Explanatory Notes to Major Statistical Indicators

Temperature refers to the air temperature. China uses centigrade as the unit. The thermometry used for weather observation is put in a breezy shutter, which is 1.5 meters high from the ground. Therefore, the commonly used temperature refers to the temperature in the breezy shutter 1.5 meters away from the ground. The calculation method is as follows:

Monthly average temperature is the summation of average daily temperature of one month divided by the actual days of that particular month.

Annual average temperature is the summation of monthly average of a year divided by 12 months.

Volume of Precipitation refers to the deepness of liquid state or solid state (thawed) water falling from the sky to the ground that has not been evaporated, infiltrated or run off. The calculation method is as follows:

Monthly precipitation is the summation of daily precipitation of a month.

Annual precipitation is the summation of 12 months precipitation of a year.

Sunshine Hours refer to the actual hours of sun irradiating the earth. The calculation method is the same as that of the precipitation.

Average Annual Growth Rate refers to the reflect of the average growth rate of certain phenomenon stage by stage in a long period. Two methods for calculating average growth rate are applied in China. One is often called “level approach” or the method of calculating geometric average, which is derived by comparing the level of the last year of the interval with that of the base year; the other is called “accumulating approach” or algebraic average or equation method, which is derived by comparing the summation of the actual figure of each year in the interval with the figure in the base year.

Usually the results calculated by the two methods are fairly close, but they differ sharply when uneven economic development occurs with striking fluctuations in growth.

The average annual growth rates listed in this statistical yearbook are calculated by “level approach”. The base years are not listed for the average annual growth rates. For instance, the average annual growth rate of 43 years since 1949 is listed as average annual growth rate of 1950—1955 without listing the base year 1949.

Industrial Classification of the National Economy The new Industrial Classification of the National Economy (GB/T 4754-2002) is introduced starting from the compilation of 2003 annual statistics. The new revision was basedon the 1994 classification and organized by the National Bureau of Statistics taking into consideration of the International Standards of the Industrial Classification of All Economic Activities (ISIC/Rev.3) of the United Nations, and the new Classification was promulgated by the National Administration of Quality Supervision, Inspection and Quarantine on May 10, 2002. The revised version of the Industrial Classification of the National Economy (GB/T 4754-2002) is composed of 20 major divisions, 95 divisions, 396 major groups and 913 groups, including 4 new major divisions, 3 new divisions, 28 major groups and 67 groups.

Registration Status of Enterprises Enterprises are classified into 3 categories, namely domestic-funded enterprises, enterprises with investment from Hong Kong, Macau and Taiwan, and enterprises with foreign investment, in the light of the registration status of an enterprise in industrial and commercial administration agencies. Domestic-funded enterprises include state-owned enterprises, collective-owned enterprises, cooperative enterprises, joint ownership enterprises, limited liability corporations, share-holding corporations Ltd., private enterprises and other enterprises. Included in the enterprises with investment from Hong Kong, Macau and Taiwan and enterprises with foreign investment are joint-venture enterprises, cooperative enterprises, sole investment enterprises and share-holding corporations Ltd. For government agencies, institutions and social organizations which are not requested to be registered in industrial and commercial administration agencies, they are classified mainly by their sources of funds and way of management.

State-owned Enterprises refer to non-corporation economic units where the entire assets are owned by the state and which have registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporate Enterprises. Excluded from this category are sole state-funded corporations in the limited liability corporations.

Collective-owned Enterprises refer to economic units where the assets are owned collectively and which have registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporate Enterprises.

Cooperative Enterprises refer to a form of collective economic units (enterprises) where capitals come mainly from employees as their shares, with certain proportion of capital from the outside, where production is organized on the basis of independent operation, independent accounting for profits and losses, joint work, democratic management, and a distribution system that integrates remuneration according to work with dividend according to capital share.

Joint Ownership Enterprises refer to economic units established by two or more corporate enterprises or corporate institutions of the same or different ownership, through joint investment on the basis of equality, voluntary participation and mutual benefits. They include state joint ownership enterprises, collective joint ownership enterprises, joint state-collective enterprises, other joint ownership enterprises.

Limited Liability Corporations refer to economic units established with investment from 2-50 investors and registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporations, each investor bearing limited liability to the corporation depending on its share of investment, and the corporation bearing liability to its debt to the maximum of its total assets. Limited liability corporations include exclusive state-funded limited liability corporations and other limited liability corporations.

Share-holding Corporations Ltd. refer to economic units registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporations, with total registered capitals divided into equal shares and raised through issuing stocks. Each investor bears limited liability to the corporation depending on the holding of shares, and the corporation bears liability to its debt to the maximum of its total assets.

Private Enterprises refer to profit-making economic units invested and established by natural persons, or controlled by natural persons using employed labour. Included in this category are private limited liability corporations, private share-holding corporations Ltd., private partnership enterprises and private-funded enterprises registered in accordance with the Corporation Law, Partnership Enterprises Law and Interim Regulations on Private Enterprises .

Other Domestic-funded Enterprises refer to domestic-funded economic units other than those mentioned above.

Cooperative Enterprises with Funds from Hong Kong Macau and Taiwan established by investors from Hong Kong, Macau and Taiwan with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Cooperative Enterprises and other relevant laws, where the investment or provision of facilities, and the share of profits and risks is stipulated in the cooperative contract.

Enterprises with Sole (exclusive) Investment from Hong Kong, Macau and Taiwan refer to enterprises established in the mainland of China with exclusive investment from investors from Hong Kong, Macau and Taiwan in accordance with the Law of the People’s Republic of China on Foreign-Funded Enterprises and other relevant laws.

Share-holding Corporations Ltd. with Investment from Hong Kong, Macau and Taiwan refer to share-holding corporations Ltd. established with the approval from the former Ministry of Foreign Trade and Economic Relations in line with relevant state regulations, where the share of investment from Hong Kong, Macau or Taiwan businessmen exceeds 25% of the total registered capital of the corporation. In case the share of investment from Hong Kong, Macau or Taiwan is less than 25% of the total registered capital, the enterprise is to be classified as domestic-funded share-holding corporation Ltd.

Joint-venture Enterprises with Foreign Investment refer to enterprises jointly established by foreign enterprises or foreigners with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Joint Venture Enterprises and other relevant laws, where the share of investment, profits and risks is stipulated in the contract.

Cooperation Enterprises with Foreign Investment refer to enterprises jointly established by foreign enterprises or foreigners with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Cooperative Enterprises and other relevant laws, where the investment or provision of facilities, and the share of profits and risks is stipulated in the cooperative contract.

Enterprises with Sole (exclusive) Foreign Investment refer to enterprises established in the mainland of China with exclusive investment from foreign investors in accordance with the Law of the People’s Republic of China on Foreign-Funded Enterprises and other relevant laws.

Share-holding Corporations Ltd. with Foreign Investment refer to share-holding corporations Ltd. established with the approval from the Ministry of Foreign Trade and Economic Relations in line with relevant state regulations, where the share of investment from foreign investors exceeds 25% of the total registered capital of the corporation. In case the share of foreign investment is less than 25% of the total registered capital, the enterprise is to be classified as domestic-funded share-holding corporation Ltd.

Gross Domestic Product (GDP) refers to the final products at market prices produced by all resident units in a country (or a region) during a certain period of time. Gross domestic product is expressed in three different forms, i.e. value, income, and products respectively. GDP in its value form refers to the total value of all goods and services produced by all resident units during a certain period of time, minus the total value of input of goods and services of the nature of non-fixed assets; in other term, it is the sum of the value-added of all resident units. GDP in the form of income includes the income created by all resident units and distributed to resident and non-resident units. GDP in the form of products refers to the value of all goods and services for final consumption by all resident units minus the net exports of goods and services during a given period of time. In the practice of national accounting, gross domestic product is calculated with three approaches, i.e. production approach, income approach and expenditure approach, which reflect gross domestic product and its composition from different aspects.

Three Industries Classification of economic activities into three branches of industries is a common practice in the world, although the grouping varies to some extent form country to country. In China economic activities are categorized into following industries:

Primary industry: refers to agriculture, forestry, animal husbandry and fishery.

Secondary industry: refers to mining and quarrying, manufacturing, production and supply of electricity, water and gas, and construction.

Tertiary industry: refers to all other economic activities not included in primary or secondary industry.

Labourers Remuneration refers to the whole payment of various forms earned by the labourers from the productive activities they are engaged in. It includes wages, bonuses and allowances the labourers earned in monetary form and in kind. It also includes the free medical services provided to the labourers and the medicine expenses, traffic subsidies and social insurance, housing fund paid by the employers. As the individual economy is concerned, since the labourers remuneration is not easily distinguished from the operating profit, both are treated as labourers remuneration.

Net Taxes on Production refers to the difference of the taxes on production minus the subsidies on production. The taxes on production refers to the various taxes, extra charges and fees levied on the production units on their production, sale and business activities as well as on the use of some factors of production, such as fixed assets, land and labour force in the production activities they are engaged in. In contrast to the taxes on production, the subsidies on production refer to the unilateral government transfer to the production units and are therefore regarded as negative taxes on production. They include subsidies on the loss due to implementation of government policies, price subsidies, etc.

Depreciation of Fixed Assets refers to the depreciation of fixed assets of a given period, drawn in accordance with the stipulated depreciation rate for the purpose of compensating the wear loss of the fixed assets or the depreciation of fixed assets calculated in a fictitious way in accordance with the stipulated unified depreciation rate in the national economic accounting system. It reflects the value of transfer of the fixed assets in the production of the current period. The depreciation of fixed assets in various enterprises and institutions managed as enterprises refers to the depreciation expenses actually drawn. In government agencies and institutions not managed as enterprises which do not draw the depreciation expenses, as well as for the houses of residents, the depreciation of fixed assets is the imputed depreciation, which is calculated in accordance with the stipulated unified depreciation rate. In principle, the depreciation of fixed assets should be calculated on the basis of the re-purchased value of the fixed assets. However, there is no actual condition to re-evaluate all the fixed assets in China. Therefore, the above-mentioned methods are temporarily adopted at present.

Operating Surplus refers to the balance of the value added created by the resident units deducting the labourers remuneration, net taxes on production and the depreciation of fixed assets. It is equivalent to the business profit of the enterprises plus subsidies on production, but the wages and welfare expenses paid from the profits should be deducted.

GDP by Expenditure Approach refers to the method of measuring the final results of production activities of a country (region) during a given period from the perspective of final use. It includes final consumption expenditure, total capital formation and net export of goods and services, i.e.:

GDP by expenditure approach = final consumption expenditure + total capital formation + net export of goods and services

Final Consumption Expenditure refers to the total expenditure of resident units for purchases of goods and services from domestic economic territory and abroad to meet the requirements of material, cultural and spiritual life. It excludes the expenditure of non-resident units on consumption in the economic territory of the country. The final consumption expenditure is broken down into household consumption expenditure and government consumption expenditure.

Households Consumption Expenditure refers to the total expenditure of resident households on the final consumption of goods and services. In addition to the consumption of goods and services bought by the households directly with money, the households consumption expenditure also includes expenditure on goods and services obtained by the households in other ways, i.e. the so-called imputed consumption expenditure, which includes the following: (a) the goods and services provided to the households by the employer in the form of payment in kind and transfer in kind; (b) goods and services produced and consumed by the households themselves, in which the services refer only to the owner-occupied housing and domestic and individual services provided by the paid household workers; (c) financial intermediate services provided by financial institutions; (d) insurance services provided by insurance companies.

Government Consumption Expenditure refers to the expenditure on the consumption of the public services provided by the government to the whole society and the net expenditure on the goods and services provided by the government to the households free of charge or at low prices. The former equals to the output value of the government services minus the value of operating income obtained by the government departments. The latter equals to the market value of the goods and services provided by the government free of charge or at low prices to the households minus the value received by the government from the households.

Total Capital Formation refers to the fixed assets acquired minus those disposed of and the net value of inventory, including the total fixed capital formation and the increase in inventory.

