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  The introduction of China’s background  

i. The introduction of China’s background
China, the capital of her is Beijing, she has owned 9,600,000 sq.km.land, the population amount to1.4 billion, she has possesse 1/5 world market. In 1949, the founding of the People's Republic of China, after then, the international position of China got to promote consumely, since 1980, after reform and opening, China has hopeful about her future development. Believe she will become a development center of the world’s trade、 economic、and financial soon.
ii. Geographical Location
Located in East Asia, on the western shore of the Pacific Ocean, the People's Republic of China (PRC) has a land area of about 9.6 million sq km, and is the third-largest country in the world, next only to Russia and Canada. From north to south, the territory of China measures some 5,500 km, stretching from the center of the Heilongjiang River north of the town of Mohe (latitude 53° 30' N) to the Zengmu Reef at the southernmost tip of the Nansha Islands (latitude 4° N).
China has land borders 22,800 km long, with 15 contiguous countries: Korea to the east; the People's Republic of Mongolia to the north; Russia to the northeast; Kazakhstan, Kirghizstan and Tajikistan to the northwest; Afghanistan, Pakistan, India, Nepal, Sikkim and Bhutan to the west and southwest; and Vietnam, Laos and Myanmar to the south. Across the seas to the east and southeast are the Republic of Korea, Japan, the Philippines, Brunei, Malaysia and Indonesia.
iii. Nationalities & Languages
  ??The People's Republic of China is a united multi-ethnic country. So far, 56 ethnic groups have been identified and recognized by the central government. The population of various ethnic groups differs greatly. While the Han ethnic group has the largest population, that of the other 55 ethnic groups is relatively small, so they are customarily referred to as "ethnic minorities." According to the fifth national census, conducted in 2000, the population of all the 55 ethnic minority groups totaled 104.49 million, accounting for 8.41 percent of the total population of China. People of all ethnic groups in China have made important contributions to the creation of a unified multi-ethnic country and the creation of the time-honored Chinese civilization, as well as Chinese historical progress.
Regional autonomy for ethnic minorities in China means that, under the unified leadership of the state, regional autonomy is practiced in areas where people of ethnic minorities live in compact communities. In these areas, organs of self-government are established for the exercise of autonomy. The implementation of this policy is critical to enhancing the relationship of equality, unity and mutual assistance among different ethnic groups, to upholding national unification, and to accelerating the development of places where regional autonomy is practiced and promoting their progress.
I. A Unified Multi-Ethnic State, and Regional Autonomy for Ethnic Minorities
  ???Since its founding in 1921, the Communist Party of China (CPC) has made active efforts to solve China's ethnic problems. It successfully formulated and implemented policies concerning ethnic minorities, and united and led the people of all ethnic groups to win the final victory of the New Democratic Revolution. The first session of the Chinese People's Political Consultative Conference (CPPCC) was convened in September 1949, on the eve of the founding of the People's Republic of China. At the suggestion of the CPC, deputies of different ethnic groups and political parties held consultations, and decided to proclaim the establishment of the People's Republic of China as a united multi-ethnic state. The conference also adopted the Common Program of the CPPCC, which actually served as a provisional constitution of the new republic. A chapter in the Common Program specially expounded on New China's ethnic policies, and clearly defined regional autonomy for ethnic minorities as a basic policy of the state. This major historical decision was made out of consideration for the particular situation of China.
(1) ??The Long Existence of a United Multi-Ethnic State Is the Historical Basis for Practicing Regional Autonomy for Ethnic Minorities
China is a united multi-ethnic state with long history. As early as 221 BC, the Qin Dynasty (221-206 BC), the first feudal empire in the history of China, brought about unification to the country for the first time. The subsequent Han Dynasty (206 BC-220 AD) further consolidated the country's unification. Administrative areas known as jun (prefecture) and xian (county) were established across the country, and uniform systems of law, language, calendar, carriage, currency, and weights and measures were adopted. ??????This promoted exchanges between different areas and ethnic groups, and created the fundamental framework for the political, economic and cultural development of China as a united multi-ethnic state over the next 2,000 years or more. Later dynasties - whether they were established by Han people, such as the Sui (581-618), Tang (618-907), Song (960-1279) and Ming (1368-1644), or by other ethnic minority groups, such as the Yuan (1271-1368) and Qing (1644-1911) - all considered themselves as "orthodox reigns" of China and regarded the establishment of a united multi-ethnic state their highest political goal.
