B.

Technological
a. Contribution to the society
Paper and Printing Technology
We don't know exactly when
paper was first used in China but
evidence from archaeological
records indicates that it was prior to
the first century AD. In China the
most common source for paper was
the bark of the paper mulberry tree
!"ies # "ies $%%& p $'(). *aper is
made by tearing up rags or the
bark of trees or certain grasses and
putting them into a large pot with
water. +he mixture is boiled and
thepulplike mass that lies at the
bottom is removed strained and
spread out to dry. ,riginally paper
was rough but eventually over time
the making of paper was improved
with si-ing dyes and the use of molds made out of bamboo strips. *aper
was first used by the Chinese for wrapping and it was not until the .rd
century that paper replaced bamboo silk and wood as a writing medium.
According to "ies # "ies !$%%&) paper is one of the Chinese
technologies that we can trace in its transfer to Western /urope. And this
transfer had two stages with the actual paper products transferred in the first
stage and the paper manufacturing technology in the second stage. +he first
countries to ac0uire paper were 1apan 2orea and India when they began
trading with the Chinese. *aper moved to Western /urope via the ,ld 3ilk
4oad. +he Arabs captured Chinese paper craftsman in 56$ and brought
them to 3amarkand. 3oon after a 7uslim paper mill was established at
8aghdad and paper was used throughout the 7uslim world by $999 AD. As
with many 7uslim technologies paper found its way to /urope through
7uslim 3pain !and 7uslim 3icily) where paper industries were established in
the $9th century.
8ut writing was not the only use for paper. +he Chinese began using paper
made from rice straw for
toilet purposes in the sixth
century AD. Also the
Chinese began to have a
paper currency in the
early %th century.
+he earliest printed book
AD ':'.
Gunpowder
+here is not doubt that the Chinese invented gunpowder. +he ways
in which they used it and how their use of gunpowder differed from the
West has been debated. +he first known recipe for saltpetre teh principal
ingredient of gunpowder can be found in a Chinese military manual
written by Wu Ching +sung ;ao from $9&& !8urke $%5'). +his military
manual also gave directions for making a bomb using gunpowder so most
historians believe that bombs or grenades were used by Chinese troops
from before the $$th century. And although the Chinese did use
gunpowder in fireworks for religious purposes they also used gunpowder
in cannons rockets and guns. 4ocket arrows were used in $$(: to
defend the city of 2aifeng
which was the capital of
the 3ung /mpire.
"unpowder and
rockets were transferred
to /urope in the $.th
century although we are
not sure by what means
the recipe for gunpowder
found its way to /urope.
+he first mention of
gunpowder in /urope
was in a $(:' essay by 4oger 8acon the famous /nglish scientist and
philosopher.

<We have an example of these things...in that children's toy which is made
in many parts of the world= i.e. a device no bigger than one's thumb. >rom
the violence of that salt called saltpeter together with sulfur and willow
charcoal combined into a powder so horrible a sound is made by the
bursting of a thing so small no more than a bit or parchment containing it
that we find the ear assaulted by a noise exceeding the roar of strong
thunder and a flash brighter than the most brilliant lightning< !4oger
8acon 0uoted in "ies # "ies $%%& p. (9:).
The Compass
+he ability to magneti-e iron by placing it near a loadstone was known to
ancient civili-ations. 8ut it was the Chinese who applied this principle of
magnetism to create the compass. +he oldest picture of a magnetic
compass from (99 8C was using a small spoon as the needle that was
thrown down upon a table that was engraved with the compass points.
+hese early compasses were used in divination rather than in
navigation??<the board was used by geomancers to detect the 'winds and
waters of the earth< !"ies # "ies $%%& p. %&). In the @an dynasty !(9(
8C?AD ((9) the <south?pointer< was used by travelers in China !the
earliest Chinese compasses called south?pointers pointed south rather
than north).

+he next significant development was the use of a magneti-ed needle that
was floated in a bowl of water on a piece of wood or suspended by a silk
thread??these compasses were used by the 'th century in China. And
Chinese sailors used the compass for navigation by the $$th century. At
this time !$(th through $6th centuries) China developed the largest navy
and was the greatest sea power in the world. As Aust one example of the
si-e of this navy 2ublai 2han attempted an invasion of 1apan in $('$ with
a fleet of &&99 ships !7cClellan # Dorn $%%%). It is obvious that any
technology that assisted in navigation would be greatly appreciated. As
with other innovations the compass was transferred to /urope by the end
of the $(th century. Whether it was transferred by means of the 3ilk 4oad
or through 7uslim sea traders is in debate.