Total Fixed Capital Formation refers to the value of fixed assets acquired minus those disposed of during a given period. Fixed assets are the assets produced through production activities with specified unit value which could be used for over one year, excluding natural assets. Total fixed capital formation can be categorized into total tangible capital formation and total intangible capital formation. The total tangible capital formation include the value of the construction projects, installation projects completed and the equipment, apparatus and instruments purchased as well as the value of land improved, the value of draught animals, breeding stock, animals for milk, wool and for recreational purpose, and the newly increased forest with economic value during a given period. The total intangible capital formation includes the prospecting of minerals, the acquisition of computer software minus the disposal of them.

Increase in Inventory refers to the market value of the change in inventory of resident units during a given period, i.e. the difference of value between the beginning and the end of the period minus the current gains due to the change in prices. The increase in inventory can be positive or negative. A positive value indicates the increase in inventory while a negative value indicates the decrease in stock. The inventory includes the raw materials, fuels and reserve materials purchased by the production units as well as the inventory of finished products, semi-finished products, work-in-progress, etc.

Net Export of Goods and Services refers to the difference of the exports of goods and services minus the imports of goods and services. The imports include the value of various goods and services sold or gratuitously transferred by the resident units to the non-resident units. The imports include the value of various goods and services purchased or gratuitously acquired by the resident units from the non-resident units. Because the provision of services and the use of them happen simultaneously, the acquisition of services by the resident units from abroad is usually treated as import while the acquisition of services by non-resident units in this country is usually treated as export. The export and import of goods are calculated at FOB.

Comparable Price is applied when comparing value indicators of different periods to reflect accurately the changes in physical value. The price is not considered here. Two methods are used for calculating comparable prices: 1.Multipling the output of products by their constant price of a certain year; 2.Conversion of the data in current prices by relevant price index.

Constant Prices refer to the average price of a given product in a certain year , which is used to calculate the output value over time. As the output value at constant prices removes the factor of price changes, it reflects the trend of production development over time. Since 1949, with the changes in general price level, the State Statistical Bureau has issued nationally unified constant prices for five times: the 1952 constant prices for 1949—1957; the 1957 constant prices for 1958—1970; the 1970 constant prices for 1971—1981; the 1980 constant prices for 1981—1990; the 1990 constant prices have been used since 1991.

Total Population refers to the total number of people alive at a certain point of time within a given area.

Birth Rate (or Crude Birth Rate) refers to the ratio of the number of births to the average population (or mid-period population) during a certain period of time (usually a year), expressed in ‰. Birth rate in the chapter refers to annual birth rate. The following formula is used:

Birth Rate = (Number of Births/Average Number of Population)×1000‰

Number of births in the formula refers to live births, i.e. when a baby has breathed or showed any vital phenomena regardless of the length of pregnancy.

Annual average number of population is the average of the number of population at the beginning of the year and that at the end of the year. Sometimes it is substituted by the mid-year population.

Death Rate (or Crude Death Rate) refers to the ratio of the number of deaths to the average population (or mid-period population) during a certain period of time (usually a year), expressed in ‰. Death rate in the chapter refers to annual death rate. The following formula is used:

Death Rate= (Number of Deaths/Annual Average Number of Population)×1000‰

Natural Growth Rate of Population refers to the ratio of natural increase in population (number of births minus number of deaths) in a certain period of time (usually a year) to the average population (or mid-period population) of the same period, expressed in ‰. The following formula is applied:

Natural Growth Rate of Population = [(Number of Births-Number of Deaths)/Average Number of Population]×1000‰

Natural Growth Rate of Population = Birth Rate-Death Rate

Life Expectancy refers to the average number of years a person of a certain age will live (or the average life-span of an age group if the pattern of morality for this age group remains as it is).

Persons Employed refer to the total number of persons who are engaged in social labor and get labor reward or business earnings, including:

(1)Total staff and workers

(2)Employees in urban private enterprises

(3)Urban individual laborers

(4)Rural laborers

(5)Other social Laborers

This indicator reflects the actual utilization of total labor force during a certain period of time and is often used for the research of our national conditions and national strength.

Persons Employed in Various Units refer to all the persons working in government agencies of various levels, political and party organizations, social organizations, enterprises and institutions, and receiving wages or other forms of payment. They include fully-employed staff and workers, re-employed retirees, teachers in schools run by the local people, foreigners and Chinese compatriots from Hong Kong, Macao, and Taiwan working in various units, part-time employees, employees of other units working temporarily at current posts, and employees holding the second job, but exclude staff and workers who have left their working units while keeping their labour contract (employment relation) unchanged. This indicator reflects the total number of laborers actually engaged in production or other operations in various units.

Persons Employed in Private Enterprises and Self-Employed Individuals in Urban Areas Persons employed in private enterprises refer to the persons employed in the private enterprises which have been registered at the departments of industrial and commercial administration and are situated at a county town (i.e. a town where the county government is located) for business operation or at urban areas with the level higher than a county town. The self-employed individuals in urban areas refer to persons who hold the certificates of residence in urban areas or have resided in the urban areas for a long time and have been registered at the departments of industrial and commercial administration and approved to be engaged in individual industrial or commercial business, including self-employed persons as well as helpers and hired labourers who work in the individual households engaged in industrial or commercial business.

Registered Urban Unemployed Persons refer to the persons with non-agricultural household registration at certain working ages (16-50 years for male and 16-45 years for females), who are capable of work, unemployed and willing to work, and have been registered at the local employment service agencies to apply for a job.

Registered Urban Unemployment Rate refers to the ratio of the number of the registered unemployed persons to the sum of the number of persons employed in various units (minus the rural labour force, retirees, and Hong Kong, Macao, Taiwan or foreign employees they employ) laid-off workers in urban units, owners and employees in urban private enterprises, urban self-employed individuals and the registered urban unemployed persons.

Staff and Workers refer to persons working in, and receive payment from units of state ownership, collective ownership, joint ownership, share holding ownership, foreign ownership, and ownership by entrepreneurs from Hong Kong, Macao, and Taiwan, and other types of ownership and their affiliated units. They do not include 1) persons employed in township enterprises, 2) persons employed in private enterprises, 3) urban self-employed persons, 4) retirees, 5) re-employed retirees, 6) teachers in the schools run by the local people, 7) foreigners and persons from Hong Kong, Macao and Taiwan who work in urban units, and 8) other persons not to be included by relevant regulations. (Data of 1998 and afterward refer to fully employed staff and workers. Other related statistics such as total wage bill and average wage are adjusted since 1998 accordingly).

Fully Employed Staff and Workers refer to persons who work in, and receive wages from their working units, as well as persons who have their work posts, but are temporarily absent from work for reasons of study or on sick, injury or maternal leave and still receive wages from their working units.

Total Wages Bill refer to the total remuneration payment to staff and workers in various units during a certain period of time. The calculation of total wages is based on the total remuneration payment to the staff and workers. Therefore, all the wages and salaries and other payments to staff and workers are included in the total wages regardless of their sources, category, and forms (in kind or cash). (Total wages of staff and workers in this yearbook include only total wages of fully employed staff and workers, excluding the living allowances distributed to those who have left their working units while keeping their labour contract/employment relation unchanged).

Average Wage refers to the average wage in money terms per person during a certain period of time for staff and workers in enterprises, institutions, and government agencies, which reflects the general level of wage income during a certain period of time.

Population of Urban Households refer to members of the household living and sharing economically together. All income and expenditure of the population of the household are included in the income and expenditure of the household.

Proportion of Urban Employment refer to the proportion of employed population to the population of urban households.

Number of Dependents per Urban Employee refers to the ratio between number of persons in urban households and the number of dependents.

Total Income of Urban Households refers to the sum of wage and salary, net business income, income from properties, and income from transfers of members of the households, excluding income from selling of properties and income from borrowings.

Disposable Income of Urban Households refers to the actual income at the disposal of members of the households which can be used for final consumption, other non-compulsory expenditure and savings. This equals to total income minus income tax, personal contribution to social security and sample household subsidy for keeping diaries. Following formula is used:

Disposable income = total household income - income tax - personal contribution to social security - sample household subsidy for keeping diaries

Total Expenditure of Urban Households refer to all expenditure of the households except expenditure on leading. It includes expenditure on consumption, on purchasing or building houses, on transfers, on properties and on social security.

Consumption Expenditure of Urban Households refers to total expenditure of the sample households for consumption in daily life, including expenditure on eight categories such as food, clothing, household appliances and services, health care and medical services, transport and communications, recreation, education and cultural services, housing, miscellaneous goods and services.

Expenditure of Urban Households on Consumption of Services refers to expenditure of households on services of various kinds provided by the society.

Engel Coefficient refers to the percentage of expenditure on food in the total consumption expenditure, using the following formula:

Engel Coefficient = (expenditure on food / total consumption expenditure) x 100%

Rural Households refer to resident households in rural areas. Resident households in rural areas are the households residing for more than one year in the areas under the jurisdiction of administration of township governments (excluding county towns), and in the areas under the jurisdiction of administration of villages in county towns. Migrated households residing in the current addresses for over one year with their household registration in other places are included in the resident households of their current addresses. For households with their household registration in one place but all members of the households moving away for living in another place for over one year, they will not be included in the rural households of the area where they are registered, irrespective of whether they still keep their contracted land.

Full/Semi Labour Force Full labour force refers to persons capable of work, aged 18-50 for males and 18-45 for females. Semi labour force refers to persons capable of work, aged 16-17 and 51-60 for males and 16-17 and 46-55 for females. Persons at their working ages but not capable of work are not to be included as labour force. Persons not at working ages but participating regularly in work are included in semi labour force. For staff and workers as resident population of the household, they are included as full or semi labour force of the household if they are in the labour force.

Total Income refers to the sum of income earned from various sources by the rural households and their members during the reference period, and is classified as income from wages and salaries, income from household operations, income from properties and income from transfers.

Income from Wages and Salaries refers to income from labour earned by the members of rural households employed by other units or individuals.

Income from Household Operations refers to income by the rural households as units of production and operations. Operations by rural households are classified by economic activities as agriculture, forestry, animal husbandry, fishery, manufacturing, construction, transportation, post and telecommunications, wholesale, retail and catering, social service, culture, education, health, and other household operations.

Income from Properties refers to the income received as returns by owners of financial assets or tangible non-productive assets by providing capitals or tangible non-productive assets to other institutional units.

Income from Transfers refers to the receipt by rural households and their members of goods, services, capitals or rights of assets without giving or repaying accordingly, excluding capitals provided to them for the formation of fixed assets. In general, it refers to all income received by rural households through redistribution.

Cash Income refers to income received by rural households and their members in the form of cash during the reference period. It is classified, by source of income, into income from wages and salaries, cash income from household operations, income from properties and income from transfers.

Net Income refers to the total income of rural households from all sources minus all corresponding expenses. The formula for calculation is as follows:

Net income = total income - taxes and fees paid - household operation expenses - taxes and fees depreciation of fixed assets for production - subsidy for participating in household survey - gifts to non-rural relatives

Net income is mainly used as input for reproduction and as consumption expenditure of the year, and also used for savings and non-compulsory expenses of various forms. "Per capita net income of farmers” is the level of net income averaged by population which reflects the average income level of rural households in a given area.

Total Expenditure refers to total expenses of rural households on production, consumption and redistribution, including expenditure on household operations, on purchase of productive fixed assets, depreciation of productive fixed assets, taxes and fees, expenses on household consumption, expenses on properties and expenses on transfers.

Rural Consumer Price Indices reflect the trend and degree of changes in prices of consumer goods and services purchased by rural households during a given period. It can be used to observe the impact of change in retail prices of consumer goods and service prices in rural areas on living expenditure of rural households, and to show the changes in the living standard of peasants. It provides basis for analysis and research on condition of life in rural areas.

Retail Price Indices reflect the trend and degree of change in retail prices of commodities during a given period. The change in retail prices of commodities directly affect the living expenditure of urban and rural residents, government revenue, purchasing power of residents and the equilibrium of market supply and demand, and the ratio of consumption to accumulation. Therefore, the retail price indices are useful to analyze the changes of the above economic activities.

Ex-factory Price Indices of Industrial Products reflect the trend and degree of changes in general ex-factory prices of all industrial products during a given period, including sales of industrial products by an industrial enterprise to all units outside the enterprise, as well as sales of consumer goods to residents. It can be used to analyze the impact of ex-factory prices on gross output value and value-added of the industrial sector.