Almost all the central authorities of the feudal dynasties adopted a policy of "rule by custom" toward the ethnic minorities. Under this policy, the political unification of China was maintained while the ethnic minorities were allowed to preserve their own social systems and cultures. The Han Dynasty created the Office of Protector-General of the Western Regions in what is now the Xinjiang Uygur Autonomous Region, and the Tang Dynasty established Anxi and Beiting Office of Protector-General in the same area. ????These organizations administered only political and military affairs. The central authorities of the Qing Dynasty adopted different measures for governing the ethnic-minority areas in accordance with local characteristics. In the areas where Mongolians lived, a league-banner (prefecture-county) administrative system was exercised. In Tibet, the central government sent Grand Ministers Resident in Tibet and exercised a religion-political rule of lamas and nobles by granting honorific titles to the two most important Living Buddhas, namely, the Dalai Lama and the Panchen Lama. In the areas where Uygur people lived in compact communities, a Beg (a generic term for chiefs of Moslem groups appointed by the central government) system was adopted. In places where ethnic peoples lived in south China, a system of tusi ("aboriginal office" literally) was introduced. Under the old social system it is impossible for all ethnic groups to enjoy equality in the modern sense of the word, and strife, conflicts and even wars among them were inevitable. Still, the long-standing existence of a united, multi-ethnic state in Chinese history greatly enhanced the political, economic and cultural exchanges among different ethnic groups, and constantly promoted the identification of all ethnic groups with the central government, and their allegiance to it.
(3) ??The Population Distribution Pattern of China's Ethnic Groups, in Which They Live Together over Vast Areas While Some Live in Compact Communities in Small Areas, Plus the Disparities Between Different Areas in Access to Natural Resources and Stage of Development Make It Pragmatic to Adopt the Policy of Regional Autonomy for Ethnic Minorities
The history of the evolution of China's ethnic groups is one of frequent contacts and intermingling. In its long historical development, the various ethnic groups moved frequently from one place to another and gradually formed the pattern of living together over vast areas while some live in individual compact communities in small areas. The Han people, with the largest population, are distributed all over China, while the populations of the other 55 ethnic groups are relatively small, and most of them live in the frontier areas. Still, they can be found in all the administrative regions above county level in the hinterland. Given this population distribution pattern, establishing ethnic autonomous areas of different types at different administrative levels based on regions where ethnic minorities live in compact communities is conducive to the harmony and stability of relations between different ethnic groups and their common development.
The regions inhabited by ethnic minorities in compact communities are large, and rich in natural resources. But compared with other regions, particularly with developed regions, the level of economic and social development in these regions is relatively backward. Regional autonomy for ethnic minorities enables them to bring into full play their regional advantages and promote exchanges and cooperation between minority areas and other areas, and consequently quickens the pace of modernization both in the minority areas and the country as a whole and helps achieve common development of all regions and prosperity for all ethnic groups. 
