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Since 2001, the development of China’s consumer goods market has been on a steady growing trend, and growing consumer demand has become an important base for the steady and fast development of the national economy. In 2002, the consumer goods market will continue to maintain the steady and growing development trend.

General stability with slight growth was the overall feature of China’s rural economy in 2001. During the year, the environment for the rural economy was improved to certain extent.

Basic Features of the Economic Situation in 2001

In the year 2001, all three leading developed economies in the world, the United States, the Eurozone and Japan, experienced recession or severe downturn. At the same time, the economic growth of the developing countries and the countries in economic transition, with the exception of those in Africa, was all affected in varying degrees.

Against the background of China’s entry into the important Tenth Five-Year-Plan period and the WTO, its poor social credit system and a general credit disequilibrium have become major obstacles to the sustainable and healthy economic development and the improvement in the socialist market economic system.

The Chinese entrepreneurs survey 2001 was organized by the Chinese Entrepreneurs Survey System under the Development Research Center of the State Council.

New Characteristics of Financing Difficulty of Privately-owned Enterprises

In the first half of this year, the State Council decided to reduce business tax rate for financial enterprises from 8% to 5%, with one percentage point decrease each year through a three-year period.