Local Culture

Watchtower cluster


Red-headed Boat
The Economics
Latest Updated by2004-06-10 09:55:26


In 2002, the agriculture and rural economy in Guangdong Province witnessed a stable increase. The total output value of agriculture was 178.106 billion yuan (current price), up by 6.49% over the previous year. Specifically, the output value of plantation amounted to 84.177 billion yuan, up by 9.4%; livestocking 46.591 billion yuan, up by 1.5%; fishery 41.629 billion yuan, up by 6.5%; and forestry 5.709 billion yuan, up by 2.8%. The value added of agriculture was 103.279 billion yuan, scoring an increase of 4.4%. As a result, the annual income per capita of rural people was 3,912 yuan, up by 3.8% ; regaining growth momentum based on the previous year. The value added of township enterprises was RMB278.314 billion yuan, up by 9.64%.

griculture modernization

In 2002, 203 projects of the top 10 demonstration zones for agricultural modernization in the Peal River Delta were launched and 172 of them completed. 7,730 hectares of high-standard farmland was built. 62.32 kilometers of canals with hardened base were constructed. 3,610 hectares of fishponds were repaired. 517.7 kilometers of pathways for tractor ploughing were made. The total output value of planting, livestock and pond fish amounted to RMB5.313 billion yuan. The gross sales income of agricultural products reached 2.126 billion yuan. The gross sales from processed farm produce recorded 425 million yuan. Profit added up to 378 million yuan. Foreign export of agricultural products earned US$139 million. The value added of agricultural output registered 217 million yuan.

With their business growth, these demonstration zones has also exerted a positive influence over the neighboring 181 towns and benefited 448,000 rural households, promoting the industrialization of local agriculture and farmers' income. By the end of 2002, experts panel judged that these ten demonstration zones scored on the average 88.28 points of modernization drive standards, 3.81 point higher than that of the previous year. In order to actively enforce the strategy to balance overall development of regional agriculture, the provincial government decided to set up other 12 demonstration zones in the east, west and north of Guangdong. From 2003 to 2007, RMB20 million yuan from provincial treasury will be earmarked each year for the building of those zones.

the operation of agricultural industrialization

In 2002, a total of 1,975 organizations in the province were engaged in agricultural industrialization in various forms, with 950,000 employees and total fixed assets worth of 33.4 billion yuan. 1,152 of them were leading agricultural enterprises with total fixed assets of 28 billion yuan, annual total sales income of 63.9 billion yuan and production bases of 427,000 hectares. They raised 8.79 million livestock and 170 million poultries. 115 leading agricultural enterprises (including those on the list of government support) enjoyed support from the provincial government. Those businesses have total assets of 27 billion yuan, 8400 employees, annual turnover of 34 billion yuan, profits of 1.7 billion yuan, agricultural products processing volume of 8.39 million tons, foreign exchange earnings of US$810 million, and US$140 million of investment from overseas. These companies directly benefited 3.22 million rural households, 32% of the provincial's total. Among them, 115 leading enterprises having support from the provincial government brought direct benefit to 1.26 millions rural households, accounting for 39% of the rural households in the province. As a result, the annual average income per rural household increased by 2,669 yuan.


In 2002, the value added of the entire industry in Guangdong Province reached RMB 523.2 billions, up by 13.3% over the previous year. Out of 565.4 billions, 422.5 billion yuan generated from the so-called "above-scale manufacturers" (all state-owned manufacturers and those non-state-owned manufacturers whose annual turnover is above RMB 5 millions), 15% more than that in the previous year. Foreign export delivery value amounted to 650.5 billion yuan, an increase of 22.2% over the year 2001. The total economic returns Index for industry was 140.8, an increase of 9.5. Revenue from industrial product sales totalled 1592.9 billion yuan, which increased by 16.3%. And total profits were 71.7 billion yuan, an increase of 26.4%. For the province as a whole, manufacturing industry has played an important role in economic development. The industrial value added accounted for 48.4% of GDP in Guangdong, contributing to 5.9 percentage point of GDP growth and 55.1% growth of economy. Scales and economic returns in general have been further enhanced for the nine major industries, namely, electronics and information, electrical appliances and machinery, petrochemicals, textiles and garments, foodstuff processing and beverage, building materials, logging and papermaking, pharmaceuticals and automobiles. In 2002, the product and service sales income of the above nine major industries totaled 1110.022 billion yuan, an increase of 17.92%, accounting for 69.69% of the entire industrial revenue in the province, an increase of 0.82% over the year 2001. Profits from the nine major industries amounted to RMB 48.444 billions, an increase of 34.44%, making up 67.58% of the entire profits of manufacturing industry in the province, up by 4.61% as compared with that in 2001.
electronics and information products manufacturing industry

In 2002, for the electronics and information products manufacturing industry in Guangdong Province the total output value amounted to 394.2 billion yuan, which was a 25.25% increase compared with the previous year. Sales income reached 380.2 billion yuan, an increase of 28%. Sales-output ratio reached 98%. Output value of products for foreign export was 260.9 billion yuan, an increase of 38.79%. Both output value and sales income value have taken lead among the counterparts in the country. Profits realized after sales were 14.46 billion yuan, an increase of 26.6% compared with previous year. 24 enterprises had been listed in the National Top 100 of Electronic Enterprises, including amongst others, TCL Corporation, Hedy Computer Company Ltd., Fenghua Advanced Technology (Group) Co., Ltd, Guangdong Shengyi Science & Technology Inc. and Zhuhai Dongxin Heping Smart Card Co., Ltd.

machinery industry

In 2002, the total output value for the machinery industry (6 major categories and 48 sub-categories) amounted to RMB 370.169 billions, 15% more than that of 2001. Apart from the 6 subdivision manufacturing industries such as home electrical appliances, lightings, daily metalwork, clocks and watches, medical instruments and bicycles. Statistics from the other 42 subcategorized industries show that the total industrial output value amounted to 219.48 billion yuan, an increase of 16.4%. Foreign export delivery value reached 78.5 billion yuan, with an increase of 15%. There was an increase of 17.2% from the products sales income, which totaled 211.841 billion yuan. Profits gained after sales reached 11.327 billion yuan, an increase of 41.5%. Efforts to restructure and upgrade the manufacturing industry started to pay off. Guangzhou Automobile Industry Group has become the fourth largest auto manufacturer in China.

petrochemical industry

Guangdong petrochemical industry witnessed in 2002 total output value worth of RMB 153.695 billions, an increase of 7.56% over the previous year, among which 21.47 billion yuan generated from petroleum and natural gas exploitation, and 43.88 billion yuan from petroleum processing industry and 88.345 billion yuan from chemical industry. The total sales income from the petroleum and chemical industry reached 143.057 billion yuan, a 10.44% increase, reaping total profits 10.862 billion yuan, an increase of 23.12%. The Sales-output ratio hit 98.22%. Of the important petroleum and chemical products, such as output of crude oil, processing quantity of crude oil, products of caustic soda, soda, pesticide, pure benzene, paints, rongalite and tires all saw increase over the year 2001. However, output of ethylene, sulphuric acid and gas were kept at the same level as last year. And output of synthetic ammonia, chemical fertilizer, carbon black, plastic and sulphuric iron ore shrank as compared with the year 2001.
textile and garment industry

