For centuries China stood as a leading civilisation, outpacing the rest of the world in the arts and sciences, but in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and foreign occupation.

After World War II, the Communists under Mao Zedong established an autocratic socialist system that, while ensuring China's sovereignty. After 1978, Mao's successor Deng Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded. China since the early 1990s has increased its global outreach and participation in international organisations.

In fact, China’s World Trade Organisation (WTO) entry in 2001 has marked a new stage in its economic reforms and in its relations with the rest of the world. Annual inflows of foreign direct investment rose to nearly US$108 billion in 2008. China is the largest exporter and second largest importer of goods in the world. Its top six trade partners (US, Japan, Hong Kong, South Korea, Taiwan, Germany) form over 50% of China's total international trade.