Indices of Purchasing Prices of Raw Materials, Fuels and Power reflect changes in the level and degree of prices paid by industrial enterprises when they purchase production input such as raw materials, fuels and power from the market or from other energy or raw materials producing enterprises. These indices provide important basis for measuring the material consumption of industrial enterprises after removing influence of price changes.

At present, close to 1,800 products in 9 categories, including fuels and power, ferrous metals, non-ferrous metals, chemicals, building materials, are covered in China for the survey to produce indices of purchasing prices of raw materials, fuels and power.

Total Investment in Fixed Assets in the Whole Country refers to the volume of activities in construction and purchases of fixed assets and related fees, expressed in monetary terms. It is a comprehensive indicator which shows the size, structure and growth of the investment in fixed assets, providing basis for observing the progress of construction projects and evaluating results of investment. Total investment in fixed assets in the whole country includes, by type of ownership, the investment by the state-owned units, collective units, individuals, joint ownership units, share-holding units, as well as investment by businessmen from foreign countries and from Hong Kong, Macao and Taiwan, and by other units.

Investment in Real Estate Development refers to the investment by the real estate development companies, commercial buildings construction companies and other real estate development units of various types of ownership in the construction of house buildings, such as residential buildings, factory buildings, warehouses, hotels, guesthouses, holiday villages, office buildings, and the complementary service facilities and land development projects, such as roads, water supply, water drainage, power supply, heating, telecommunications, land leveling and other projects of infrastructure. It excludes the activities in pure land transactions.

Sources of Funds for Investment in Fixed Assets include fund from state budget, domestic loans, foreign investment, self-raised funds, and others depending on the source of investment.

(1) Fund from state budget consists of budgetary appropriation and loans from state budget. More specifically, it includes, from the budget of the central government, capital construction fund (operation fund and non-operational fund), special expenses (e.g. expenses on substituting petroleum with coal), loans from repayment, discount fund, expenses on innovation and trial production of new products, expenses on urban construction, expenses on temporary construction by trade departments, development fund for less developed areas, as well as local budgetary fund transferred from the central budget.

(2) Domestic loans refer to loans of various forms borrowed by investing units from banks and non-bank financial institutions during the reference period for the purpose of investment in fixed assets, including loans issued by banks from their self-owned funds and deposit, loans appropriated by higher responsible authorities, special loans by government (including loan for substituting petroleum with coal, special loan for reform-through-labour coal mines), loans arranged by local government from special funds, domestic reserve loan, and working loan, etc..

(3) Foreign Investment refers to foreign funds received during the reference period for the construction and purchase of investment in fixed assets (covering equipment, materials and technology), including foreign borrowings (loans from foreign governments and international financial institutions, export credit, commercial loans from foreign banks, issue of bonds and stocks overseas), foreign direct investment and other foreign investment. Excluded in this category are capitals in foreign exchanges owned by China (foreign exchanges owned by the central and local governments, foreign exchanges retained by enterprises, foreign exchanges by enterprises through regulating mechanism, loans in foreign exchanges issued by the Bank of China with its own fund, etc.). In calculating the utilization of foreign capitals, foreign currencies are converted into Chinese Renminbi applying the current exchange rate when the foreign capitals are actually used.

(4) Self-raised funds refer to extra-budgetary funds for investment in fixed assets received by investing units from central government ministries, local governments, enterprises and institutions, including their self-raised funds.

(5) Others refer to funds for investment in fixed assets received from the sources other than those listed above, including capitals raised through issuing bonds by enterprises or financial institutions, funds raised from individuals and through donations, and funds transferred from other units.

Investment in Fixed Assets by Sector The classification of construction projects by sector is determined by the major products or the purpose of the projects when they are put into production or use, and by the nature of their social economic activities. In general, one project or one enterprise or institution can only be classified into one sector.

Investment in Fixed Assets by Type of Construction The construction projects in general can be classified, by the type of construction, into new construction, expansion, reconstruction and technical transformation, moving and restoration. However, investment by type of construction is not applied to investment by real-estate development units, investment in rural areas and investment in housing by urban individuals.

(1) New construction in general refers to newly constructed enterprises, institutions, administrative agencies or independent projects from scratch. Construction in the existing enterprises, institutions or agencies is not considered as new construction. In case the assets of the existing unit is quite small, and the value of newly added fixed assets exceeds the original value of assets by three times, the expansion will be considered as new construction.

(2) Expansion refers to construction of new major production workshop, branch factory or independent production line within a factory or in other locations, for the purpose of increasing the production capacity (or improving efficiency) of the original products. Newly constructed houses for the operation of institutions and administrative organizations (such as the newly constructed buildings for teaching in schools, buildings for clinics or wards in hospitals, etc.) are also classified as expansion.

Also included in the expansion are investments by existing enterprises or institutions in building major production line(s) or branch factory(ies) along with some work on innovation, for the purpose of expending the production capacity of original products or producing new products.

(3) Reconstruction refers to construction projects by existing enterprises or institutions in innovation or technical transformation of the old facilities (including auxiliary production equipment and welfare facilities). Also considered as reconstruction is the construction of new workshops by the existing enterprises or institutions to change the variety of products to meet the market demand (such as the production of civil products by defence industries), or to bring the designed production capacity into full play through a more balanced production process on production lines. Technical transformation refers to replacement of old technology or equipment by new technology or equipment, in order to expand the reproduction through improvement of technology contents in production, to improve product quality, to promote new products, to save energy and reduce consumption and to improve overall social-economic efficiency. Contents of technical transformation include: updating of machinery, equipment and tools; reforming production process by using energy or materials saving technology; construction of factory workshops and transformation of public facilities; improvement of working conditions and environment, etc.

Investment in Fixed Assets by Structure By their contents, investment activities are classified into 3 categories, i.e. construction and installation, purchase of equipment and instrument, and other expenses.

(1) Construction and installation (work volume of construction and installation) refers to the construction of various houses and buildings and installation of various kinds of equipment and instruments. They include construction of various houses; equipment foundations, industrial kilns and stoves, and metal structure work; preparation works for project construction, and clearing up works post project construction; pavement of railways and roads, drilling of mines and putting up of oil pipes; construction of projects of water conservancy; construction of underground air-raid shelters and construction of other special projects; value of equipment for heating, sanitation, ventilation, lighting, gas, painting, etc. that are covered by the budget of housing projects; laying out of various pipelines (for steam, compressed air, petroleum, tap water and sewage) and lines for electric power and for communications; installation of various machinery equipment, testing operation for pre-testing the quality of installation projects, and land and other development work conducted by real estate developers for commercial housing. The value of equipment installed is not included in the value of installation projects.

(2) Purchase of equipment and instruments refers to the total value of equipment, tools, and instruments purchased or self-produced which come up to standards for fixed assets by the construction units or investing enterprises or institutions. Equipment, tools and instruments purchased or self-produced for new workshops by newly established or expanded units are categorized as “purchase of equipment and instruments” no matter whether they come up to the standards for fixed assets.

(3) Other expenses refer to expenses occurring during the construction or purchase of fixed assets other than those mentioned above.

Projects under Construction refer to projects with construction and installation activities undertaken in the reference period. All projects that have construction activities undertaken during the reference period are reported as projects under construction irrespective of the length of construction work. The number of projects under construction can reflect the actual size of investment in fixed assets during a given period, and when compared with the number of projects completed and put into use during the same period, it demonstrates the results of investment in fixed assets. Depending on the nature of construction activities, projects under construction can also be classified into projects under construction in current year, winding-up projects in current year and stopped or suspended projects in previous years (with preservation work in current year).

Projects Completed and Put into Use Industrial projects refer to the major projects and accessory facilities completed which result in forming production capacity and have been checked and accepted while the living and welfare facilities have been completed and can ensure normal production and formally put into production. Non-industrial projects refer to the major projects and accessory facilities completed which possess the designed capacity and have been checked, accepted and formally put into production.

Newly Increased Production Capacity (or Project Efficiency) refers to the increase of designed capacity (or project efficiency) through investment in fixed assets, which reflects the accomplishment of investment in fixed assets in kind and serves as important basis for evaluating the economic efficiency of investment.

The newly increased production capacity (project efficiency) are usually expressed in one of the following forms:

(1) output of products, i.e. the output that the project can produce during a given period (usually a year). For instance, the capacity in coal mining is expressed in 10,000 tons/year, the capacity in producing chemical pesticides expressed in ton/year, the capacity in producing tractors in tractor/year, etc. For some chemical products where the effective contents differ significantly, the production capacity is expressed as the designed effective content equivalent, such as in the case of sulphuric acid, soda ash, caustic soda, etc;

(2) raw materials processing capacity, i.e. the volume of raw materials that could be processed by the project per day (or per hour), such as tons of materials processed per day by a sugar refining project or edible vegetable oil project, or tons of urban sewage processed per day;

(3) number or capacity of major equipment increased, such as number of cotton or silk looms increased, wool spindles increased, or capacity (in kilowatts) of power generators increased; and

(4) physical measures (volume, capacity, area, and length) of construction, which is typical for non-industrial projects, for instance, the length of railways put into operation, the length of highways, the capacity of reservoirs, the capacity of warehouses, the floor space of housing projects, capacity for new students in schools or beds in hospitals, areas under new irrigation project, etc.

Features of projects sometimes call for combined use of two or more measurement to reflect the increased production capacity (or project efficiency), for instance, the new capacity for the production of internal combustion engines are expressed in sets per year and kilowatts per year simultaneously.

To standardize the nomenclature and unit of measurement for new production capacity (or project efficiency), the National Bureau of Statistics has developed Nomenclature and Codes for New Production Capacity (Project Efficiency). All reporting units with investment activities are required to follow these two nomenclatures in reporting statistics on new production capacity (project efficiency).

Floor Space of Buildings under Construction refers to total floor space of the horizontal section of outer walls above the plinth of the building, including the effective area and the area occupied by the structure. This indicator is one of the important indicators in physical terms to reflect the scale and accomplishment of the construction industry, and important basis for monitoring the progress, calculating the cost, analyzing the efficiency and studying the supply of building materials in relation with the construction projects.

Floor Space of Residential Buildings refers to the floor space of the residential buildings among the total space of buildings under construction or completed.

Floor Space under Construction refers to total floor space of all buildings under construction during the reference period, including floor space of newly started buildings during the reference period, floor space of construction extended from the previous period to the current period, and floor space of construction suspended during the previous period and resumed in the current period. Floor space of construction completed in the current period, and floor space of construction started and then suspended in the current period are also included in the floor space under construction of the current year.

Floor Space of Buildings Completed refers to the floor space of all buildings completed in the reference period, which have been appraised and accepted (or come up to the designed standards) and have been transferred to the owners for use.

Completion Rate of Floor Space of Buildings refers to the ratio of the floor space of buildings completed in certain period of time to the floor space of buildings under construction in the same period. This indicator reflects the investment result from the perspective of the speed of construction.

Newly Increased Fixed Assets refer to the newly increased value of fixed assets, constructed or purchased, that have been transferred to the investors. This is an indicator that demonstrates the results of investment in fixed assets in monetary terms, and an important indicator to reflect the speed of construction and to calculate the efficiency of investment.

Rate of Construction Projects Completed and Put into Use refers to the ratio of the number of construction projects completed and put into use in certain period of time to the number of projects under construction in the same period. This reflects the investment efficiency from the perspective of the speed of projects construction.

Rate of Projects of Fixed Assets Completed and Put into Operation refers to the ratio of the newly increased fixed assets to the total investment made in the same period. This is a comprehensive indicator reflecting the speed of the employment of fixed assets and the investment efficiency at the macro-level. As the newly increase fixed assets is the result of a long period while the investment is completed in the current year, this indicator is expected to be used to reflect the employment of fixed assets over a long period of time.

Area of Commercial Housing Sold refers to total contracted area of commercial housing (i.e. area of floor space as designated in the formal contracts signed by both sides) during the reference time. It constitutes floor space of completed housing and floor space of future housing.

