in China since the 1970s, political freedom is still tightly restricted. The Constitution of the People's Republic of China states that the "fundamental rights" of citizens include freedom of speech, freedom of the press, the right to a fair trial, freedom of religion, universal suffrage, and property rights. However, in practice, these provisions do not afford significant protection against criminal prosecution by the State.^{[155][156][157]}

As the Chinese economy expanded following Deng Xiaoping's 1978 reforms, tens of millions of rural Chinese who have moved to the cities^[158] find themselves treated as second-class citizens by China's hukou household registration system, which controls state benefits.^[159] Property rights are often poorly protected, and eminent domain land seizures have had a disproportionate effect on poorer peasants.^[158] In 2003, the average Chinese farmer paid three times more taxes than the average urban dweller, despite having one-sixth of the annual income.^[159] However, a number of rural taxes have since been reduced or abolished, and additional social services provided to rural dwellers.^{[160][161][162]}

Censorship of political speech and information, most notably on the Internet,^[163] is openly and routinely used in China to silence criticism of the government and the ruling Communist Party.^[164][165] In 2005, Reporters Without Borders ranked China 159th out of 167 states in its Annual World Press Freedom Index, indicating a very low level of perceived press freedom.^[166] The government has suppressed demonstrations by organizations that it considers a potential threat to "social stability", as was the case with the Tiananmen Square protests of 1989. The Communist Party has had mixed success in controlling information: a powerful and pervasive media control system faces equally strong market forces, an increasingly educated citizenry, and technological and cultural changes that are making China more open to the wider world, especially on environmental issues.^[167][168] However, attempts are still made by the Chinese government to control public access to outside information, with online searches for politically sensitive material being blocked by the so-called Great Firewall.^[169]

A number of foreign governments and NGOs routinely criticize China's human rights record, alleging widespread civil rights violations, including systematic use of lengthy detention without trial, forced confessions, torture, mistreatment of prisoners, and restrictions of freedom of speech, assembly, association, religion, the press, and labor rights.^[110] China executes more people than any other country, accounting for 72% of the world's total in 2009, though it is not the largest executioner per capita.^[170] This high execution rate is partly due to the fact that numerous white-collar crimes, such as fraud, are punishable by death in China. However, in the early 2010s, China began restricting the application of capital punishment for some such crimes.^[171]

The Chinese government has responded to foreign criticism by arguing that the notion of human rights should take into account a country's present level of economic development, and focus more on the people's rights to subsistence and development in poorer countries.^[172] The rise in the standard of living, literacy, and life expectancy for the average Chinese since the 1970s is seen by the government as tangible progress made in human rights.^[173] Improvements in workplace safety, and efforts to combat natural disasters such as the perennial Yangtze River floods, are also portrayed in China as progress in human rights for a still largely poor country.^[172][174]

Some Chinese politicians have spoken out in favor of reforms, while others remain more conservative. In 2010, Premier Wen Jiabao stated that China needs "to gradually improve the democratic election system so that state power will truly belong to the people and state power will be used to serve the people." Despite his status, Wen's comments were later censored by the government.^[175]

As the social, cultural and political consequences of economic growth and reform become increasingly manifest, tensions between the conservatives and reformists in the Communist Party are sharpening. Zhou Tianyong, the vice director of research of the Central Party School, argues that gradual political reform as well as repression of those pushing for overly rapid change over the next thirty years will be essential if China is to avoid an overly turbulent transition to a democratic, middle-class-dominated polity.^[176][177]