Industry is the guiding sector of Zhejiang's economy. In 1998, the province's industry achieved rapid growth, and its economic strength grew. The gross output value of industry was 1,130 billion yuan , and the gross output value of state-owned enterprises, and those non-state-owned industrial enterprises each with an annual sales value over 5 million yuan came to 463.2 billion yuan. These figures were increases of 18 percent and 9.6 percent respectively over the previous year.


More Reasonable Industrial Structure Zhejiang is actively fostering its key industries of machinery, electronics, chemicals and pharmaceuticals. In the meantime, it makes an effort to develop new products and raise the quality of existing products. In 1998, a total of 15.2 billion yuan was utilized by enterprises for technical renovation, and over 100,000 new products were developed. By the end of 1998, Zhejiang could baost 223 province-level famous-brand products.

Continuous Expansion of Enterprise Scale The structural adjustment of enterprise has been accomplished by means of developing production, structural reform, renovation, integrated operation and merging. State-owned enter-prises, and those non-state-owned industrial enterprises each with an annual value over 5 million yuan increased the averaged net value of their fixed assets from 11.88 million yuan at the end of 1997 to 13.71 million yuan at the end of 1998.

Steady Development of Export Commoditles In 1998, the province's industrial enterprises took special steps to organize the production for exports. The state-owned enterprises, and those non-state-owned industrial enterprises each with an annual sales value of over 5 million yuan had a combined export delivery value of 95.6 billion yuan, an inrease of 4.7percent over 1997 and accounting for 21.5 percent of total industrial sales value..

Improvement in Economic Returns In 1998, the province's state-owned enterprises, and those non-state-owned industrial enterprises each with an annual sales value of over 5 million yuan realized total pre-tax profits of 35.98 billion yuan, of which they earned 14.8 billion yuan net profit. These figures are 7.6 percent and 1.8 percent increases, respectively, over 1997. The sales ratio of industrial products was 95.8 percent, the same as that of the previous year. Compared with other provinces in China, the main features of industrial production in Zhejiang are as follow:

Rapid Increase in Total Output Value The province's industrial added value rose from 4.7 billion yuan in 1978 to 245 billion yuan in 1998, an average annual growth of 18.1 percent based on the 1978 price index and one of the fastest growing among all the country's provinces. the industrial added value in Zhejiang accounted for 2.9 percent of the national total in 1978, but had risen to 7 percent in 1998.

Light Industry Dominant Zhejiang is one of several Chinese Provinces where light industry dominates the industrial sector, accounting for 62.8 percent of total industrial output value at present, some 15 percent higher than the national average. Light industry also accounts for two-thirds of the total output value of exports from Zhejiang. The province's long-established silk, textile, clothing and leather industries are renowned for their excellent work-manship and occupy important positions in China.

Characterized by Small Enterprises Small-scale enterprises account for 99.8percent of all the industrial units in Zhejiang, employing 81 percent of the workers and producing 82 percent of the gross industrial output value. In recent years, along with the promotion of the formation of large-scale enterprises, the proportion of the output value of large and medium-size enterprises has continued to rise. By the end of 1998, there were over 1,400 large and medium-size enterprises in Zhejinag , of which some 300 were at province-level and above.

Big Proportion of Collective Economy In 1998, state-owned enterprises an denterprises with stocks controlled by the state contributed only 10.8 percent of the province's total industrial output value; the remainder was contributed by the non-state-owned sector. In non-state-owned industry, over half are collective-owned enterprises..

Flexible Management System Most industrial enterprises have developed and grown by means of market co-ordination. As a result, their management systems are vigorous and they are well suited to match the stresses of competition and to attain self-development.

Zhejiang Provincial Association for cultural Exchange with Foreign Countries
Address:1 Shengfu Road, Hangzhou City P.R.China
Tel:(0571)7052500 7057125
Fax:(0571)7054686
Zip code:310025

The adjustment of enterprise structure and organization has been accomplished by means of developing production, structural reform, renovation, unified operations and combination. Industrial enterprises at the township level and above with independent auditing increased the net

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