iv. Population
China is a united multi-ethnic country with 56 ethic groups: the Hans, the Mongolians, the Huis, the Tibetans, the Uygurs, the Miaos, the Yis, the Zhuangs, the Bouyeis, the Koreans, the Manchus, the Dongs, the Yaos, the Bais, the Tujias, the Hanis, the Kazaks, the Lis, the Dais, the Lisus, the Vas, the Shes, the Gaoshans, the Lahus, the Shuis, the Dongxiangs, the Naxis, the Jingpos, the Kirgizs, the Tus, the Daurs, the Mulaos, the Qiangs, the Blangs, the Salars, the Maonans, the Gelaos, the Xibes, the Achangs, the Pumis, the Tajiks, the Nus, the Ozbeks, the Russians, the Ewenkis, the De'angs, the Baoans, the Yugurs, the Jings, the Tatars, the Drungs, the Oroqens, the Hezhes, the Moinbas, the Lhobas, the Jinos. Of all the 56 ethnic groups, the Hans have the biggest population, making up 91.59% of the total population, which is also the ethnic group with the largest population in the world. The population of the other 55 minorities occupies a comparatively small proportion; therefore, they are called minorities. Of the minorities, the Zhuangs have the largest population with more than 13 million people and the Lhobas the smallest with only over 2000 people. Though these minorities possess a small population, they are distributed over a wide area and their inhabitant scope covers 64% of the nation. The minorities are mainly scattered over the northeast, northwest and southwest inland provinces and regions and southeast coastal areas, thus taking on a certain form of concentrated living. A large number of the Hans also inhabit in the communities where the minorities live, such as in the concentrated communities of Guangxi, Ningxia and Inner Mongolia. The Han still dominates the population of these areas, thus all the nationalities are characterized by living in a large mixed community with small concentrated communities. The areas that the minorities inhabit are generally sparsely populated mountain areas, highlands pastoral areas and remote areas. They are comparatively poorer in geographic terms but richer in natural resources and also they hold an important strategic position. The minorities too contribute a lot to the Chinese nation. Since the foundation of P R.C, the system of the autonomy of ethnic minority regions has been implemented into the minority concentrated communities. The central government gives positive support to the autonomous regions financially and materially. A new type of relationship has been built up among all the ethnic groups, that is, equality and mutual help, consolidation and cooperation, and mutual prosperity. The economy and culture in the minority-populated areas has developed dramatically and its population growth rate also exceeds the Hans. However, due to the impact of history and geographic environment, considerable discrepancies still exist in the economic and cultural development level of all ethnic groups.
Of the 55 minorities, except for the Huis and the Manchus, which also use Chinese, 53 use their own native languages; 21 nationalities have characters with 27 sorts of languages. The languages of minorities used can be generally categorized into 5 phyla except for the unascertained language of the Jings: the languages of 29 minorities including the Zhuangs, the Dais, the Zangs, the Yis, the Miaos and the Yiaos belong to Sino-Tibetan Family, the languages of 17 minorities including the Ugurs, the Kazaks, the Mongolians, the Koreans belong to the Altaic Family and the languages of the Vas, the De’angs and the Blangs to the Austroasiatic Family, the Tajiks and the Russians to the Indo-European Family, the Gaoshans to the Austrone Sian Family. Now, the schools that mainly recruit minority ethic group students have adopted textbooks written in their native languages and are taught in their native languages too
v. Rapid Development of Foreign Trade
To actively develop export-oriented economy, energetically foster the new growth of export, to increase export growth greatly. In 2004, the total value of import and export in Shanghai reached US$160.026 billion, increased by 42.4% compared with that of 2003. The total value of import reached US$86.506 billion, increased by 35.3%, the total value of export reached US$73.52 billion, increased by 51.6%. The functions of trade of Shanghai port have been further built up by promoting “county-port linkage” trial, accelerating the step of e-customs. The total value of import and export reached US$282.575 billion the whole year of Shanghai port, increased by 40.4% compared with that of 2003. The total value of import reached US$121.307 billion, increased by 36.5%, the total value of export reached US$161.268 billion, increased by 43.6%.
vi. Banking and Currency System
The People's Republic of China’s legal currency is RMB, China people’s bank is a main system of country administer currency, the design of RMB、Printed、issued. The bank of China mainly have the following several kinds , “the Bank of China”、 “Industrial and Commercial Banks”、”Construction Bank”、 “Agricultural Bank”、 “China Merchants Bank”、”communication bank”,etc.
