In the past two decades, Foreign Direct Investment (FDI) has made significant contributions to China’s economic development by increasing its industrial production, exports, employment and tax revenue and by promoting the upgrade of its industrial structure.

From this year onwards, China's national economy has continued to show a momentum of a fast and steady growth.

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.