|Gross National Product (GNP)
||refers to the final result of the primary
distribution of the income created by all the resident
units of a country (or a region) during a certain period
of time. The value-added created by the resident units
of a country engaged in production activities is mainly
distributed to the resident units of that country while
a part of it is distributed to the non-resident units
in the form of production tax and import duties (minus
subsidies to production and import), remuneration for
the labourers and property income. At the meantime,
a part of the value-added created abroad is distributed
to the resident units of the country in the form of
production tax and import duties (minus subsidies to
production and import), remuneration for the labourers
and property income. Thus the concept of gross national
product is formed, which equals to gross domestic product
plus net factor income from abroad. Unlike gross domestic
product which is a concept of production, gross national
product is a concept of income.
|Gross Domestic Product (GDP)
|| refers to the final products of all resident
units in a country (or a region) during a certain period
of time. Gross domestic product is expressed in three
different forms, i.e. value, income, and products respectively.
The form of value refers to the total value of all products
and services produced by all resident units during a
certain period of time minus total value of intimidate
input of materials and services of the nature of non-fixed
assets or the summation of the value-added of all resident
units; the form of income includes all the income created
by all resident units and distributed primarily to all
resident and non-resident units; the form of products
refers to the value of all final goods and services
for final use by all resident units plus the value of
net exports of goods and services during a given period
of time. In the practice of national accounting, gross
domestic product is calculated with three approaches,
i.e. production approach, income approach, and expenditure
approach, which reflect gross domestic product and its
composition from different aspects.
||Industry structure has been classified
according to the historical sequence of development.
Primary industry refers to extraction of natural resources;
secondary industry involves processing of primary products;
and tertiary industry provides services of various kinds
for production and consumption. The above classification
is universal although it varies to some extent form
country to country. Industry in China comprises:|
(1) Primary industry agriculture (including farming,
forestry, animal husbandry and fishery).
(2)Secondary industry industry (including mining and
quarrying, manufacturing, production and supply of electricity,
water and gas) and construction.
(3)Tertiary industry all other industries not included
in primary or secondary industry.
Due to the fact that tertiary industry involves in a
large variety of industries in China, it is divided
into two sectors: circulation sector and service sector
and further into four levels:
a.The first level: circulation sector, including transportation,
storage, postal and telecommunications, wholesale and
retail trade, and catering trade.
b.The second level: service sector providing services
for production and consumption, including banking, insurance,
geological survey, water conservancy management, real
estates, service for residents, service for agriculture,
forestry, animal husbandry, fishery, subsidiary services
for transportation and communications, comprehensive
technical services, etc.
c.The third level: service sector for upgrading scientific,
educational and cultural level of the people, including
education, culture and arts, broadcasting, movies, television,
public health, sports, social welfare and scientific
d.The fourth level: sector providing services for public
needs, including government agencies, political parties,
social organizations, military and police service.
|GDP Calculated with Expenditure Approach
||refers to total expenditure on final consumption,
total capital formation and net export of goods and
services by resident units of a country in a certain
period of time. It reflects the composition of GDP by
||refers to the total expenditure of resident
units on final consumption of goods and services in
a certain period, namely the expenditure of the resident
units for purchases of goods and services from domestic
economic territory and abroad to meet the requirements
of material, cultural and spiritual life. It excludes
the expenditure of non-resident units on consumption
in the economic territory of the country. The final
consumption is classified into household consumption
and government consumption.
||refers to the total expenditure of resident
households on the final consumption of goods and services.
The households consumption is calculated at market prices,
namely the purchaser's prices which the households pay;
the purchasers prices of goods are the prices the households
pay when they obtain the goods, including the transport
and commercial expenses paid by the households. In addition
to the consumption of goods and services bought by the
households directly with money, the expenditure on goods
and services obtained by the households in other ways,
i.e. the so-called imputed expenditure on consumption,
is also included in the households consumption. The
imputation expenditure of the households on consumption
includes the following types: (a) the goods and services
provided to the households by the units in the form
of payment in kind and transfer in kind; (b) the goods
and services produced and consumed by the households
themselves, in which the services refer only to the
services provided by the residential buildings owned
by the households; (c) the services of financial intermediary
provided by the financial institutions; (d) the insurance
services provided by the insurance companies.
||refers to the expenditure on the consumption
of the public services provided by the government to
the whole society and the net expenditure on the goods
and services provided by the government to the households
at free charge or lower prices. The former equals to
the output value of the government services minus the
value of operating income obtained by the government
departments. (The output value of the government services
equals to its current operating expenditure plus depreciation
of fixed assets). The latter equals to the market value
of the goods and services provided by the government
free of charge or at low prices to the households minus
the value received by the government from the households.
