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In page Literacy:

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The CIA World Factbook says 96.7% of Chinese people are literate;[1] however, social science surveys in China have repeatedly found that just over half the population of China is conversant in spoken Putonghua.[2][3] In classical Chinese civilization, access to literacy for all classes originated with Confucianism, where previously literacy was generally limited to the aristocracy, merchants, and priests.[citation needed]