China’s gross domestic product (GDP) reached 18.3085 trillion Yuan in 2005, up 10.2% over the previous year. The added value of the primary industry was 2.3070 trillion Yuan, up 5.2％; that of the secondary industry, 8.7047 trillion Yuan, up 11.7%; and that of the tertiary industry, 7.2968 trillion Yuan, up 10%. The contribution rate of the primary, secondary and the tertiary industries to GDP in the year was 12.6%, 47.5% and 39.9%, respectively.

Section I: Basic Industries and Infrastructure Facilities

I. Energy

China is the second largest energy consumer in the world, only after the United States. And the country’s energy consumption mainly concentrates in coastal developed area. In terms of distribution of energy resources, China’s energy resources reserve is abundant in north and few in south, rich in west and meager in east. As for variety distribution, North China abounds in coal resources; South China, water; West China, oil; and offshore area, offshore oil resources. Coastal provinces, municipalities and autonomous regions produce about 70% of China’s GDP, however, they possess less than 20% of the country’s total energy resources, and have to rely on quantities energy import from other places in China and from overseas. The contradiction between energy resources distribution and economic layout has decided China’s energy flow from west to east and from north to south. Comparatively speaking, coastal provinces and municipality in China run short of energy supply.

As Chinese economy has developed rapidly in the past few years, energy has become a strategic problem that has a bearing on the State economic safety. Viewing this, an authoritative institution in charge of energy sector in China, the State Energy Leading Group, has been established.

China’s output of primary energy sources totaled 2.06 billion tons of standard coal in 2005, up 9.5% from 2004, at a slower growth rate than that of 2003. Raw coal totaled 2.19 billion tons, up 9.9%. Crude oil totaled 0.181 billion tons, up 2.8%.

1. Power Industry

China generated 2.4747 trillion kwh of electricity in 2005, up 12.3% over the previous year.

Social power consumption was 2.4747 trillion kwh in the year, up 12.3% over the previous year. Thermal power was 2.0180 trillion kwh, and hydroelectric power was 0.4010 trillion kwh, with increases over 2004 of 12.4% and 13.4% respectively. China’s installed capacity of power increased by a net 63.26 million kw in 2005.

Shortages of coal, power, and oil transportation were eased in 2005. The number of provinces with blackouts decreased from 26 to 12. However, shortages of coal, power, and oil transportation have not been settled completely.

2. The Coal Industry

The coal industry in China has acquired the capability of designing, constructing, equipping and managing 10-million-ton-class open-cut coal mines and large and medium-sized mining areas. China’s raw coal output topped 2.19 billion tons in 2005, up 9.9% over the previous year.

3. Petroleum industry

As the Chinese economy maintains high-speed growth, especially in terms of rapid development in automobile manufacturing and aviation industries, China’s oil consumption has grown sharply, by an annual average of 6% throughout the past 10 years. China depended on imports for 36%, 42%, 50% of its oil supply in 2003, 2004, and 2005 respectively. China has replaced Japan as the second largest oil importer in the world.

China’s crude oil output reached 181 million tons in 2005, maintaining a stable slight growth of 2.8% over 2004.

China’s natural gas output grew 20.6% over the previous year to reach 50 billion cubic meters in 2005.

II. Communications and

Transportation

Freight transport volume in 2005

Passenger transport volume in 2005

Freight throughput of ports was 4.9 billion tons in 2005, up 17.7% over the 2004 Of the 2005 total, foreign trade freight throughput was 1.36 billion tons, up 18.0%.

1. Highway

By the end of 2005, China’s total mileage of highways open to traffic reached 1.9305 million km, 59,900 km more than at the end of 2004. The network structure of highway was further improved. Some 121,200 km of highway was newly constructed in the year, and 195,300 km renovated.

Mileage of newly constructed expressways opened to traffic totaled 6,717 km in 2005. China’s highway density reached 20.1 km per 100 square km, 0.6 km per 100 square km over the total at the end of 2004.

2. Inland navigation

By the end of 2005, China’s total mileage of inland river transportation routes open to traffic reached 123,300 km.