In 2002 the gross industry output value of textile and garment industry in Guangdong totaled RMB 139.079 billions, an increase of 10.2% over the preceding year. The foreign export value of textiles and garments achieved US$14.274 billions, a 17.57% increase. To break down the statistics, textiles and garments each valued US$ 4.212 billions and US$ 10.062 billions, an increase of 22.2% and 15.8% respectively, ranking the first in China with a share of 23.11% of national foreign export value. In October 2002, Dongguan, Kaiping and Zhongshan were all awarded the "China Textile Manufacturing Center City" by China National Textile Industry Association

automobile industry

In 2002, a total of 106,400 autos and 2,356,200 motors rolled off assembly lines in Guangdong Province, representing an increase of 46.3% and 34.4% respectively by comparison with those of the previous year. The total sales income reached RMB 34.819 billions with profits of 4.219 billion yuan, increasing by 27.7% and 116.6% respectively. Foreign export delivery value from the automobile industry amounted to 1.57 billion yuan, an increase of 20.6%. A number of pillar enterprises maintained the momentum of fast growth. Guangzhou Automobile Industry Group Company Limited recorded a turnover of 15.208 billion yuan, an increase of 15.3% and pocketed a profit of 2.793 billion yuan, an increase of 59.3%. Guangzhou Honda Automobile Co., Ltd. introduced a new version of 2.4 liter Accord previously designed for North America Markets. Guangzhou Motors Group Company launched the first chainless lithium electric bicycle in China for markets in Demark, Greece, America, Canada and Australia. This new product will also be put into the market in some of the cities in China

pharmaceutical industry

During 2002, all state-owned pharmaceutical enterprises and those non-state-owned pharmaceutical enterprises with annual sales of over 5 million yuan in Guangdong Province reached a total output value of RMB 24.12 billions, 7.9% more than the previous year, among which chemical medicine accounted for 9.8 billion yuan, traditional Chinese patent medicines 6.5 billion yuan, biological medicine 3.4 billion yuan and medical instruments 2.1 billion yuan. The total sales income for the industry reached 21.35 billion yuan, a 10.49% increase, among which chemical medicine accounted for 8.6 billion yuan, traditional Chinese patent medicine 5.4 billion yuan, biological medicine 2.6 billion yuan and medical instruments 2.4 billion yuan. Foreign export delivery value for the industry reached 1.6 billion yuan, growing by 12.2% and the overall profits for the industry valued at 2.008 billion yuan, an increase of 26.84%. A total of 123 pharmaceutical enterprises or workshops have been granted GMP (Good Manufacture Practice) accreditation, with 176 accreditation certificates being handed out. Among these enterprises, a total number of 67 enterprises have been granted a full GMP accreditation.

papermaking industry

In 2002, according to statistics based on enterprises with an annual sales income of over RMB 5 millions, output of mechanical paper and paperboard reached 4.10 million tons, increasing by 16.5% as compared with the year 2001, ranking the third nationally. The industry generated total profits 637 million yuan, an increase of 23.91%. Thanks to the measures taken to improve management in major enterprises, product quality has been further upgraded. Products like the newsprint made in Guangzhou Paper, the white coating paperboard made in Foshan Huafeng Paper and Guangzhou Victorgo Industry Co., Ltd., coated cardboard from Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd., Kraft linerboard made in Dongguan Nine Dragons Paper Industries Co., Ltd. and Lee & Man Paper both in Dongguan and high quality tissue paper from Vinda Paper Guangdong Co., Ltd. in Xinhui all enjoyed a national reputation.

environmental protection industry

Provincially, there were 1,303 enterprises engaged in the environmental protection business in 2002, generating an annual turnover of RMB 8.66 billions. Seven environmental protection R & D findings were considered to be world advanced, including "Research on the state and prevention of actinic pollution in typical regions in Guangdong Province". Four projects have been awarded "National Priority Environmental Protection Practical Technology Demonstration Project", including "Effluents Treatment Project by Minxing (Panyu Nansha) Co., Ltd.. Three projects have been awarded the "National Priority Environmental Protection Practical Technology", including "Technology of Electrical Catalyzing and Oxidation Treatment of Difficult Degradable and High Dense Organic Waste Water". A number of generators powered by the incineration of urban rubbish and urban sewage treatment factories have been built and put into operation in the forms of BOT (build--operate--transfer) or TOT (transfer-operate---transfer). Those projects have achieved significant environmental and social benefits.

became unusual with drought coming first and waterlogs following later. East Guangdong was hit by unprecedented drought that only happened once every 50 years. To follow the drought in spring, the storm flood and severe tropical storms of "North Crown", "Vespid" and ¡°Higby¡± whipped Guangdong one after another starting in the first half of July, causing record flooding in part of north Guangdong. Entrusted by the Provincial Government, Provincial Headquarter of Three Preventions (flood, drought and storm) and Department of Water Resources of Guangdong Province, task forces directly rushed to the drought-stricken areas to direct disaster-relief efforts. At no waste of time the Provincial Government earmarked special fund worth of RMB30 millions for drought relief while obtaining extra eight million yuan from the Central Government. Provincial Headquarter of Three Preventions promptly dispatched anti-drought materials of 30 tons to areas in severe shortage of water to facilitate artificial rainfall. Governments and people in the drought-stricken regions also made advantage of local irrigation facilities and various water collection equipments to pool as much water as possible. A total of 390 million yuan had been spent on fighting drought across the province. Over 254,000 sets or units of equipment had been applied to the drought relief efforts, irrigating 501,000 hectares of farmland and bringing water to 2,443,500 people and 174,400 heads of livestock. At the same time preemptive measures had been taken to prevent seasonal flood. After the disaster, efforts had been redoubled in the affected areas to rebuild destructed water conservancy projects and construct contingent facilities to prepare for possible seasonal flood, involving a total spending worth of 264.5 million yuan, of which 68.4 million yuan was from the provincial revenue.

Modernization of water conservancy on its way forward

Guangdong completed drafting of Guangdong Province Program for Water Conservancy Informationization. The Provincial Government had approved the project of developing chain of command for the Three Preventions. Project design and tender evaluation were completed. The Three Preventions Information Enquiry and Government Administration System was put into service in April and connected with the Contingency Command Center of Guangdong Provincial Government in June. Both the intranet and extranet of Guangdong Water Conservancy were put into operation in July. Guangzhou, Shenzhen, Foshan, Zhongshan and Shunde had all recorded rapid progress in the information development of water conservancy, which was praised by Ministry of Water Resources and Guangdong Province Department of Information Industry.

First-class management and quality ensuring smooth progress of key project construction

Starting on August 28th 2000, Section A and B of the Renovation Project of Water Supply System from Dongjiang River to Shenzhen Reservoir, which attracted public attention in Guangdong and Hong Kong, was completed on January 18th 2003. It took 1030 days and nights for more than 10,000 workers from 66 contractors to accomplish such huge project, which supplied water to Hong Kong ahead of schedule. And the whole project was eventually completed 2 months earlier than scheduled. Guangdong Provincial CPC Committee and Guangdong Provincial Government held a grand ceremony in celebration of the completion and operation of the Project on June 28, 2003. From this date on high-quality water from Dongjiang River flows to Hong Kong through the sealed pipelines rather than following the natural riverway as before. The Renovation Project of Water Supply System from Dongjiang River to Shenzhen Reservoir, attracting public attention of Guangdong and Hong Kong, has recorded achievement in terms of engineering quality, engineering safety, investment control, honest and clean management, and technological innovation, which was also praised by superior government officials. Mr. Li Changchun, member of Political Bureau of the Central Committee of CPC and the then Party Secretary of Guangdong Provincial Committee of the Central Committee of CPC, inspected the working site on January 23rd 2002. During his inspection, Mr. Li commented that the combination of the first-rate construction workers, exceptional supporting felicities and advanced scientific project management was well translated into a model large-scale engineering project that features itself high quality, result-driven accomplishment and low building cost.

