Statistics: China's Economic Growth Exceeds World's Average

Statistics from the State Statistics Bureau show that China successfully tided over the unfavorable influence from a most complicated fickle internal and external economic environment during the 9th Five-year plan period. When with a rapid sustained economic growth achieved it had an annual GDP growth of 83 percent wrested, a rate much higher than other foreign countries, in the way China has its first two strategic targets for modernization smoothly realized.

For a fast economic growth the country has its overall national strength further enhanced and a joint development of its first, second and tertiary industries.

During the 9th Five-year Plan period, China's GDP growth averaged an annual 8.3 percent, surpassing the planned 8 percent target, quadrupling its 1980 per-capita GDP in 1995, three years ahead of time. Noteworthy is that the achievements had been wrested under an unfavorable situation caused by Asian financial crisis and severe natural disasters. In the past five years, world economic growth has been at an annual average of 3.8 percent, showing a 3.3 percent growth by developed countries and about 5 percent by the developing countries. All are at a much lower average level than that of China.

China's GDP totaled 8.94 trillion yuan in 2000, exceeding US$1 trillion calculated on the current exchange rate. With a per-capita GDP amount of over US$800, it took a place ranking among medium low-income countries during the 8th Five-year Plan period. The country's financial capacity augmented most during the 9th Five-year Plan period. Its accumulative revenue income exceeded 5 trillion yuan, up 1.3 times over the 8th Five-year Plan period.

A historical change has been brought about from a long-term shortage to balanced supply and a surplus in abundant years of agricultural products.

Industrial production flourished with structural readjustments made. The three years' target of carrying out reform in state-owned enterprises and helping them out of difficulties has been basically reached.

Proactive policies by the government has played an important role in strengthening the construction of basic industries and infrastructure.

Export-oriented economy persistently rapidly developed and accompanying with this is a further opening to the outside world.

China made full use of the growing scale and improved quality of foreign investment. During the 9th Five-year Plan period, it utilized foreign funds worth US$289.4 billion, up nearly 80 percent over the 8th Five-year Plan period. Foreign direct investment reached US$213.6 billion, up 87 percent. With these there was also a gradual improvement made in the quality and structure of China's FDI. The average investment in foreign-funded projects surged from over US$1.2 million in early 1980's and more than US$1.3 million in early 1990's to over US$3 million during the 9th Five-year Plan period. Investment by overseas companies and large financial groups increased. Among the world 500 top enterprises, nearly 400 enterprises have set up investment projects in China. With the expansion of the opening fields and the implementation of the strategy for western region development, foreign enterprises have poured more capital into China's infrastructure construction and projects in China's central and western regions. The country has made important progress in attracting foreign investment by issuing security bonds and has raised nearly US$14 billion for foreign investment by overseas listing during the 9th Five-year Plan period.

China's foreign exchange reserves have been at a relatively high level while a stable exchange rate of RMB is kept. Its foreign currency reserves went up from US$73.6 billion at the end of 1995 to US$165.6 billion in late 2000, up 125 percent and ranking second of the world. Irrespective of various adverse effects found as a result of Asian financial crisis and large margin of depreciation of currencies in neighboring countries, China stuck to the policy to rule out the depreciation of RMB. Since 1997, the exchange rate of RMB has been basically stable at about US$100: RMB830.

Urban and rural people's life has got further improved with their general living standard at a comparatively well-off level.

Science and education have rapidly developed and the society has seen an overall progress.

While considering the remarkable achievements made in China's economic and social development during the 9th Five-year Plan period, people should also be aware of the contradictions and problems occurred on their way of advance. These refer mainly to: insufficient vitality of the principal parts in micro-economy, the severe pressure on social employment, an irrational economic structure and slow income growth by the rural people, etc. Some of these problems are left over from history, some have resulted from the new situation developed. Only when the reform is furthered, the macro-economic regulation is improved, and, in the final analysis, the national economy is guaranteed a sustaining development, can these problems be settled ultimately.

By PD Online staff member Du Minghua

People's Daily Online --- http://english.peopledaily.com.cn/