In 2001, though the developing speed was a little slower than that of previous several years, the general situation of the township enterprises was still in line with the national economic trends. The economic operation situation was smooth and the enterprises quality improved to a new stage. It was mainly reflected in the following two aspects.

I. Situation of continuous and healthy development of the township enterprises. It has four prominent characteristics:

1.The production index and benefit index increased simultaneously.

Last year, the township enterprises realized the added value of RMB 2930 billion yuan, up 8 percent over the previous year, of which, the industry added value was RMB2020 billion yuan, ; the business income was 11650 billion yuan, the delivery value of export products was RMB 940 billion yuan, up 8, 7.4, 8 and 8.4 percent respectively. The total amount of profits was RMB 690 billion yuan and the total amount of taxes paid to the state was RMB220 billion yuan, increased by 6.5 and 10.1 percent respectively. The production index and profit index increased simultaneously. 

2. Large-scale enterprises developed smoothly

The township enterprises with annual sales income over 5 million yuan as a whole realized an added value of RMB 625 billion yuan, up 12.3 percent over last year. The increased rate is 4.9 percent higher than the average rate. The proportion of its added value in the whole country's township enterprises' added value increased from 29.6 percent of the same period of last year to 30.2 percent. The proportion in the added value of large-scale industry (according to the State Bureau of Statistics) increased from 21.3 percent of the same period of last year to 22.2 percent. It played a supporting role in the stable development of the whole enterprises as well the important role in the fast development of the national industry.  

3. Individual and private economy grew fast              

The individual & private enterprises in the township enterprises realized the added value of RMB2042 billion yuan, rose by 11.7 percent over the previous year. The increased rate is 3.7 percent higher than average increased rate of the township industry. The proportion of the added value in the whole township enterprises increased from 66 percent of the previous year to 70 percent, rose by 4 percentage points. Particularly in the provinces of Jiangsu, Zhejiang, Fujian and Guangdong, not only the individual & private enterprises in the township enterprises developed fast, but also the whole strength was enhanced continuously. 

4. The links between industry production and industry sales showed a better trend.                                                        

Last year, the township enterprises realized the gross output value of RMB 8720 billion yuan, rose by 7.6 percent on year. The sales income was RMB 8300 billion yuan, rose by 7.8 percent. The ratio between the output value and sale income is 95.1 percent, rose by 0.2%, of which,   enterprises with annual sales income over RMB 5 million yuan reached 95.6 percent, rose by 0.3%.

II. The development of the township enterprises still couldn't adapted to the development requirement of the national economy and the agricultural and rural areas in following four aspects:

1. Increase rates in absorbing the affluent rural labor forces couldn't adapt to the requirement of the job opportunity and income upgrading in rural areas.

In recent years, the increasing rates of absorbing labor forces by the township enterprises slowed down due to the sluggish development speed, the improvement of enterprises technologies, increase in the capital organic structures and the dispersed distribution. The development rate was 17.3 percent in 1998, 12.2 percent in 1999, , 9.1 percent in 2000, fell 5.1 and 3.1 respectively. The estimated rate is 8 percent in 2001, fell another 1.1 %. The increase rates in absorbing affluent rural labor forces also slowed down. It absorbed 125 million people in 1998, 127 million in 1999, and 128 million in 2000, rose 2 million and 1 million respectively. It is estimated that the increase in 2001 will be about the same as the previous year. The problems of insufficient employment opportunity in rural areas and the slow income upgrading rate became even prominent. It is far to meet the requirement of the Tenth Five-year Plan period's annual absorption of 2.50 million labor forces in township enterprises. 

2. Dropping of the increase rates of the exports couldn't adapt to the requirement of exports driving the township enterprises' development.

Last year, the increase rate of the exports of the township enterprises slowed down under the influences of the recessionary international economy. It realized exports value of RMB 940 billion yuan, rose by 8.4 percent over the previous year, fell 3.56%. In view of total exports amount, the rising rate of the exports of the township enterprises showed the trends of slowing down. It increased 16.2 percent in the first quarter, which was 12.4 percent in first half year and 8.5 percent in the period of January - November. Under the circumstances of the enlarged export-oriented township enterprises and the share in national export, the dropping of export rate of the township enterprises made a direct influence on the developing speed of the township enterprises and the development of China's foreign trade.     

3. The inflexible rural collective enterprises system and hard operation couldn't adapt to the development and reform situation of the township enterprises.

Last year, the rural collective enterprises realized RMB 888 billion yuan, rose by –5.8 percent on year, which is 13.8 % lower than the increase rate of the total township enterprises. The shares of the collective enterprises fell from 34 percent in 2000 to 30 percent. The collective enterprises in 14 provinces, municipality and autonomous regions of Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Anhui, Fujian, Jiangxi, Henan, Guangdong, Guangxi, Chongqing and Xinjiang all showed the negative growth rates. Since the assets of the collective enterprises are very large and they take fairly large proportions in the total assets of the township enterprises, the sluggish development speed influenced the general development of the township enterprises greatly. 

4. Larger differences between the regional developments couldn't adapt to the requirement of the coordination among the different regions.

Last year, the added value realized by the township enterprises in eastern region increased by 9.5 percent over the last year, which increased 6.7 percent and 8.0 percent in the central and western regions respectively. The added value shares of the township enterprises in the total amount increased from 60.9 percent in the previous year to 62 percent. It decreased from 32.1 percent in the previous year to 31 percent in the central region. It is 7 percent of that in the western region. The differences between the eastern region and the middle & western regions not only showed in the development speed, but also in the industry levels, the enterprises operation quality and efficiency.

Links

 Operation of Township Enterprises