Government officials of Hong Kong SAR also went to inspect the working site and expressed their appreciation of the project management. Additionally, government officials from water conservancy departments from over 20 provinces and cities came to visit the project site and made positive comment. The Headquarter of the Project Construction was awarded titles Guangdong Pacemaker Team and Model Headquarter of Project Construction by Guangdong Provincial CPC Committee of the Central Committee and the Provincial Government, and National Pacemaker Team of Water Conservancy Construction by Ministry of Water Resources. The Renovation Project of Water Supply System from Dongjiang River to Shenzhen Reservoir was awarded Model Construction Project by Guangdong Provincial Government, Corruption-Free Project by Guangdong Province CPC Disciplinary Commission and Guangdong Department of Supervision, and Guangdong Model Project of Safe Operation and Engineering by Rules by Guangdong Department of Construction. Besides, projects of dredging Pearl River estuary and reinforcing the embankment of Beijiang River went ahead as planned in compliance with high standard requirement. The Xixi River closure of Chaozhou Water Supply Hub Project succeeded under the circumstances of large flow, high fall, and deep soft foundation, recording a miracle in Guangdong's history of water conservancy construction. The progress was stepped up in renovating the embankment of the Pearl River in Guangzhou, with 85% of workload in the 9th Phase Project completed and an excellence rate achieving 95%.

Implement resolutions concerning water adopted by Guangdong Province People's Congress

Governments and competent departments of water administration at all levels fulfilled implementation of resolutions concerning small reservoirs adopted by Guangdong Provincial People's Congress. 2529 (108% of the plan) cases of small reservoirs with evident dangers or hidden perils were properly treated and the result had passed a comprehensive checking by the Provincial Government in July 2002. In the past five years, a total of RMB 2.03 billions has been spent on water conservancy projects across the province. Of the total spending, the Provincial Government subsidized RMB 410 millions, governments of municipalities and counties allocated RMB 740 millions and townships and local people raised RMB 880 millions. The implementation of such proposals generated great economic returns as well as benefit to communities and ecological environment. After removing dangers and consolidating reservoirs, the annual increase of water storage reached 280 million cubic meters. Irrigation area increased by 25,710 hectares and 164,000 hectares of irrigated area has been improved. 4.13 million people living in villages and townships have access to drinkable water supply.

To implement resolutions concerning small hydropower stations adopted by Provincial People's Congress, Guangdong Department of Water Resources took effective measures to encourage and support the development of small hydropower stations. For the whole year the provincial-level subsidy in place was RMB 66.4 millions, spending on construction of 284 small hydropower stations with a total of 325-megawatt installed capacity. Technological renovation had been conducted in 125 projects and the newly added installed capacity reached 10.1-megawatt, with added power generation of 60.2 million kilowatt-hours. The construction of small hydropower stations in the province had come to its prime time of rapid development. The remaining issues of reservoir migrants had been appropriately addressed in accordance with proposal of the Provincial People's Congress. In 2002, when "One reservoir one policy" was adopted, financial support was centralized to tackle the major issues migrants faced in housing, drinkable water supply, shortage of land and poor production facilities. Government departments concerned had basically solved the remaining issues of 98 migrants villages in terms of agricultural production and living conditions. In the past five years, RMB 620 millions from governments at levels of province, municipalities and counties as well as migrants had been raised. That basically met subsistence for resettling 800,000 migrants from the reservoir region.

New achievement scored in drinkable water supply to the rural area following rational plan in the light of local conditions

The drought situation in southwest Leizhou Peninsular had been somewhat alleviated because of initiatives taken. In light of shortage of water resources in the limestone areas, Department of Water Resources helped Shaoguan and Qingyuan map out rational program while offering financial and technical support. In limestone area of Shaoguan Municipality, Project "Farmland Pool" progressed smoothly with 2.4 million cubic meters completed, which assured water supply to 51,000 people and 71,600 Mu (4,773 hectares) of farmland indispensable to people's subsistence. In Qingyuan Municipality, construction of farmland pool proved to be effective. RMB 30 millions had been spent on building 421 storage pools and 7 storage ponds with combined water storage of 34,000 cubic meters, extending benefit to 4,506 people and irrigating 1,127 Mu (75 hectares) of drought-stricken farmland. Farmers applauded the efforts by the government. The east Guangdong Province suffered severe water shortage due to pollution. A working team assigned by Department of Water Resources has worked with local governments and CPC leaders and technicians to draw out an action plan in a bid to resolve this issue. In addition, the Provincial Government has allotted special fund worth of RMB 265 millions to help the three municipalities in the east Guangdong tackle the shortage of drinkable water supply.
Improved administration by law

All the river sand exploitation sections have been mapped out in all major rivers of the province. Procedures have been closely followed to issue permits for river sand exploitation. Qingyuan Municipality has been designated as one of pilot regions to practice tender invitation for river sand exploitation permits, aiming to develop the best practice model in the region. It is strictly required by the government to submit programs on water and soil conservation. Government departments shall also emphasize examining technical documents for water and soil conservation programs. Throughout the whole year 1,060 programs on water and soil conservation have been examined. A total expense of RMB 130 millions on water and soil conservations by project contractors have also been audited and verified. Water supervision departments at all levels in the province have investigated more than 2,300 cases of water-related disputes and acts of destroying water conservancy facilities. By that the government has recovered loss of RMB 30 millions.

In 2002, Guangdong telecommunications sector saw a strong business growth with all indicators of business performance taking lead in China. The business revenue of telecommunications service reached RMB 70.07 billions, increasing by 9.76% over the previous year. The fixed telephone subscribers were 19.968 million, an increase of 16.7%, whereas the mobile telephone subscriber reached 32.1437 million, up by 33.34%. The Internet users totaled 9,863,900, up by 74.4%. The telephone penetration rate in Guangdong was 66.4%. And the mobile phone penetration rate reached 39.9%, much higher than the national average.

With a rapid expansion of Guangdong's telecommunications capacity, a three-dimensional digit transmission network covering air-land-water has taken shape. The overall telephone switches reached 58,577,100 lines, out of which the fixed telephone switches were 27,242,200 lines, GSM network switches 35,239,400 lines and GDMA network switches 1,588,000 lines. The long-distance call circuits amounted to 1,167,000 lines. 29,500 kilometers long of optical cable has been laid. In addition, the digit data network (DDN) subscribers totaled 7,000. The users of frame relay and ATM reached 1,800, which are either from the mainland of China or Hong Kong, Macao, Taiwan, or other countries.

In 2002, Guangdong telecommunications sector saw a strong business growth with all indicators of business performance taking lead in China. The business revenue of telecommunications service reached RMB 70.07 billions, increasing by 9.76% over the previous year. The fixed telephone subscribers were 19.968 million, an increase of 16.7%, whereas the mobile telephone subscriber reached 32.1437 million, up by 33.34%. The Internet users totaled 9,863,900, up by 74.4%. The telephone penetration rate in Guangdong was 66.4%. And the mobile phone penetration rate reached 39.9%, much higher than the national average.
With a rapid expansion of Guangdong's telecommunications capacity, a three-dimensional digit transmission network covering air-land-water has taken shape. The overall telephone switches reached 58,577,100 lines, out of which the fixed telephone switches were 27,242,200 lines, GSM network switches 35,239,400 lines and GDMA network switches 1,588,000 lines. The long-distance call circuits amounted to 1,167,000 lines. 29,500 kilometers long of optical cable has been laid. In addition, the digit data network (DDN) subscribers totaled 7,000. The users of frame relay and ATM reached 1,800, which are either from the mainland of China or Hong Kong, Macao, Taiwan, or other countries.

