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”.

(d) Social organizations other than those mentioned above whose source of budget is not clear. Such organizations are classified by way of management.