China's 10th Five-Year Plan Sees Good Beginning in 2001

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Last updated at: (Beijing Time) Sunday, December 30, 2001

China's 10th Five-Year Plan Sees Good Beginning in 2001

China's good economic performance in 2001 has amounted to a good beginning for the country's 10th five-year plan (2001-2005), observers say. Senior officials and economists have put the estimated economic growth at 7.4 percent. It is estimated that China's gross domestic product in 2001 will hit 9.645 trillion yuan.

Economic Growth

Though the official figure is not yet out, senior officials and economists have put the estimated economic growth at 7.4 percent, according to a commentary in the January 2002 issue of Economic World, a monthly magazine published by Xinhua.

It is estimated that China's gross domestic product in 2001 will hit 9.645 trillion yuan (US$1.2 trillion).

The efficiency of the economy as a whole has continued to improve, with profits of industrial enterprises rising 9.3 percent in the first 10 months of the year.

Disposable Income

The disposable income of urban dwellers witnessed a seven percent growth, while the pure income of farmers increased by four percent. This was against a one percent rise in the price level of consumer products.

The country's balance of international payments has been in a sound and healthy situation. As at the end of October, China's foreign reserve was as high as US$203 billion.

According to the article, the economic feat has been hard-earned amid a global economic slowdown.

Government's Policies

It attributes the success to the government's proactive financial policy and sound monetary policy, as well as specific and well-implemented policies to stimulate domestic need.

China's enhanced efforts to open up its market and to bring its legislation and regulatory system in line with international practices also help keep the economy on a healthy track, the commentary says.

Blind Optimism Warned

The good beginning in 2001 has laid a solid foundation for economic development in the remaining years of the 10th five-year plan, the commentary says. But it also warns against blind optimism.

Shadow of 911 Attacks

With the U.S. economy in a downturn and the far-reaching shadow on the world economy cast by the September 11 terrorist attacks in the U.S., China is facing a grave export situation that will weaken the spur of foreign trade on the economy, the commentary says.

Obstacles in Domestic Scenario

In the domestic scenario, outdated capacity structure and deeply-rooted issues in the economic management system are imposing obstacles to the further expansion of domestic demands and may even threaten the health of the economy, it says.

WTO Challenges

Meanwhile, as member of the World Trade Organization, China must be well prepared for the grave challenges to certain domestic sectors and products as a result of more exposure to foreign competition.

The commentary calls for adherence to policies for expanding domestic need, opening up markets, further restructuring the economy and rectifying the market order.

Premier Urges Hard Work to Achieve New 5-Year Plan Goals

Premier Zhu Rongji called the successful completion of the Ninth Five- Year Plan (1996-2000) and the country's second-stage development program a "milestone" in China's modernization drive.

Zhu spoke highly of the enormous economic and social progress made by Hunan, with a population of 65 million, which has experienced severe floods for three years running. The province should boost the local economy by seizing development opportunities and making use of its geographical advantages and abundant resources.

The premier suggested that Hunan build more infrastructure, develop science and technology, and boost agriculture and environmental protection. He urged fighting against bureaucracy and formalism and cracking down on gang crimes.

Graph of Growth of Foreign Trade Export of China Since 1978

Graph of China's GDP to Top Nine Trillion Yuan This Year

Photos of Economic Achievements in 2001 with Chinese Illustration

Premier Urges Hard Work to Achieve New 5-Year Plan Goals

Tenth 5-Year Plan of Industrial Structure Adjustment Published

China Sees Good Beginning for Tenth Five-Year Plan

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