Value of Commercial Housing Sold refer to total value of contracts (i.e. value of sales/purchase for selling/purchase of commercial housing as designated in the contracts signed by both sides) during the reference time. It has the same coverage as the area of commercial housing sold, constituting completed housing and floor space of future housing

Production Capacity of Water Supply refers to the designed comprehensive production capacity of water facilities, covering the 4 links of water collection, purification, conveyance, and outflow through trunk pipelines. Increase capacity through transformation and innovation projects are included as well. The capacity is determined mainly on the weakest of the above-mentioned 4 links.

Length of Water Supply Pipelines at the Year-end refers to the total length of all the pipelines between the water pumps and the user water meters, excluding pipelines newly installed but not used yet.

Annual Volume of Water Supply refers to the total volume of water supplied by water-works (units) during the reference period, including both the effective water supply and loss during the water supply.

Consumption of Water for Residential Use refers to the water consumption of households for daily life and the water consumption of public service facilities. The latter refers to water consumption for urban public services, including the consumption of government agencies and public institutions, military barracks, public facilities, wholesale and retail outlets, restaurants, hotels, and other units providing public services. Household water consumption refers to consumption of water for daily life of all households in the boundary of cities, including households of urban residents and farmers, and public water supply stations.

Percentage of Urban Population with Access to Tap Water refers to the ratio of the urban population with access to tap water to the total urban population. The formula is:

Percentage of population with access to tap water= (Urban population with access to tap water) / (Urban population)×100%

Volume of Gas Supply refers to the total volume of gas provided to users by gas-producing enterprises (units) in a year, including the volume sold and the volume lost.

Percentage of Urban Population with Access to Gas refers to the ratio of the urban population with access to gas to the total urban population at the end of the reference period. The formula is:

Percentage of population with access to gas = (Urban population with access to gas / Urban population) x 100%

Length of Paved Roads at the Year-end refers to the length of roads with paved surface including squares bridges and tunnels connected with roads by the end of the year. Length of the roads is measured by the central lines for vehicles for paved roads with a width of 3.5 meters and over, including roads in open-ended factory compounds and residential quarters.

Length of Urban Sewage Pipes refers to the total length of general drainage, trunks. branch and inspection wells, connection wells, inlets and outlets, etc.

Daily Disposal Capacity of Urban Sewage refers to the designed 24 hour capacity of sewage disposal by the sewage treatment works or facilities.

Number of Vehicles under Operation at the Year-end refers to the total number of vehicles under operation by public transport enterprises (units) at the end of the year, based on the records of operational vehicles by the enterprises (units).

Area of Urban Gardens and Green Areas refers to the total area occupied for green projects at the end of the reference period, including public green land, green land in residential quarters, green land attached to institutions, protection green land, production green land, roadside green land and forest in scenic spots. It does not include the following:

(1) Greenery and plants on roofs, balconies, indoors and vertical green areas;

(2) Forest, cultivated land, grassland, orchards and bamboo grooves that are for production purpose; and

(3) Water areas that are not included in urban master plan as green land.

Public Green Area refers to green areas open to the public such as municipal, community and neighborhood parks and roadside parks, including waters within parks. Neighborhood parks should occupy an area larger than 10,000 square meters, and the width of roadside parks should occupy an area larger than 400 square meters, with a width of more that 8 meters.

Waste Water Discharged by Industry refers to the volume of waste water discharged by industrial enterprises through all their outlets, including waste water from production process, directly cooled water, groundwater from mining wells which does not meet discharge standards and sewage from households mixed with waste water produced by industrial activities, but excluding indirectly cooled water discharged (It should be included if the discharge is not separated with waste water).

Industrial Waste Water Meeting Discharge Standards refers to volume of industrial waste water discharge which, with or without treatment, reaches national or local standards with regard to all pollutants.

Ratio of Industrial Waste Water Meeting Discharge Standards refers to percentage of industrial waste water meeting discharge standards over total industrial waste water discharge. It is calculated as:

Ratio of industrial waste water meeting discharge standards = industrial waste water meeting discharge standards / total industrial waste water discharge

Chemical Oxygen Demand (COD) refers to index of water pollution measuring the mass concentration of oxygen consumed by the chemical breakdown of organic and inorganic matter.

Industrial Waste Air Emission refers to discharge into atmosphere of waste air containing pollutants generated from fuel burning and production process in enterprises within a given period of time. It is calculated at standard status (273K, 101325Pa) as:

Industrial waste air emission = emission through fuel burning + emission through production process

SO2 Emission through Industrial Activities refers to volume of sulphur dioxide emission from fuel burning and production process by enterprises during a given period of time. It is calculated as:

SO2 emission through industrial activities = SO2 emission from fuel burning + SO2 emission from production process

Industrial Soot Emission refers to volume of soot in smoke emitted in process of fuel burning in premises of enterprises.

Industrial Dust Emission refers to volume of dust emitted by production process of enterprises and suspended in the air for a given period of time, including dust from refractory material of iron and steel works, dust from coke-screening systems and sintering machines of coke plants, dust from lime kilns and dust from cement production in building material enterprises, but excluding soot and dust emitted from power plants.

Industrial Solid Wastes Produced refers to total volume of solid, semi-solid and high concentration liquid residues produced by industrial enterprises from production process in a given period of time, including hazardous wastes, slag, coal ash, gangue, tailings, radioactive residues and other wastes, but excluding stones stripped or dug out in mining (gangue and acid or alkaline stones not included). A stone is acid or alkaline depending on the pH value of the water below 4 or above 10.5 when the stone is in, or soaked by, the water.

Industrial Solid Wastes Utilized refers to volume of solid wastes from which useful materials can be extracted or which can be converted into usable resources, energy or other materials by means of reclamation, processing, recycling and exchange (including utilizing in the year the stocks of industrial solid wastes of the previous year). Examples of such utilizations include fertilizers, building materials and road materials. The information shall be collected by the producing units of the wastes.

Ratio of Industrial Solid Wastes Utilized refers to the percentage of industrial solid wastes utilized over industrial solid wastes produced (including stocks of the previous years). It is calculated as:

Ratio of industrial solid wastes utilized = volume of industrial solid wastes utilized / (industrial solid wastes produced + stock of previous years) ×100%

Stocks of Industrial Solid Wastes refers to volume of solid wastes placed in special facilities or special sites for purposes of utilization or disposal. The sites or facilities should take measures against dispersion, loss, seepage, and air and water contamination.

Industrial Solid Wastes Disposed refers to quantity of industrial solid wastes which are burnt or placed ultimately in the sites meeting the requirements for environmental protection and not salvaged or recycled (including disposition in the year of those wastes of previous years). The disposition includes landfill (Safe landfills should be conducted for hazardous wastes), incineration, containment spaces, deep underground disposal, backfill in mining pits and disposal at sea.

Industrial Solid Wastes Discharged refers to volume of industrial solid wastes discharged by producing enterprises to disposal facilities or to other sites. The wastes exclude stones stripped or dug from mining (gangue and acid or alkaline waste stones not included).

Output Value of Products Made from Waste Gas, Waste Water and Solid Wastes refers current value of products with waste gas, waste water and solid wastes as main materials of production. Products sold and ready to sell shall be included while those produced for own use shall not be included.

Ratio of Consumption Wastes Treated refers to consumption wastes treated over that produced. In practical statistics, as it is difficult to estimate, the volume of consumption wastes produced is replaced with that transported. It is calculated as:

Ratio of consumption wastes treated = consumption wastes treated / consumption wastes produced×100%

Gross Output Value of Farming, Forestry, Animal Husbandry and Fishery refers to the total value of products of farming, forestry, animal husbandry and fishery, and total value of services rendered to support farming, forestry, animal husbandry and fishery activities.

Gross output value of agriculture is obtained by first multiplying the output of each product or by product by its price, resulting in the output value of each single item. For a small number of products, annual output of which is not available or difficult to get due to the long production (growing) process involved, the output value is estimated through an indirect approach. The sum of output value of all products of farming, forestry, animal husbandry and fishery is then equal to the gross output value of agriculture.

Grain Output refers to the total output in the whole country including grains produced by state farms, collective units, rural households, as well as by farms affiliated to industrial and mining enterprises and other production units.

Output of Oil-bearing Crops refers to the total production of oil-bearing crops of various kinds, including peanuts, (dry, in shell) rapeseeds, sesame, sunflower seeds, flax seeds, and other oil-bearing crops. Soybeans, oil-bearing woody plants, and wild oil-bearing crops are not included.

Output of Aquatic Products refers to catches of both artificially cultured and naturally grown aquatic products, including fish, shrimps, crabs and shellfish in sea and inland water as well as seaweed. Freshwater plants are not included.

Output of Pork, Beef, and Mutton refers to the meat of slaughtered hogs, cattle, sheep and goats with head, feet, and offal taken away.

Number of Livestock or Poultry in Stock at Beginning (or End) refers to the total number of large animals, pigs, sheep, fowls, etc. raised by rural cooperative organizations, state farms, rural individuals, government agencies, schools, industrial and mining enterprises, army, and urban residents at the beginning (or end) of the reference period. Data reporting system and data adjustment are the same as that in the output of pork, beef and mutton.

Sown Area of Crops refers to area of land sown or transplanted with crops regardless of being in cultivated area or non-cultivated area. Area of land re-sown due to natural disasters is also included. This is an important indicator that can reflect the utilization condition of the cultivated land in China. At present, the sown area of crops mainly include the following 9 categories of crops: grain, cotton, oil-bearing crops, sugar crops, fiber crops, Tobacco, Vegetables and melons, medicinal materials and other farm crops.

Irrigated Area refers to areas that are effectively irrigated, i.e. level land, which has water source and complete sets of irrigation facilities to lift and move adequate water for irrigation purpose under normal conditions. Under normal conditions, irrigated area is the sum of watered fields and irrigated fields where irrigation systems or equipment have been installed for regular irrigation purpose. This important indicator reflects drought resistance capacity of the cultivated land in China.

Consumption of Chemical Fertilizers in Agriculture refers to the quantity of chemical fertilizers applied in agriculture in the year, including nitrogenous fertilizer, phosphate fertilizer, potash fertilizer, and compound fertilizer. The consumption of chemical fertilizers is required in calculation to convert the gross weight into weight containing 100% effective component (e.g. 100% nitrogen content in nitrogenous fertilizer, 100% phosphorous pent oxide contents in phosphate fertilizer, 100% potassium oxide contents in potash fertilizer). Compound fertilizer is converted with its major component. The formula is :

Volume of effective component= physical quantity x effective component of certain chemical fertilizer (%)

Total Power of Farm Machinery refers to total mechanical power of machinery used in farming, forestry, animal husbandry, and fishery, including ploughing, irrigation and drainage, harvesting, transport, plant protection, stock breeding, forestry and fishery. The power of internal combustion engines is required to convert horsepower into watts and the power of electric motors is required to be converted into watts. Machinery employed for non-agricultural purposes, such as the machines used in township run and village-run industry, construction, non-agricultural transport, scientific experiments and teaching, is excluded. Data are mainly from agricultural machinery agencies.

Rural Employed Persons refer to rural labor forces aged over 16 years old who are engaged in real production and management activities and receive payment in kind or wages, including those covered within the age frame and regularly participating in production activities, and those who are out of the range of age frame and also participating in production activities regularly. Excluding students studying in other places with their permanent residence registered in local areas, servicemen and persons incapable of working; also excluding those who are waiting for jobs and those engaged in household work. Persons employed are classified as persons engaged in agriculture, forestry, animal husbandry or fishery activities; persons engaged in industrial activities; persons engaged in construction activities; persons engaged in transport, storage and telecommunications activities; persons engaged in whole sales and retail sales trade and catering activities; and persons engaged in other non-agriculture activities, depending upon the longest period of employment in major activities (or using income indicator when period of employment is the same).

Industry refers to the material production sector which is engaged in extraction of natural resources and processing and reprocessing of minerals and agricultural products, including (1) extraction of natural resources, such as mining, salt production (but not including hunting and fishing); (2) processing and reprocessing of farm and sideline produces, such as rice husking, flour milling, wine making, oil pressing, silk reeling, spinning and weaving, and leather making; (3) manufacture of industrial products, such as steel making, iron smelting, chemicals manufacturing, petroleum processing, machine building, timber processing; water and gas production and electricity generation and supply; (4)repairing of industrial products such as the repairing of machinery and means of transport (including cars).