|Total Capital Formation
||refers to the fixed assets acquired minus
those disposed and the change in inventory, including
the total fixed assets formation and the increase in
|Total Fixed Capital Formation
||refers to the value of fixed assets purchased,
transferred in by the resident units and those produced
and used by themselves deducting the value of fixed
assets sold and transferred out. It can be classified
into total tangible assets formation and total intangible
assets formation. The total tangible assets formation
include the value of the construction projects, installation
projects completed and the equipment, apparatus and
instruments purchased as well as the value of land improved,
the value of draught animals, breeding stock, milk,
wool and recreational animals and the newly increased
economic forest in a certain period. The total intangible
assets formation includes the prospecting of minerals,
the acquisition of computer software, the originals
of recreational works and works of literature and arts
minus the disposal of them.
|Increase in Inventory
||refers to the market value of the change
in inventory, i.e. the difference of value between the
beginning and the end of the period. The increase in
inventory can be positive or negative. A positive value
indicates the increase in inventory while a negative
value indicates the decrease in stock. The inventory
includes the raw materials, fuels and reserve materials
purchased by the production units as well as the inventory
of finished products, semi-finished products, work-in-progress,
|Net Export of Goods and Services
||refers to the difference of the exports
of goods and services minus the imports of goods and
services. The imports include the value of various goods
and services sold or gratuitously transferred by the
resident units to the non-resident units. The imports
include the value of various goods and services purchased
or gratuitously acquired by the resident units from
the non-resident units. Because the provision of services
and the use of them happen simultaneously, the import
and export of services do not appear to have the phenomena
of crossing the border of the country. The acquisition
of services by the resident units from abroad is usually
treated as import while the acquisition of services
by non-resident units in this country is usually treated
as export. The export and import of goods are calculated
||refers to the whole payment of various
forms earned by the labourers from the productive activities
they are engaged in. It includes wages, bonuses and
allowances the labourers earned in monetary form and
in kind. It also includes the free medical services
provided to the labourers and the medicine expenses,
traffic subsidies and social insurance fee paid by the
labourers' working units for them. As the individual
economy is concerned, since the labourers' remuneration
is not easily distinguished from the operating profit,
both are treated as labourers remuneration.
|Net Taxes on Production
||refers to the residual of the taxes on
production minus the subsidies on production. The taxes
on production refers to the various taxes, extra charges
and fees levied on the production units on their production,
sale and business activities as well as on some factors
of production, such as fixed assets, land and labour
force, used in the production activities they are engaged
in. In contrast to the taxes on production, the subsidies
on production refer to the unilateral transfer of part
of the government's revenue to the production units
and is therefore regarded as negative taxes on production.
They include subsidies on the loss due to implementation
of government policies, price subsidies to the grain
institutions, foreign trade corporations receipts from
|Depreciation of Fixed Assets
||refers to the depreciation of fixed assets
of a given period, drawn in accordance with the stipulated
depreciation rate for the purpose of compensating the
wear loss of the fixed assets or the depreciation of
fixed assets calculated in a fictitious way in accordance
with the stipulated unified depreciation rate in the
national economic accounting system. It reflects the
value of transfer of the fixed assets in the production
of the current period. The depreciation of fixed assets
in various enterprises and institutions managed as enterprises
refers to the depreciation expenses actually drawn and
calculated as part of the cost. In government agencies
and institutions not managed as enterprises which do
not draw the depreciation expenses, as well as for the
houses of residents, the depreciation of fixed assets
is the imputed depreciation, which is calculated in
accordance with the stipulated unified depreciation
rate. In principle, the depreciation of fixed assets
should be calculated on the basis of the re-purchased
value of the fixed assets. However, there is no actual
condition to re-evaluate all the fixed assets in China.
Therefore, the above-mentioned methods are temporarily
adopted at present.
||refers to the balance of the value added
created by the resident units deducting the labourers'
remuneration, net taxes on production and the depreciation
of fixed assets. It is equivalent to the business profit
of the enterprises plus subsidies on production, but
the wages and welfare expenses paid from the profits
should be deducted.
|Direct Input Coefficient
||refers to the volume of products and services
of all sectors consumed directly by a certain sectors
productive units, which are needed for their total output.
It is also named as technical coefficient. It represents
the direct technical economical ties and direct interdependence
between the sector and other sectors.
|Total Input Coefficient
||refers to the volume of products and services
of all sectors needed for a certain sectors productive
units to increase their total output. Total input coefficient
is equal to the sum of direct input coefficient and
total indirect input coefficient. It is a major indicator
to disclose the technical economical ties and interdependence
between sectors of the national economy.
||refer to economic entities
that are in a position to own assets and incur liabilities
in their own name, and to engage in economic activities
and conduct transactions with other entities. Depending
on their different role in production, consumption and
financing, 4 groups of resident institutional units
are identified in the flow of fund tables, namely, non-financial
corporations, financial institutions, governments, households
and the rest of the world.
||refer groups of institutional units that
are classified by their nature. Following groups (or
institutional sectors) are identified in the flow of
fund accounts: the sector of non-financial corporations,
the sector of financial institutions, the sector of
governments and the sector of households.
|Non-Financial Corporations and the Sector
of Non-Financial Corporations
||Non-financial corporations refer to resident
corporations that are engaged in the production of goods
and the provision of non financial services in the market,
mainly covering corporate enterprises of various types.
