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A discussion on China’s road to industrialization or new industrialization is in essence a discussion on China’s modern economic growth.

The annual GDP growth rate increased 9.9%, year on year, showing 0.2 percentage points lower than the previous year, with the same growth level.

In 2005, the GDP showed a trend of high and steady growth. The annual GDP reached 18.2321 trillion yuan calculated at comparable price, an increase of 9.9% year on year, which is slightly lower than the growth of 10.1% of 2004.

According to preliminary statistics from the relevant departments, natural disasters in 2005 were more serious than the average level recorded since 1992.

The statistics given by the Ministry of Commerce indicate that in the first nine months of 2005, foreign direct investment across China continued a slightly downward trend that began at the beginning of the year.

The financial power-based transfer payments are fiscal subsidies for promoting regional governments’ financial power, and are designed mainly to balance inter-regional financial disparities and equalize the inter-regional levels of public services.

Since China began reform over twenty years ago, its economy has posted continuous rapid growth. The living standard of Chinese people across all regions has consequently improved.

Strengthening the construction of energy and major raw materials bases and accelerating the development of competitive manufacturing industry is an inherent requirement for the rise of China’s central region.