Units of industrial statistics survey corporate industrial enterprises with independent accounting system.

Corporate industrial enterprises with independent accounting system refer to enterprises engaging in industrial production activities, which meet the following requirements: (1)They are established legally, having their own names, organizations, location, able to take civil liability; (2)They possess and use their assets independently, assume liabilities, and are entitled to sign contracts with other units; (3)They are financially independent and compile their own balance sheets.

Light Industry refers to the industry that produces consumer goods and hand tools. It consists of two categories, depending on the materials used:

(1) Industries using farm products as raw materials. These are branches of light industry which directly or indirectly use farm products as basic raw materials, including the manufacture of food and beverages, tobacco processing, textile, clothing, fur and leather manufacturing, paper making, printing, etc.

(2) Industries using non farm products as raw materials. These are branches of light industry which use manufactured goods as raw materials, including the manufacture of cultural, educational articles and sports goods, chemicals, synthetic fiber, chemical products for daily use, glass products for daily use, metal products for daily use, hand tools, medical apparatus and instruments, and the manufacture of cultural and clerical machinery.

Heavy Industry refers to the industry which produces capital goods, and provides various sectors of the national economy with necessary material and technical basis. It consists of the following three branches according to the purpose of production or the use of products:

(1) Mining, quarrying and logging industry refers to the industry that extracts natural resources, including extraction of petroleum, coal, metal and non-metal ores.

(2) Raw materials industry refers to the industry that provides various sectors of the national economy with raw materials, fuels and power. It includes smelting and processing of metals, coking and coke chemistry, chemical materials and building materials such as cement, plywood, and power, petroleum refining and coal dressing.

(3) Manufacturing industry refers to the industry that processes raw materials. It includes machine-building industry which equips sectors of the national economy, industries of metal structure and cement products, industries producing means of agricultural production, such as chemical fertilizers and pesticides.

According to the above principle of classification, the repairing trades, which are engaged primarily in repairing products of heavy industry are classified into heavy industry while these engaged in repairing products of light industry are classified into light industry.

Gross Industrial Output Value Gross industrial output value is the total volume of final industrial products produced and industrial services provided during a given period. It reflects the total achievements and overall scale of industrial production during a given period. The revised (new) definition of gross industrial output value consists of 3 components: value of the finished products during the reference period, income from external processing, and value of change in semi-finished products at the end and at the beginning of the reference period.

Value of the finished products during the reference period: refers to the value of all finished (semi-finished) industrial products that are produced during the reference period without the need for further processing, checked for acceptance, packed and put into the warehouse of the enterprise, including the value of own-produced equipment and the value of products provided to the projects under construction of the enterprise, and to other non-industrial or welfare units. Value of finished products during the reference period is calculated by the quantity of products produced using own materials multiplied by the average unit prices at which products are sold (excluding value-added tax). Own-produced equipment and products produced for own use are value at cost prices as in the case of enterprise accounting. Value of finished products does not include the value of finished products (semi-finished products) that are produced using the materials from the clients who make the orders.

Income from external processing: refers to income from contracted external processing of industrial products (including processing of industrial products using materials from the clients), and the income from industrial repairing work provided to other units. Income from external processing is calculated using information from the item “products sales income” in the enterprise accounting at the prices excluding value-added tax.

For income from services such as processing, repairing and installation of equipment provided to non-industrial units within the enterprise, if the accounting work of the enterprise is good enough to separate it from other records, and the share of such services is significant, it should also be included in the income from external processing.

Value of change in semi-finished products at the end and at the beginning of the reference period: refers to the value of change in semi-finished products at the end and at the beginning of the reference period, which generally can be obtained from accounting records of enterprises. If the enterprise accounting excludes the cost of semi-finished products, then it should not be included in the gross industrial output value, and vice versa.

Value-added of Industry refers to the final results of industrial production of industrial enterprises in money terms during the reference period.

Total Assets refer to all economic resources, in monetary terms, that is owned or controlled by enterprises, including properties, creditors equity and other economic rights of all forms. Classified by the degree of equitability, total assets include circulating assets, long-term investment, fixed assets, intangible assets and deferred assets, and other assets. Data on this indicator can be obtained by the year-end figures of total assets in the Assets and Liability Table of accounting records of enterprises.

Working Capitals refer to capitals that an enterprise can cash or use during one year or one production cycle that may exceeds one year, including cash and savings deposits of various forms, short-term investment, money receivable and prepaid money, inventories, etc.

Annual Average Value of Working Capitals refers to the average value of all working capitals of the enterprise during the reference period.

Original Value of Fixed Assets refers to the total value, in monetary terms, that an enterprise spent on fixed assets, through construction, purchase, installation, transformation, expansion or technical upgrading. Generally, it covers cost of purchase, packing, transportation and installation, etc.

Annual Average of Net Value of Fixed Assets refer to average of the net value of fixed assets during the reference period, calculated with the following formula:

Annual Average of Net Value of Fixed Assets = sum of net value of fixed assets at the beginning and at the end of each month from January to December / 24.

Information on this indicator can be obtained from the beginning and ending figures of the original value of fixed assets and cumulative depreciation from the Assets and Liability Table of enterprises.

Net value of fixed assets refers to the original value of fixed assets minus depreciation over the years, i.e.:

Net value of fixed assets = original value of fixed assets cumulative depreciation

Total Liabilities refer to payable liabilities of enterprises that have to repay in terms of money, assets or labour services. In terms of payment, it can be divided into liquid liabilities and long-term liabilities. Data on this item is obtained from the ending figures on total liabilities from the Assets and Liability Table from the enterprises.

Owner’s Equity refers to the ownership of net assets of enterprise by its investors. The net assets equal the total assets minus total liabilities of the enterprise, including the actual assets invested into the enterprise by investors, accumulation of capitals and operating surplus and non-distributed profits. The enterprise’s assets is less than its liabilities if the sum of owner’s equity is smaller than zero.

Revenue from Principal Business refers to the annual accumulation of corresponding item in the “profit table” of the accountant. For enterprises that do not follow the 2001 Enterprise Accounting Standards, the year-end accumulation of revenue from the sales of products is used as a substitute.

Cost of Principal Business refers to the annual accumulation of corresponding item in the “profit table” of the accountant. For enterprises that do not follow the 2001 Enterprise Accounting Standards, the year-end accumulation of cost for the sales of products is used as a substitute.

Tax and Extra Charges from Principal Business refer to the annual accumulation of corresponding item in the “profit table” of the accountant. For enterprises that do not follow the 2001 Enterprise Accounting Standards, the year-end accumulation of tax and extra charges from the sales of products is used as a substitute.

Total Profits refer to the final achievements of production and operation of the enterprises, represented by the total profits after deducting losses (loss is expressed by the negative figure). It is the sum of profits from operation, income from subsidies, investment earnings, net income from activities other than operation, and adjustment of profits and losses of previous years.

Value-added Tax Payable refers to the amount of the value-added tax which should be paid by the enterprises during the reference period. It is the sum of tax on sales, export rebate, and transferred tax on purchases of the current year, minus the tax on purchases of the current year. Value-added tax payable of small-size enterprises is determined by the taxable sales of the year multiplied by the tax rate.

Average Annual Number of Employed Persons Employed persons refer to all those who are employed in enterprises and receive remunerations therefrom, including currently working employees, retirees who are re-employed, teachers of local-run schools, as well as foreigners, staff from Hong Kong, Macao and Taiwan, part-time employees and persons with second job who are employed by the enterprise, and employees of other units temporarily working in the enterprises, but excluding former employees who left the enterprise with their employment records still kept by the enterprises.

Average number of employed persons refers to the number of employees everyday during the reference period, calculated with the following formula:

Monthly average number = sum of actual employees everyday in reference month/number of calendar dates in reference month

Quarterly average number = sum of monthly average number in reference quarter/3

Annual average number = sum of monthly average number in reference year/12

Statistical Unit in Construction refers to corporate enterprise engaged in the construction of buildings and structures and in the installation of equipment. A corporate construction enterprise should have qualification certificates with independent accounting system, and should meet the following 3 requirements: a) being set up in line with relevant legal basis, having its full name, organization and location, and capable of taking civil liabilities; b) independently possessing and using its assets and assuming its liabilities, and entitled to sign contracts with other institutions; and c) making independent accounts of its profits and losses, and capable of compiling its own balance sheet.

Gross Output Value of Construction refers to total of construction products and services, expressed in money terms, produced or rendered by construction and installation enterprises during a given period of time. It includes:

(1) Output value of construction projects, that is the value of projects covered by the project budgets;

(2) Output value of installation projects, that is the value of the installation of equipment, (excluding the value of the equipment to be installed);

(3) Output value of others, that is the output value of construction industry excluding that of construction projects and installation projects. It includes: output value of repair of buildings and structures; output value of non-standard equipment manufacturing; overhead expenses received by contracted enterprises to the sub-contracted enterprises and the completed output value of construction activities that have no clear definition.

a. Output value of repair of buildings and structures, that is the value created through the repairs of buildings or structures, but does not include the value of buildings or structures being repaired and the value of the repair of production equipment;

b. Output value of manufactured non-standard equipment, that is the value of non-standard production equipment including raw materials and manufacturing cost made for the construction project (i.e., chemical plant; kettles or tanks used by refineries; various fillers, triangle tanks, valves used by mines), and the output value of equipment manufactured by subsidiary workshops.

Value-added of Construction refers to the final result of the activities of production and management of construction industry in monetary terms in the reference period.

Floor Space of Buildings Under Construction refers to floor space of buildings under construction during the reference period, including newly started buildings, buildings started earlier and continued during the reference period, and buildings suspended earlier but restarted during the reference period, buildings completed during the reference period, and buildings under construction and then suspended during the reference period.

Floor Space of Buildings Completed refers to the floor space of buildings that are completed in the reference period in accordance with the requirements of the design, up to the standard for putting them into use, and have been checked and accepted by concerned departments as qualified ones.

Length of Railways in Operation refers to the total length of the trunk line under passenger and freight transportation (including both full operation and temporary operation). The calculation is based on the actual length of the first line even if this line has a full or partial double track or more tracks, excluding double tracks, station sidings, tracks under the charge of stations, branch lines, special-purpose lines and the non-payable connecting lines. The length of railways in operation is an important indicator to show the development of the infrastructure for the railway transport, and also the essential data to calculate volume of passenger freight transport, traffic density and utilization efficiency of the locomotives and carriages.

Length of Highways refers to the length of highways which are built in conformity with the grades specified by the highway engineering standard formulated by the Ministry of Communications, and have been formally checked and accepted by the departments of highways and put into use. The length of highways includes that of the suburb highways at large and medium-sized cities, highways passing through streets at small cities and towns, and also the length of bridges and ferries. It does not include the length of streets in big and medium-sized cities and highways built for the production purpose at factories, mines, forest areas and agricultural areas. If two or more highways go the same section of the way, the length of the section is only calculated for once and no duplication is allowed. The length of highways is an important indicator to show the development of the highway construction and to provide essential information to calculate the transport network density.

Length of Navigable Inland Waterways it is an indicator reflecting the size and development of inland water network, it refers to the length of the natural rivers, lakes, reservoirs, canals, and ditches open to navigation during a given period, which enables the transport by ships and rafts. It includes the channels open to navigation for over an accumulative 3 months in a year, yet this does not include the river courses, which are only used to float odd logs and bamboo rafts. This indicator can reflect the scale, level and development situation of the inland waterway network.

Freight (Passenger) Traffic refers to the volume of freight (passenger) transported with various means. Freight transport is calculated in tons and passenger traffic is calculated in the number of persons. Despite the type of freight and traveling distance, the freight transport is calculated in the actual weight of the goods: and despite the traveling distance and ticket price, the passenger traffic is calculated by the principle that one person can be counted only once in one travel. The passengers who travel with a half price ticket or a child ticket is also calculated as one person. The freight (passenger) traffic provides a quantitative measure to show how the transport industry serves the national economy and people, and is also an important indicator for planning the transport industry and for studying the development scale and speed of the transport industry.

