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Township Enterprises Key to Chinese Economy
China's township enterprises have managed to maintain strong growth despite a painful structural adjustment during the country's ninth five-year plan period from 1996 to 2000, according to the State Development Planning Commission (SDPC).
According to the latest SDPC figures, China's township enterprises recorded an average annual growth rate of more than 12 percent between 1996 and 1999.
In 1999, township enterprises employed 123 million people and realized an industrial added value of 2.53 trillion yuan, accounting for 30 percent of China's gross domestic product.
In the same year, exports by township enterprises also made up one-third of the country's total.
Sources from the SDPC pointed out that the growth has been achieved in a time when township enterprises are in the process of structural adjustments and corporate innovation after explosive growth in previous years.
The development of township enterprises has led to remarkable changes in the population structure in rural China. It is 30 percent of the rural labor force have turned to non-agricultural trades, with only 70 percent still engaged in agricultural activities.
The prosperity of the rural industry has also resulted in a boom of small towns. More and more farmers are moving into towns for new jobs in service and manufacturing sectors.
According to SDPC figures, China now has 45,000 towns with a population exceeding 160 million, and urbanization is still accelerating.
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