vii. The Number of Population
China is a large developing country with a population of 1.3 billion. In the process of reform, opening-up and national modernization, the state and the ethnic autonomous areas have adopted various measures to promote the economic and social development in the latter, but limited and influenced by historical, geographical and other conditions, the economic and social development level of western China, where the populations of ethnic minorities are more concentrated, is still low compared with the more developed eastern areas. Some remote areas, in particular, are still pretty backward. To build a well-off society in an all-round way in the new century, China has to make an effort to solve such issues as adherence to and improvement of regional ethnic autonomy, giving full play to the advantages of the system, and continuously raising the economic and social development level in ethnic minority areas.
viii. Transportation and Ports
Land: Metropolitan Transportation: Shanghai has 121 km (75 miles) of railways for metropolitan transport.
Highway Network - Working Toward the Goal of “153060” within the city: All major industrial zones, major towns, transportation hubs, and passenger (or freight) distribution centers will be at most 15 minutes from the highway network. Travel time between the city center and the new city zones, or between the city center and provincial boundaries will be at most 30 minutes. Travel time between any two points on the highway network will be less than 60 minutes. In addition, seven highways, including the Shanghai-Ningbo Expressway,the Shanghai-Hangzhou Expressway, and the Shanghai-Chongming-Jiangsu Expressway, integrate Shanghai into the highway systems of Zhejiang Province and Jiangsu Province.
Air:? Airports: Shanghai is China’s sole city with two large international airports - Pudong International Airport and Hongqiao International Airport – which offer flights to 69 cities in 30 countries and regions.
Airports:? Airports - Asia Pacific Air Transportation Hub: With Pudong International Airport complemented by Hongqiao International Airport, and an integrated air transportation system supporting both passenger and freight transport and both major and local air routes, Shanghai is establishing itself as an international air transportation hub. Light Rail Transportation Network - A Fundamental City Wide Network: By 2010 there will be 400 km of light rail in Shanghai, carrying an average of 8 million passengers a day and accounting for 50% of all public transportation.
Sea:? Ports: Shanghai has direct commercial contacts with over 500 ports in nearly 200 countries and regions. In 2004, Shanghai’s Port ranked 3rd in the world in terms of container volume, with 14,554,000 TEUs, and 2nd in the world terms of tonnage, with 380 million tons of cargo. Enterprises from 30 countries and regions have established over 700 logistics agencies in Shanghai.
viiii. Social Insurance
1. Pension insurance
There were 50.88 million retirees at the end of 2005, a rise of 4.13 million persons over the 2004. Among them, retired people hit 1.26 million, and decreased 60 thousand as compared with 2004; retirees reached 49.62 million, an increase of 4.19 million over 2004.
The number of basic pension insurance for 174.87 million persons at the end of 2005, an increase of 11.34 million persons over the previous year. Of these, paid workers totaled 131.2 million; insurance retirees amounted to 43.67 million, an increase of 8.7 million, and 2.64 million over previous year. At the number of enterprises participating in the basic pension insurance stood at 157.16 million persons, an increase of 10.37 million over the previous year.
Full basic pension are paid on time to the enterprise retirees. Totally there were 26.55 million enterprise retirees brought into the community management at the end of 2005, accounting for 68.3 percent of total enterprise retirees, increasing 9.4 percentage points over the previous year.
The basic pension insurance fund income in urban area arrived at 509.3 billion yuan in 2005, 19.6 percent higher than the previous year, of which, income tax collection amounted to 431.2 billion yuan, expanding 20.3 percent. The pension insurance fund at all levels of financial subsidies basic valued at 65.1 billion yuan; of which, central finance totaled 54.4 billion yuan, that of local governments totaled 10.7 billion yuan. General fund expenditures was 404.0 billion yuan, a year-on-year increase of 15.4 percent. The accumulated basic pension insurance fund balance valued at 404.1 billion yuan.
