The past two decades represent the period of fastest growth of New China since its founding in 1949. China's GDP rose from 362.41 billion yuan in 1978 to 7,477.24 billion yuan in 1997, an increase of 20 times and a 4.9-fold rise in constant prices. Calculated according to the year's RMB/US$ exchange rate, it was valued at US$902 billion, ranking China seventh in the world following the United States, Japan, Germany, France, Britain and Italy.

Between 1979 and 1997, China's economy grew by 9.8 percent on an annual basis, 6.5 percentage points higher than the world average, 7.3 percentage points higher than developed countries and 4.8 percentage points higher than developing countries. It also outstripped Singapore, the Republic of Korea, Taiwan, Malaysia and Indonesia by 1.9-3.5 percentage points, which all enjoyed fast economic growth during the period.

Industrial and agricultural production.

In 1997, China ranked first in the output of coal, cloth, grain, cotton, rapeseed, steel, cement, pork, beef, mutton and television sets. It was second in the output of electric power and chemical fertilizer, and fifth in crude oil production. Due to its big population, however, output remained low in per-capita terms.

Foreign trade.

The country's total volume of foreign trade rose from US$20.64 billion in 1978 to US$325.06 billion in 1997, and its position in the world thus moved from 27th to 10th.

Foreign exchange reserves.

In 1978, China had only US$167 million in foreign exchange reserves, while in 1997, the figure soared to US$139.9 billion, ranking China second in the world. In the same year, foreign exchange reserves of the Hong Kong Special Administrative Region reached US$92.8 billion, moving it from seventh (in 1996) to third place.

Introduction of foreign capital.

It was virtually zero before the country's reform and opening drive. Since 1978, China has actually used US$348.35 billion of foreign funds, including US$64.41 billion introduced in 1997 alone. Since 1990, China has remained in the forefront among developing countries in terms of total volume of long-term foreign capital absorbed. Since 1993, it has ranked first among developing countries and second (next to the United States) worldwide. Asia-Pacific countries and regions supply 90 percent of the country's overseas investment. In particular, the Hong Kong SAR and Taiwan Province constitute about 70 percent.

International tourism revenue.

Last year, inbound tourists numbered 57.59 million, up 31 times from 1978. The country's foreign exchange income from tourism hit US$12.1 billion, a 45-fold rise or an annual increase of 22.4 percent, ranking eighth in the world.

Science, education, culture and public health.

China has a medium or slightly higher level. The contribution rate of science and technology to its economy stands at 30 percent, compared to more than 60 percent in developed countries. In 1996, China had the world's largest contingent of scientists and engineers, while R&D funds accounted for only 0.5 percent of its GDP. This equalled the level of other developing countries and was lower than the 2-percent level of developed countries. The country has a fairly high level in primary and secondary education, but it is backward in higher education. College admission rate stands at only 3.8 percent, far lower than the world's average level (15.5 percent) and even that of India (4.9 percent).

Living standards.

Fast economic growth has greatly improved people's life. During 1979-97, consumption level of residents rose 7.3 percent annually. The proportion of food consumption in the total expenses of urban and rural residents was down from 56.7 percent and 69.6 percent respectively in 1978 to 46.4 percent and 55.1 percent in 1997.

In terms of the average exchange rate in 1997, China's per-capita GDP was US$733. This means China remains a low-income country, and its people's lives are shifting from a mode of being adequately fed and clothed to one of a moderate level of prosperity.

(No. 52, 1998)