In 2002, Postal Services of Guangdong accomplished a turnover of RMB 4.85 billions with an increase of 15% over the previous year. The revenue reached 5.201 billion yuan, up by 9.11%. The labor productivity was 125,000 yuan per capita, up by 12.6%. The total number of deposit cards issued by Postal Service reached 3.8 million. The annual deposit balance achieved a net increase of 9.4 billion yuan, and the total deposit balance reached 37.6 billion yuan at the end of 2002. The number of postal letters handled reached 1.33 billion units, up by 26.1%. The engineering audit report of Guangzhou Jianggao Mail Processing Center was approved and accepted in a comprehensive way by State Postal Administration. Its master design concept and technological l process reach the world's advanced level. The reconstruction of logistics centers in Fangcun and Huangcun of Guangzhou and storage center in Foshan were completed, and the centers have been in full operation. In addition, , the rebuilding of the main part of the provincial central postal composite network with 555 additional new composite connections and the trunk communication platforms were completed. Additional 14 Phone Call 185 client service centers in cities of prefecture level have been set up to provide service covering all the prefecture-level cities in the province. The logistics management and dynamic allocation system has been certified by the Provincial Department of Science and Technology and awarded the First Prize for Scientific and Technological Progress in Guangdong province. The Provincial Postal Logistics Company has become one of the Provincial Top 7 Third Party Logistics Service Providers.

National taxation

In 2002 the tax revenue from national taxation bureaus in Guangdong saw 166.531 billion yuan, representing an increase of 7.7% over the previous year, accounting for 9.79% of the national total and taking the lead in the country for consecutive 8 years. Out of that total amount, 90.319 billion yuan came from domestic value-added tax and consumption (excise) tax, registering an increase of 16%. Tax rebate at customs for foreign export amounted to 24.653 billion yuan, up by 35.1%. In addition, effective IT application was extended to all grass-root tax bureaus for tax collection and management on a standard platform. Taxation processing of over 1.2 million taxpayers in the province has thus been brought under direct surveillance and supervision of national taxation with application of tax collection and management software. Nowadays forgery-proof tax controllers are installed on some 25,544 ordinary value-added taxpayers and on all fuel-chargers in the province.

Local taxation

The annual tax revenue for Guangdong was RMB 92.59 billions including 6.22 billion by national tax bureaus on behalf of local tax bureaus, up by 17.1% over the previous year. The accumulated amount of social insurance premium registered 27.03 billion yuan excluding that of Shenzhen, up by 35%. In terms of tax revenue, the growth rate of tax revenue at city, county and national levels are more than that of provincial level. The annual national tax revenue recorded 22.08 billion yuan, up by 15%; the annual provincial tax revenue 20.01 billion yuan, up by 9.5%; and the county-level tax revenue 50.5 billion yuan, up by 21.4%. The revenue and its excess were found in a relatively concentrated areas like Guangzhou and Shenzhen, totaling RMB 56.77 billions, accounting for 61.3% of the provincial total, which is RMB 6.497 billions more than the previous year, accounting for 48% of the provincial total excess. The revenue from the 6 cities in the Pearl River Delta was 22.91 billion yuan, accounting for 24.7% of the provincial total, registering an increase of RMB 4.97 billion yuan and 36.7% of the provincial total excess. The revenue of other regions totaled RMB 12.91 billion yuan, making up 14% of the provincial total, and the excess totaled RMB 2.061 billion yuan, accounting for 15.2% of the provincial total excess.

In 2002, the local regular budgetary revenue in Guangdong Province amounted to RMB120.16 billion yuan, up by 16.82% over the previous year on comparable basis. Regular budgetary expenditure reached RMB152.11 billion yuan, up by 15.18%.

The province achieved a balanced budget as calculated on the basis of tax-revenue- sharing scheme.

This year, Guangdong Province brought its fiscal functions into full play, giving an effective impetus to economic and social development.

Government Inland revenue departments at all levels in the province have appropriated a total subsistence allowance of 259 million yuan and a total minimum guarantee of 450 million yuan for the laid-off from state-owned enterprises, trying to ensure a maximum coverage for the needy.

The provincial revenue and fiscal department has allocated 172 million yuan to upgrade the subsidies on living and medical care for disabled servicemen and dependents of servicemen and martyrs in poverty-stricken regions and for the most needy people there in their medical treatment.

Investment in science and education witnessed increase for implementing the strategy of rejuvenating Guangdong through science and education, with educational service expenditure reaching 23.31 billion yuan, up by 30.1%, and scientific service expenditure amounting to 1.53 billion yuan, up by 27.5%.

Financial support to agriculture was strengthened, amounting to 8.125 billion yuan in agricultural expenditure, up by 17.4%.

Budgetary reform has achieved substantive progress, with 102 departments directly under the provincial government completing their budgetary plan on time.

Reform on government procurement system has intensified. Its annual expenditure has reached 8.347 billion yuan, an increase of 78.04% over the previous year.

Since the autumn term of school in 2002, the-only-one-category-of-fee system has been implemented across the board in primary and secondary schools in a bid to regulate the fee-charging administration. As a result, a total fee of 1 billion yuan has been cut down to the benefit of students' families.

Efforts to examine and rectify governmental funds and administrative service charge have enhanced. A total of 18 categories of governmental funds has been abolished in line with the requirements by the central government, reducing one billion yuan annually of various charges to the public.

Chinese export commodities fair

Chinese Export Commodities Fair (CECF) is held twice a year in Guangzhou in spring and autumn since it was inaugurated in the spring of 1957. Till the year 2002, 92 sessions of in 46 years had been held successfully. It is honored as China's No.1 Exhibition in terms of quality and scale. Since the spring in 2002 and the 91st session, reforms have been carried out for CECF. Each session is divided into two phases, 6 days each, with 4 days interval in between for re-setup. The first phase is for 5 categories of commodities, namely, raw material, machinery and tools, electronics and electrical appliances, textile and garment, foodstuff/native produce/animal by-products and medicines/healthcare products/medical instruments. The second phase is for 3 categories of commodities, specifically, home deco, gifts and decorations, stationery/office and outdoor furniture. The reform resulted in an expansion of exhibition space from 170,000 square meters to 310,000 square meters, and an increase of booths from 8,153 to 15,676. The attendance of the two sessions in 2002 registered 256,000, up by 20%. The business turnover reached US$35.32 billion, up by 21.2%. The business turnover from the entire 91st session reached US$16.85 billion, up by 26% over the 90th session; the business turnover of the 92nd session, US$18.47 billion, up by 9.6% over the 91st session. According to the statistics, light industrial products, machinery and electric products are still the best sellers. According to geographical distribution of the transactions, Europe and America is still China's largest export market. The top 3 regions, in terms of business turnover during the 92nd session, were European Union, America and Middle East, which accounted for 29.7%, 17.7%. 10.4% of the total respectively. The statistics also indicated that export exhibitors from Eastern China took the largest pie of all the transactions concluded, while west China scored a rapid increase in its total amount of transactions, revealing a great potential for export growth. In addition, the statistics illustrated that brandname products, products of wide-ranging varieties, products made of new materials or by incorporating technology could be priced relatively higher compared with other goods, whose prices fell to different extents as a result of keen competition.

