Explanatory Notes on Main Statistical Indicators

Total Imports and Exports at Customs refer to the real value of commodities imported and exported across the border of China. They include the actual imports and exports through foreign trade, imported and exported goods under the processing and assembling trades and materials, supplies and gifts as aid given gratis between governments and by the United Nations and other international organizations, and contributions donated by overseas Chinese, compatriots in Hong Kong and Macao and Chinese with foreign citizenship, leasing commodities owned by tenant at the expiration of leasing period, the imported and exported commodities processed with imported materials, commodities trading in border areas (excluding mutual exchange goods), the imported and exported commodities and articles for public use of the Sino-foreign joint ventures, cooperative enterprises and ventures with sole foreign investment. Also included is import or export of samples and advertising goods for which CIF or FOB value are beyond the permitted ceiling (excluding goods of no trading or use value and free commodities for export), imported goods sold in China from bonded warehouses and other imported or exported goods. The indicator of the total imports and exports at customs can be used to observe the total size of external trade in a country. In accordance with the stipulation of the Chinese government, imports are calculated at CIF, while exports are calculated at FOB.

Import Export Value by Location of China’s Foreign Trade Managing Units refers to actual value of imports and exports carried out by corporations which have been registered by the local Customs house and are vested with right to run import export business.

Import Value of Commodities by Place of Destination and Export Value of Commodities by Place of Origin in China The former indicator refers to the value of import commodities of the places of their consumption, utilization or the places of their final destination. The latter indicator refers to the value of export commodities of the places of their origin or the places of the commodities dispatched.

Utilization of Foreign Capitals refers to remittance, equipment and technology financed from abroad, by loans, foreign direct investment and other forms undertaken by the Chinese governments at all levels, by various departments, enterprises and other economic units.

Foreign Borrowings refer to funds borrowed from abroad through formal signing of borrowing agreements with foreign institutions, including loans of foreign governments, loans of international financial institutions, commercial loans of foreign banks, export credit, and funds raised by Chinese bonds (and shares before 1996) issued abroad. It is an important part of China’s utilization of foreign capitals.

Foreign Direct Investment refers to the investments inside China by foreign enterprises and economic organizations or individuals (including overseas Chinese, compatriots from Hong Kong, Macao and Taiwan, and Chinese enterprises registered abroad), following the relevant policies and laws of China, for the establishment of ventures exclusively with foreign own investment, Sino-foreign joint ventures and cooperative enterprises or for co-operative exploration of resources with enterprises or economic organizations in China. It includes the re- investment of the foreign entrepreneurs with the profits gained from the investment and the funds that enterprises borrow from abroad in the total investment of projects which are approved by the relevant department of the government.

Other Foreign Investment refers to all forms of utilization of foreign capitals other than foreign borrowings and foreign direct investment. It includes the total value of stock shares in foreign currencies issued by enterprises at domestic or foreign stock exchanges, rent payable for the imported equipment through international leasing arrangement, cost of imported equipment, technology and materials provided by foreign counterparts in compensation trade and processing and assembly trade.

Overseas Direct Investment refers to enterprises set up or bought by domestic investors in foreign countries and in Hong Kong, Macao and Taiwan, and the economic activities centring on operation and management of those enterprises are under the control of domestic investors.

Overseas Contracted Project refers to projects undertaken by Chinese contractors (project contracting companies) through bidding process. They include: (1) overseas civil engineering construction projects financed by foreign investors; (2) overseas projects financed by the Chinese government through its foreign aid programs; (3) construction projects of Chinese diplomatic missions, trade offices and other institutions stationed abroad; (4) construction projects in China financed by foreign investment; (5) sub-contracted projects to be taken by Chinese contractors through a joint umbrella project with foreign contractor(s); (6) housing development projects. The business income from international contracted projects is the work volume of contracted projects completed during the reference period, expressed in monetary terms, including completed work on projects signed in previous years.

Overseas Labour Services refer to the activities of providing technology and labour services to employers or contractors in the forms of receiving salaries and wages. Labour services providing by contractual joint ventures of Chinese international contracting corporations should be included in the statistics of service co-operation with foreign countries. The business income of labour service cooperation is the income in the form of wages and salaries, overtime pay, bonuses and other remuneration received from the employers during the reference period.

Overseas Design and Consultation Services refer to projects with income for technical services provided to overseas operators. It includes geographic and topographic mapping, geological resource prospecting and survey, planning of construction areas, provision of design documents, blueprints, materials on production process and techniques, as well as engineering, technical and economic consultation, and feasibility study, research and evaluation of projects. Also included under this category are the above-mentioned services of foreign-financed projects in China that are paid in foreign currencies.