om
competition by subsidies and had been losing the ability to pay full
wages and pensions. From 100 to 150 million surplus rural workers
are adrift between the villages and the cities, many subsisting
through part-time, low-paying jobs. Popular resistance, changes in
central policy, and loss of authority by rural cadres have weakened
China's population control program, which is essential to
maintaining long-term growth in living standards. At the same time,
one demographic consequence of the "one child" policy is that China
is now one of the most rapidly aging countries in the world. Another
long-term threat to growth is the deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the
water table especially in the north. China continues to lose arable
land because of erosion and economic development. As part of its
effort to gradually slow the rapid economic growth seen in 2004,
Beijing says it will reduce somewhat its spending on infrastructure
in 2005, while continuing to focus on poverty relief and through
rural tax reform. Accession to the World Trade Organization helps
strengthen its ability to maintain strong growth rates but at the
same time puts additional pressure on the hybrid system of strong
political controls and growing market influences. China has
benefited from a huge expansion in computer Internet use, with 94
million users at the end of 2004. Foreign investment remains a
strong element in China's remarkable economic growth. Shortages of
electric power and raw materials may affect industrial output in
2005. More power generating capacity is scheduled to come on line in
2006. In its rivalry with India as an economic power, China has a
lead in the absorption of technology, the rising prominence in world
trade, and the alleviation of poverty; India has one important
advantage in its relative mastery of the English language, but the
number of competent Chinese English-speakers is growing rapidly.

Christmas Island
Phosphate mining had been the only significant
economic activity, but in December 1987 the Australian Government
closed the mine. In 1991, the mine was reopened. With the support of
the government, a $34 million casino opened in 1993. The casino
closed in 1998. The Australian Government in 2001 agreed to support
the creation of a commercial space-launching site on the island,
projecte