Fixed-asset Investment
Investment continued to grow and investment in areas related to people's livelihoods increased noticeably. In 2009, total investment in fixed assets reached 22.48 trillion yuan, a year-on-year growth of 30.1 percent.
Retail Sales
Sales growth was steady and sales of selected products increased rapidly. In 2009, the total retail sales of consumer goods reached 12.5 trillion yuan, a growth of 15.5 percent.
CPI & PPI
The consumer price index (CPI) and producer price index (PPI) witnessed declines for the whole year. In 2009, the CPI was down 0.7 percent. The year-on-year change of producers' prices for manufactured goods was also down 5.4 percent.
Foreign Trade
The total value of imports and exports dropped in 2009, shifting between increases and decreases. The total value of exports was $1.2 trillion, down 16 percent; that of imports was $1 trillion, down by 11.2 percent. China had a trade surplus of $196.1 billion, or $99.4 billion less than 2008.
Resident Income
Urban and rural residents' incomes increased as the employment situation was better than expected. In 2009, the per-capita disposable income of urban residents was 17,175 yuan, up 8.8 percent. The per-capita net income of rural residents was 5,153 yuan, up 8.2 percent year on year.
Money Supply
The money supply grew rapidly—newly added credits increased by a large margin. At the end of December, broad money (M2) totaled 60.6 trillion yuan, up 27.7 percent compared with 2008; narrow money (M1) totaled 22.0 trillion yuan, up 32.4 percent; and cash in circulation (M0) was 3.82 trillion yuan, a rise of 11.8 percent.
(Source: National Bureau of Statistics; $1=6.8277 yuan)
Airline Thriller
The collapse of Asia's airline behemoth—Japan Airlines International Co. Ltd. (JAL)—rang alarm bells for its Chinese counterparts, who may also be secretly rejoicing to hear the news.
The Japanese state-owned JAL filed for bankruptcy protection on January 19, following the government's decision to end cash injection.
The Chinese market used to account for 15 percent of JAL's revenue.
Li Xiaojin, a professor at the Civil Aviation University of China, said domestic airlines, especially China Eastern Airlines Corp. Ltd., might devour a large portion of JAL's market share. Li said if JAL wants to cut costs, it must reduce flights.
However, JAL's downfall has also caused domestic airlines to wonder how they can avoid the same fate.
While high oil prices had a large impact on JAL's bankruptcy, the deep-rooted cause was fierce competition from Japan's high-speed railway network, said Li.
When Japan opened its high-speed railway network across the country in 1956, JAL turned its attention from the domestic market to more risky international markets.
The same is happening in China. In order to satisfy the increasing travel needs and driving economic growth, the government has poured money into the construction of high-speed railways.
On December 9, 2009, the world's longest and fastest passenger railway—the Wuhan-Guangzhou high-speed railway—was put into operation, reducing the journey time between the two cities from 10.5 hours to three hours. A flight between the two cities takes two hours.
Railways have forced airlines to cut prices. In many cases, the price of an air ticket is even lower than that of a train. "The enemy is at the gate," Li warned, fearing airlines may eventually leave the market.
Online Business Boom
In spite of concerns over the recovery of the real economy, online services fared well in 2009, growing a robust 30.7 percent from that of 2008 and outperforming other business modes.
On January 17, 2010, iResearch Consulting Group issued a report that said the scale of the Internet economy would reach 74.3 billion yuan ($10.8 billion) in 2009, up 17.4 billion yuan ($2.5 billion) from 2008.
iResearch said the fastest-growing Internet-related business was online payment, which grew 110.2 percent in 2009 year on year. It was followed by online shopping, which rose 93.7 percent in 2009. The research report said e-commerce will become the most prominent business in the next few years.
The report estimated the Internet economy will reach 112.3 billion yuan ($16.4 billion) in 2010.
A report conducted by the China Internet Network Information Center said the top three Internet uses in 2009 were for online music, online news, and search engines. Meanwhile, online travel reservations, stock transactions, online banking services and online shopping also contributed to the Internet economic boom.
In China, the Internet coverage ratio reached 28.9 percent in 2009. Though it is growing at a remarkable speed, the coverage still lags far behind that of developed countries. The Internet coverage ratio in the United States and Japan is about 80-90 percent—a reminder that much needs to be done and explored in the vast Chinese market. |