Sixty years ago on Oct. 1, 1949, the Chinese leader Mao Zedong announced the establishment of the People's Republic of China at Beijing's Tiananmen Square. At the time, China was an impoverished country following years of military aggression by Japan and civil war between the Communist Party and Kuomintang (Nationalist Party).
Economic reforms since 1978 have transformed China into a genuine economic and military power. It is hoped that China will shed narrow-minded nationalism and use its considerable international influence responsibly and cooperatively.
It is predicted that China will become the world's No. 2 economy next year with its gross domestic product topping Japan's. China's foreign currency reserves are larger than any other country's. It's the biggest holder of U.S. bonds. The Chinese economy is growing nearly 8 percent annually, even amid the current economic crisis.