Freight Ton-kilometers (Passenger-kilometers) refer to the sum of the products of the volume of transported cargo (passengers) multiplying by the transport distance. It is an important indicator to reflect the achievement of transportation industry. Normally, the shortest distance between the departure station and the destination station (i.e., the payable distance) is the basis to calculate the freight ton-kilometers. This is an important indicator to show the total results of the transport industry, to prepare and examine the transport plan and to measure the efficiency, the labour productivity and the unit cost of transport.

The formula is as follows:

Freight ton-kilometers (passenger-kilometers) =∑{freight (passenger) traffic × distance of transportation}

Possession of Civil Motor Vehicles refer to the total numbers of vehicles that are registered and received vehicles license tags according to the Work Standard for Motor Vehicles Registration formulated by transport management office under department of public security at the end of reference period. They are divided into following categories according to the structure of motor vehicles: passenger vehicles, trucks and others; and private vehicles and vehicles for units use according to ownerships; working vehicles and non-working vehicles according to kind of usage; large passenger vehicles, medium passenger vehicles, small passenger vehicles and mini passenger vehicle, heavy trucks, light-heavy trucks, light trucks and mini trucks according to sizes of vehicles.

Business Volume of Post and Telecommunications refers to the total amount of post and telecommunication services, expressed in value terms, provided by the post and telecommunications departments for the society. Post and telecommunication services can be classified as letters, parcels, remittance, issue of newspapers and magazines, fast mail service, express mail service, savings deposits, stamps for collection, public and individual telegraph service, facsimiles, long-distance telephone service, leasing of telephone lines, urban paging service, mobile telephone service, data transfer and transmission, etc. The accounting approach is to multiply the service products of all types with their average unit price (constant price) to get sum of business value, plus income from other services such as leasing of telephone lines and equipment, maintenance of telephone switchboards and lines on behalf of customers. This indicator reflects the overall results of post and telecommunications service during a given period, and is important to study the composition of business service and the development of post and telecommunications service.

The formula is as follows:

Business volume of post and telecommunications=∑(Transaction of post and telecommunication service x constant price) + Income from leasing, maintenance and other services = business volume of postal service + business volume of telecommunications service

Mobile Telephone Subscribers refer to the persons who own mobile telephone numbers and are connected with the mobile telephone communication network through the mobile telephone switchboards, including contracted subscribers and pre-paid subscribers for intelligent network. One mobile telephone is taken as a subscriber.

Internet Users refer to the number of Chinese citizens who use Internet at least for one hour each week.

Local Telephone Subscribers refer to subscribers that are connected to the local telecommunication service provider through fix line network, including household subscribers, institutional subscribers and public telephones. They are also classified as city subscribers and rural subscribers according to locations. Before 1997, city subscribers referred to those connected to city telephone networks in county towns and cities, while village subscribers referred to those connected to village telephone stations at and below counties. Since 1997, the classification of telephone subscribers was modified on the basis of physical location of the subscribers as urban telephone subscribers and rural telephone subscribers, which is different from the previous classification of categorizing local telephones and rural telephones, while the definition of total subscribers and total number of telephones remain unchanged.

Urban Telephone Subscribers refer to number of telephone subscribers, located at municipalities, cities under the jurisdiction of province, cities at prefecture level, downtown and suburb of city at county level town and county towns (including country towns where county government located, and towns of county level according to the administrative organizational system), that are connected to the public line telephone network, including rural mineral area, forest area, military area.

Rural Telephone Subscribers refer to telephone subscribers, located at counties (towns) and villages outside the range of cities according to administrative jurisdiction.

Household Telephone Subscribers refer to telephone sets installed in the dwelling units of urban or rural residents, and registered as residence subscribers for payment, including 3 types of payment for the service: private payment, public payment and free service.

Capacity of Long Distance Telephone Exchanges refers to the rated capacity of telephone exchanges to connect long distance telephone network, including capacity of international telephone exchanges.

Total Retail Sales of Consumer Goods refer to the sum of retail sales of commodities sold by wholesale, retail, catering, publishing, post and telecommunications and other service industries to urban and rural households for private consumption and to social institutions for public consumption. Retail sales of consumer goods include:

1) Sales by wholesale and retail units:

a) of consumer goods sold to urban and rural households

b) of commodities sold to foreigners, overseas Chinese and Chinese compatriots from Hong Kong, Macao and Taiwan visiting in China

c) of commodities sold to government agencies, institutions, social organizations, military and armed police units, and commodities sold to enterprises in the form of retail sales. More specifically, they include: office facilities and articles for non-production purposes such as communications equipment, computing equipment and instruments, TV and network equipment, printing and copying equipment, audio-visual equipment and instruments, paper, notebooks, stationeries, furniture, electric appliances, knitwear, sanitation and cleaning articles, cultural and sport articles, articles for prizes, souvenirs, etc.; transport vehicles and fuels for employees; materials, spare parts and tools for the maintenance of office facilities; equipment, fuels, materials and food for winter heating or summer cooling purposes; articles and equipment for teaching purpose; Chinese and western medicines and medical equipment and facilities purchased by non profit-making medical institutes; non-specialized work safety articles; cooking utensils, tableware, equipment, cleaning articles, food and fuels purchased by internal cafeterias; clothes and personal articles purchased by military or armed police units for their officials and soldiers; and other equipment and articles for non-production purposes.

2) Sales of stable food, cooked dishes, beverages, tobaccos and other articles by catering units.

3) Sales of books, newspapers, magazines, audio-visual products and post products by publishing, post and telecommunications departments to urban and rural households and to enterprises, institutions, military and armed police units.

4) Sales of food, beverages, tobaccos, clothing, hats, footwear, articles for daily use, medicines, medical and health articles, work of art, handicrafts, toys, funeral articles and other articles by other service industries.

Purchase, Sales and Stock of Commodities by Wholesale and Retail Trades refer to the total volume of commodities purchased, total volume of sales and exports, and the stock of commodities by wholesale and retail enterprises (establishments) of different status of registration from domestic and overseas markets. This indictor reflects the relationship among purchase, sales and stock of commodities in the circulation of goods and reveals the existing problems.

Total Purchases of Commodities refer to the total value of purchases of commodities by the enterprises (establishments) from other establishments or individuals (including direct import from abroad) for the purpose of re-selling, either with or without further processing of the commodities purchased. This indicator is used to show the total value of purchases of commodities by wholesale and retail establishments from domestic and overseas markets. The total purchases include: (1) agricultural and industrial products purchased from producers; (2) books, magazines and newspapers purchased from distribution departments of the publishers; (3) commodities purchased from wholesale and retail establishments of different status of registration; (4) commodities purchased from other units, such as surplus materials purchased from government agencies, enterprises or institutions, commodities purchased from catering and service establishments, confiscated goods purchased from customs authorities or market management agencies, second-hand goods and wastes purchased from residents; and (5) commodities directly imported from abroad. Excluded are commodities purchased by enterprises (establishments) for use in their own business operation, commodities obtained without buying or selling procedures, rejected commodities, etc.

Total Sales of Commodities refer to value of commodities sold by the establishments to other establishments and individuals (including direct export). This indicator is used to show the total value of sales of commodities at domestic markets and export. The total sales include: (1) commodities sold to urban and rural residents and social groups for their consumption; (2) commodities sold to establishments in industry, agriculture, construction, transportation, post and telecommunications, wholesale and retail trades, catering trade and public utility for their production and operation; (3) commodities sold to wholesale and retail establishments for re selling, with or without further processing; and (4)commodities for direct export to other countries. Excluded are selling of waste packaging materials used by the establishments (units) themselves, commodities transferred without buying or selling procedures, commission income from brokerage in transactions whose settlement is directly handled by buyers and sellers, rejected commodities in the purchase, loss in commodities, etc.

Commodity Stock of Wholesale and Retail Enterprises refers to total commodities possessed by wholesale and retail enterprises (units) of various types of registration status at the end of the reference period, which reflects the commodity stock level of various wholesale and retail enterprises and the potential for market supply. It includes: (1) commodities located in storage, garages, counters, and shelves of operating units (such as sale stores, wholesale centers, and operating offices) of wholesale and retail enterprises; (2) commodities in the process of selecting, sorting, and packing; (3) commodities not arrived but recorded as purchase in the account, i.e. commodities not arrived but payment receipts for the commodities from the sellers or the banks arrived; (4) commodities deposited in other places rather than places mentioned above, for instance: commodities in the hold of purchasers temporarily due to the refusal of payment and commodities not taken back after going through the formalities; (5) commodities entrusted to other units to sell but not sold yet; (6) commodities purchased for other units but not delivered yet. Commodities not included as stock are those not owned by the enterprises (units), those allocated to financially independent factories rather than wholesale and retail enterprises for processing but not taken back yet, and finally those put in stock by wholesale and retail enterprises on behalf of the state material reserves units.

For the calculation of the value of commodities stock, the value is calculated at purchasing prices in agricultural goods purchasing units and wholesale units, and at the accounting prices in retail units.

Business Revenue of Hotels and Catering Services: refer to revenue received from providing services or selling commodities by corporate enterprises and establishments engaged in hotel and catering services, including income from hotel rooms, from catering services, from selling of commodities and from other services. Income from hotel rooms refers to income of corporate enterprises and establishments by providing lodging services. Income from catering services refers to income of corporate enterprises and establishments by providing catering services, including selling of cooked or prepared foods such as stable food, cooked dishes or cold dishes. Income from selling of commodities refers to income of corporate enterprises and establishments by selling commodities that accompany the services they provide. Income from other activities refers to income received other than income from hotel rooms, catering services or selling of commodities, such as income from providing recreation, fitness or business services.

Volume of Transaction at Large Commodity Markets (with transaction value over 100 million yuan) refers to markets approved by the industrial and commercial administration departments, which specialize in wholesale and retail of commodities with an annual transaction of over 100 million yuan. The sum of sales of all sellers in the markets makes up the transaction value of the markets.

Chain Enterprises (also called chain stores or chain corporations) refer to a form of joint economic entities under which scattered enterprises or establishments engaged in providing homogeneous commodities or services, with the central leadership of core enterprise or headquarters and guided by common policies, conduct centralized purchase and distributed selling of commodities, in order to gain better efficiency through standardized operation. Consisting of a number of branch stores, the chain stores have in general following features: 1) homogeneous commodities, 2) unique name of stores, 3) centralized purchase and delivery which is separated from distributed selling operation (most commodities are delivered from the headquarters except some items which, from logistics, quality or freshness considerations, might be delivered by the suppliers directly).

Chain stores have 3 categories:

a) Chain stores under direct management: These are formal chain stores invested or controlled by the headquarters. They operate under the direct and unified management from the headquarters. Adopting a direct management approach, the headquarters give orders and control all retail stores, which follow completely the directives from the headquarters. Large monopolized commercial companies develop and expand their business through purchasing, merging, direct investment and controlling of shares.

b) Chain stores through special permit: Through contracts, chain stores (or their owners) obtain licenses from the headquarters to use designated trade marks, names, operation know-how, and to sell the commodity developed by the headquarters. Under this arrangement, each store in the chain is an independent legal entity and operates under the guidance from the headquarters.

c) Chain stores through voluntary arrangement: Under this arrangement, all stores operate together under the guidance of the headquarters, while maintaining their status of independent legal entities with full ownership of their assets. They use the same store name, sign contracts with the headquarters concerning purchase, sale, publicity, etc. and operate under the contract. They are free to engage in other activities which are not bounded in the contract. They could join or leave the chain on voluntary basis.

Chain stores through special permit and those through voluntary arrangement make up chain stores through license arrangement.

