  The structure of the algebra K[M] of the Chinese monoid M over a field K is
studied. The minimal prime ideals are described. They are determined by certain
homogeneous congruences on M and they are in a one to one correspondence with
diagrams of certain special type. There are finitely many such ideals. It is
also shown that the prime radical B(K[M]) of K[M] coincides with the Jacobson
radical and the monoid M embeds into the algebra K[M]/B(K[M]). A new
representation of M as a submonoid of the direct product of finitely many
copies of the bicyclic monoid and finitely many copies of the infinite cyclic
monoid is derived. Consequently, M satisfies a nontrivial identity.
