China’s economic development has entered a new stage which is characteristically one of high growth and low inflation. The national economy continues to grow rapidly and market prices remain basically stable. Statistics for last year show that china’s gross domestic product(ＧＤＰ) reached 7477.2 billion Yuan, us $ 900.87 billion, an increase of 8.8% over the previous years. Among which, primary industry grew by 3.5%, secondary industry 10.8% and tertiary industry 8.2%. The margin of price rise continues to fall. Resale prices rose by 0.8%, representing a drop of 5.3 percentage point compared to the year before and consumer prices rose by 2.8%, 5.5 percentage points less than that of the pervious year. Progress has been made in shifting the economic growth. Economic efficiency improved with the energy consumed for each 10 thousand Yuan of GDP decreasing by 5.2% compared to the level of the year before.

Agriculture was further strengthened. Despite droughts in a large part of northern china, green output reached 492.5 million tons. The state green reserves hit a record high. Cotton output was 4.3 million tons. The total output of meat came to 53.54 million tons and aquatic products to 35.61 million tons. Animal husbandry and aquaculture have become significant points for rural economic growth and a major source of being increase in farmers’ income. The added value of township enterprises reached 1800 billion Yuan, us $216.87 billion.

Basic industries and infrastructure continue to develop. National energy production reached 1.34 billion tons of standard coal. Power generating capacity increases by 13.76 million kilowatts and power supply basically met production needs and household use. Newly built railways open to traffic totaled 896 km, electrified railways to 1916 km and double track railways 551 km. A total of 35,000 km of new roads was added, including 1313 km of express ways. The passenger transport of high ways was 511.8 billion passenger km. The post and telecommunication sector registered the most rapid development. The total lance of long distance optical cable increases by 27000 sheet km, that of digital microwave links by 14,400 km and the number of telephone lines by 19.61 million. The mobile telephone network in china having 13.23 million subscribers has become one of the largest in the world in terms of its coverage.

The country’s financial revenue excluding liability revenue totaled 864.2 billion yuan, us $104.12 billion, up 16.7% on the previous year and financial expenditure excluding liability expenditure reached 919.7 billion yuan, us $110.8 billion up 15.8% with the latter exceeding the former by 55.5 billon yuan, us $ 6.69 billion. The deficit of the state treasures stood at 56 billion yuan, us$ 6.75 billion which was within the budget by its goal. The state treasures’ liability revenue was 244.7 billion yuan, us$ 29.84 billion, fulfilling the budget goal by 99.6%. Currency supply incereased by 17.3%. A total of 137.6 billion yuan, us$16.58 billion was issued throughout the year, exceeding the control plan by 17.6 billion yuan, us$ 2.12 billion. The total saving deposits in all financial institutions increased by 1294 billion yuan, us $ 155.9billion, a rise of 18.6% over the previous year and loan rose by 1070.3 billion yuan, us $ 128.95 billion up 16.7%. The interest rate on loans was lowered in due course helping reduce the burden of entrprizes. China’s foreign exchange reserve reached us$139.9 billion at the end of last year, a record high and an increase of us$34.9 billion over the figure at the beginning of the year.

Relatively rapid growth was registered in foreign trade and foreign capital utilization was improved in quality. Last year, china rose the world’s tenth largest country in foreign trade. Imports and exports totaled us$325.1 billion, an increase of 12.1% over the previous year with trade surplus of us$ 40.3 billion. Exports accounted for us $182.7 billion, rising by 20.9%. A total of us $64 billion of foreign capital was used including us $ 45.3 billion of direct foreign investment and us$ 12 billion of foreign loans and us $6.7 was gained through issuing stocks overseas. China invested us $1.83 billion abroad, playing a certain role in making up the shortage of domestic resources and in promoting export.

The people’s living standards continue to improve. Retail sales of consummer goods of the country totaled 2684.3 billion yuan, us$ 323.4billion, representing an actual increase of 10.2%. The per capita of disposable income of city dwellers rose by 3.4% and the per capita of net income of rural residents by 4.6%. Last year, 7 million people in cities and towns found their first jobs, and 2.45 million laid off workers were reemployed and the registered unemployment rate in cities and towns was 3.1%. The natural population growth rate was 10.06‰.