Explanatory
Notes on Main Statistical Indicators
Comparable Prices refer to prices that are used to remove the factors of price
change in calculating economic aggregates, so as to facilitate comparison
of aggregates over time. Two methods are used for calculating economic
aggregates at comparable prices: 1.Multiplying the output of products by
their constant prices of certain year; 2.Deflation of
data at current prices by relevant price index.
Constant Price refers to the average price of a given product in certain
year, which is used for comparison of 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 five times:the 1952 constant prices for
1949-1957;the 1957 constant prices for 1957-1971; the 1970 constant prices
for 1971-1981; the 1980 constant prices for 1981-1990;and the 1990
constant prices have been used since 1991.
Average Annual Growth Rate
Two methods for calculating average annual growth rate are applied
in China,one is often called level approachor the method of calculating
geometric average,which is derived by comparing the level of the last year
of the interval with that of the beginning year;the other is
calledaccumulative approach or algebraic average or equation method,which
is derived by the summation of the actual figure of each year in the
interval divided by the figure in the base year.
Usually
the results calculated by the two methods are fairly close, but they
differed sharply when uneven economic development occurred with striking
fluctuations in growth.
The
average annual growth rates listed in this statistical yearbook are
calculated by level approach except for the growth rate of investment in
fixed assets. The base years are not listed when the years are listed for
average annual growth rates. For instance,the average annual growth rate
of 43 years since 1949 is listed as average annual growth rate of
1950-1992 without listing the base year 1949.And the analogy of this is
also the same for the rest of the years.
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 Peoples
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 Peoples 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 Peoples 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 Peoples 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.
Joint-venture Enterprises with Funds from Hong Kong,
Macau and Taiwan refer to enterprises
jointly established by investors from Hong Kong, Macau and Taiwan with
enterprises in the mainland of China in accordance with the
Law of the Peoples 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.
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 Peoples 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 Peoples 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
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 Peoples 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 Peoples 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 Peoples 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.
Government Agencies, Institutions and Social
Organizations are classified into
following categories by source of funds and way of management taking
reference of the registration status of enterprises:
(1)
Government agencies: include state and party agencies, classified in
principle as ¡°state-owned¡±. There are exceptions, such as supply and
marketing cooperatives which are classified as ¡°collective¡±.
(2)
Institutions: include institutions of various types established with the
approval by organization and staffing departments of the government, but
exclude institutions where enterprise management system is introduced.
Institutions are further classified as follows:
(a)
Institutions whose main budget is listed in the government budget
appropriations or extra-budget funds, or allocated from the budget of
their competent government agencies. Such institutions are classified as
¡°state-owned¡±.
(b)
Institutions whose budget mainly comes from collective units. Such
institutions are classified as ¡°collective¡±.
(c)
Institutions other than those mentioned above whose source of budget is
not clear. Such institutions are classified by way of management.
(3)
Social organizations: include social organizations established with the
approval from the Ministry of Civil Affairs, and organizations that are
not covered by social organization management regulations such as trade
unions, women¡¯s federations etc.. Social organizations are further
classified as follows:
(a)
Social organizations that are not covered by social organization
management regulations of the Ministry of Civil Affairs such as trade
unions, women¡¯s federations, communist youth leagues, youth
associations, industrial and commerce associations, scientists
associations, overseas Chinese associations, etc., foundations and fund
management organizations established with funds from the state, and social
organizations whose funds mainly come from the budget of their competent
government agencies. Such institutions are classified as
¡°state-owned¡±.
(b)
Social organizations whose budget mainly comes from collective units. Such
institutions are classified as ¡°collective¡±.
(c)
Social organizations established by individual or a group of citizens,
which are classified as ¡°private¡±.
(d)
Social organizations other than those mentioned above whose source of
budget is not clear. Such organizations are classified by way of
management.
Gross
Domestic Product (GDP) refers to the final
products of 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.The form of value refers
to the total value of all products and services produced by all resident
units during a certain period of time minus total value of intimidate
input of materials and services of the nature of non-fixed assets or the
summation of the value-added of all resident units;the form of income
includes all the income created by all resident units and distributed
primarily to all resident and non-resident units;the form of products
refers to the value of all final goods and services for final use by all
resident units plus the value of 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 Industry structure has been
classified according to the historical sequence of development.Primary
industry refers to extraction of natural resources;secondary industry
involves processing of primary products;and tertiary industry provides
services of various kinds for production and consumption.The above
classification is universal although it varies to some extent form country
to country.Industry in China comprises:
Primary
industry: agriculture(including farming, forestry, animal husbandry and
fishery).
Secondary
industry:industry(including mining and quarrying,manufacturing,production
and supply of electricity, water and gas)and construction.
Tertiary
industry:all other industries not included in primary or secondary
industry.
Due
to the fact that tertiary industry involves in a large variety of
industries in China, it is divided into two sectors: circulation sector
and service sector and further into four levels:
The
first level:circulation sector, including transportation, storage, postal
and telecommunications, wholesale and retail trade,and catering trade.
