Statistics Bureau of Zhejiang Province
September 1, 2009

It has been exactly 60 years since the founding of New China. The past six decades has witnessed the hard struggle and enterprising spirit of Zhejiang people, who have overcome all the difficulties and obstacles when moving forward and shaken off the poverty and backwardness of Zhejiang province, under the correct leadership of the Communist Party of China (CPC) and guidance of Mao Zedong Thought, Deng Xiaoping Theory, the Important Thought of ¡°Three Represents¡± and the concept of scientific development. With earthshaking changes in urban and rural areas, Zhejiang Province has made tremendous achievements capturing worldwide attention on a unique development path with characteristics of Zhejiang, become one of the most vigorous and fastest-growing provinces in economy in the country, and is striding towards overall moderate prosperity and socialist modernization.

1. Rapid growth of national economy and significant enhancement of comprehensive strength
Zhejiang¡¯s GDP has risen to RMB 2.1487 trillion from a mere 1.5 billion in 1949, which has, according to comparable prices, increased 272-fold than 1949. The average annual growth of GDP was 10%, with a rate of 6.2% during the 1950-1978 period, and 13.1% during the 1979-2008 period. The per capita GDP has climbed to RMB 42,214 in 2008 from 72 in 1949, which has, according to comparable prices, increased 100-fold than 1949. The average annual increase of per capita GDP was 8.1%, with a high rate of 12% during the 30 years of reform and opening up, which has made Zhejiang the fastest growing province in per capita GDP among all provinces, autonomous regions and municipalities directly under the Central Government in China.
Rapid economic growth has contributed greatly to the enhancement of comprehensive strength, which led to the rapid rise of the status and impact of Zhejiang economy in the country. In 2008, Zhejiang ranked fourth in GDP, following Guangdong, Shandong and Jiangsu; meanwhile, it followed Shanghai, Beijing and Tianjin in per capita GDP, which are municipalities directly under the Central Government, ranking fourth in the country and first among provinces and autonomous regions.

2. Increasingly rational industrial structure and accelerated transformation and upgrading
Before the founding of New China, Zhejiang was a backward agricultural province; after the founding, especially since the reform and opening up, the economic structure in Zhejiang has undergone profound changes. The proportion of three industries in terms of GDP came to 5.1: 53.9: 41.0 in 2008 from 68.5: 8.0: 23.5 in 1949, labor force changing to 19.2: 47.6: 33.2 from 86: 6: 8. A historic transition from a backward agricultural society to an advanced industrialized society has been achieved.
Significant adjustments have been made concerning the internal structure of three industries in that food security was attached importance to, high-efficiency ecological agriculture was greatly expanded and agricultural structure was diversified. The proportion of agriculture, forestry, animal husbandry and fisheries in GDP was adjusted to 45.7: 6.0: 23.5: 22.9 in 2008, among which the service sector of the four industries accounted for 1.9%, while that of 1949 was 81.4: 5.4: 11.3: 1.9. The dominant role of industry in national economy has become increasingly prominent, making it an engine of economic growth. The added value of industrial output in 2008 reached RMB 1.036 trillion, which increased by 1045-fold than 1952 according to comparable prices. The average annual growth is 13.2%, with a rate of 16.5% during the 30 years of reform and opening up. The internal structure of industry has also undergone enormous changes. In addition to the expansion of the traditional advantageous industries like textile, garment, chemical fiber, leather, food processing and manufacturing, remarkable progress has been made in equipment manufacturing, high-tech industry and near-dock heavy chemical industry. The tertiary industry has become an important component of the national economy. The average annual growth of the added value of the tertiary industrial output was 10.1% during the period of 1951-2008, with a rate of 13.8% during the 30 years since reform and opening up. The proportion of tertiary industry in GDP went up to 41.0% in 2008 from 23.5% in 1949.
Recent years have not only seen rapid growth in economy but also positive progress in resource conservation and environmental management. In terms of energy consumption per unit GDP, Zhejiang ranked third (from low to high) among all provinces, autonomous regions and municipalities directly under the Central Government in China, reaching the advanced national level. In the first three years of the Eleventh Five-Year Plan, the cumulative energy consumption per unit GDP declined by 12.6%, and the grand total of chemical oxygen demand and sulfur dioxide emissions decreased by 9.5% and 13.9% respectively.

