General Economic Situation

Since the founding of new China in 1949, China's economy has witnessed great achievement in different stages. Particularly, since the country implements its opening-up policy in 1978, China's economy has kept an average annual growth rate of 9%. In 2003, China's Gross Domestic Production (GDP) is $1400 billion, ranking the 6th in the world, following America, Japan, Germany, Britain, and France. By the end of 2003, China's GDP per capita has reached $1000.

At present, China's domestic investment and consumption are on the right track. In 2003, China's fixed assets investment has reached over RMB5500 billion ($670.73 billion). Its retail consumption is about RMB4600 billion ($560.97 billion). Its foreign trade volume is over $850 billion, surpassing Britain and France to rank the fourth in the world after America, Germany, and Japan. By the end of 2003, China's foreign reserve has been over $400 billion to rank the second in the world after Japan.

After 20 years of opening-up reform and modernization, China has basically shifted its economic structure from planned economy to socialist market economy. The social market economic system is on its way to optimize and develop. In the meantime, China's law and regulation are getting progress, its market is further widened, its investment environment is improving gradually and the reform in financial sector progressing steadily. These factors have contributed to the continuous development for China's economy.

In the new century, China puts forwards the idea of overall and harmonious development of human and nature, human and society, city and village, east and west, and economy and society. In 2002, the Chinese Communist Party has also decided on its sixteenth National Congress that by 2020, China will realize the goal of building up a better-off society.