The
second level:service sector providing services for production and
consumption, including banking,insurance, geological survey, water
conservancy management, real estates, service for residents,service for
agriculture,forestry,animal husbandry, fishery, subsidiary services for
transportation and communications, comprehensive technical services,etc.
The
third level: service sector for upgrading scientific, educational and
cultural level of the people, including education, culture and arts,
broadcasting,movies, television, public health, sports, social welfare and
scientific research, etc.
The
fourth level: sector providing services for public needs, including
government agencies, political parties, social organizations,military and
police service.
GDP
Calculated with Expenditure Approach refers
to total expenditure on final consumption, total capital formation and net
export of goods and services by resident units of a country in a certain
period of time. It reflects the composition of GDP by its use.
Final
Consumption refers to the total expenditure
of resident units on final consumption of goods and services in a certain
period, namely the expenditure of the 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 is classified into household
consumption and government consumption.
Households
consumption refers to the total expenditure
of resident households on the final consumption of goods and services.The
households consumption is calculated at market prices, namely the
purchaser¡¯s prices which the households pay; the purchasers prices of
goods are the prices the households pay when they obtain the goods,
including the transport and commercial expenses paid by the households.In
addition to the consumption of goods and services bought by the households
directly with money, the expenditure on goods and services obtained by the
households in other ways, i.e. the so-called imputed expenditure on
consumption, is also included in the households consumption. The
imputation expenditure of the households on consumption includes the
following types: (a) the goods and services provided to the households by
the units in the form of payment in kind and transfer in kind; (b) the
goods and services produced and consumed by the households themselves, in
which the services refer only to the services provided by the residential
buildings owned by the households; (c) the services of financial
intermediary provided by the financial institutions; (d) the insurance
services provided by the insurance companies.
Government
Consumption 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 at free charge or lower prices.The former
equals to the output value of the government services minus the value of
operating income obtained by the government departments. (The output value
of the government services equals to its current operating expenditure
plus depreciation of fixed assets). 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 and the change in inventory, including the
total fixed assets formation and the increase in inventory.
Total
Fixed Capital Formation refers to the value
of fixed assets purchased, transferred in by the resident units and those
produced and used by themselves deducting the value of fixed assets sold
and transferred out. It can be classified into total tangible assets
formation and total intangible assets formation. The total tangible assets
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, milk, wool and recreational animals and the newly
increased economic forest in a certain period. The total intangible assets
formation includes the prospecting of minerals, the acquisition of
computer software, the originals of recreational works and works of
literature and arts minus the disposal of them.
Increase
in Inventory refers to the market value of
the change in inventory, i.e.the difference of value between the beginning
and the end of the period.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 import and export of services do not appear to
have the phenomena of crossing the border of the country.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.
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 fee paid by the labourers working units for
them.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 residual
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 some factors of production, such as fixed assets, land and
labour force, used in the production activities they are engaged in.In
contrast to the taxes on production, the subsidies on production refer to
the unilateral transfer of part of the government¡¯s revenue to the
production units and is therefore regarded as negative taxes on
production.They include subsidies on the loss due to implementation of
government policies, price subsidies to the grain institutions, foreign
trade corporations receipts from drawback, 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
and calculated as part of theterprises 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.
Direct
Input Coefficient refers to the volume of
products and services of all sectors consumed directly by a certain
sector¡¯s productive units, which are needed for their total output. It
is also named as technical coefficient. It represents the direct technical
economical ties and direct interdependence between the sector and other
sectors.
Total
Input Coefficient refers to the volume of
products and services of all sectors needed for a certain sectors
productive units to increase their total output. Total input coefficient
is equal to the sum of direct input coefficient and total indirect input
coefficient. It is a major indicator to disclose the technical economical
ties and interdependence between sectors of the national economy.
Institutional
Units refer to economic entities that are in
a position to own assets and incur liabilities in their own name, and to
engage in economic activities and conduct transactions with other
entities. Depending on their different role in production, consumption and
financing, 4 groups of resident institutional units are identified in the
flow of fund tables, namely, non-financial corporations, financial
institutions, governments, households and the rest of the world.
Institutional
Sectors refer groups of institutional units
that are classified by their nature. Following groups (or institutional
sectors) are identified in the flow of fund accounts: the sector of
non-financial corporations, the sector of financial institutions, the
sector of governments and the sector of households.
Non-Financial
Corporations and the Sector of Non-Financial Corporations Non-financial
corporations refer to resident corporations that are engaged in the
production of goods and the provision of non financial services in the
market, mainly covering corporate enterprises of various types.All
non-financial corporations make up the sector of non-financial
corporations.
Financial
Institutions and the Sector of Financial Institutions Financial
institutions refer to resident institutions that are engaged in the
financial services or auxiliary financial activities, mainly covering
central banks, commercial banks, policy-related banks, non-banking credit
institutions and insurance companies.All financial institutions make up
the sector of financial institutions.