Source: http://www.engr.sjsu.edu/pabacker/history/china.htm
b. Research and Development
C. Economic/Business/Trades
Chinese Economy
Data and Figures
China has had a remarkable period of rapid growth shifting from a
centrally planned to a market based economy. +oday China is an upper
middle?income country that has complex development needs where the
8ank continues to play an important development role.
3ince initiating market reforms in $%5' China has shifted from a centrally
planned to a market based economy and experienced rapid economic and
social development. "D* growth averaging about $9 percent a year has
lifted more than 699 million people out of poverty. All 7illennium
Development "oals have been reached or are within reach.
With a population of $.. billion China recently became the second largest
economy and is increasingly playing an important and influential role in the
global economy.
;et China remains a developing country its per capita income is still a
fraction of that in advanced countries and its market reforms are
incomplete. ,fficial data shows that about %'.%% million people still lived
below the national poverty line of 478 (.99 per year at the end of (9$(.
With the second largest number of poor in the world after India poverty
reduction remains a fundamental challenge.
4apid economic ascendance has brought on many challenges as well
including high ine0ualityB rapid urbani-ationB challenges to environmental
sustainabilityB and external imbalances. China also faces demographic
pressures related to an aging population and the internal migration of
labor.
3ignificant policy adAustments are re0uired in order for ChinaCs growth to
be sustainable. /xperience shows that transitioning from middle?income
to high?income status can be more difficult than moving up from low to
middle income.
ChinaCs $(th >ive?;ear *lan !(9$$?(9$6) forcefully addresses these
issues. It highlights the development of services and measures to address
environmental and social imbalances setting targets to reduce pollution
to increase energy efficiency to improve access to education and
healthcare and to expand social protection. Its annual growth target of 5
percent signals the intention to focus on 0uality of life rather than pace of
growth.
8uilding on a cooperative relationship spanning over .9 years the World
8ank "roupCs Country *artnership 3trategy !C*3) for fiscal years (9$.
through (9$: is aligned with ChinaCs $(th >ive?;ear *lan. It is also
informed by the Aoint study China (9.9 prepared by the World 8ank and
the Development 4esearch Center of the 3tate Council. +o support
ChinaCs goal of a harmonious society the 8ank "roup focuses on three
main areas of engagement=
3upporting greener growth by helping China shift to a more sustainable
energy pathB enhancing urban environmental servicesB promoting low?
carbon urban transportB promoting sustainable agriculture practicesB
piloting sustainable natural resource management approachesB
demonstrating pollution managementB and strengthening mechanisms for
managing climate change.
*romoting more inclusive development by increasing access to 0uality
health services and social protectionB strengthening skills development
programs including for migrant workersB enhancing opportunities in rural
areas and small townsB and improving transport connectivity for more
balanced regional development.
Advancing mutually beneficial relations with the world by supporting
ChinaCs 3outh?3outh cooperation and ChinaCs role as a global stakeholder.
In addition the 8ank will provide client?driven knowledge services that
help underpin reforms needed to reenergi-e the drivers of growth.
+he 8ank "roupCs most valuable contribution in China remains its role in
bringing and applying ideas innovation and knowledge. +he C*3
emphasi-es knowledge sharing and cooperation through advice and
analytical products and through investments at the provincial level that
introduce and demonstrate new approaches.
As of December .$ (9$. 8ank cumulative lending !I84D and IDA) to
China was close to D6. billion for .:' proAects. +he portfolio is
concentrated in environment transportation urban development rural
development energy water resources management and human
development.
In line with the governmentCs increased emphasis on growth that is
balanced with social and environmental concerns the focus of the 8ankCs
activities in China has shifted significantly.
+oday more than 59E of the 8ankCs portfolio has environmental
obAectives many with global implications. +he 8ank also pays particular
attention to the western and central provinces where poverty rates are
significantly higher than in coastal provinces. About two?thirds of active
proAects are in lagging interior provinces.
Few approaches are also being introduced to finance investments to
improve energy efficiency pilot and expand the use of innovative
renewable energy sources and rehabilitate and moderni-e urban district
heating systems. Grban environmental management is being
strengthened to help cities meet challenges such as rapid motori-ation.
