1. Because of China’s reliance on coal mining for energy generation, the country was enforced to look for the energy sources to satisfy the appetite of its increasing economy. Thus, the country had to rely on coal, especially on the development of small-scale coal mining. Beginning of the 1990s was marked by the high rates of economic development. In the 1990s, coal dominated in the energy balance structure of China, where the richest coal deposits were concentrated. The deposits are concentrated mainly in the northern and northeastern provinces, while Huainan, Hegang, Kailuan, Datong, Fushun, and Fuxin are among the most important coal mining centers. In addition, throughout the country, the mass of small deposits of coal are dispersed. About the half of them are produced in small coalmines.
During the 1950s, China imported a relatively small amount of oil from the Soviet Union. However, in the mid-1960s, after the exploration of a large oilfield in Heilongjiang Province, China switched to the self-sufficiency in oil production. With subsequent discoveries of oil fields, especially in Shandong and Hebei provinces, the potential for oil production doubled. Local village communities and individuals had the right for coal exploitation that in the combination with the dispersed character of coal resources created a major boom in the creation of small-scale mines.
The growth of small-scale mining led to the technological regression of the Chinese coal-mining sector. It happened because the small-scale mining has a number of problems such as the issue of scale, a shortage of reserves, a low degree of mineral resources’ recoveries, a negative environmental influence, safety issues, and a lack of trained workers. At the same time, a large scale of mining led to the shortage of mineral resources. It should be noted that irregular mining techniques result in low recovery. Moreover, illegal mining became a serious problem in China. Under the double pressure of the falling market demand and the need for the enhanced protection of the environment, China, as the world's largest producer and consumer of coal, enters an era of coal mining limits.
2. Over the past three decades, China has achieved great results in the field of economic development and in raising living standards. The successes of this country amaze. There was no example in the world that once backward country with poor people had become a leader in such indicators as GDP growth, the volume of foreign trade and exports, production of many kinds of minerals, agricultural products, steel, metals, engineering products, including cars and electronic equipment, and consumer goods in such a short historical period. In the last quarter of the 20th century, China’s foreign trade was characterized by increasing its involvement in the global barter processes, and, accordingly, in the achievements in the development of the national economy due to the participation in the foreign markets. Since the late 1970s, China has reoriented from a closed, centrally-planned economy system to a more market-oriented ones that became one of the largest in the world. Consequently, China became the largest exporter in the world. The reforms began with collectivized agriculture and expanded by the gradual liberalization of prices, the increased autonomy for state enterprises, the creation of a diverse banking system, fiscal decentralization, the development of stock markets, the rapid growth of the private sector, and the increasing openness to foreign trade and investment. However, China implemented refoms gradually.
In the recent years, China has renewed its support for the state-owned enterprises in the sectors important to its economic security since it aims at the leadership in the global competition. The restructuring of the economy and efficiency have contributed to a more than tenfold increase in China's GDP. The dollar value of the amount of agricultural and industrial production in China already exceeds the similar indicators of the United States. To facilitate structural change, China develops its own system of education and trains is students abroad (particularly in the United States and Japan) as well as promotes the import of technologies to develop the progressive sectors of the economy such as manufacturing software, new materials, telecommunications industry, biotechnology, and health care. An important factor in determining the development of PRC is the import of various raw materials. Oil import develops especially rapidly. A modern export-oriented development of China's economy determines the increased requirements to maritime transport and naval forces of the country, which should be able to protect the national shipping.
3. Over the last few decades, China has become the world’s number one in manufacturing clean energy, leading in the production of solar water radiators, dense fluorescent light bulbs, wind turbines, and solar photovoltaic panels. It is important to note that the growth of clean energy reflects a solid and increasing commitment on the part of the government to relieve the Chinese energy-intensive economy, decrease the environmental issues, and preclude a massive rise in energy import.
The attempts of the Chinese government to elaborate the technologies for renewable energy have been increased in the recent decades since the authorities have accepted the energy sector as a strategic one. The government has initiated a series of new strategies that were directed at the promotion of energy efficiency and expansion of the discovery of renewable energy. The country has developed its clean energy system in synergy with its specific economical system and governance institutions. While a number of countries fight with the results of the destructive economic crisis, China has used its powerful monetary position to direct moneys in clean energy, which has led to the leadership of Chinese companies in various industries.
Among a number of initiatives, the government has taken crucial actions to encourage the usage of renewable power. It has also advanced the national goals for energy potency and energy preservation tasks that were assigned to the regions. The key lawmaking measures include a national law on renewable energy and the national medium and long-term development plan for renewable energy sources as well as medium- and long-term plan for energy conservation.
The Chinese pursuit to world leadership is rooted in an extreme level of cooperation between the government and industry, which provides an extensive scope of motivations that have led to the foundation of manufacturing projects of renewable energy throughout the country. China's investments in technology and science, which are focused mostly on the energy sector, have strengthened in recent years in order to modify the country into an innovator and producer of advanced low-costly technologies.
4. One of the most important components of regional policy in China is the creation of free economic zones, which largely, if not primarily, contributed to the rise of the Eastern ecoonomic zone, and ultimately - the entire Chinese economy. At the turn of the 1970-1980s, the Chinese economy suffered from the backwardness and low efficiency since it underwent a great jump and the Cultural Revolution. Thus, there was a need for innovative solutions. One of them was the decision to move from a closed development model to a more open. Since it was impossible to transfer all the country's economy at once, the individual free economic zones (FEZ) in the eastern and southern coastal parts of the country were selected for this purpose.
The main goal of FEZ included the maximum attraction of the foreign capital, advanced equipment and technology, and the creation of enterprises in the high technology industries. Their creation was aimed at the development of foreign economic activity and a deeper inclusion of the country in the international geographical division of labor, an increase in exports and foreign exchange earnings. Moreover, the government wanted to use special zones as a school of excellence in the operation of modern production and management for the rest of the territory of China. Another purpose of the special zones was the use of cheap and abundant labor force. A distinctive feature of the special zones is the autonomy of local authorities from the central government in dealing with the issues such as the establishment of enterprises with foreign participation, the establishment of foreign investors for all sorts of benefits in income tax, simplification of visa procedures. The state also provides a considerable independence in the conduct of foreign trade activity and its control. In short, the special economic zones have been conceived as a kind of economic oases with a special mode of management.
5. In a market economy, the main methods of mobilization of budgetary funds are taxes. Currently, the main source of revenue to the state budget of China is tax payments. The fiscal reform of 1994 was aimed at improving the tax legislation, the standardization of the tax system, tightening and reducing tax exemptions, the creation of equal conditions of competition, the settlement of the imbalance in the development of the territories, and so on.
The work was carried in two main directions. The first was the streamlining fiscal policy and the improvement of tax legislation. The second was the recovery system and strengthening tax collection management (building a system of vertical subordination of the tax authorities, strengthen control of special accounts). Other tasks included the standardization of tax documentation, the increased use of electronic media, the strengthening of control over the observance of the terms, and the construction of systems for communicating to the public the tax regulations of all levels. The identification of taxpayers, the improvement of the professional level of employees of tax authorities, the development of an effective mechanism for rural taxation, and so on were to be performed as well.
After the fiscal reform in 1994, an advantageous tax system, which was adapted to the socialist market economy, was built. The contemporary tax organization of China is directed at China's opening to the outside world, which contributes to the energetic development of the national economy. The successes of the tax reform in 1994 eventually identified the need to improve tax differentiation model, the standardization of tax rates, primarily on the individual income tax. As a result, China has entered the position of one of the leading global businesses with deep international economic relations.
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