Total Imports and Exports at Customs refer to the real value of commodities imported into and exported from the boundary of China. They include the actual imports and exports through foreign trade, imported and exported goods under the processing and assembling trades and materials, supplies and gifts as aid given gratis between governments and by the United Nations and other international organizations, and contributions donated by overseas Chinese, compatriots in Hong Kong and Macao and Chinese with foreign citizenship, leasing commodities owned by tenant at the expiration of leasing period, the imported and exported commodities processed with imported materials, commodities trading in border areas (excluding mutual exchange goods), the imported and exported commodities and articles for public use of the Sino-foreign joint ventures, cooperative enterprises and ventures exclusively with foreign own investment. Also included are import or export of samples and advertising goods for whose CIF or FOB value are beyond the permitted ceiling (excluding goods of no trading or use value and free commodities for export), imported goods sold in China from bonded warehouses and other imported or exported goods. The indicator of the total imports and exports at customs can be used to observe the total size of external trade in a country. In accordance with the stipulation of the Chinese government, imports are calculated at CIF, while exports are calculated at FOB.

Import Export Value by Location of China’ s Foreign Trade Managing Units refers to actual value of imports and exports carried out by corporations which have been registered by the local customhouse and are vested with right to run import export business.

Import Value of Commodities by the Places of their Destination and Export Value of Commodities by the Places of their Origin in China: The former indicator refers to the value of import commodities of the places of their consumption, utilization or the places of their final destination. The latter indicator refers to the value of export commodities of the places of their origin or the places of the commodities dispatched.

Utilization of Foreign Capitals refers to remittance, equipment and technology financed from abroad, by loans, foreign direct investment and other forms undertaken by the Chinese governments at all levels, by various departments, enterprises and other economic units.

Foreign Borrowings refer to funds borrowed from abroad through formal signing of borrowing agreements with foreign institutions, including loans of foreign governments, loans of international financial institutions, commercial loans of foreign banks, export credit, and funds raised by Chinese bonds (and shares before 1996) issued abroad. It is an important part of China’s utilization of foreign capitals.

Foreign Direct Investment refers to the investments inside China by foreign enterprises and economic organizations or individuals (including overseas Chinese, compatriots from Hong Kong, Macao and Taiwan, and Chinese enterprises registered abroad), following the relevant policies and laws of China, for the establishment of ventures exclusively with foreign own investment, Sino-foreign joint ventures and cooperative enterprises or for co-operative exploration of resources with enterprises or economic organizations in China. It includes the re investment of the foreign entrepreneurs with the profits gained from the investment and the funds that enterprises borrow from abroad in the total investment of projects which are approved by the relevant department of the government.

Overseas Direct Investment refers to enterprises set up or bought by domestic investors in foreign countries and in Hong Kong, Macao and Taiwan, and the economic activities centering on operation and management of those enterprises are under the control of domestic investors. The statistical scope covers various corporation type enterprises and non-corporation type enterprises receiving direct investment from domestic investment entities.

Other Investment by Foreign Entrepreneurs refers to all forms of utilization of foreign capitals other than foreign borrowings and foreign direct investment. It includes the total value of stock shares in foreign currencies issued by enterprises at domestic or foreign stock exchanges (now mainly consisting of H shares issued at Hong Kong Security Market and B shares issued at domestic security markets), rent payable for the imported equipment through international leasing arrangement, cost of imported equipment, technology and materials provided by foreign counterparts in compensation trade and processing and assembly trade.

Contracted Projects with Foreign Countries refer to projects undertaken by Chinese contractors (project contracting companies) through bidding process. They include: (1) overseas civil engineering construction projects financed by foreign investors; (2) overseas projects financed by the Chinese government through its foreign aid programs; (3) construction projects of Chinese diplomatic missions, trade offices and other institutions stationed abroad; (4) construction projects in China financed by foreign investment; (5) sub-contracted projects to be taken by Chinese contractors through a joint umbrella project with foreign contractor(s); (6) housing development projects. The business income from international contracted projects is the work volume of contracted projects completed during the reference period, expressed in monetary terms, including completed work on projects signed in previous years.

Service Cooperation with Foreign Countries refers to the activities of providing technology and labour services to employers or contractors in the forms of receiving salaries and wages. Labour services providing by contractual joint ventures of Chinese international contracting corporations should be included in the statistics of service co-operation with foreign countries. The business income of labour service cooperation is the income in the form of wages and salaries, overtime pay, bonuses and other remuneration received from the employers during the reference period.

Overseas Design and Consultation Service refers to projects with charges for technical services from overseas operators. It includes geographic and topographic mapping, geological resource prospecting and survey, planning of construction areas, provision of design documents, blueprints, materials on production process and techniques, as well as engineering, technical and economic consultation, and feasibility study, research and evaluation of projects. Also included under this category are the above-mentioned services of foreign-financed projects in China that are paid in foreign currencies.

Number of Tourists (1) International tourists refer to foreigners, overseas Chinese, Chinese compatriots from Hong Kong, Macao and Taiwan coming to China for sight-seeing, visits, tours, family reunions, vacations, study tours, conferences and other activities of a business, scientific and technological, cultural, educational and religious nature. It does not include representatives and employees of resident institutions of foreign countries in China such as embassies, consulates, news agencies and offices of foreign companies and organizations, nor does it include long-term foreign experts or students residing in China, or persons in transition without spending a night in China.

(2) Chinese residents going abroad refer to Chinese residents going abroad for short terms for either public business or private purposes. Chinese employees working on international transport carriers are included in those going abroad for public business purpose, not in those for private purpose.

(3) Domestic tourists refer to residents of the mainland of China who stay for one night at least but no more than 6 months at tourist facilities in other places than their permanent residence within the territory of the mainland China, including foreigners, overseas Chinese and Chinese compatriots from Hong Kong, Macao and Taiwan who have resided in China for over one year.

Foreign Exchange Earnings from International Tourism refer to the total expenditures of foreigners, overseas Chinese, Chinese compatriots from Hong Kong, Macao and Taiwan during their stay in the mainland of China, which are earnings of foreign exchange from international tourism from the point of view from China.

International Travel Agencies refer to travel agencies engaged in the promotion, solicitation, organization and reception of tours to the mainland of China by foreigners, overseas Chinese, Chinese compatriots from Hong Kong, Macao and Taiwan.

Domestic Travel Agencies refer to travel agencies engaged in the promotion, solicitation, organization and reception of domestic tourists, and in the reception of foreigners, overseas Chinese, Chinese compatriots from Hong Kong, Macao and Taiwan organized by international travel agencies or other departments concerned, without their own promotion and solicitation programmes.

Star-Hotels refer to hotels rated with stars.

Government Revenue refers to the revenue of the government finance by means of participating in the distribution of the social products, which is the financial resources for ensuring the government to function. The contents of government revenue have been changed several times. Now it includes the following main items:

(1) Various tax revenues, including value added tax, business tax, consumption tax, land value added tax, tax on city maintenance and construction, resources tax, tax on use of urban land, enterprise income tax, personal income tax, tariff, stamp tax on security transactions, tax on purchase of motor vehicles, tax on agriculture and animal husbandry and tax on occupancy of cultivated land, etc.

(2) Special revenues, including revenues from the fee on sewage treatment, fee on urban water resources, fee for the compensation of mineral resources and extra-charges for education, etc.

(3) Other revenues, including revenue from interest, revenue from the repayment of capital construction loan, revenue from capital construction projects, and donations and grants.

(4) Subsidies for the losses of the state-owned enterprises. This is an item of negative revenue, consisting of subsidies to industrial, commercial and grain purchasing and supply enterprises.

Government Expenditure refers to the distribution and use of the funds the government finance has raised, so as to meet the needs of economic construction and various causes. It includes the following main items:

(1) Expenditure for capital construction: It refers to the non-gratuitous use and appropriation of funds for capital construction in the range of capital construction, outlay of capital as well as the loans on capital construction approved by the government for special purpose or policy purpose and the expenditure with discount paid in an overall way within the amount of the funds appropriated to the departments for capital construction.

(2) Innovation funds of the enterprises: They refer to the funds appropriated from the government budget for the enterprises to tap the latent power, upgrade the technology and carry out innovation, including the innovation fund of the departments, loan of the enterprises for innovation, subsidies on the innovation of the small fertilizer plant, small cement plant, small coal mines, small machinery plant and small steel plant, the expenditure of interest for the loan for innovation.

(3) Geological prospecting expenses: They refer to the expenses appropriated from the government budget to the geological prospecting units for the expenditure of the prospecting work, including the expenditures of the administrative agencies for geological prospecting and their institutional units as well as the geological prospecting expenditure.

(4) expenditures for science and technology promotion: They refer to the expenses appropriated from the government budget for the scientific and technological expenditure, including new products development expenditure, expenditure for intermediate trial and subsidies on important scientific researches.

(5) Expenditure for supporting rural production: It refers to the expenditures appropriated from the government budget for supporting the various expenditures of the rural collective units or households for production, including the subsidies to the small water conservancy projects and well drilling, sprinkling irrigation projects run by the villages; subsidies on the rural water and soil conserving measures; subsidies to the small power stations run by the villages; subsidies to the expenditure for fighting against particularly severe draughts; subsidies on the rural waste land exclamation; fund for supporting the township enterprises; fund for supporting rural cooperative production organizations, subsidies to the expenditure for popularization of the agricultural technologies and plant protection in the rural areas; subsidies to the expenditure for the protection of grasslands and cattle and fowls; subsidies on afforestation and forest protection in rural areas; subsidies on the rural aquatic products industry; special fund for developing grain production.

(6) Operating expenses of the departments of farming, forestry, water conservancy and meteorology etc.: They refer to the expenses appropriated from the government budget for the expenditures of agricultural exclamation, farms, agriculture, animal husbandry, agricultural machinery, forestry, timber industry, water conservancy, aquatic products industry, meteorology, technology popularization in township enterprises, popularization (demonstration) of improved varieties, plant (cattle and fowls, forest) protection, water quality monitoring, prospecting and designing, resources investigation, cadres training, subsidies to horticulture gardens, expenditure of specialized secondary schools, subsidies on the experiments of sowing herbage seeds by flights, expenditures of afforestation agencies and meteorology agencies, expenses for fishery administration and operating expenses for agricultural administration, etc.

(7) Operating expenses of the departments of industry, transport and commerce: They refer to the expenses appropriated from the government budget to cover the expenditure on salaries and operational expenditure of the departments of industry, transport and commerce for the expenditure of business development, including expenses for prospecting and designing, expenditures of specialized secondary schools, expenditures of the technical training schools and expenditures for cadres training, etc.

(8) Operating expenses of the departments of culture, education, science and public health: They refer to the expenses appropriated from the government budget for the expenditures on salaries and operational expenditure of the causes of culture, publication, cultural relics, education, public health, traditional Chinese medical science, free medical services, sports, archives, earthquake, ocean, communications, broadcasting, film and television, family planning; expenditure for training of cadres of government, party and mass organization; expenditures for natural sciences, social sciences, associations for science and technology and the special expenditure for the high-tech researches. They include mainly wages, extra wages, welfare funds, pension for the retirees, stipend, expenses for official business, expenses for equipment purchases, expenses for repairs, business expenses and subsidies to the units which are unable to support their expenditures by their own earnings.

(9) Pension for the disabled or for the families of the bereaved and relief funds for social welfare: They refer to the funds appropriated from the government budget for the expenditures of pension for the disabled or for the families of the bereaved and relief funds for social welfare, including the lump-sum or regular pension paid by the departments of civil affairs to the members of martyrs families and families of those who died for the public interest, pension to the revolutionary disabled, subsidies for permanent disability of various kinds, subsidies to the military martyrs dependents and the demobilized servicemen, expenditure for settling down the demobilized servicemen, operating expenses of the consoling institutions, expenses for management and repair of the commemorative buildings for the martyrs, the expenses managed by the departments of civil affairs for the retirees and those who have quitted their work, expenses for social relief in rural and urban areas, operating expenses for providing relief to the areas of natural calamity and subsidies on the reconstruction after the particularly severe natural calamities, etc.

(10) Expenditure on retirees: It refers to the expenditure on retirees of government agencies and institutions that are covered by the state budget.

(11) Expenses on subsidies to social security system: It refers to expenditure from the state budget for subsidies to social security system, including subsidies to the social insurance fund, subsidies to promoting employment, subsidies to laid-off workers of state-owned enterprises, supplement to national social security funds, etc.

(12) Expenditures for national defence: They refer to the security, including expenses of national defence, expenses of scientific researches on national defence, expenses for building up peoples militia and expenditure for special projects, etc.