The basic pension insurance fund income in rural area standing at 54.42 million, an increase of 0.64 million over the previous year, a total of 3.02 million farmers received pensions, a year-on-year increase of 0.97 million persons. The paid pension insurance reached 2.1 billion yuan. The accumulated basic pension insurance fund balance in rural area valued at 31.0 billion yuan.
2. Unemployment insurance
The unemployment insurance totaled 106.48 million at the end of 2005, an increase of 640 thousand persons over the previous year. A total of 36.2 million persons were receiving the unemployment insurance, a decline of 570 thousand persons, year-on-year.
The unemployment insurance fund income totaled 33.3 billion yuan, 13.8 percent higher than the previous year, the annual fund expenditures stood at 20.7 billion yuan, representing a decrease of 3.0 percent. The accumulated unemployment insurance fund balance hit 51.1 billion yuan.
3. Medical insurance
There were 137.83 million people participated the basic medical insurance, an increase of 13.79 million persons over the previous year. Of which, employees arriving at 100.22 million, retirees arriving at 37.61 million, an increase of 9.77 million and 4.02 million over the previous year respectively.
The basic medical insurance fund income stood at 140.5 billion yuan and 107.9 billion yuan of expenditures, climbing 23.2 percent and 25.2 percent respectively over the previous year. Of which, co-ordinate fund income reached 82.0 billion yuan and spending 61.5 billion yuan, jumping 24.0 percent and 25.0 percent respectively over the previous year. The accumulative basic medical insurance fund balance arrived at 127.8 billion yuan, of which, coordinated fund balance amounted to 75.0 billion yuan, and accumulative personal accounts value at 52.8 billion yuan.
4. Injury insurance
Totally 84.78 million persons insured the work injury insurance, an increase of 16.33 million over the previous year. The annual number of injuries insurance has benefited for 650 thousand persons, an increase of 130 thousand persons over the previous year.
Annual income of injury insurance fund stood at 9.3 billion yuan, and expenditure stood at 4.8 billion yuan, a year-on-year increase of 58.7 percent and 42.7 percent respectively over the previous year. Injured insurance fund balance accumulated 16.4 billion yuan.
5. Procreation insurance
Totaled 54.08 million persons insured procreation insurance, an increase of 10.24 million persons over the previous year. A total of 620 thousand persons earned the benefits, an increase of 16 million persons over the previous year. 
Annual income of procreation insurance fund standing at 4.4 billion yuan and expenditure totaled 2.7 billion yuan, surging 37.5 percent and 42.1 percent respectively over the previous year. Procreation insurance fund balance accumulated 7.2 billion yuan.
6. Social Insurance Fund Intendance
By the end of the year, a total of 27 Provinces Social Security Intendance Committee established at the provincial level, and gradually strengthening fund surveillance, management of the fund to further regulate. Promotion of enterprise management market of annuity fund approved a total of 37 bodies’ pension fund management business qualifications of 29 organizations.
7. Improving the urban social security system pilot
By the end of the year, Jilin and Heilongjiang Provinces had respectively reached 1.3 million and 1.83 million persons that have achieved the basic livelihood guarantee for laid-off workers of state-owned enterprises into the unemployment insurance payments, and have to do the basic pension insurance personal accounts at 2.75 billion yuan and 3.24 billion yuan respectively. Liaoning Province has to do basic pension insurance personal accounts stood at 20.6 billion yuan.
X. The only one “One Country,Two Systems” of the world.
After Hongkong、Macau have returned our country, in order to have a good development environment and be good for our country’s development, our country have carried out the policy of “One country, Two systems”. This is the only one policy in the world, “One country, two system” .
Xi. China Entry to World Trade Organization.
With the development of reform and opening, in order to have a good development for our country, China jointed in the World Trade Organization, this is not only an opportunity, but also a challenge for China. At the same time, China will undoubtedly play an important role in world’s tomorrow.

 
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