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China sees extraordinary economic progress - report
( 2002-10-08 09:57 ) (1 )

China has established its socialist market economic system and has made great achievements in building up its economy following more than 20 years of reforms and opening to the outside world.

A report released by the National Bureau of Statistics indicates that China's productive forces, overall strength and living standards have developed in a rapid, steady and healthy manner.

According to the report, China has been developing at an unprecedented growth rate. The gross domestic product increased from 362.4 billion yuan (US$43.7 billion) in 1978 to 9,593.3 billion yuan (US$1,155.8 billion) in 2001, an annual growth rate of 9.4 per cent, 6.1 percentage points higher than the world average during the same period.

Despite the complex internal and external economic environment, China's economy has witnessed rapid growth since 1989, with an annual growth rate of 9.3 per cent.

Indeed, China has become one of the fastest-developing countries in the world.

The rapidly-growing economy is also narrowing the gap between the developed countries and China. According to the International Monetary Fund, in 2001, China ranked sixth in the world in terms of its overall economic volume, up from eighth place in 1989.

China's principle agricultural product output remains at the top of world rankings, with sufficient commodity supplies.

In the period before 1989, China suffered from insufficient production capability, and many commodities were in short supply. However, since 1989, along with the fast development of the socialist market economy, the sellers' market has gradually been replaced by the consumer's market.

By the year 2001, the output of corn, cotton, rapeseed, fruit, pork, mutton and beef all ranked first in the world, while tea ranked second, sugar cane third and soybean fourth.

It is of special note that China's world ranking with respect to the production of dairy products, rose to eighth in 2001 from 18th in 1989, demonstrating that both living standards and consumption patterns have evolved in a positive manner.

In 2000, with respect to basic industrial products, China's output of colour television sets, coal, cement, chemical fertilizer and steel was No 1 in the world, while ranking second in production in the areas of electricity and chemical fibre.

The economic structure has been continuously streamlined, and industrial upgrading has been carried out gradually. Statistics show that the proportion of primary, secondary and tertiary industries were 15.2, 51.2 and 33.6 per cent, respectively, in 2001. Compared with corresponding figures in 1989, the primary industry showed a decline of 9.8 percentage points, while the secondary and tertiary industries saw increases of 8.1 and 1.6 percentage points, respectively.

The report concluded that the optimization of the industrial structure has given rise to profound changes in China's market conditions and has put an end to commodity shortages. Industries related to raw materials, fuel, energy and transportation have been transformed into efficient industries which no longer restrict China's economic development.