The latest official information shows that the year
2001 will go down in history as a milestone for China as
well as a good beginning for the country's five-year
(2001-2005) plan for economic and social development.
Zeng Peiyan, minister in charge of the State
Development Planning Commission, said earlier this week the
Chinese economy is expected to grow by 7.4 percent,
exceeding 9 trillion yuan (1.09 trillion U.S. dollar) for
the first time in history.
fast economic growth, characterized by higher efficiency and
low inflation, indicates "a good beginning" for
the five-year plan, said the minister, describing it as a
hard-won achievement as the world economy has experienced a
marked slowdown in growth.
first 10 months of this year, the total industrial profit
increased by 9.3 ercent to 364.7 billion yuan (44 billion
U.S. dollars) over the corresponding period of last year,
while fiscal revenue rose by 256.8 billion yuan (31 billion
U.S. dollars), Zeng said.
a forecast by the commission, the inflation rate for this
year will remain basically stable, while the per capita
disposable income for urban residents will grow by 7 percent
and the net per capita income for farmers will increase by
at least 4 percent.
registered unemployment rate for urban China will be below 4
Encouraging progress has been
made in industrial and agricultural restructuring.
In coastal areas in eastern part of the
country, priority has been given to farm produce with higher
added value, while in major grain producing areas in the
middle and western parts, the output of quality and
special-purpose farm produce has been increased.
The share of such major crops as wheat
reported by regions with better natural growing conditions
has been increasing.
The country's coal
mining industry, the only loss-making industry of
traditional industrial sectors, is set to become profitable
this year for the first time in years thanks to massive cuts
in redundant jobs and higher coal prices.
Highlights of China's economic
development include the new record high of its foreign
exchange reserve, which had exceeded 200 billion U.S.
dollars earlier this year.
outstanding amount of deposits by Chinese residents topped
the 7 trillion yuan (853.6 billion U.S. dollars), also a
record high, earlier this year.
July, China overtook the United States as the world's
biggest user of mobile telecommunications, with the number
of mobile phone users totaling 120 million.
Other highlights are new highs in
recent years in fixed asset investment and investment by
overseas investors in the country, and some expensive
products priced at the 100,000 yuan (12,195 U.S.dollar)
level -- such as cars -- are gaining popularity.
In addition, China has launched a
number of projects to commercialize high-tech achievements,
which have attracted nearly 20 billion yuan (2.4 billion
U.S. dollars) worth of social capital using small amount of
capital collected through issuing treasury bonds.
To facilitate the flow of human
resources and urbanization, governments at all levels have
eased, to varying degrees, the restriction on migration from
rural areas to urban areas.
western development strategy has gone into full swing as
several gigantic infrastructure projects were launched, such
as the first railway line linking the Tibet Autonomous
Region and Qinghai province, and the projects designed to
transmit electric power or natural gas from the
resources-rich west to the rapidly-industrializing east.
China's entry into the World Trade
Organization is viewed at home and abroad as "a
historic event" which will trigger more changes for
China than the country has seen in the past two decades.
Despite the sluggish demand outside the
country, China managed to achieve a 7.9 percent increase in
foreign trade during the first 10 months of this year, with
export up by 6.1 percent.
Chinese economic officials believe overseas investment in
China will total 59.4 billion U.S. dollars this year.
Meanwhile, China has continued to
deepen its reform, regulate market and economic order,
improve its pricing system and maintain financial stability.
The year 2001 also witnessed progress
in China's bids to improve the standard of living for its
people in terms of material goods and cultural life, and the
overall concept of ethics in society.
number of high-profile sports events also helped boost the
morale of the Chinese people.
Liu Guoguang attributed the economic and social achievements
China has made this year mainly to the country's adherence
to the policy of expanding domestic demand and
commitment to a positive fiscal and stable
financial policies. The economist said the achievements will
lay a solid foundation for the country's economic
development in the coming years.
warned that the uncertainty of the international economic
environment will restrain to some degree the Chinese
economy, as the better-than-expected increase in domestic
demand has failed to offset the drastic slump in overseas
demand. "We must remain cool-headed amid
optimism," Liu said.
(Xinhua News Agency
December 6, 2001)