China high-tech fair

Approved by the State Council (cabinet of the central government), China High-tech Fair (CHTF) is jointly hosted by Ministry of Foreign Trade and Economic Cooperation, Ministry of Science and Technology, Ministry of Information Industry, State Development and Planning Commission, Chinese Academy of Sciences and Shenzhen Municipal Government. The 4th session was held in Shenzhen from the 12th to the 17th of October 2002, and was highlighted by internationalization, transaction, overseas Chinese students and entrepreneurs. Participants came from 17 countries, including Canada, Russia, U.S.A., the U.K., Germany, European Union, Italy, France, Australia, Japan, etc. Eight companies from overseas and 16 known multinational companies, including INTEL, IBM, NTT and SONY, attended the Fair. Meanwhile, over 200 Chinese students from overseas took part in the Fair and presented 300 projects to the Fair. Statistics indicated that this session received 88 delegations from 40 countries and regions, 3,691 exhibitors and 1,124 potential investors at home and abroad. They participated in the whole process of exhibition, transaction and negotiation. 1,581 contracts-agreements were signed with transaction value of US$12.16 billion, up by 16.7% over the previous session. Out of the total contracts or agreements signed, 1,453 of them were related to innovative and high-tech projects with investment of US$11.23 billion, up by 23.4%, including foreign import and export amount of US$2.05 billion (US$1.56 billion from import).

the international computer communication & consumer electronics expositon

The 4th Dongguan China International Computer Communication & Consumer Electronics Exposition (3C Expo) was held in Dongguan on October 13, 2002. Dongguan Municipal Government, Guangdong Provincial Commission for Economy and Trade, Guangdong Provincial Department of Foreign Trade and Economic Cooperation, Guangdong Provincial Department of Science and Technology, Taiwan Businessmen Association of Dongguan City, and Digital Industry Association of Dongguan jointly sponsored the 4th 3C Expo. The 3C Expo is the platform to display the latest R & D achievements of domestic and foreign computer information industry and of high technology. People exchanged information about computer communication and entered into transactions on computer communication products and tried to attract more businessmen and investment. The products on display involved 7 categories: computer and its peripherals, digital products and technologies, computer software, electromechanical products, communication and network products, high-tech products, electronic fittings and components. A number of well-known IT companies from more than 20 countries and regions took part in the Expo, such as U.S.A., the U.K., France, Germany, Japan, Korea, India, Finland, Sweden, Singapore, Malaysia as well as Hong Kong, Macao and Taiwan. The space of the exposition covers 26,000 square meters, providing over 1,000 booths. More than 520 domestic or foreign enterprises attended the Exposition. Also present were over 20 thousand overseas professional buyers and more than 2,000 overseas professional procurement groups. Eventually, agreements were singed on 271 projects for investment and trade, with a total transaction of US$1.84 billion (equivalent to RMB 15.09 billion yuan), up by 7.2% over the previous session.

overview about informationization

In 2002, informationization in Guangdong maintained rapid and healthy development. The information industry witnessed fast growth with increasing application of the information technology. Setting up an integrated e-government platform has made a frog-leapt development, extending to all parts of the province. Guangdong was the first in China in conducting e-commerce legislation. Guangdong Province Electronic Transactions Regulations was adopted by the People's Congress of Guangdong Province on December 6th 2002, and went into effect as of February 1st 2003. The development of enterprises credit rating system yielded fruitful results. Shantou Corporate Credit Rating Information Network started to operate in May 2002, listing more than 20,000 companies and agencies. The Corporate Credit Rating Information Networks of Jieyang and Chaozhou were also made accessible to the public respectively on October 24th and November 26th in the same year, with Guangzhou and Shenzhen following suit. In terms of the development of social security information system, Guangzhou medical insurance information system is now in service. The first social security IC card was issued in Shunde District of Foshan Municipality on December 30th 2002, which was developed in line with the relevant national and provincial technical standards

application of information technology

In 2002, new achievements were attained in application of information technology in the province. Provincial Public Security Bureau succeeded in promoting the application of entry and exit management information system in local public security bureaus of 21 prefecture-level cities and 102 counties. Guangzhou Industry and Commerce Administration made accessible the online registration of new enterprises and online annual re-evaluation of existing enterprise together with online examination and approval system, which was also applied in more than 40 government departments. Jiangmen Municipal Government established the e-government administrative service system, linking up more than 20 government departments to offer online service of administrative examination and approval . More than 30% of large-size enterprises in the province have taken advantage of computer assisting design (CAD) and computer integrated manufacture system (CIMS), more than 50% of them applied to management information system (MIS), more than 35% of them employed management resource planning (MRP) and enterprise resource planning system (ERP), 13% of them installed supply chain management system (SCM), and 23% of them capitalized on client relationship management system (CRM).

software industry

In 2002, revenue from software and computer services (excluding embedded software) amounted to RMB24.3 billions with an increment of more than 40%. Its industry size ranks the second in China. Out of National Top 100 Software Companies in 2002, 20 of them are based in Guangdong, including Huawei Technologies and ZTE Corporation, which respectively ranks the first and the second in the industry. Up to December 2002, 992 software enterprises were certified together with 2,794 software products in Guangdong.

business and trade
In 2002, the total retail sales of Guangdong Province was RMB 501.359 billions, increasing by 11%, among which 357.31 billion yuan was generated in cities and towns, up by 11.2% and 144.049 billion yuan in rural area, up by 10.7%. In terms of retail sales value of a specific industry, the wholesale and retail sales reaped 363.851 billion yuan, an increase of 12.5%. Catering business took in 82.964 billion yuan, increasing by 12.2%. The total transaction volume increased by 10.9% to 121.318 billion yuan in the commodity trading markets with annual transaction value above 100 million yuan each. The value added of wholesale and retails as well as catering businesses surged by 10.9% to RMB 114.105 billion yuan. Logistic industry enjoyed a rapid development. Guangzhou, Shenzhen, Zhuhai, Shantou, Zhanjiang, Foshan and Dongguan have already mapped out the blueprint to boost the growth of logistics industry. As a result, the logistics industry has been further upgraded. The total sales volume of top 12 chain enterprises in Guangdong registered 30.08 billion yuan, increasing by 29.3%. The turnover of China Resources Vanguard Co., Ltd. (C.R.V.) reached 8.59 billion yuan and it became the first enterprise of its kind in Guangdong to be listed as one of the National Top 10 of Retail and Catering Chain Enterprises. P.G. Logistics Group Co., Ltd. has become the first one in China to be recognized as the demonstration center for the third party logistics enterprises by China Federation of Logistics & Purchasing. The business turnover of 6 large-scale wholesale markets of medium or top grades amounted to RMB 52.1 billion yuan, increased by 10.3%, accounting for 42.9% of the business turnover achieved by the commodity trading markets with annual transaction value over 100 million yuan each. The leading logistics enterprises and large wholesale markets of medium and high grade demonstrated a dynamic growth, bolstering growth of the whole logistic industry in Guangdong and set a good example to the followers.

modern logistics industry

In 2002, logistics industry in the province developed rapidly, especially for the third party logistics that continued to keep its swift growth. The value added of logistics industry realized 196.3 billion yuan, accounting for 16.8% of gross domestic product (GDP). The number of professional logistics enterprises and distributing centers increased by 23% to 125 compared with the year 2001. Among the provincial top 25 logistics enterprises certified by the provincial government, 7 of them are third party logistics enterprises with a total business turnover of 6 billion yuan, increasing by 29.5% over the previous year. And three of these seven enterprises had achieved business turnover of over one billion yuan each, specifically, Guangdong Shipping Group Co., Ltd. (1.803 billion yuan), Guangdong South China Logistics Co., Ltd. (1.201 billion yuan) and Guangdong Postal Logistics Service (YCC, 1 billion yuan).


