National Economic and Social Development

February 28, 2008

In 2007, under the leadership of the CPC Central Committee and the State Council, the people of all nationalities of China, taking as the guidance of Deng Xiaoping Theory and the important thought of "Three Represents", implemented earnestly the scientific approach to the economic and social development, they united as one with enterprising spirit, national economic and social development achieved new progress.

I. General Outlook

In 2007, the gross domestic product (GDP) of the year was 24,661.9 billion yuan, up by 11.4 percent over the previous year. Analyzed by different industries, the value added of the primary industry was 2,891.0 billion yuan, up by 3.7 percent, that of the secondary industry was 12,138.1 billion yuan, up by 13.4 percent and the tertiary industry was 9,632.8 billion yuan, up by 11.4 percent. The value added of the primary industry accounted for 11.7 percent of the GDP, maintaining the same level of the pervious year, that of the secondary industry accounted for 49.2 percent, up by 0.3 percentage point, and that of the tertiary industry accounted for 39.1 percent, down by 0.3 percentage point. Quarterly data showed that the GDP growth in the first quarter of the year was 11.1 percent; second quarter 11.9 percent, third quarter 11.5 percent and 11.2 percent growth for the fourth quarter.

Figure 1: Gross Domestic Product and its Growth, 2003-2007

The general level of consumer prices in China was up by 4.8 percent over the previous year. Of this total, the prices for food went up by 12.3 percent. The retail prices for commodities were up by 3.8 percent. The prices for investment in fixed assets were up by 3.9 percent. The producer prices for manufactured goods increased by 3.1 percent, of which, the prices for means of production increased by 3.2 percent, and for means of subsistence grew by 2.8 percent. The purchasing prices for raw materials, fuels and power went up by 4.4 percent. The producer prices for farm products were up by 18.5 percent. The sales prices for housing in 70 large and medium-sized cities were up by 7.6 percent, of which, that for new residential buildings went up by 8.2 percent, for second hand housing grew by 7.4 percent, and the prices for rental and leasing were up by 2.6 percent.

Figure 2: Changes in Consumer Prices, 2003-2007

Table 1: General Level of Consumer Prices in 2007

Item	National Average
Urban	Rural
General level of consumer prices	4.8	4.5	5.4
Food	12.3	11.7	13.6
Of Which: Grain	6.3	6.4	6.2
Meat, poultry and related products	31.7	31.6	31.8
Oil	26.7	25.5	28.3
Fresh eggs	22.9	23.0	22.8
Fresh vegetables	7.3	6.6	9.4
Fresh fruits	0.1	-0.2	1.0
Tobaccos and alcohols	1.7	1.8	1.6
Clothing	-0.6	-0.9	0.2
Household appliances and services	1.9	1.9	2.1
Medical, health and personal articles	2.1	1.7	2.8
Transportation and telecommunications	-0.9	-1.6	0.6
Recreational, educational, cultural articles and services	-1.0	-0.7	-1.6
Housing	4.5	4.5	4.4

At the end of 2007, the total of employed people in China numbered 769.90 million, 5.90 million more than that of 2006. Of this total, 293.50 million were employed in urban areas, a net increase of 10.40 million, a newly increase of 12.04 million. The urban unemployment rate through unemployment registration was 4.0 percent at the end of 2007, a drop of 0.1 percentage point over that of 2006.

At the end of 2007, China's foreign exchange reserves reached 1,528.2 billion US dollars, an increase of 461.9 billion US dollars as compared with that at the end of the pervious year. At the end of the year, the exchange rate was 7.3046 RMB to 1 USD, an appreciation by 6.9 percent over that at the end of 2006.

Figure 3: Year-end Foreign Exchange Reserves, 2003-2007

The taxes collected in the whole year reached 4,944.9 billion yuan (excluding tariffs, farm land taxes and deed taxes), up by 31.4 percent or an increase of 1,181.3 billion yuan over 2006.

Figure 4: Tax Revenue and its Growth, 2003-2007

II. Agriculture

In 2007, the sown area of grain was 105.53 million hectares, an increase of 700 thousand hectares as compared with that in the previous year; the sown area of cotton was 5.59 million hectares, an increase of 70 thousand hectares; the sown area of oil-bearing crops was 10.94 million hectares, a decline of 600 thousand hectares; the sown area of sugar crops was 1.67 million hectares, an increase of 100 thousand hectares.

The total output of grain in 2007 was 501.50 million tons, an increase of 3.50 million tons or up by 0.7 percent over the previous year. Of this total, the output of summer crops was 115.34 million tons, up by 1.3 percent, and that of the early rice was 31.96 million tons, up by 0.3 percent. The output of autumn grain was 354.20 million tons, an increase of 0.6 percent.

Figure 5: Output of Grain and its Growth, 2003-2007

In 2007, the output of cotton was 7.60 million tons, a growth of 1.3 percent over the previous year, that of oil-bearing crops was 24.61 million tons, down by 4.2 percent and that of sugar crops was 111.10 million tons, an increase of 11.4 percent, that of tobacco was 2.39 million tons, down by 3.9 percent, and that of tea was 1.14 million tons, up by 10.9 percent.