3. Enormous success in building investment and strengthened infrastructure
The scale of investment was expanded and investment structure was optimized. Investment in fixed assets in Zhejiang totaled RMB 932.3 billion in 2008, with only 21 million in 1950 in the early days after the founding of New China. The average annual increase was 20.3%, with a rate of 22.1% and cumulative investment of RMB 6.36 trillion during the 30 years of reform and opening up. A comprehensive transportation network extending in all directions has been formed. Railway traffic mileage and highway traffic mileage went up to 1,306km and 103,700km respectively in 2008 from 390km and 2,197km in 1949, of which the expressway mileage totaled 3,073km. The port from Ningbo to Zhoushan has become a world-class harbor. Seven airports situated in Hangzhou, Ningbo, Wenzhou, and etc. are available for civil aviation and 188 cities are open to air traffic. A basic information communication network connected to all parts of the world has been formed, using advanced technology and providing comprehensive services. The total telephone subscribers in 2008 numbered 22.98 million, a huge increase as compared to 2,400 of 1949, with 44.9 telephones per 100 persons. Mobile telephone users totaled 39.77 million, with 77.7 mobile phones per 100 persons. Internet users reached 8.05 million. Energy production capacity has been markedly promoted and a new modernized stage of electric power industry has emerged with sound network, reasonable layout, flexible dispatch, and reliable power supply. Meanwhile, noticeable enhancement can be found in the condition of farmland irrigation infrastructure.
The contribution of investment in real estate to economic growth has improved significantly. The total investment in real estate development has totaled RMB 1.2343 trillion since 1990, which increased by 211-fold in 2008 with an average annual growth of 34.7%. A total of 38 million square meters of commercial residential buildings were completed, of which 33 million square meters were sold. The increase of economically affordable houses and gradual implementation of the low-rent house policy have enhanced people¡¯s living standards effectively.

4. Restructuring continuing to deepen and the market-based system being gradually improved
The non-public sectors of the economy (NPSOE) have flourished, creating a structure where diverse forms of ownership compete with one another and develop side by side. In 2008, the added value contributed by the non-public sectors of the economy accounted for 73.5% of GDP. The pricing mechanism based on the market being basically established, the market has played an essential and crucial role in resource allocation. In 2008, there were 4,087 commodity trading markets in the province with an annual turnover of RMB 979.4 billion. In addition, the gradual establishment and perfection of the production element market which subsumes capital, technology, labor and land, the major reforms implemented in the government management and control system, as well as restructuring in administrative examination and approval system, the state-owned asset management, public finance, planning and etc., enable the government to make a gradual transformation to play a role of ¡°economic regulation, market supervision, social management and public service¡±.

5. Opening up expanded and regional cooperation fruitful
An all-dimensional, multi-layered and wide-ranging opening pattern has been formed and the scale of foreign trade has been steadily enlarged. Exports and imports of the province only totaled RMB 120 million in 1952 which was equivalent to 4.7% of GDP, while in 2008, the province¡¯s total exports and imports reached $ 211.1 billion, of which exports rose to $ 154.3 billion from $ 17 million in 1958 with an average annual increase of 20%. The total exports in 2008 accounted for 49.9% of GDP.
Positive results have been achieved in utilization of foreign capitals and continuous improvements have been made in quality. Various forms of utilization of foreign capitals have been gradually carried out in Zhejiang Province since 1979, including using loans from foreign governments, banks and international financial organizations, issuing bonds in foreign countries, organizing Sino-foreign joint ventures, Sino-foreign cooperatives and solely foreign-owned enterprises, and utilizing processing, compensation trade and international leasing. In 1980, a joint venture with Hong Kong businessmen called West Lake Rattan Products Co., Ltd. was established, symbolizing the beginning of the use of foreign direct investment in Zhejiang. Actual utilization of foreign capital hit $ 100.2 billion between 1979 and 2008, when all together 44,000 direct foreign-funded enterprises (including Hong Kong, Macao and Taiwan, etc.) have been approved, nearly 200 countries and regions have invested, 84 corporations among the world top 500 have landed in Zhejiang, and a total of 224 foreign-funded enterprises have been set up.
Foreign investment has become increasingly active. A few state-owned enterprises, mostly trading companies, began to step abroad and establish trading institutions or foreign-funded enterprises during the early days of reform and opening up. By 2008, Zhejiang has all together approved 3,466 overseas enterprises and institutions with a total commitment of $ 3 billion, of which $ 2.6 billion were invested by China. These investment programs have extended across 6 continents, 121 countries and regions.
Gratifying results have been attained in domestic opening up and regional economic cooperation. A two-way interaction pattern of ¡°going out¡± and ¡°bringing in¡± has been created through integrating with Shanghai actively, strengthening cooperation and exchanges with other regions in the Yangtze River Delta, participating vigorously in development of the west regions, rise of central China and the rejuvenation of old industrial bases in Northeastern China, putting forward a strategic vision of ¡°developing Zhejiang by moving out of Zhejiang¡±, as well as encouraging and guiding the combination of investment outside and nurturing inside for the Zhejiang businessmen.