3. Port

The number of ports, wharf spaces and berths has kept increasing. By the end of 2005, all ports in China possessed a total of 35,242 berths for production use, a net increase of 134 over 2004. This includes 1,034 10,000-ton-class berths, a net increase of 90. Coastal ports possessed a total of 4,298 berths for production use, including 847 10,000-ton-class berths. Meanwhile, inland ports possessed a total of 30,944 berths for production use, including 187 10,000-ton-class berths. The locations of 10,000-ton-class inland berths included main streams and branches of the Yangtze River, as well as Pearl River water system, 179, 4 and 4 respectively. Ports, wharf spaces and berths developed toward large-scale operation and specialization.

The new increase of handling capacity for 10,000-ton-class berths reached 189.89 million tons in 2005.

4. Civil aviation

The number of civil airports with aerial liners in traffic in China reached a sum of 135 in 2005 (not including those of Hong Kong and Macao). The number of cities with airline traffic was 133.

5. Railway

By the end of 2005, China’s total mileage of railway in operation was 75,438 km, an increase of 1,030 km or 1.4% over 2004, of which, 62,200 km were State owned; 8, 462 km were built by joint ventures; and 4,775 km were local railways. Meanwhile, the mileage of double track railway reached 25,566 km at the end of 2005, an increase of 658 km or 2.6% over 2004; and the rate of railway with double tracks reached 33.9%.The mileage of railway electrified reached 20,151 km, an increase of 848 km or 4.4%; and the rate of electrified railway was 26.7%.

Investment in China’s railway infrastructure was 88.916 billion Yuan in 2005, up 67.3% over 2004, of which, 75.318 billion Yuan was invested by the Ministry of Railways, up 53.9%; Local governments, state-owned enterprises, and joint ventures invested 11.95 billion Yuan, 3.5 times that of 2004; with 1.649 billion Yuan invested by local governments. There were 919 km of rails laid along new railways and 661.9 km along double tracks. New railways of 1,146.8 km, double tracks of 486.3 km, and electrified railways of 862.7 km were brought into operation.

The Qinghai-Tibet Railway was completed ahead of schedule in October of 2005, drawing worldwide attention.

III. Electronic Information and Post and Telecommunications

China exported 268.2 billion US dollars worth of electronic information products in 2005, up 29.2% over the previous year, accounting for over 1/3 of China’s total foreign trade exports. Electronic information product exports formed a complete system including communications equipment, computers, home appliances, electronic components, and software. The growth rate of exported mobile phones, optical communication equipment, digitally controlled telephone switchboards, color television sets, liquid crystal displays, routers, notebook computers, and cable equipment exceeded 30%. Approximately 4 billion US dollars of software was exported, up 40% over 2004.

1. Internet

By Dec. 31, 2005, the number of Internet subscribers in China reached 111 million, an increase of 17 million or 18.1% over the number at the end of 2004. The popularization rate of Internet enthusiasts in China was 8.5%. Currently, there are 970 million Internet users worldwide, with an average popularization rate 15.2%. To be specific, the number of subscribers to broadband reached 64.3 million, an increase of 21.5 million or 50.2% over 2004. The number of broadband-connected computers exceeded that of dial-up computers for the first time.

By Dec. 31, 2005, the number of domain names in China reached 2,592,410 (including national top-level domain names registered as CN URLS, and general top-level domain names COM, NET, and ORG addresses); the number of domain names registered under CN URLS reached 1,096,924, exceeding one million for the first time. The total number of websites in China reached 694,200, an increase of 25,300 over 2004.

By Dec. 31, 2005, the number of IPv4 addresses in China reached 74,391,296, only lower than those of the US and Japan; the bandwidth of international network outlets increased to 136,106M, up 82.9% over 2004.

2. Post and telecommunications

The total business volume of shipping and telecommunications fulfilled in 2005 was 1.2199 trillion Yuan, up 24.6% over the previous year. From this total, the business volume of shipping fulfilled was 62.4 billion Yuan, up 10.1%; and that of telecommunications was 1.1575 trillion Yuan, up 25.4%. China installed 46.08 million new switchboard gates in 2005, bringing the total to 470 million gates. Meanwhile, 38.68 new fixed telephone subscribers were registered, raising the total number of fixed telephone subscribers to 350.43 million by the end of 2005. This includes 239.77 million fixed phone subscribers in urbn areas and 110.66 million fixed phone subscribers in rural areas.