The total output of meat for the year reached 68.00 million tons, down by 3.5 percent. Of this total, the output of pork was down by 9.2 percent, and that of beef and mutton went up by 6.1 percent and 5.8 percent respectively. The total output of aquatic products was 47.37 million tons, up by 3.3 percent. The total production of timber for the year 2007 reached 69.74 million cubic meters, an increase of 5.5 percent.

Over 1.07 million hectares of farmland was increased with effective irrigation systems and another additional 1.36 million hectares of farmland was guaranteed by water-saving irrigation systems.

III. Industry and Construction

In 2007, the total value added of the industrial sector was 10,736.7 billion yuan, up by 13.5 percent over the previous year. The value added of industrial enterprises above the designated size was up by 18.5 percent. of this total, that of the state-owned and state-holding enterprises grew by 13.8 percent, that of the collective enterprises went up by 11.5 percent, that of the share-holding enterprises increased by 20.6 percent, that of the enterprises by foreign investors and investors from Hong Kong, Macao and Taiwan soared by 17.5 percent and 26.7 percent growth for private enterprises. Analyzed by light and heavy industries, the growth of the light industry was 16.3 percent and that of the heavy industry was 19.6 percent.

Figure 6: Industrial Value Added and its Growth, 2003-2007

In 2007, of the industrial enterprises above designated size, the growth of value added for the mining and washing of coal industry was18.1 percent over the previous year, for the extraction of petroleum and natural gas was 3.9 percent, for textile industry 16.2 percent, for processing of food from agricultural product 16.9 percent, for manufacture of general machinery 24.2 percent, for manufacture of transport equipment 26.2 percent, for manufacture of communication equipment, computers and other electronic equipment 18.0 percent and for manufacture of electrical machinery and equipment 21.5 percent. the growth of the value added for the major six high energy consuming industries were 18.9 percent, of which, that of the manufacture of non-metallic mineral products was 24.7 percent, smelting and pressing of ferrous metals 21.4 percent, manufacture of raw chemical materials and chemical products 21.0 percent, smelting and pressing of non-ferrous metals 17.8 percent, production and supply of electric power and heat power 13.8 percent and 13.4 percent for processing of petroleum, coking, processing of nuclear fuel. The value added growth for the high-tech industry was 17.8 percent over the previous year.

Table 2: Output of Major Industrial Products and the Growth Rates in 2007

Product	Unit	Output	Increase over 2006 (%)
Yarn	10000 tons	2000.0	14.7
Cloth	100 million meters	660.0	10.3
Chemical fibers	10000 tons	2390.0	15.3
Sugar (final product)	10000 tons	1271.4	34.0
Cigarettes	100 million	21413.8	5.9
Color TV sets	10000	8433.0	0.7
Household refrigerators	10000	4397.1	24.5
Room air conditioners	10000	8014.3	17.0
Total primary energy production	100 million tons of standard coal equivalent	23.7	7.0
Coal	100 million tons	25.36	6.9
Crude oil	100 million tons	1.87	1.1
Natural gas	100 million cubic meters	693.1	18.4
Electricity	100 million kilowatt-hours	32777.2	14.4
Of which: Thermal-power	100 million kilowatt-hours	27218.3	14.9
Hydro-power	100 million kilowatt-hours	4828.8	10.8
Crude steel	10000 tons	48966.0	16.8
Rolled steel	10000 tons	56894.4	21.3
Ten kinds of nonferrous metals	10000 tons	2350.8	22.7
Of which: Refined copper (copper)	10000 tons	344.1	14.6
Aluminum electrolyze	10000 tons	1228.4	32.6
Aluminum oxide	10000 tons	1945.3	46.7
Cement	100 million tons	13.6	9.9
Sulfuric acid	10000 tons	5500.0	9.3
Soda ash	10000 tons	1771.8	13.6
Caustic soda	10000 tons	1759.3	16.4
Ethylene	10000 tons	1047.7	11.4
Chemical fertilizers (100 percent equivalent)	10000 tons	5786.9	8.3
Power-generating equipment	10000 kilowatts	12991.0	11.1
Motor vehicles	10000	888.7	22.1
Of which: Cars	10000	479.8	24.0
Large & medium tractors	10000	20.3	1.9
Integrated circuits	100 million pieces	411.6	22.6
Program-controlled switchboards	10000 lines	5387.1	-27.2
Mobile telephones	10000	54857.9	14.3
Micro-computers	10000	12073.4	29.3

The profits made by the industrial enterprises above the designated size in the first 11 months of 2007 were 2,295.1 billion yuan, an increase of 36.7 percent over the same period of last year.