(13) Administrative expenses: They include expenditure for administration, subsidies to the parties and mass organizations, diplomatic expenditure, expenditure for public security, judicial expenditure, law court expenditure, procuratorial expenditure and subsidies to the expenses for treating the cases by the public security departments, procuratorial organs and law courts.

(14) Expenditure on policy-related subsidies: It refers to the expenditure appropriated, with the approval of the government, from the state budget for price subsidies on such products as grain, cotton and edible oil. More specifically, it includes subsidies to the difference between the selling prices and purchasing prices of grains, cotton and edible oil, subsidies for curtaining prices and for sugar reserve, subsidies to the difference between the selling prices and purchasing prices of means pf agricultural production, risk fund for grains, risk fund for non-staple food, risk fund for local production of coal, etc.

(15) Expenditure on interest of debts: It refers to expenses from the state budget on paying interest of domestic and foreign debts.

Revenue of the central government and revenue of the local governments: refers to the revenue of the central government and that of the local governments as defined by the decentralized taxation system starting from 1994. In accordance with this system, the revenue of the central government includes tariff, consumption tax and value added tax levied by the customs, consumption tax, income tax of the enterprises subordinate to the central government, income taxes of the local banks, foreign-funded banks and non-bank financial institutions, business tax and profits of railways, head offices of banks, head office of insurance company , which are handed over to the government in a centralized way, tax on city maintenance and construction, tax on purchasing motor vehicles, tonnage tax of ships, 75% of the value added tax, 94% of the tax on stock dealing (stamp tax), interest income tax in the personal income tax, proportion of the personal income tax (other that interest income tax) to be shared by the central government, and tax on ocean petroleum resources,. The revenue of the local governments includes business tax, income tax of the enterprises subordinate to the local government, proportion of the personal income tax (other that interest income tax) to be shared by the central government, tax on the use of urban land, tax on the adjustment of the investment in fixed assets, tax on town maintenance and construction, tax on real estates, tax on the use of vehicles and ships, stamp tax, slaughter tax, tax on agriculture and animal husbandry, tax on special agricultural products, tax on the occupancy of cultivated land, contract tax, value-added tax on land, income from charges on use of state-owned land, 25% of the value added tax, 6% of the tax on stock dealing (stamp tax) and tax on resources other than the ocean petroleum resources.

Expenditure of the central government and expenditure of the local governments: according to the different functions of the central government and local governments in the economic and social activities, the rights of affairs administration are classified between the central government and local governments; and the classification of the expenditure between the central government and local governments are made on the basis of the classification of the rights of affairs administration between them. The expenditure of the central government includes the expenditure for national defence, expenditure for armed police forces, the administrative expenses and various operating expenses at the level of central government, expenditure for key projects and the expenditure of the central government for adjusting the national economic structure, coordinating the development among different regions and exercising the macro-economic regulation and control. The expenditure of the local governments includes mainly the administrative expenses and various operating expenses at the level of local governments, the expenditure for capital construction and technological innovation with the funds raised by the local government, expenditure for supporting rural production, expenditure for city maintenance and construction and expenditure for price subsidies, etc.

Deposit is a form of credit by which enterprises, institutions, organizations or households can put money into banks and other credit institutions for safekeeping and interest earning under the principle of free withdrawal. According to different depositors, deposits are divided into enterprise deposits, treasury deposits, deposits of government agencies and organizations, capital construction deposits, savings deposits, rural saving deposits, entrusted deposits and other deposits. Deposits are major sources of the credit funds of banks.

Loan is a form of credit by which banks and other credit institutions provide funds at certain interest rate to enterprises and individuals in the light of the principle of unconditional repayment. Loans from Chinese banks include circulating capital loans, fixed assets loans, loans to urban and rural individuals engaged in industrial and commercial business and agricultural loans.

Amount Insured refers to the maximum that the insurant will get for the claim of the case insured.

Premium is the fee paid by the insurant to the insurer to obtain the obligation of compensation from the insurance within the agreed terms.

Settled Claim is the compensation paid by the insurer to the insurant in accordance with the insurance contract.

Payment includes payment for death, injury or medical treatment and mature payment. Payment for death, injury or medical treatment refers to the money paid to the insurant (or the beneficiary) in accordance with the life or health insurance contract when the insurant encounters accidents within the insured period covered in the contract. Mature payment refers to the mature payment to the insurant in accordance with the life insurance contract at the end of the insured period.

Regular Institutions of Higher Learning refer to educational establishments set up according to the government evaluation and approval procedures, enrolling graduates from senior secondary schools and providing higher education courses and training for senior professionals. They include full-time universities, colleges, high professional schools, high professional vocational schools and others.

Universities and colleges are mainly providing undergraduate courses; those high professional schools and high professional vocational schools are mainly providing professional trainings; and others refer to educational establishments, which are responsible for enrolling students but not covered in the total number of schools, including: branch schools of universities and colleges, and universities and colleges that have been proved and prepared to construct.

Institutions of Higher Learning for Adults refer to educational establishments, set up in line with relevant rules approved by the government, enrolling staff and workers with senior secondary school or equivalent education, and providing higher education courses in many forms of correspondence, spare time, or full time for adults. Professionals thus trained receive a qualification equivalent to graduates studying regular courses at regular universities, colleges and professional colleges. Institutions of higher learning for adults include schools of high education for staff and workers, schools of high education for peasants, colleges for management cadres, pedagogical colleges, independent correspondence colleges, Radio and TV universities and other educational establishments. Other educational establishments are responsible for enrolling adult students but not covered in the number of schools.

Enrollment Rate of Primary School Age Children refers to the proportion of school age children enrolled at schools to the total number of school age children both in and outside schools (including retarded children, but excluding blind, deaf and mute children). The formula is:

Enrollment Rate of Primary School-age Children = (Total Primary School-age Children at Schools)/(Total Primary School age Children Both at and Outside Schools) x 100%

Scientific and Technological Activities (S&T Activities) refer to organized activities which are closely related with the creation, development, dissemination and application of the scientific and technical knowledge in the fields of natural sciences, agricultural science, medical science, engineering and technological science, humanities and social sciences (referred to as scientific and technological fields). S&T activities can be classified in to 3 categories: research and development (R&D) activities, application of R&D results, and related S&T services. This statistical definition is made by UNICHIEF for scientific and technological activities to meet the need of carrying out statistical work in this field for its member countries in particular those developing countries.

Personnel Engaged in S&T Activities refer to personnel directly engaged in S&T activities, in the management of S&T activities, and in providing direct service to S&T activities, who spend over 10% of the total working hours in a year in S&T activities. (1) Personnel directly engaged in S&T activities include researchers, engineers, technicians and other related personnel engaged in S&T activities in independent-accounting R&D institutions, institutions of higher learning, and in research institutes, laboratories, technology development centers and central experiment workshops under enterprises and institutions. Also included are people working in S&T research project teams, professional and technical personnel working in S&T information archiving institutes, and graduate students working on the design of their thesis. (2) Personnel engaged in the management of S&T activities and in providing direct service to S&T activities include senior management people responsible for S&T activities in independent-accounting R&D institutions, S&T information archiving institutes, institutions of higher learning, and in enterprises and institutions where S&T activities are undertaken. Also included are people responsible for the planning, administration, personnel management, financial management, logistics supply, equipment maintenance, information and library management that are related with S&T activities. People providing indirect services are excluded, such as security, medical service, drivers, plumbers, cleaners and those providing catering and related service. This indicator reflects the size of personnel engaged in S&T activities.

Research and Development (R&D) refers to systematic and creative activities in the field of science and technology aiming at increasing the knowledge and using the knowledge for new application. R&D includes 3 categories of activities: basic research, applied research and experiments and development. The scale and intensity of R&D are widely used internationally to reflect the strength of S&T and the core competitiveness of a country in the world.

Professional and Technical Personnel refer to persons engaged in professional and technical work or in the management of professional and technical activities, i.e., people with professional or technical positions who are engaged in professional and technical work or in the management of professional and technical activities, and people without professional or technical positions but are working on professional or technical posts. They include professionals and technicians working in 17 categories of technical occupations including engineering, agriculture, scientific researches, medical service, teaching, economic research and application, accounting, statistics, translation, libraries, archives, cultural and museum service, journalism and publication, lawyers, notarization service, radio and television broadcasting, handicraft and fine arts, sports, performing art, and political workers in enterprises. This indicator reflects the condition of human resources in S&T.

Cultural Institutions refer to units, which have their own organizational system and independent accounting system and specialize in or serve cultural development. They exclude other establishments run by these cultural institutions and amateur cultural groups established by various departments. This indicator reflects the development of cultural units.

Art Troupe refers to the troupe which is engaged in drama, opera, music, dance, acrobatics or other art performance, opens independent accounts with banks and has self-supporting accounting system; excluding the troupes which are engaged partly in industrial or agricultural activities, partly in art performance and the professional troupes organized by the people. This indicator reflects the development of national professional art troupes.

Number of Audience at Art Performance refers to the number of attendants at commercial shows, completely booked shows or free shows given in minority national areas, and does not include the number of spectators at rehearsals for examination and internal shows for study.

Health Care Institutions include: medical institutions, disease prevention and control centers (epidemic prevention stations), blood gathering and supplying institutions, health supervision and inspection (check up) institutions, medicinal scientific research and on-job training institutions, health education and so on.

Medical Organizations include: hospitals, health service centers (stations) of communities, nursing homes, health centers, clinics, clinics (health stations and infirmaries), maternity and child care agencies (centers and stations), special disease prevention and curing agencies (centers and stations), first aid centers (stations) and clinical inspection centers. Medical organizations are grouped by two types: profit-making and non-profit-making medical organizations.

Hospitals include: polyclinics, traditional Chinese medical hospitals, hospitals integrated with traditional Chinese therapeutics and western therapeutics, ethical hospitals, various specialties hospitals and nursing hospitals.

Medical Technical Personnel refers to doctors, assistant nurses, pharmacists, and laboratory technicians working in medical institutions.

Doctors refer to certified physicians and certified assistant physicians with certifications working in medical and health care and prevention agencies.

Total Cost of Health Services reflects the total expenditures on medical and health care services for the whole country, calculated on basis of sources of funding. Health expenditure from government budget refers to budgetary allocation for health undertakings by governments at all levels. Social health expenditure refers to non-government budgetary capital input, mainly the health insurance. It includes expenditure on health institutions run by enterprises and rural collective entities, expenditure on medical and health care of employees of enterprises, and excessive health expenditure of government employees that could be covered by the government health care system. Health expenditure on individuals refers to expenditure on health service and health insurance paid by residents from their disposable income.

Social Welfare Institutions refer to institutions taking care of old people without children, handicapped people and orphans. They include social welfare institutions run by civil affairs departments, children welfare institutions, social welfare institutions for mental patients, collective-owned old people’s homes in rural areas, convalescent homes and community service centers with the capacity of receiving those people. This indicator reflects the input in social welfare institutions.

Number of People Taken in by Social Welfare Institutions refers to the number of old people, children, totally dependent handicapped people and mental patients taken in by social welfare institutions run by civil affairs departments and those run by collective units in urban and rural areas. This indicator reflects the capacity of social welfare institutions.

Social Welfare Enterprises are collective owned enterprises which employ the blind, deaf-mute, and other handicapped people who are able to work in cities and towns and enjoy exemption from state taxes, including welfare plants, welfare commercial services, artificial limb plants and farms, etc. This indicator reflects the preferential policies toward disabled persons.

Lawyers are certified legal workers according to law, and who are employed by legal counseling firms to act as legal advisers, agents in criminal or civil lawsuits, or defenders in criminal lawsuits, or to handle non-litigious legal affairs, to advise on matters of law or to write legal papers for others, and provide service to the public.

Notary Personnel refers to people working for notary offices including: directors, deputy director, notaries, assistant notaries, and other people providing assistance.

Notary Documents refer to the judicatory notary documents drawn up by the request of the party and are in accordance with facts and laws and following certain legal proceedings. According to usage and locality, the notary documents are divided into following 4 types: domestic notary documents, domestic economic notary documents, foreign-related civil notary documents and foreign-related economic notary documents.