Economy

During 2000, under the correct direction of the Central Committee of the Communist Party of China and the Council of State, the diverse localities and departments have applied concientiously to a series of directives and policies with respect to the increase of the internal demand and the implementation of an active financial policy and a stable monetary policy, and they have strived by the fortification of the spiritual civilization. With the joint efforts of all the ethnic groups of the country, new successes in the social development have been conquered and economic and the diverse determined goals have been reached after the development and the reform, fulfilling of integral way the main tasks of IX the Quinquennial Plan.

The growth economic and fortified the integral power has been accelerated. According to preliminary statistics, in 2000 the GIP was of 8.940.400 yuanes, which represented an increase of the 8,0% constant price in comparison with the previous year, 0,9 percentage points more stop than the previous growth. Of them, primary the industrial sector increased 2,4%, the secondary sector was increased in 9,6% and the tertiary sector rose in 7,8%. Calculating according to the rate of present change, the GIP surpassed the trillion of dollars.

The general index of the prices of the market stopped its bearish tendency and it stayed stable. The annual general index of prices to the consumption of the inhabitants ascended in a 0,4% in relation to the previous year, consequently the situation of reduction in two years consecutive was reverted from 1998. As far as the specific sectors, the prices of the services raised in 14,1%; and those of the houses, 4,8%. The prices of foods, except the prices of the aquatic and vegetal products, that increased, continued lowering. In addition, due to the influence of the ascent of the price of international petroleum, the prices of industrial products were increased in 2,8%; and those of power, raw materials and of purchase of energy, in 5,1%.

The setor of uses was fortified still more. By the end of 2000, there were in the country 711,5 million workers, 5,64 million more than in 1999. Of that total, 212,74 million, that is to say, 2,6 million more than in the preceding year, were workers of the cities and towns. The re-employment project made new progresses. By the end of 2000, the number of displaced of the state companies was 47.000 more of 6,57 million, that is to say, than the previous year. In all the country 3,61 million displaced workers found new jobs by diverse channels. By the end of the year, the rate of unemployed registered in the cities and towns was of the 3,1%.

The international balance of payments stayed in good state and the currency reserves continued increasing. The use of the foreign investment was relatively stable, with real a total amount of direct foreign investment (IED) in all the year of 40.700 million dollars, which represented an increase of 400 million dollars with respect to the previous year. The surplus of the foreign trade was reduced in certain degree. The favorable balance of import and exports of the year was of 24.100 million dollars, 5.100 million less than the previous year. The currency reserves of the State continued increasing. By the end of 2000, the same were of 165.600 million dollars, 10.900 million more than the previous year. The rate of change of the Renminbi (Chinese currency) stayed stable, being placed in the 8,2781 yuanes by dollar by the end of that year, which represented a re-evaluation of the Renminbi of 12 points with respect to the previous year.

The economic results improved remarkably and the quality of the operations rose still more. The tributary income continued undergoing a relatively fast growth, after several years of high increases. In 2000, the same reached 1.266.000 million of yuanes, 234.800 million of yuanes more than the preceding year, that is to say, an increase of the 22,8%. The benefits of the industrial companies were increased to a great extent. The industrial companies of required scale and superior obtained benefits by 426.200 million of yuanes, creating the highest level of the decade of the 90, which represented an increase of the 86,2% against the preceding year. Mainly the state companies of state property and companies holding company obtained a fast growth of gains. These companies redituaron 239.200 million of yuanes, with an increase of 1,4 times. The state companies and those of holding company state deficit reduced in 26,7% their losses with respect to the previous year. The integral indices of the economic results of the industrial companies were of 117,8, rising in 16.1 percentage points in relation to the previous year, which represented the highest level from 1992.

The main lasting problems in the social and economic development are these: the base of economic overheating not yet is stable; a mechanism by the continuous growth of the social demand has not formed completely; the structural contradictions are still relatively acute; the increase of the income of the farmers is slow; the pressure of the use increases, and leaves from the popular masses still lives with many economic difficulties; the capacity of technological transformation and adaptation to the market of the companies is not sufficiently great, some companies work in difficult situation, and the task of transformation of the operational mechanism of the companies of state property aén is quite arduous; serious accidents for want of security happen frequently, it has not radically solved the problem of manufacture and sale of false products and bad quality, and it is hoped to recover the socioeconomic order still more.