As China develops collaborative research and analysis are becoming an
important part of the 8ankCs engagement. >or example China (9.9=
8uilding a 7odern @armonious and Creative 3ociety a Aoint research
report by the World 8ank and the Development 4esearch Center of
ChinaCs 3tate Council lays out six strategic directions for ChinaCs future=
completing the transition to a market economyB accelerating the pace of
open innovationB going HgreenI to transform environmental stresses into
green growth as a driver for developmentB expanding opportunities and
services such as health education and access to Aobs for all peopleB
moderni-ing and strengthening its domestic fiscal systemB and seeking
mutually beneficial relations with the world by connecting ChinaCs
structural reforms to the changing international economy.
Grban China= +oward /fficient Inclusive and 3ustainable
Grbani-ation also a Aoint research report by the World 8ank and the
Development 4esearch Center of ChinaCs 3tate Council recommends that
China curb rapid urban sprawl by reforming land re0uisition give migrants
urban residency and e0ual access to basic public services and reform
local finances by finding stable revenues and by allowing local
governments to borrow directly within strict central rules.
+o meet growing demand from other developing countries to learn from
China the 8ank also plays the role of knowledge broker to support China
in sharing its development experience.
International >inance Corporation !I>C)
China is I>CCs fifth largest portfolio country. 3ince its first investment in
$%'6 the I>C has invested about D5 billion !combined I>C's own account
and mobili-ation) in around (59 proAects in China. In fiscal year (9$. I>C
invested more than D$ billion in .( proAects.
I>CCs strategic priorities in China focus on climate change including
renewable energy energy efficiency water efficiency clean tech green
policy and green creditB balanced rural and urban development including
a focus on frontier regions food safety scaling up microfinance outreach
and capacity and agricultural linkagesB and ChinaCs outbound investment
including partnerships with Chinese firms to invest in other emerging
economies particularly in Africa mobili-ing capital syndication loans and
sharing knowledge and standards.
ChinaCs dramatic progress in reducing poverty over the past three
decades is well known. 7ore than 699 million people were lifted out of
poverty as ChinaCs poverty rate fell from '& percent in $%'$ to $. percent
in (99' as measured by the percentage of people living on the e0uivalent
of G3D$.(6 of less per day in (996 purchasing price parity terms.
3ubstantial progress was made in human development indicators as well
contributing to global efforts to achieve the 7illennium Development
"oals.
China began its partnership with the 8ank in $%'9 Aust as it embarked on
its reforms. 3tarting as a recipient of support from the International
Development Association !IDA) the 8ankCs fund for the poorest China
graduated from IDA in $%%% and became a contributor in (995. It became
the third largest shareholder in the World 8ank upon completion of the
capital increase approved in (9$9 the .9th anniversary year of its
partnership.
+hroughout this time the nature of the 8ankCs activities in China changed
to meet the countryCs rapidly evolving needs. Initially the 8ank provided
technical assistance to introduce basic economic reforms modern proAect
management methodologies and new technologies. Jater the focus
shifted to institutional strengthening and knowledge transfer. +he 8ank
now encourages knowledge sharing to enable the rest of the world to
learn from ChinaCs experience.
+he *oor 4ural Communities Development *roAectimproved livelihoods
and access to basic services for about 69$:%9 poor rural households with
population of $.& million in $' nationally designed poor countries in
ChinaCs 3ichuan ;unnan and "uangxi provinces. +he proAect financed
investments in basic rural infrastructure such as rural roads water supply
and sanitation small water conservation schemes rural energy and rural
electrification and telecommunication networks basic education and
health services as well as sustainable mountain agriculture to provide
income generation opportunities to remote areas. It was one of the 8ankCs
largest poverty proAects targeted at ethnic minority populations. 8etween
(99: and (9$9 incidence of poverty decreased from $6.% percent to %..
percent in the proAect areaB per capita incomes of farmers creased by $(
percent per yearB %'.' percent of the villages had access to electricity
'..% percent to road and %'.( percent to telephone services. In 3ichuan
proAect area ($$69 women and ((65' children received maternal and
child health care servicesB and 696&'6 poor people received medical
assistance.
+he ChangAiang and *earl 4iver Watershed 4ehabilitation *roAect set out
to restore an area where unsustainable land management and farming
practices had led to serious land degradation and erosion. +he proAect
supported public goods investments for soil and water conservation
including stone?faced terraces sediment retention structures afforestation
and restoration of vegetative cover and village infrastructure such as
drinking water supply systems and access roads. It also supported
investments to improve the farmerCs income including terracing of slope
land to increase crop production high value fruit and nut tree orchards
grasslands to improve fodder production and reduce soil erosion livestock
development irrigation facilities small?scale tanks and cisterns and
energy?saving stoves and small?scale bio?gas digesters to reduce forest
destruction and household spending for fuel. 8etween (99: and (9$(
about .&6999 rural households with a total population of $.. million
benefited from environmental and livelihood improvementsB annual per
capita net income increases from proAect activities ranged between
478665 and 478&.:'B farmland productivity increased from
478$$$:6 to 478$::5% per hectareB and labor productivity increased
from 478.$ to 47866 per labor day. +otal amount of incremental carbon
se0uestered at the end of the proAect in (9$( was estimated at .%$999
tons and is expected to reach between 6.'?'.. million tons after $9 years
and between $$.&?$:.( million tons after (9 years.