All non-financial corporations make up the sector of
|Financial Institutions and the Sector of
||Financial institutions refer to resident
institutions that are engaged in the financial services
or auxiliary financial activities, mainly covering central
banks, commercial banks, policy-related banks, non-banking
credit institutions and insurance companies. All financial
institutions make up the sector of financial institutions.
|Government Units and the Sector of Governments
||Government units refer to legal entities
and their auxiliary units within the territory of China
that are established through political process and are
empowered with legislative, administrative or judicial
rights over other institutional units in a given region.
The main function of government units is to acquire
funds through taxation or other means, to provide public
services to the society and households, and to conduct
redistribution of income and properties of the society
through transfer payment. Government units cover mainly
administrative and institutional units of various types.
All government units make up the sector of governments.
|Households and the Sector of Households
||Households refer to resident individuals
or groups of resident individuals who share common living
facilities, pool together entire or part of their income
and properties at their common disposal, and share their
housing, food and other consumer goods and services.
All households make up the sector of households.
|Non-resident Units and the Sector of the
Rest of the World
||Non-resident units refer to of units that
are of a non-resident nature. All non-resident units
that have transactions with resident units make up the
sector the rest of the world.
|Total Income of Primary Distribution
||Primary distribution refers to the distribution
of value-added in the form of compensation for labours,
depreciation of fixed assets, production taxes and property
income. The sum of income obtained through primary distribution
is called the total income of primary distribution.
||include 4 parts: income tax, payment to
social securities, social allowances and other current
|Total Disposable Income
||refers to income received by institutional
sectors on the basis of total income of primary distribution
and through current transfers. This is the income that
is used for final consumption and savings.
||is the difference between total disposable
income and the final consumption.
||refers to the free payment from one sector
to another sector for capital formation, and is a transaction
that seeks no return from the recipient. The capital
transfer differs from the current transfer in 2 aspects.
Firstly, the objective of the transfer is investment
rather than consumption. Secondly, capital transfer
features the transfer of the ownership of the capital
rather than the utilization right of the capital. Capital
transfer includes investment subsidies and other capital
transfers. Under the current situation in China, investment
subsidies refer to investment allocations from government
finance, i.e. the financial allocations that are used
for capital construction, updating and transformation
projects and other investment in fixed assets.
|Net Financial Investment
||refers to total savings plus
the net income from capital transfer minus the gross
capital formation from the point of view of physical
transaction. In terms of monetary transaction, it is
the increased value of financial assets minus the increase
of the financial liabilities.
|Currency in Circulation
||refers to currency that is in circulation
in the market, including notes and fractional currency.
||refers to deposits of all types, including
current deposit, fixed deposit, household savings deposit,
government deposit, foreign exchange deposit and other
||refer to loans of all forms provided by
financial institutions to non-financial sectors, including
short-term loans, medium and long-term loans, government
loans, foreign exchange loans and other loans.
||include bonds and stocks.
|Insurance Reserve Funds
||refer to reserve fund for life insurance,
the net pension fund, advance payment of premium and
|| refers to bank fund that is in the process
|Transactions Between Financial Institutions
||refer to flow of capital between financial
institutions, including inter-bank deposits and loans.
||refer to savings of financial institutions
in the central bank and designated reserves to the central
|Loans from the Central Bank
||refer to loans from the central bank to
||includes goods, services, earnings and
||refer to imported or exported goods through
Chinese customs. Figures in the Yearbook are based on
customs statistics, adjusted in line with the concepts
and definitions of the balance of payment statistics
and with the change in the ownership of commodities.
Statistics on both exports and imports are valued at
||include transportation, tourism, communications,
construction, insurance, international financial services,
computer and information service, royalty for patent,
trademarks and other special rights, commercial services,
personal cultural and recreational services and government
||include compensation of employees and
earnings from investment (including earnings from and
expenses on direct investment, security investment and
other investment, as well as reinvestment of earnings
from direct investment).
||includes capital transfers such as immigration
transfer, reduction or exemption of debts, etc..
||includes direct investment, security investment
and other investments.
||refers to investment, made in forms of
exclusive investment, joint investment, contracted operation
and cooperative development, by foreign investors or
investors from Hong Kong, Macao and Taiwan in China,
or by Chinese investors in foreign countries or in Hong
Kong, Macao and Taiwan.
||refers to the purchase of stocks and securities
issued by central and local governments and enterprises
in China by institutions or individuals of foreign countries
or from Hong Kong, Macao and Taiwan ( and the re-purchase
by Chinese institutions), and the purchase and selling
of stocks and securities issued in foreign countries
and in Hong Kong, Macao and Taiwan by Chinese governments,
enterprises and individuals.
||includes trade credits, loans, currency,
savings and other assets, provided by foreign countries
to China and by China to foreign countries.
|Reserve Assets, Net Increase
||refers to the net balance between the
end of the reference year and the end of the previous
year, in the gold reserve, foreign exchange reserve,
special drawing rights in the International Monetary
Fund, and the use of the Fund's credits. The increase
in the reserve assets is expressed as a negative figure.