In 1998 China's gross domestic product (GDP) stood at 7,955.3 billion yuan, up 7.8% over the previous year. Of which, the first industry increased 1,429.9 billion yuan, the secondary industry, 3,915 billion yuan, and tertiary industry, 2,610.4 billion yuan.

China Basic Industries and Infrastructure

I. Energy Industry

China is the largest coal producer and the second largest electricity producer in the world. So far, it has preliminarily formed an energy production system which takes coal as the mainstay and in which various forms of energy supplement one another. In 1998, China's energy production totaled 1,240 million tons standard coal and energy consumption totaled 1,360 million tons of standard coal.

1. Coal industry

China's coal resources are estimated at 5,059.2 billion tons, with enormous reserves and high quality. Its coal mines have reserves verified at 972.4 billion tons, one third of which are coking coal. There are many coal fields, but relatively concentrated in north, northwest, northeast and east China, as well as some areas in southwest China. The vast area south of the Yangtze River is deficient in coal resources. In 1998, China's raw coal production totaled 1.233 billion tons.

2. Power industry

By the end of 1996, China's thermal power generating capacity had reached 236.54 million kw. The power industry as a whole generated 1,079.4 billion kwh in 1996. China ranked second in the world in terms of both power generating capacity and electricity output.

China's power resources are not distributed evenly. The vast central and western region is rich in hydropower resources and has large coal reserves, whereas economically developed eastern coastal region is relatively deficient in energy resources. For a considerably long time to come, China will accelerate energy development and construction of energy production centers in the central and western region, propel abundant power supply from the central and western region to the eastern region, and connect all of its power grids as soon as possible. The specific contents are: by the year 2000, its power generating capacity is projected to rise to 290 million kw, its annual power production will reach 1.4 trillion kwh, the length of its power transmission lines of 220 kv and higher will increase to 171,200 km and its substation equipment will reach 398 million kilovolt amperes. Meanwhile, it will renew and upgrade generating units with a combined capacity of 12 million kw, replace generating units with a total capacity of eight million kw that have exceeded their service spans, and put into operation and install generating units with a combined capacity of 10 to 12 million kw that will have desulfuration equipment. Electricity will be available in all counties across the country so that the problem of 70 million rural residents with no access to electricity will be solved. By the year 2010, China's generating capacity will rise further to 500 million kw, and the Three Gorges Hydropower Station will be able to supply electricity to central China, east China, Sichuan Province and Chongqing Municipality. An inter-regional and inter-connected power grid covering north, central and south China will be formed. Rural areas will achieve electrification by and large. China's power technological and economic indexes will become closer to advanced international standards. By the year 2020, its generating capacity is projected to rise further to 700 to 800 million kw. On the basis of making the structures of hydropower, thermal power, nuclear power and new energy rational, a nationwide power grid will be formed to make sure that power resources will be distributed rationally and score sustainable development all over the country. By the year 2050, a power industrial system suited to a modern China will be established.

3. Petroleum industry

In 1998, China's on-shore oil industry pumped out a total of 162.603 million tons of crude oil and 22.297 billion cubic meters of natural gas; and its offshore oil industry produced a total of 16.32 million tons of crude oil and 3.84 billion cubic meters of natural gas.

Its on-shore oilfields are primarily concentrated in the eastern part, such as Daqing, Shengli, Liaohe, Central China, Jilin, Dagang and Jianghan, whose crude oil production constitutes the lion's share of China's total. Western oilfields such as Xinjiang, Tarim, Tulufan and Hami, Changqing and Qinghai are being developed and built. In recent years, with constant development, offshore oilfields have reported rapid growth of crude oil production. Apart from the fact that major oilfields pump out natural gas, China's natural gas is primarily produced in Sichuan, Shaanxi, Gansu and Ningxia, the Tarim Basin and the Jungar Basin, as well as by offshore gas fields.

Since China's economy has been growing rapidly, its domestically-produced crude oil cannot fully meet its needs. So, since the beginning of the mid-1990s, China has had to import some crude oil each year.