The year of 2002 saw a stable increase in the total volume of passenger and cargo transportation in Guangdong, especially that of harbor handling capacity. The whole year's cargo circulation volume through all means of transportation reached 315.798 billion tons/kilometer, a decrease of 2% over the previous year, with railway 27.762 billion tons/km, down by 6.5%; highway 58.48 billion tons/km, up by 11.8%; waterway 224.348 billion tons/km, down by 4.6%; civil aviation 951 million tons/km, up by 26.1%; pipeline 4.257 billion tons/km, down by 2.2%. The total circulation of passenger registered 149.549 billion person/km, an increase of 11.4%, with railway 27.117 billion person/km, up by 7.5%; highway 95.118 billion person/km, up by 10.8%; waterway 1.151 billion person/km, up by 1%; civil aviation 26.163 billion person/km, up by 19.2%.

The cargo throughput of major ports recorded 262.7091 million tons, up by 22.5%; container throughput reached 9,902,400 TEU, up by 42.2%. The throughput of foreign trade cargo registered 110.5526 million tons, up by 32.1%, and that of foreign trade containers reached 8.0833 million standard units with an increase of 42.4%.

Guangzhou railway (group) corporation

With approval of the Economic and Trade Office of the State Council in October 1992, Guangzhou Railway (Group) Corporation (GRGC) was officially established on February 8th 1993. For 10 years, under the correct leadership of the Party Committee of Railway Ministry and governments in Guangdong, Hunan and Hainan Provinces, and with efforts by the staff of all subsidiaries, GRGC has attained considerable achievements after they seize opportunities and spared no efforts to push ahead with reforms and development of the corporation in full scale.

After establishment of the corporation, and always in line with guiding principles of "clearly defining the ownership of property rights making clear rights and responsibilities, clear-cut division between government functions and business operation and effective management", a series of innovative initiatives have been taken with the purposes to set up a modern company system. In 1993, the corporation took the lead in the railway sector to reform the transport distribution patterns within all its operations. In 1995, GRGC became the pilot in establishing modern enterprise systems under Ministry of Railway. In 1996, Guangshen Railway Company Ltd. was incorporated officially and successfully listed in Hong Kong and New York Stock Exchanges respectively. Upon approval by the State Council In 1997, GRGC became one of 120 pilot enterprises to transform some of its subsidiaries into companies in real term, specifically, Shichang Railway Company, Sanmou Railway Company and Guangmeishan Railway Corporation, Guangzhou Railway Engineering Corporation, Guangdong Railway Youth Travel; and set up Pingnan Railway Company Limited, and Guangdong-Hainan Railway Company Limited. In 2000, the corporation became the trailblazer to set up a passenger transport company under the railway sub-bureau systems, which proved to be effective so far as now.

With reforms conducted in the past 10 years, GRGC have recorded continuing business growth with strong backup of its technology innovation as well as its improvement of installations and equipment. In 2002, GRGC saw an increase of 29.9% over that of 1992 in number of passengers transported, and freight cargo volume increased by 0.8% as compared with that of 1992. Within 5 years from 1997 to 2002, the total length of newly built railway lines reached 1,060.17 kilometers (including double track lines) and newly built electrified railway lines 1,034.46 kilometers. In December 1994, Guangshen Quasi-high-speed Railway began to operate and a computer network linked up with stations, sub-bureaus offices, bureau offices and the Railway Ministry. Computers have handled data collection, transmission and integrated processing. And enterprise information framework has been almost fully fledged.

Pushed by the reforms in the past 10 years, GRGC staff has been taught a lot about business practice through corporation-sponsored training programs. The development of its human resources directly led to its good business performance. In return, its employees' welfare benefits have been obviously improved. The enrollment size of its vocational education has been expanded from previous 6,560 to current 10,100 trainees. Over 48,000 person/times attended various vocational training. In 1999 the corporation accomplished ahead of schedule the "7277 better performance project" proposed by the Party Committee of the Railway Ministry. In 2002, the corporation generated transportation revenue of 11.29 billion yuan, 2.17 times more than that of 3.56 billion in 1992. And in 2002 the revenue from business extension was 2.9 times that in 1992. Within 3 years, total profits of GRGC from transportation business reached 1.05 billion yuan, which largely contributed to upturning the whole railway industry from loss making to balance one year ahead of schedule. From 1992 to 2001, the total amount of GRGC payroll had increased by 258.9%, with an average yearly growth rate of 17.3%.

For 10 years, GRGC has greatly promoted the cultural and ideological progress, and was awarded the title of "National Excellent Enterprise in Ideology and Political Work" for 12 consecutive years. The learning experience of workers' theory study group of GRGC has been appreciated by All-China Federation of Labor Unions and widely promoted. The book entitled 100 Questions about Falun Gong Cult written and edited by the party committee of GRGC has been listed as one of 20 books by the All-China Federation of Labor Unions as the study material for workers nation wide and recommended into the lists of books for families. Also, GRGC has been recognized as the national model of combating against Falun Gong Cult. The series Television drama of "Ah, Mountain and Mountain" written and edited by staff of GRGC won the Golden Eagle Trophy in the 17th National TV Golden Eagle Awards.

Spring sings atop the kapok trees and in February flowers blossom beautifully in the City of Five Rams. At the time when Guangzhou Railway Group Corporation celebrated its 10th anniversary, we are confidant and expecting that an even more prosperous future be there for GRGC!

In 2002, the fixed assets investment in urban development in Guangdong province reached RMB 29.81 billion yuan. The process of urbanization continuously accelerated with increasing number of counties or county-level cities turned into districts. The cities of Nanhai, Shunde, Sanshui and Gaoming are changed to districts under Foshan Municipality, which has become the third largest municipality in the province. The former county of Doumen was merged into Zhuhai Municipality; Chaoyang and Chenghai merged into Shantou Municipality ; Xinhui into Jiangmen Municipality; Huiyang into Huizhou Municipality. By the end of 2002, there were totally 44 cities and 45 county-level towns in the province.

Through 2002, the daily water supply capacity reached 140,000 cubic meters. The volume of water for daily use per capita was 333 liter. The coverage of water supply reached 92%. 39 sewage treatment plants were established with a daily disposing capacity of 3.08 million cubic meters . The rate of disposing sewage was 30%, and 25% was disposed by those plants . Additional urban roads of about 500 kilometers in length were built. The road area per capita attained 10.3 square meters. The total number of overhead bridges including the cloverleaf junctions in urban areas reached 2860, with 810,000 road lamps, up by 19%. The quantity of buses reached 15,000 and taxis reached 36,000. Every 10,000 people possess 5.6 public transportation vehicles. The coverage of gas reached 95%. The greenbelt space covers 30% of newly developed areas. Green coverage rate was 33% of the entire urban areas in the province. The public greenbelt area per capita is 8 square meters. The three projects of urban landscaping and environment-friendly constructions in Huizhou City, renovation on Meijiang River embankments in Meizhou City and the housing estate management in Shenzhen was awarded China Human Settlement Best Practices in 2002. Jiangmen, Huizhou, Maoming and Zhaoqing were granted the title of Nationally Designated Landscaping City by Ministry of Construction. Nowadays, there are 8 Nationally Designated Garden Cities in the province, namely, Zhuhai, Shenzhen, Zhongshan, Foshan, Jiangmen, Huizhou, Maoming and Zhaoqing, accounting for more than one fifth of the National total. As a result, Guangdong Province has the largest number of Nationally Designated Garden Cities in China.