Government
Units and the Sector of Governments
Government units refer to legal entities and their auxiliary units within
the territory of China that are established through political process and
are empowered with legislative, administrative or judicial rights over
other institutional units in a given region.The main function of
government units is to acquire funds through taxation or other means, to
provide public services to the society and households, and to conduct
redistribution of income and properties of the society through transfer
payment.Government units cover mainly administrative and institutional
units of various types.All government units make up the sector of
governments.
Households
and the Sector of Households Households
refer to resident individuals or groups of resident individuals who share
common living facilities, pool together entire or part of their income and
properties at their common disposal, and share their housing, food and
other consumer goods and services.All households make up the sector of
households.
Non-resident
Units and the Sector of the Rest of the World
Non-resident units refer to of units that are of a non-resident nature.All
non-resident units that have transactions with resident units make up the
sector the rest of the world.
Total
Income of Primary Distribution
Primary distribution refers to the distribution of value-added in
the form of compensation for labours, depreciation of fixed assets,
production taxes and property income.The sum of income obtained through
primary distribution is called the total income of primary distribution.
Current
Transfers refers to one-way transfers with
physical and fund form in sectors. include payment to social securities,
social allowances remittance from overseas Chinese, grants, donations and
reparations and so on.
Total
Disposable Income refers to income received
by institutional sectors on the basis of total income of primary
distribution and through current transfers.This is the income that is used
for final consumption and savings.
Total
Savings is the difference between total
disposable income and the final consumption.
Capital
Transfer refers to the free payment from one
sector to another sector for capital formation, and is a transaction that
seeks no return from the recipient. The capital transfer differs from the
current transfer in 2 aspects.Firstly, the objective of the transfer is
investment rather than consumption.Secondly, capital transfer features the
transfer of the ownership of the capital rather than the utilization right
of the capital.Capital transfer in cludes investment subsidies and other
capital transfers.Under the current situation in China, investment
subsidies refer to investment allocations from government finance, i.e.the
financial allocations that are used for capital construction, updating and
transformation projects and other investment in fixed assets.
Net
Financial Investment refers to total savings
plus the net income from capital transfer minus the gross capital
formation from the point of view of physical transaction.In terms of
monetary transaction, it is the increased value of financial assets minus
the increase of the financial liabilities.
Currency
in Circulation refers to currency that is in
circulation in the market, including notes and fractional currency.
Savings
Deposit refers to deposits of all types,
including current deposit, fixed deposit, household savings deposit,
government deposit, foreign exchange deposit and other deposits.
Loans
refer to loans of all forms provided by financial institutions to
non-financial sectors, including short-term loans, medium and long-term
loans, government loans, foreign exchange loans and other loans.
Securities
include bonds and stocks.
Insurance
Reserve Funds refer to reserve fund for life
insurance, the net pension fund, advance payment of premium and
non-claimed reserves.
Settlement
Fund refers to bank fund that is in the
process of remittance.
Transactions
Between Financial Institutions refer to flow
of capital between financial institutions, including inter-bank deposits
and loans.
Reserve
Funds refer to savings of financial
institutions in the central bank and designated reserves to the central
bank.
Loans
from the Central Bank refer to loans from
the central bank to financial institutions.
Current
Account includes goods, services, earnings
and current transfers.
Goods
refer to imported or exported goods through
Chinese customs.Figures in the Yearbook are based on customs statistics,
adjusted in line with the concepts and definitions of the balance of
payment statistics and with the change in the ownership of
commodities.Statistics on both exports and imports are valued at
f.o.b.prices.
Services
include transportation, tourism,
communications, construction, insurance, international financial services,
computer and information service, royalty for patent, trademarks and other
special rights, commercial services, personal cultural and recreational
services and government services.
Earnings
include compensation of employees and earnings from investment (including
earnings from and expenses on direct investment, security investment and
other investment, as well as reinvestment of earnings from direct
investment).
Capital
Account includes capital transfers such as
immigration transfer, reduction or exemption of debts, etc..
Financial
Account includes direct investment, security
investment and other investments.
Direct
Investment refers to investment, made in
forms of exclusive investment, joint investment, contracted operation and
cooperative development, by foreign investors or investors from Hong Kong,
Macao and Taiwan in China, or by Chinese investors in foreign countries or
in Hong Kong, Macao and Taiwan.
Security
Investment refers to the purchase of stocks
and securities issued by central and local governments and enterprises in
China by institutions or individuals of foreign countries or from Hong
Kong, Macao and Taiwan ( and the re-purchase by Chinese institutions), and
the purchase and selling of stocks and securities issued in foreign
countries and in Hong Kong, Macao and Taiwan by Chinese governments,
enterprises and individuals.
Other
Investment includes trade credits, loans,
currency, savings and other assets, provided by foreign countries to China
and by China to foreign countries.
Reserve
Assets, Net Increase refers to the net
balance between the end of the reference year and the end of the previous
year, in the gold reserve, foreign exchange reserve, reserve and special
drawing rights in the International Monetary Fund, and the use of the
Fund¡¯s credits.The increase in the reserve assets is expressed as a
negative figure
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