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

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