New
China's industry had very little to start with. In 1949 it had accumulated
only 12.4 billion yuan in fixed assets, and industrial products were
very few: the output of yarn was 327,000 tons, and that of raw coal
32 million tons. Most finished industrial products were imported at
that time.
After
the founding of New China in 1949, the Chinese government started construction
on a large and planned scale. As a result, the country's industrial
foundation has been strengthened and its production level raised rapidly.
The metallurgical, mining and energy industries, airplane and automobile
industries, and the new industries, including petrochemicals, computers,
telecommunication equipment, instruments and meters, and aeronautics
have been built up from nothing. Since 1978, the policies of reform
and opening to the outside world have enabled China's industry to enter
a stage of great innovation and development. From 1978 to 1999, China's
industry increased at an average rate of 11.1 percent every year, and
the comprehensive industrial strength was remarkably enhanced. By 1999,
some 3,535.7 billion yuan of industrial added value had been attained,
an increase of 10.2 times over 1978.
Increases
in Output of Major Industrial Products
|
Product
|
Unit
|
1952
|
1978
|
1999
|
|
raw
coal
|
100
million tons
|
0.66
|
6.18
|
10.45
|
|
crude
oil
|
10,000
tons
|
44
|
10,405
|
16,000
|
|
generated
energy
|
100
million kwh
|
73
|
2,566
|
12,393
|
|
steel
|
10,000
tons
|
135
|
3,178
|
12,426
|
|
cement
|
10,000
tons
|
286
|
6,524
|
57,300
|
|
tractors
|
10,000
|
－
|
11.35
|
6.54
|
|
automobiles
|
10,000
|
－
|
14.91
|
185.00
|
|
color
TV sets
|
10,000
|
－
|
0.38
|
4,262
|
|
chemical
fibers
|
10,000
tons
|
－
|
28.46
|
600
|
|
yarn
|
10,000
tons
|
65.6
|
238.2
|
567
|
|
cloth
|
100
million meters
|
38.3
|
110.3
|
250
|
|
sugar
|
10,000
tons
|
45
|
227
|
861
|
|
sulphuric
acid
|
10,000
tons
|
19
|
661
|
2,356
|
|
fertilizer
|
10,000
tons
|
3.9
|
869.3
|
3,251
|
|
pesticide
|
10,000
tons
|
0.2
|
53.3
|
62.5
|
|
integrated
circuits
|
100
million
|
－
|
－
|
41.5
|
|
program-controlled
exchanges
|
10,000
lines
|
－
|
－
|
4,726
|
|
mobile
telecom equipment
|
10,000
sets
|
－
|
－
|
3,203
|
|
micro-computers
|
10,000
sets
|
－
|
－
|
405
|
|
China's
industrial reform first began by giving more rights to and leaving
more profits for enterprises, extending enterprises’ independent
operations and practicing the enterprise contract responsibility
system, which fully mobilized the initiative and creativeness
of enterprises and their workers and staff members, and created
an excellent environment forthe improvement of the operation mechanism
of enterprises. Next, China speeded up its industrialization through
the introduction of foreign capital and opening to the outside
world.
The
establishment of large numbers of Sino-foreign joint and wholly
foreign-owned enterprises has not only brought more capital to
enterprises, but also advanced equipment and modernized management.
Through 21 years of reform, China's industry has got rid of the
backwardness in which it could only make one or a few varieties
of products and its technological level was low. The production
level of industrial products has increased by a big margin. In
1999, the outputs of steel, raw coal, electricity and cement were
124 million tons, 1.045 billion tons, 1,239.3 billion kwh and
573 million tons increases of 3.9 times, 69 percent, 4.8 and 8.8
times over 1978, respectively. The growth rates of chemical fibers,
fertilizers, ethylene, plastics, plate glass and other important
means of production products have doubled or more than doubled.
Many consumer goods closely related to people's lives have grown
from zero and expanded from small to large, the growth rate of
some products has even reached more than one hundred times, such
as color TV sets, refrigerators, washing machines, air-conditioners,
cameras, video recorders, VCD and DVD sets, and stereos. A number
of new- and high-technology products have grown by leaps and bounds,
such as stored-program-controlled switching systems, large-scale
integrated circuits and micro-electronic computers. The output
of cars is also increasing at a rapid rate, along with the increasing
number of cars possessed by households.
The
reform of state industrial enterprises, especially large and medium-sized
enterprises, is the constant focus of China's economic system
reform. At present, in accordance with the principles of the modern
enterprise system the property rights and responsibilities of
enterprises will be clearly defined, the functions of the government
separated from those of enterprises and enterprises scientifically
managed strategic reorganization has been carried out in large
and medium-sized enterprises to transform them into standard companies.
In recent years a large number of enterprise groups have been
set up through annexation during the re-organization of enterprises,
such as the China Petroleum and Natural Gas Group, Shanghai Baoshan
Iron and Steel Group, and some household appliance industrial
groups, for instance, Changhong, Haier, Konka, Kelon and TCL.
The Legend and Founder of Beijing University groups are prominent
in the micro-computer industry. These groups take part not only
in domestic but also international competition.
Though China has made rapid progress in industry, irrational structure
within industries and unbalanced development in regional economies
still exist. The reform of state enterprises has just been started,
and the tasks are arduous. Facing the 21st century, China will
quicken its steps in restructuring industry and establishing its
new-type industrial system as fast as it can, to suit the development
of socialist market economy.
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