2001 was the first year of the state’s tenth Five-Year Plan. During last year, overcoming the bad influence of poor economies abroad, China’s economy maintained its healthy development. From the change of a number of statistical figures, we may clearly see how China’s economy jumped in the first year of the new century.

　　Gross Domestic Product (GDP) is the index that reflects national economic strength. According to the preliminary estimation of some authorized departments, the total value of China’s GDP in 2001 was RMB 9.58 trillion. At present, the total value of China’s economy is sixth in the world and its competitive power is further strengthening in the world.

　　The state’s financial resources have become stronger day by day. In 2001 China’s tax revenue topped over RMB 200 billion. The value added tax and consumption tax reciepts reached RMB 90 billion. This extra high-speed increase has never happened since 1994, the state’s revenue reached RMB 1.4 trillion, increasing over 20%.

　　In addition, our government has had more and more grain storage and foreign exchange reserves. According to official statistics, in 2001 China’s foreign exchange reserves jumped over US billion for the first time. The output of grain reached over 450 million tons, despite the fact that we met serious natural disasters in agriculture over the course of last year.

　　With the development of China’s economy, the living standards of residents have been improving. It is estimated that the average per capita income in urban and rural areas last year increased 8.2% compared with 2000, 1.8% higher than the previous year’s increase. Farmers’average net income rose 4% per person, a 1.9% higher rise than the previous year. The balance of total savings deposits in both urban and rural areas topped RMB 7 trillion for the first time, representing an increase of over RMB 800 billion over the course of the year.

　　In 2001 China’s investment market was extremely brisk. There was a big increase in investments in fixed assets, real estate and foreign investment. It shows that investors are full of confidence in China’s economy.

　　Our central government approved the issue of long-term construction bonds of RMB 150 billion, which put several major projectssintosoperation, including the railway road from Qinghai to Tibet and the transmission of gas and electric power from the west of China to the east.

　　2001 was a foreign investment boom. Each day over US million camesintosChina. When the world economy was gloomy, China’s economy looked bright. Therefore, it attracted many foreign investors. It is estimated that contracted foreign direct investment climbed to US billion last year.

　　Consumption was also very active. The five economic hot points gradually were made known: autos, real estate, information industries, tourism and education. Especially for the sales of commercial apartments and cars, Chinese residents accepted them both. More and more people realized their dreams ofshavingsa big and comfortable house and a car. In 2001 the volume of car sales was over 2 million, growing 16%. This increase was a big jump from previous years’increases. Last year also saw the exciting scene of the sale of many commercial apartments. Bank loans for apartment purchases made up a large quantity of consumption loans.

　　The year 2001 was the year of our government quickening the pace of adjusting China’s economic structure. Mere increase in output is no longer the standard by which the economy is judged; now economic benefits become the main index of measuring whether the economy developing healthily.

　　Last year the nationwide area of farming was narrowed by a big margin and the output of grain was reduced. On the other hand, the area of planting top-quality wheat was expanded to over 20 million acres. Good quality early rice-growing area covered more than 50% of the total. Backward productive capacity became obsolete in the industries of coal, metallurgy, building materials and electric power, but the new and high-tech industry kept quick development. The output of electronic and communication products increased from 20% to 1.3 times, such as facilities for microwave communication and photoconductor communication, program-controlled telephones, cell phones and computers.

　　In 2001 a good sign of the improving economy was that the coal industry, previously always with unfavorable balances, now eliminated their losses. Export volume of coal reached 85 million tons, increasing 27 million tons from the previous year. It was an all-time high in the history of China’s coal exports. By the end of 2001, among the 14 industries which had been paid special attention by the government, 13 of them have gain profits.