poor. Four out of five Chinese people lived in rural areas. Economic
reform resulted in rapidly rising wages and productivity improvements,
prompting China’s transformation from an agricultural society to an
industrial nation. Today, three out of five Chinese people live in urban
areas, and this development has enabled better living standards for several
hundred million people in terms of health, education, social security, etc.
From a GDP of USD 150 billion in 1978, in 2010 China overtook Japan
as the world’s second-largest economy and in 2017 its GDP had reached
USD 12.2 trillion. Measured in purchasing power parity, China is now the
world’s largest economy and, according to forecasts, in around 2030 China
could become the world’s largest economy in nominal terms, too. Today,
China accounts for 15 per cent of total global GDP, and has accounted for
40 per cent of global growth since 2008.
China’s system of government
In practice, China is a one-party state without general and free elections.
The state apparatus is permeated by the Communist Party. Political
opposition is not permitted, and since General Secretary of the Communist
Party Xi Jinping assumed office in 2012, the Party’s power and Xi
Jinping’s position have been strengthened considerably. The judicial
system is not independent, and the Party is expanding its control over all
parts of society. Human rights such as general freedom of opinion,
expression, the press, association, demonstration and religion are
restricted. The media are used to control opinion, and civil society space
has shrunk. Chinese law provides equal rights for women and men in many
respects. In practice, however, considerable challenges to gender equality
remain.
The situation of minorities, particularly Muslim Uighurs, in Xinjiang is
very serious. A large number of people have been forced into ‘re-education
camps’, and restrictions on religion and freedom of movement are
particularly prevalent. Disproportionately tough penalties for crimes
against national security remain more common in cases concerning
minorities, particularly in Xinjiang and Tibet. The number of people
executed each year is a state secret, but is estimated at around two
thousand, which is the highest in the world.
The Chinese justice system is sometimes exploited in conflicts with
other countries, with foreign nationals in China being subjected to threats,
various forms of pressure and even arrest. There are cases of forced public
‘confessions’. There are also cases where Chinese agents have arrested
both Chinese nationals and non-nationals abroad and illegally taken them
to China. In certain cases, China does not fully respect international
agreements on consular access, among other things.
Economy hallmarked by state involvement
4
The Party’s continuing rule is largely built on the ability to deliver
economic growth and increasing prosperity. The economy has developed,
as illustrated for example by the emergence of a number of major global
enterprises. There is considerable state involvement in the Chinese