China is the largest country in Asia with a population of about 1.29 billion. It has a territory of 9.6 million square kilometres.
According to the 2003 estimates, 22.1% of the Chinese population are between 1 and 14 years old, and 7.5% are 65 years old and above. With continuing ageing of the population, the proportion of the people who are over 65 years old is projected to increase to 8.29% by 2010, 11.98% in 2020 and 22.56% in 2040. In 1990, about 30% of the people over 65 years of age were above the age of 75 years; this proportion is projected to rise to 35% by 2020, and 50% by 2050. The rapid demographic shifts and ageing of the population will have major implications for the country’s health care system.

In the past 20 years, China has made considerable progress towards an improved standard of living for its population, including better health, reduced levels of poverty, and strong macroeconomic growth. Improvements in health, especially in rural areas, were the direct result of political resolve by the Government in the 1960s and 1970s when public-financed community and preventive health programmes provided access to basic care throughout the country.
Despite the overall positive aspects of some key health indicators, since the late 1990s, many health indicators appear to have reached a plateau. The rate of improvement in health-related indicators during the 1990s has been slower than similar advances made in the 1970s and 1980s. Furthermore, efforts are currently underway in China to monitor progress toward achieving the Millennium Development Goals, three of which are the responsibility of the health sector.
China has the second largest economy in Asia. It has been growing rapidly since the launch of economic reform and opening-up policies in the late 1970s. According to 2001 statistics, industry and construction account for 52.9% of the economy, services 32.3% and agriculture 14.8%. Foreign direct investment remains a strong element in the country’s remarkable economic growth. Trade linked with accession to the World Trade Organization has helped China to maintain strong economic growth.