Table 3: Profits and Growth of Industrial Enterprises above the Designated Size in the First Eleven Months of 2007

Item	Total Profits	Increase over same period last year (%)
Industrial enterprises above designated size	22951	36.7
Of which: State-owned and state-holding enterprises	9662	29.6
Of which: Collective enterprises	566	25.2
Share-holding enterprises	12209	35.1
Enterprises by foreign investors or investors from Hong Kong, Macao and Taiwan	6126	34.3
Of which: Private enterprises	4000	50.9

In 2007, the value added of construction enterprises in China was 1,401.4 billion yuan, up by 12.6 percent over the previous year. The profits made by construction enterprises qualified for general contracts and specialized contracts reached 147.0 billion yuan, up by 23.2 percent, with their paid taxes of 166.1 billion yuan, up by 18.5 percent.

IV. Investment in Fixed Assets

The completed investment in fixed assets of the country in 2007 was 13,723.9 billion yuan, up by 24.8 percent over the previous year. of the total investment, that in urban areas was 11,741.4 billon yuan, up by 25.8 percent; and that in rural areas reached 1,982.5 billion yuan, up by 19.2 percent. An analysis by regions showed that the investment in east areas was 7,231.4 billion yuan, up by 19.9 percent over the previous year, in central areas was 3,428.3 billion yuan, a growth of 33.3 percent, and in western areas 2,819.4 billion yuan, a growth of 28.2 percent.

Figure 7: Investment in Fixed Assets and its Growth, 2003-2007

In the urban areas, the investment in the primary industry was 146.6 billion yuan, up by 31.1 percent; that in the secondary industry was 5,102.0 billion yuan, up by 29.0 percent; and that in the tertiary industry was 6,492.8 billion yuan, up by 23.2 percent.

Table 4: Fixed Assets Investment in Urban Areas and its Growth by Sector in 2007

Unit: 100 million yuan

In 2007, the investment in real estate development was 2,528.0 billion yuan, up by 30.2 percent. Of this total, the investment in commercial residential buildings reached 1,801.0 billion yuan, an increase of 32.1 percent. The completed floor space of commercial buildings reached 582.36 million square meters, up by 4.3 percent. The total sales of commercial buildings reached 761.93million square meters, up by 23.2 percent, of which, that of the commercial residential building were 691.04 million square meters, up by 24.7 percent.

Table 5: Newly Increased Production Capacity through Fixed Assets Investment in 2007

Item	Unit	Volume
Newly increased power generating capacity	10,000 kilowatts	10009
Power transformer equipment with a capacity of over 220 kilovolts	10,000 kilovolt-amperes	18848
New railways put into operation	Kilometer	678
Double-track railways put into operation	Kilometer	480
Electrified railways put into operation	Kilometer	938
New highways	Kilometer	143595
Of which: Expressways	Kilometer	8059
New cargo-handling capacity of berths for over 10000-tonnage ships	10,000 tons	43916
New capacity of telephone switchboards	10,000 lines	836
New lines of optical-fiber cables	10,000 km	146
New capacity of digital cellular mobile phone switchboards	10,000 subscribers	24284

V. Domestic Trade

In 2007, the total retail sales of consumer goods reached 8,921.0 billion yuan, up by 16.8 percent over the previous year. An analysis on different areas showed that the retail sales of consumer goods in cities reached 6,041.1 billion yuan, up by 17.2 percent and the retail sales of consumer goods at and below county level was 2,879.9 billion yuan, up by 15.8 percent. Analyzed by different sectors, the sales of the wholesales and retail trade reached 7,504.0 billion yuan, up 16.7 percent; the sales of the lodging and catering industry was 1,235.2 billion yuan, up 19.4 percent, and the sales of the other industries was 181.8 billion yuan, up 4.5 percent.

Of the total retail sales by wholesale and retail enterprises above designated size, the sales of grain and oil was up by 38.3 percent, meat and eggs up by 40.9 percent, clothing up by 28.7 percent, motor vehicles up by 36.9 percent, petroleum and related products up by 20.5 percent, daily necessities up by 26.5 percent, cultural and office goods up by 22.6 percent, telecommunication equipment up by 8.8 percent, electric and electronic appliances for household use and audio-video equipment up by 23.4 percent, building and decoration materials up by 43.6 percent, furniture up 43.2 percent, cosmetics up by 26.3 percent, gold, silver and jewelry up by 41.7 percent and traditional Chinese drugs and western drugs up by 25.1 percent.

Figure 8: Total Retail Sales of Consumer Goods and its Growth, 2003-2007

VI. Foreign Economic Relations

The total value of imports and exports in 2007 reached 2,173.8 billion US dollars, up 23.5 percent over the previous year. Of this total, the value of exports was 1,218.0 billion US dollars, up 25.7 percent, and the value of imports was 955.8 billion US dollars, up 20.8 percent. China had a trade surplus of 262.2 billion US dollars, an increase of 84.7 billion US dollars over the previous year.

Table 6: Total Value of Imports and Exports and the Growth Rates in 2007

Unit: 100 million USD