China is a united multi-ethnic nation of 56 ethnic groups. According to the fourth national census, taken in 1990, the Han people made up 91.96 percent of the country's total population, and the other 55 ethnic groups, 8.04 percent. As the majority of the population is of the Han ethnic group, China's other ethnic groups are customarily referred to as the national minorities.

The Han people can be found throughout the country, though mainly on the middle and lower reaches of the Yellow River, the Yangtze River and the Pearl River valleys, and the Northeast Plain. The national minorities, though fewer in number, are also scattered over a vast area(see the attached table, and can be found in approximately 64.3 percent of China, mainly distributed in the border regions from northeast China to north, northwest and southwest China. Yunnan Province, home to more than 20 ethnic groups, has the greatest diversity of minority peoples in China. In most of China's cities and county towns, two or more ethnic groups live together. Taking shape over China's long history, this circumstance of different ethnic groups “living together in one area while still living in individual compact communities in special areas” continues to provide the practical basis for political, economic and cultural intercourse between the Han and the various minority peoples, and for the functioning of the autonomous national minority areas system.

Equality, unity, mutual help and common prosperity are the basic principles of the Chinese government in handling the relations between ethnic groups. The Constitution of the PRC specifies that all ethnic groups are equal. The state guarantees the lawful rights and interests of the minority peoples. Discrimination against or oppression of any ethnic group is prohibited; all acts that undermine the unity of the ethnic groups or create splittism among them are forbidden. Big-ethnic group chauvinism, mainly Han-chauvinism, or chauvinism on a local level, is banned. Every ethnic group has the freedom to use its own spoken and written languages, and to retain or change its customs.

In accordance with these basic policies, China practices a system whereby national minorities exercise regional autonomy. Where national minorities live in compact communities autonomous organs of self-government are established under the unified leadership of the Central Government. The minority people shall exercise autonomous rights, be masters in their own areas and administer the internal affairs of their ethnic group. The National Minority Regional Autonomy Law adopted in 1984 by the Second Session of the Sixth National People's Congress provides specific guidelines for guaranteeing that the constitutionally decreed national minority regional autonomy system is carried out. In addition to five autonomous regions (Inner Mongolia Autonomous Region, founded on May 1, 1947; Xinjiang Uygur Autonomous Region, founded on October 1, 1955; Guangxi Zhuang Autonomous Region, founded on March 5, 1958; Ningxia Hui Autonomous Region, founded on October 25, 1958; and Tibet Autonomous Region, founded on September 9, 1965), China currently has 30 autonomous prefectures and 120 autonomous counties (or, in some cases, “banners”), in addition to more than 1,300 ethnic townships. Self-government in autonomous national minority areas is effected through the people's congress and people's government at the particular local level. The chairperson or vice-chairperson of the standing committee of the people's congress and the head of the government of an autonomous region, autonomous prefecture or autonomous county should be from the area's designated minority people. Organs of self-government in regional autonomous areas enjoy extensive self-government rights beyond those held by other state organs at the same level. These include enacting regulations on autonomy and special regulations corresponding to local political, economic and cultural conditions, having independent control of the local revenue, and independently arranging and managing construction, education, science, culture, public health and other local undertakings. The Central Government has greatly assisted in the training of minority cadres and technicians through the establishment of national minority universities (colleges) and national minority cadre schools to supplement regular colleges and universities. It has, in addition, supplied the national minority autonomous areas with large quantities of financial aid and material resources in order to promote their economic and cultural development.