II. Transportation

In 1998, the mileage of railways in China open to traffic reached 57,600 km, that of highways, 1,278,500 km, that of inland river shipping routes, 110,300 km, that of air routes, 1,505,800 km, with international air routes accounting for 504,400 km, and the length of pipelines was 23,100 km. China's passenger turnover totaled 1,055.9 billion persons-km and its cargo turnover, 3,784.1 billion tons-km. Major coastal ports handled a total of 922.37 million tons of cargo.

1. Railway transport

By the end of 1998, the mileage of China's railways open to traffic had reached 57,600 km, with double-tracked ones making up 34.16% and electrified ones accounting for 22.57%. China had 15,562 locomotives including 10,1159 internal combustion ones, 440,000 freight trains and 34,200 passenger trains.

Railways have always played a leading role in China's comprehensive transportation system.

To date, a railway network has covered all parts of China, with the exception of Tibet. However, railways are not distributed evenly because they are mainly distributed in northeast China and the coastal areas in east China. respectively. Except that existing railways in northeast China have formed a network by and large, they have not done so in other areas. Consequently, transportation has been concentrated on trunk lines. So, China's railway transport load is very heavy and its railway transport capacity cannot fully meet growing needs.

At present, more than 80% of the country's freight transports are raw materials and staple materials, including coal, iron and steel and nonferrous metals, metals and non-metallic ore, building materials and grain, with coal transport exceeding 40%. Every day more than 1,000 pairs of passenger trains are dispatched.

At present, China is speeding up construction and upgrading of trunk lines, with emphasis placed on the central and western region. Special efforts will be made to solve the problem of insufficient transport capacity in northeastern China, and further improve the modernization level of equipment on trunk lines. By the year 2002, the mileage of railway lines open to traffic will exceed 70,000 km, with double-tracked ones reaching 21,000 km and electrified lines accounting for 15,000 km. Internal combustion and electric locomotives will be used for traction power. The railway digital transmission corridor will be built. A transport managerial information system and a national railway ticket booking system will be introduced.

2. Highway transport

By the end of 1998, the mileage of China's highways open to traffic had reached 1,278,500 km, with grade-one and grade-two special roads accounting for 11.7% and expressways totaling 8,733 km. Now 98.7% of towns and townships and 87.7 villages all over the country have access to roads. Areas with no access to transport service is virtually non-existent. High-grade highways have formed networks in developed areas preliminarily.

Highway transport plays a significant role in China's transport sector, especially in passenger transport.

In China' national highway network, the trunk national route system composed primarily of high-grade roads for motor vehicles constitutes the major framework. Trunk national routes link the nation's capital of Beijing and other municipalities directly under the central government and the capitals of various provinces (autonomous regions), as well as all exceedingly large cities with a population of more than one million and the overwhelming majority of cities with a population of over half a million.

3. Waterway transport

Waterway transport holds an extremely important position in China's cargo transports.

Waterway transport is concentrated in coastal areas in eastern China and in south China.

(1) Inland river transport

By the end of 1998, the mileage of the country's inland rivers had reached 110,300 km, with channels capable of accommodating ships of 1,000 DWT accounting for 5,800 km. Major inland river harbors had a total of 8,575 wharves and berths, including 47 for ships of more than 10,000 DWT. China's inland rivers enjoy an enormous shipping potential. Holding a leading position in inland river shipping are the shipping routes on the Yangtze, Pearl, Heilongjiang and Huaihe rivers, as well as the Jinghang (Beijing-Hangzhou) Grand Canal shipping route.

(2) Ocean transport

Ocean transport holds a dominant position in the country's waterway transport, with the ocean cargo turnover making up roughly 70% of the waterway transport cargo turnover. At least 85% of China's foreign trade goods rely on ocean transport. In 1998, the amount of China's sea freight transport in foreign trade stood at 330 million tons.

China has more than 60 ports along the coasts. For the 16 chief ports, the number of the berths at the end of 1998 reached 1,608, and 468 deep water berths among them are able to accommodate 10,000 ton boats. The goods handled in 1998 registered 922 million tons. The order of chief ports with an annual handling capacity of over 50 million tons is as the following: Shanghai, Ninbo, Guangzhou, Qinhuangdao, Dalian, Qingdao and Tianjin. China's chief ports along the coasts are usually linked with the hinterland through high grade roads or trunk railways, forming basically an international container system consisting of ocean transport, port loading and unloading, and inland transport (water, road and railway).