6. All-round progress in social undertakings and harmony promoted in peace-building
Zhejiang ranks fourth in terms of the comprehensive social development appraisal index, following Shanghai, Beijing and Tianjin, which are municipalities directly under the Central Government. Regarding education, a new stage has appeared. Zhejiang is the first in China to basically universalize fifteen-year education from three preschool years to high school and guarantee free compulsory education in urban and rural areas. The enrolment rate of school-age children of migrant workers reached 97.5%. The number of institutions of higher education increased from 4 in 1949 to 77 in 2008, with the admission rate for those taking the college entrance exams reaching 75% and the gross enrolment rate in higher education approaching 40%. Higher education has entered a stage of popularization. The population of on-campus college students increased to 832,000 from 3,112 in 1949. On the average, the figure of college students for every 10,000 people increased from 1.5 in 1949 to 169.5 in 2008. Capital input for science and technology has been strengthened. Funds put into social and technological undertakings reached RMB 61.95 billion in 2008, which grew by 71 times compared to 1990 when statistics were kept, with an average annual growth of 26.8%. The expenditure on research and development (R&D) accounted for 1.61% of the GDP, more than 0.23% in 1990. The proportion of added value of the culture industry output in GDP exceeded 3%. Radio and television has covered 98.9% and 99.1% of the population respectively. The public health system and basic medical service system have been further improved. There were 0.43 doctors per thousand people in 1949, which rose to 1.99 in 2008. 5,191 health service centers (stations) of rural and urban communities were established. People¡¯s health has improved continuously and the average life expectancy has been prolonged from roughly 35 years before 1949 to 76.6 years. The natural population growth rate dropped from 17.2 per 1,000 in 1949 to 4.58 per 1,000 in 2008. An increasing number of people began to participate in sports and exercise which are conducive to keeping fit and healthy. The construction of ¡°Peaceful Zhejiang¡± has been intensified and social public security situation has been basically stabilized. In 2008, the ratio of satisfaction and sense of security of Zhejiang people was 95.7%, higher than the national average level over the same period, and meanwhile, Zhejiang was considered one of the most secure provinces.

7. Coordinated and balanced development in urban and rural areas as well as different regions and new urbanization being steadily advanced
Construction of a new socialist countryside has been promoted in an all-round way. Development of rural infrastructure and social undertakings have been accelerated. The project of ¡°Central Town Cultivation¡± and ¡°1,000 Demonstration Villages, 10,000 Village Renovation¡± have been carried out. The program of ¡°Shanhai Cooperation¡±, ¡°Ten-Billion Yuan Getting-Rich-Assistance¡± and ¡°Less-developed Towns and Townships Striving to Prosper¡± have been fully implemented. Remarkable results have been achieved in rural workforce transfer. Non-agricultural employees in 2008 accounted for 80.8% of the employed, an increase of 66.8% from 1949. Meanwhile, 71.1 % of employees in rural areas were engaged in non-agricultural industries. The gap in the 11 prefectural cities has been narrowed. The per capita GDP of the 11 cities all exceeded $ 3,000 in 2008. Furthermore, the urbanization level has been constantly improved in that the urbanization rate increased from 11.8% in 1949 to 57.6% in 2008.

8. More tangible benefits for people and a well-off standard of living being reached
In 2008, 72.2% of the province¡¯s new financial resources were allocated for the improvement of people¡¯s livelihood. Urban and rural residents have made a historic leap from having no adequate food and clothing to leading a well-off life.
With active expansion of employment, the basic framework of social security system was established by and large. Employed people in the province numbered 8.5 million in 1949, which rose to 34.87 million in 2008 with an average annual increase of 0.447 million. By the end of June, 2009, underwriters of corporate endowment insurance, basic medical insurance, job-related injury insurance, unemployment insurance and maternity insurance have amounted to 13.55 million, 11.22 million, 12.54 million, 7.44 million and 7.09 million respectively, with 3.89 million urban residents participating in the basic medical insurance, 5.12 million and 4.28 million migrant rural workers partaking in the job-related injury insurance and basic medical insurance respectively, and 3.62 million farmers whose land was requisitioned contracting in the social security program. The rate of new rural cooperative medical insurance reached 90%.
Income of urban and rural residents continued to grow at a relatively rapid speed. The per capita disposable income of urban residents and per capita net income of rural residents soared from RMB 116 and 47 in 1949 to RMB 22,727 and 9,258 in 2008, which increased by 195 and 196 times respectively, a real growth of 5.5% and 6.3% with the price factor eliminated, of which the real average annual growth during the 30 years since reform and opening up is 8.1% and 8.5%. The balance of total savings deposits of urban and rural residents rose from RMB 37 billion in 1952 to 1.4501 trillion in 2008, with the per-capita amount surging to RMB 28,323. A marked advance has been made in the quality of life. The Engel coefficient of urban and rural residents reduced from over 60% in the early days after the founding of New China to 36.4% and 38% in 2008 respectively. In terms of housing, urban residents have experienced transition from dormitories, small dwellings, middle-sized dwellings to large residences, who have made a leap from renting to buying and really began to have their own houses; meanwhile, rural residents have experienced transformation from thatched cottages, tile-roofed houses to storied buildings. The per capita living space of urban residents increased from 6.4 square meters in 1957 to 34.3 square meters in 2008, and that for rural residents, from 11.7 square meters to 58.5 square meters.

The change of these 60 years is comprehensive and profound. A series of glorious achievements, which were brought forward by hard work, have created many favorable conditions and laid a good foundation for future development. Now we have entered a critical period of building overall moderate prosperity and achieving socialist modernization, with the co-existence of good opportunities and severe challenges. We believe that, under the correct leadership of the CPC Central Committee with Comrade Hu Jintao as its General Secretary, the Provincial Party Committee and Provincial Government, all the people in this province, with concerted efforts, will build a more beautiful and brilliant future.