+he Fingbo Water and /nvironment *roAect helped ensure safer and more
reliable water supply for (.6 million residents in Fingbo City and increased
wastewater treated from about $9 percent to :6.& percent for one million
residents in Cixi City improving the 0uality of life and environment. +he
proAect financed investments in a water supply line consisting of a water
intake tower and a tunnel a water treatment plant and treated water
transmission pipes in Fingbo City and two water treatment plants sewers
and pumping stations in Cixi City. In addition the proAect provided
technical assistance to improve water planning utility price and service
regulation and to enhance the operational and business management
capacities of the Fingbo Water 3upply Company and Cixi 7unicipal
3ewage Company. As a result the water treatment capacity of Fingbo City
increased by 699999 m.Kd. Fearly %9 percent of the cityCs population now
enAoys high 0uality water in contrast to (. percent in (99:. +he proAect
built two new wastewater treatment plants with a combined capacity of
$69999 m.Kd in Cixi City achieving wastewater treatment
capacityKcoverage of '9 percent for the urban districts :9 percent for the
rural townships and $99 percent for industrial discharges located within
industrial parks greatly reducing pollution loads discharged to the
@ang-hou 8ay. In addition freshwater wetlands were restored in a ..9 ha
area on reclaimed coastal land in Cixi creating a variety of wetland
habitats supporting biodiversity of the area.
+he Joess *lateau Watershed 4ehabilitation *roAectset out to restore this
area home to more than 69 million people where centuries of overuse
and overgra-ing had led to one of the highest erosion rates in the world
and widespread poverty. 7ore than (.6 million people were lifted out of
povertyB incomes doubledB natural resources were protected and perennial
vegetation cover increased from $5E to .&EB employment rates
increasedB food supplies were secured with per capita grain output
increasing from .:6 kg to 6%$ kg per yearB and ecological balance was
restored in a vast area considered by many to be beyond help.
+he 4enewable /nergy Development *roAect also supported by the
"lobal /nvironment >acility promoted the development of a sustainable
photovoltaic market to provide reliable affordable and environment?
friendly energy to villagers who live off the electric grid. +he proAect
supported the sale of solar systems to approximately &99999 rural
households and institutions and the supply of solar electricity to isolated
semi?nomadic populations translated into improved access to
communications and education improved indoor air 0uality and reduced
C,( emissions. +he proAect helped combine international technology
advances with ChinaCs proven low?cost production capabilities which in
turn helped make China the number one producer of solar e0uipment and
components around the world.
+he >orestry Development in *oor Areas *roAect was part of a larger
World 8ank effort to preserve and expand forests in China which is not
only a key environmental challenge but also a development priority in the
poorest remote mountainous areas of central and Western China where
agricultural land is extremely poor and forest resources are the most
important production asset available. +he proAect contributed to a
significant decline in poverty in proAect areas from &9E in $%%' to $5.6E
in (996. Average annual per capita income increased by $69E and forest
coverage increased by :.5E over $%%5 levels.
Although China compares favorably with international education indicators
for middle?income countries reaching the last 6E of the school?age
population has been the most difficult and costly. +he 8asic /ducation in
Western Areas *roAect focused on attacking the root causes of ine0uality
in access and 0uality particularly among girls and ethnic minorities in rural
areas. +he proAect constructed or upgraded $6(6 schools supplied
almost seven million textbooks and trained almost $$999 principals and
more than $6&999 teachers. +oday there is universal enrollment of poor
boys girls and ethnic minorities in the primary and Aunior secondary
schools in the five proAect provinces.
In health the China +uberculosis Control *roAect was the largest
tuberculosis control proAect funded by the World 8ank in the world
covering ::' million people in $: provinces. +he proAect obAective was
fully achieved and targets for case detection and cure rates for
tuberculosis were exceeded. +he proAect registered and treated close to
$.: million new patients. 7ore than $.6 million of these patients completed
treatment !%&.(E) and nearly $.6 million patients were cured !%..'E).
Source: http://www.worldbank.org/en/country/china