With a population of 1, 2 billion people, China is the most populous country in the world. In addition, China – one of the most ancient states emerging from the board a number of emperors in the period from 2000 BC. Oe. to 90s. when I was founded the People's Republic. Spontaneous civil war has made it possible Japanese invasion of China in 1931 after the expulsion of the Japanese at the end of World War II, civil war resumed. Finally, in 1949 Communist forces of Mao Zedong defeated the nationalist army under General Chai Kai-shek. In the days of Mao Zedong's communism in China went through three stages.

The first stage – the "great leap" (1958-1960) – was in the program rapid industrialization of the country by increasing the number of small businesses that produced labor-intensive products. The failure of this program led eventually to the top of the "cultural revolution" (1966), while a Chinese youth, urged on by the governing Communist cadres, had a total purge of party members suspected of deviation from the doctrines of Mao. The ensuing political chaos of these events again pushed for an indefinite time, the economic development of the country, as many skilled and educated members of society were sent to the village "to atone for his ideological sins." After Mao's death in 1976, new Chinese government adopted a program of development of the country on the basis of a limited free market. In agriculture, was partially restored private property, and businesses have the right to open small businesses such as restaurants or light industry. Foreign companies were allowed to open joint ventures with Chinese firms. As a result of all these reforms dramatically increased the amount of Foreign Direct Investment in China's economy, which led to the rapid economic development, as well as to revive the hopes of the Chinese people for political freedom. At the same time, Communist leaders unwilling to cede their power. The use of weapons against thousands of pro-democracy demonstrators in Beijing's Tiananmen Square in June 1989 led to a cooling of political and economic relations between China and the "quartet" that lasted for several years.

But be that as it may, China is on its unique path of development. Under the watchful guidance of the Communist Party of China continues to policy-oriented free market. As a consequence of such a combination of communism and the free market, China's economy shows signs of growing "schizophrenia." State-owned enterprises known for their low productivity and cheap knockoffs, struggling for survival. Starting in 1998, with these enterprises have been laid off 28.5 million workers, which led to social unrest and political instability throughout strane.5 On the other hand, energizing the private sector of the Chinese economy has attracted the attention of many companies from all over the world, foreign direct investment has increased sharply since 1992, deserve special attention increased investment made by investors in the Chinese economy, Chinese from Taiwan, Hong Kong and Singapore. These investors perceive China as a source of hard-working, low-wage labor force – the goods, which is becoming more rare in their countries. Recently, large Chinese cities have experienced rapid economic development, which is not the country's rural areas, where there are about 900 million people. Elimination the widening gap in living standards between rural and urban population in China – that's the main problem to be solved by the leaders of China.