By the end of 2002, the total deposits absorbed by all financial institutions in Guangdong Province for both local and foreign currencies amounted to RMB 2526.633 billions, registering an increase of 17.1% over the previous year. Among the above-mentioned total deposits, the balance of renminbi (RMB) deposits of all services turned out to be 2292.181 billion yuan, up by 18.2%. Within the RMB Deposits, 771.597 billion yuan came from businesses, an increase of 11.58% and 1181.909 billion yuan from personal savings, an increase of 19.18%. Various loans lent in both local and foreign currencies totaled 1647.69 billion yuan, an increase of 16.7%. Among the entire loan, RMB of all services amounted to 1520.662 billion yuan, up by 16.4%. The annual accumulated cash outflow reached a level of RMB4265.943 billions and cash intake also amounted to 4174.744 billion yuan. The net cash issuance amounted to 91.2 billion yuan, which was 6.901 billion yuan more than that of the year 2001. By the end of 2002, the entire provincial financial institutions held a total balance of interest receivable RMB33.062 billions, representing1.137 billion yuan less than that of beginning of the year and 8.214 billion yuan less than the same period of the year 2001. In 2002 RMB transactions generated a total profit of 8.25 billion yuan and annual accumulated foreign exchange settlement income reached US$ 60.011 billion and foreign exchange purchase expense valued to US$26.901 billion with a surplus balance of US$33.110 billion, which was US$13.245 billion more than that of the year 2001.


There were a total number of 50 foreign bank branches and financial institutions in Guangdong province by the end of 2002, among which 16 are located in Guangzhou, 25 in Shenzhen, 5 in Zhuhai and 4 in Shantou. There were also 20 representative offices of foreign banks in Guangdong by the end of 2002, among which 15 are situated in Guangzhou and 5 in Shenzhen. The total capital amount of foreign banks was worth of US$ 7.389 billion with lending loans (including discount and mortgage) of US$4.081 billion. Among the loans lent, foreign currency totaled US$2.991 billion and RMB currency totaled 1.089 billion in US Dollar. Total liabilities for those foreign banks amounted to US$6.463 billion, in which saving deposits accounted for US$1.367 billion. 14 branches of foreign banks in Shenzhen are permitted to handle RMB transactions. The total capital for these subsidiary branches valued at RMB13.044 billions, of which the total loans lent were RMB 9.42 billions. Those branches had a total liability of RMB11.548 billions, of which 3.703 billion contributed to the RMB saving deposit. In 2001 their RMB business segment reaped total profits RMB 80,990,000.


In 2002 there are a total number of 23 insurance companies in Guangdong Province (excluding Shenzhen), of which 10 property insurance companies, and 13 life insurance companies (including China-foreign joint ventures). There are 9 foreign insurance companies (including joint venture) and 14 Chinese insurance companies. The total insurance premium income from all these insurance companies amounted to RMB24.968 billions, an increase of 28.16% over the year 2001, among which premium from property insurance totaled 7.945 billion yuan, increasing by 6.23%; and premium from life insurance totaled 17.019 billion yuan, an increase of 42.32%. Total insurance claim payment was RMB6.309 billion yuan, up by 5.9%. Insurance density reached 338 yuan, up by 72 yuan and insurance depth was 2.64%, up by 0.36%.


By the end of 2002, there were 61 listed companies with 67 listed stocks in Guangdong Province (excluding Shenzhen). These listed companies had 25.946 billion listed stocks in total, among which 10.83 billion stocks were liquid and 15.115 billion stocks non-liquid with a liquidity rate of 41.74%, the highest in China. Among the liquid stocks, there were 8.585 billion A Shares and 1.409 billion B Shares. The market capitalization of listed companies was worth of RMB181.939 billions, of which A Shares were worth of 59.682 billion yuan. The weighted average earning per share of all the listed companies was 0.13 yuan. Total accumulated capitals raised by the listed companies reached RMB1.205 billions.

In Guangdong there are 10 securities companies, 273 securities business outlets and 73 securities service agents. The year 2002 saw total amount of transactions of securities through those agents amounted to 311.544 billion yuan. The market capitalization of stocks under trusteeship amounted to RMB104.485 billions. The accounts of A Shares investors through securities companies numbered 4.7306 million, among which 4.7189 million were individual investors and 11,700 institutional investors.

business partnership with overseas and foreign trade

According to the statistics from Customs Administration in 2002, the total value of foreign trade in Guangdong was US$221.12 billion, up by 25.3% over 2001, accounting for 35.6% of the total in the country. The figure includes foreign export value of US$118.47 billion, 24.2% more than that of 2001, accounting for 36.4% of the national total, and the import value of US$102.65 billion, up by 26.6% and making up 34.8% of the national total. The trade surplus was US$15.83 billion. The export value of machinery and electrical products was US$72.66 billion and that of high-tech products was US$30.97 billion, up by 31.2% and 38.9% respectively, registering 61.3% and 26.1% of the provincial total respectively. Export volume to the major markets such as the United States, Japan and European Union saw a two-digit growth rate.

The export to the United States from Guangdong was US$29.58 billion, up by 24.6%; to Hong Kong US$42.39 billion, up by 25.9%; to European Union, US$15.43 billion, up by 22.2%; to Japan, US$9.34 billion, up by14.1%; and to ASEAN, US$6.11 billion, up by 25.5%.

In the area of Guangdong's foreign economic cooperation in 2002, 8,451 contracts of engineering projects, labor cooperation and design consultancy were newly signed with overseas business partners, down by 40.7% compared with that in 2001. The amount of contract value grew up by 2.3% to US$841.99 million; and the total business turnover was US$761.89 million, up by 50%.

attracting overseas investment

In 2002, 11,706 contracts involving foreign capital were signed, down by 11.3%; the contracted overseas investment totaled US$18.9 billion, up by 45.1%; the overseas capital in place was US$16,589 billion, up by 26.24%. Direct foreign investment was the main form of utilizing foreign capital in Guangdong Province. In 2002, 6,613 new contracts were signed, up by 24.37%; the contracted foreign investment reached US$16.17 billion, up by 51.7%; foreign direct investment in place attained US$13.11 billion, up by 26.6%.

The quality of attracted foreign investment has been constantly enhanced. First, the number of large projects has increased. The contracted foreign direct investment averaged US$2.445 million each. Newly approved are 538 projects with total investment or net increase of capital exceeding US$10 million each, which grew up by 43.5% over the previous year. The total investment of these projects totaled US$19.58 billion, out of which the contracted foreign investment amounted to US$9.01 billion, accounting for 55.7% of the total foreign direct investment in the province. There were 33 newly approved projects with total investment or net increase of capital exceeding US$50 million each, which involved contracted foreign investment of US$2.8 billion, accounting for 17.3% of the provincial total . Second, foreign investment in manufacturing industry of electronics and telecommunications equipment increased by a big margin. 900 overseas invested enterprises were newly set up, up by 34.5%, with contracted overseas investment of US$3.25 billion and foreign capital in actual use totaling US$2.2 billion, increasing by 84.8% and 31.4% respectively.

customs port administration

By the end of 2002, authorized by the central government, 51 first-class entry and exit customs terminals of sea, land and air were open to foreign countries (including 36 ports, 4 railway stations, 6 highway entry and exit points and 5 airports). There are now 99 second-class customs ports (including 93 shipment docks, 5 railway-loading points and 1 highway loading point). Under entry and exit inspection control are also 59 checkpoints for cargo vehicles and 27 ferry routes to and from Hong Kong and Macao, and 28 flight routes to the United States, the Netherlands, Australia, Japan, Hong Kong and other countries and regions.