Currently, more than 40 ports in China are engaged in container loading and unloading, and there are over 50 special container berths and 16 ports have special berths for 10,000-ton containers.

In 1998, the handling capacity of the international container ports registered 13.16 million TEU, and China's container fleet has ranked among the top four in the world.

By the end of 1998, China boasted 260 international sea transportation ship companies, and 410 ship companies which owned 1,620 ships flying Chinese flags and sailing on the international lines and Hong Kong and Macao lines, and with a loading capacity of 17 million tons. There were 237 international ship agent enterprises and 380 foreign navigation company representative office, as well as 72 foreign solely-funded ship companies, container transport service companies and branches. So far, China has opened navigation with 1,100 ports in 150 countries and regions in the world. In 1998, each month there were 2,532 ships leaving Chinese ports and there were 279 monthly voyages sailing across the ocean. Beginning from 1989, China has been successively elected Class A Council Country in the International Maritime Organization.

4. Civil aviation transport

At the end of 1998, China had 143 airports open to traffic, 1,122 regular air routes( including 983 international air routes ) with a total length of 1,858,700 km, and 135 civil cities(Hong Kong is exclude) with access to air service. Its international air routes reach 64 cities in 34 countries and regions.

In 1998, Chinese airports handled 113.71 million passengers. Among them, 27 were capable of handling more than one million passengers each annually and accounted for 86.7% of the total passenger handling capacity. The Capital Airport in Beijing, the Baiyun Airport in Guangzhou and the Hongqiao Airport in Shanghai accounted for 38.2% of the total passenger handling capacity. Chinese airports handled a total of 2,884,000 tons of mails. Among them, 33 were capable of handling more than 10,000 tons each a year and accounted for 95.8% of the total. The Capital Airport in Beijing, the Baiyun Airport in Guangzhou and the Hongqiao Airport in Shanghai accounted for 51.7% of the total.

III. Telecommunications industry

China's telecommunications industry has developed rapidly. In 1998 China's telephone subscribers totaled 87 million. Of which, 69.69 million were residence subscribers. And 67.1% of the administrative villages had telephones. The total capacity of bureau telephone switchboard comprised 130 million telephones, and the network scale ranked second place in the world. In the state public service telecommunications networks, optical cable totaled 1 million kms, linking all the provincial capitals. 99.8% of the counties in the country had installed program controlled telephones. By the end of 1998, China had opened direct line with 87 companies in 72 countries and regions, international 800 with 18 countries, global 800 with 11 countries, international 300 telephone cards with 14 countries; and China Telecom's ISDN had connected with Japan, the USA, Britain, Germany, Singapore, and China's Hong Kong, Macao and Taiwan.

In 1998 China's mobile phone subscribers totaled 24.98 million, ranking 3rd place in the world. There were 18.73 million digital mobile phone users, accounting for 75% of the total, and the number of pager users reached 58 million. The GSM mobile network had covered 2,000 counties in 330 prefectures throughout the country and had automatic link with 60 businesses in 38 countries and regions.

In 1998, China saw 750,000 ports in the total capacity of its digital telecommunications network; of which, CHINA PAC ports reached 212,000, CHINA DDN ports reached 376,000, CHINA FRN ports reached 5,930,and China's public media telecommunication network and China computer and network ports totaled 140,000. China has successfully enforced the "government network project," sharing office network and information data among various government departments.

IV. Post Telecommunications

In 1998 the number of China's post office reached 84,134, with 236 central post offices. The country's 23,272 post lines totaled 270 kms in length.

At present China's post telecommunications include the following business:

1. Post business which includes letters, parcels, express mails and confidential communications, and distribution of newspapers and publicaton.

In China, there are now 16,272 electronic post branches, 106 sets of automatic letter sorting machine, 138 sets of parcel sorting machine, and express mails reach 1,983 cities. And 559 cities have opened the service of electronics mails.

2. Post deposit and remittance

By 1998, the post deposit computer network has covered 527 counties in 31 provinces in the country, and there were 5,738 networks handling deposit and remittance, with a daily turnover of 138 million yuan on average.

By 1998, China had direct post relations with 150 countries and regions, and its international mails and parcels can reach many parts of the world. Today 96 countries and regions have set up international express mail service with China, and international post remittance from China can reach 18 countries and regions.