The entry and exit checkpoints registered 192.09 million person/times, 235.08 million tons of import and export goods, and 12.31 million transportation vehicles (ship, train and plane), up by 1.1%, 25% and 5% respectively. The tariff and duties collected on importation was RMB 69.43 billion yuan, up by 0.1%, including tariff of 18.64 billion yuan, down by 22.6%; and duties on importation of 50.79 billion yuan, up by 12.9%.


In the year 2002, environment in Guangdong maintained a stable and turn for better. City air quality has been kept within the range of the Grade 2 National Standards, and dust type pollution level has been decreased dramatically. Air quality of entire 22 cities in the province has maintained the level of Grade 2 National Standards. Cities suffering from acid rains have been fewer and also the occurring rate of acid rains dropped slightly in the province. Quality of drinkable water and environment conditions of large rivers systems have improved and city number with standard water quality supply has increased by 13.3% over that of 2001. Large rivers and the main water systems of the Pearl River Delta have maintained reasonably sound conditions and all the large lakes and reservoirs are satisfactory in terms of its operational functions. Nearly 70% of the urban offshore water quality is within the range of national standards. The total length of the highways subject to serious noise pollution (effective sound level >70db<A>) has been shortened by 16.8%.

intensify supervision and control over environment while progress has been made in prevention and treatment of industrial pollutions.

To make a good job of desulphurization of smoke emission from coal power plants in the province, it is important to define the desulphurisation tasks for them. To push coal power plant's desulphurisation work, the People's Congress of Guangdong Province and the Guangdong Provincial Committee of Chinese People's Political Consultative Conference have organized inspection and investigation missions to the site of coal power plants. Guangdong Electrical Capital Investment Management Operation Company has issued the Blue Sky Engineering Developing Principles and all the 9 coal power plants under the company have drawn up the desulphurisation plans. Guangzhou Municipal Government has also arranged desulphurisation plans for subordinated 65 enterprises, big sulfur dioxide polluters. Other coal power plants also have followed suit. In Zhongshan and Shengzhen Cities a full scale trial program to make sure those targeted industries to meet the environment standard requirements, for which The Full Scale Trial Working Program Requirements To Meet Environment Standards For Guangdong Pollution Industries and Full Scale Standardization Systems have been drawn up. By the end of 2002, within Shenzhen and Zhongshan those heavy pollution industries had by and large met the environment standard requirements. In 2002 the special action to investigate any violation of environmental protection laws was launched across the province to curb the comeback of already-treated pollution. A total of 31,684 people/time have taken part in the action and a total number of 17, 480 businesses has been inspected. A total of 227 businesses have been fined for violating the construction projects regulations. Also it has been discovered that 29 businesses in the 15 types of heavily-polluted enterprises that have been shut down illegally reopened and that 83 enterprises emitted contaminated materials over the prescribed level and that 6 businesses refused to pay the pollution emission charges and that 165 businesses had other illegal deeds. Provincially, a total of 532 cases had been filed and 129 cases were closed. An investigation into the industries of electroplating and chemical pulping where heavy pollution can occur had been under way and in Guangdong province a total of 33,918 enterprises had been granted permits to emit polluted materials and a total of 34,093 permits had been issued. The activities to select the "National Top 100 Environmental Protection Projects" and "Top 10 Environment Protection Projects in the Province" were arranged. Last year, there were 36,135 projects being built and put into operation in Guangdong province, among which 6,502 projects should be subject to "3 synchronizes principle", a strategy of synchronized design, implementation and development in terms of economic and urban and rural development and environmental protection. 6,380 projects have actually implemented that strategy. The actual capital put into the environment protection "3 synchronizes principle" totaled 1.831 billion yuan, and the eligible rate of "3 synchronizes principle" projects have reached 97.8%. Last year the planned construction projects were 70,321, among which 70,263 were subject to the environment impact assessment program. The execution rate of the environment impact assessment programs was 99.9% and a total of 61,964 businesses had applied and registered for waste material emission. Also in 2002, a total of 450 renovation projects had been completed before the required deadline.

Advancement had been made in the water environment protection work focused on the water pollution control in the catchment areas.

The Provincial Committee of the Central Committee of Chinese Communist Party and the Provincial Government held a meeting to work out action plan for comprehensive treatment of the Pearl River systems. All the first in command are requested at all levels. Set the rights of people to supervise and understand the environment conditions, it was decided that a monthly report on the water quality of major rivers would be publicized commencing on November1st 2002. Since Guangdong Province Clear Water Engineering Scheme was drawn up and initiated five years ago, the accumulated capital in this scheme had reached RMB 7 billion yuan, and among 115 projects listed in the scheme, 111 have commenced and 67 projects had been completed. The treatment of water pollution in the Three Rivers, namely the Hanjiang River, Rongjiang River and Lianjiang River in the east of Guangdong Province have been underway. As of the end of 2002, 33 urban sewage treatment plants had been built with a total treatment capacity of 2.997 million tons per day. 21 additional projects were under construction with a total treatment capacity of 1.715 million tons per day. The total sewage treatment capacity of Guangdong Province reached 3.62 million tons per day, accounting for 26% of the total. 138 offshore environmental protection zones had been specified within the province.

Ecological Protection and Construction well on the way

With a view to protecting the environment of drinkable water sources, agriculture production and natural resources, a total of 106 model ecological villages have been recognized (including 53 villages, 16 towns, 10 plantations and 27 gardens). There are 188 natural reserves in Guangdong Province alone, with a total area of 3.0087 million hectares and the nature reserve area has accounted for 4.22% the entire provincial administration area.

Regulations shall be enforced in the solid waste and imported waste handling.

The Guangdong Province Solid Waste Pollution Prevention and Treatment Regulations have been worked out and the Provincial Government has issued Notification on Strengthening the Management of Incinerating Solid Waste. The law enforcement inspection was organized to control and prevent any illegal incineration of solid waste. Management and supervision have been strengthened at a full scale to monitor the handling of hazardous chemicals and risk waste materials. It had been done to investigate and rectify any wrongdoings in the business of hazardous chemicals and risk waste with their record filed and updated regularly. Continuous efforts shall be made in a strict manner to do a good job of reviewing, granting and re-registrations of permits to businesses of hazardous waste materials. In Guangdong, a total of 57 businesses had been granted permits to operate business of risk waste materials. Activities of waste material imports are closely watched and a full investigation on imported scrap metal processing and utilization activities by prescribed businesses have been conducted and some 20 businesses that did not follow regulations to operate have been suspended or readjusted in accordance with the requirement of the Provincial Government and State Environmental Protection Administration. Results are effective after great efforts were taken to monitor and control the 3 major solid waste material pollution regions¡ª¡ª Qingyuan, Chaoyang and Nanhai.

Legislation on environment has been further strengthened.

The Revised Draft of the Regulations on the Protection of Water Quality of Guangdong Dongjiang River Systems was adopted by the 32nd session of the Standing Committee of the 9th Provincial People's Congress and it had been publicized and become effective. Also, Regulations on Environmental Protection in Guangdong Province and Regulations on Solid Waste Material Pollution Prevention and Treatment in Guangdong Province had been submitted to the Provincial Government for review and approval. The Provincial Government had issued a policy decision of A Decision to Further Enhance the Environment Protection Work. Also the current 7 local environment protection Acts, 10 provincial government environment protection regulations and 68 other environment policy documents all had been carefully reviewed.

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