Document 6

In the first half of 1997, the output value of township and village enterprises [hereafter TVEs] in Zhejiang came to RMB 384.9 billion (in present prices), an increase of 19.4 percent over the same period for 1996, which was a slowing of 25.2 points. Looking at industry from the two points of hamlet and above and hamlet and below, the output of village and hamlet second-level enterprises rose by 10.6 percent, a reduction of 21.1 points, while industry below the hamlet level, that is cooperative business, and individual and private enterprise, rose by 26.3 percent, a fall of 29 points, and their share of TVE industry rose from 57.2 percent to 59.3 percent. Revenue from realized sales came to RMB 326.2 billion, an increase of 7.7 percent and a fall of 26.4 points. TVE industry in the province remitted taxes of RMB 8.6 billion, a rise of 10.5 percent, but represented a slowing of 3.5 points, and realized profits of RMB 16.2 billion grew by 19.2 percent, a slowing of 11.2 points. Based on an investigation and understanding of the situation, and a thorough comparative analysis, the main reasons for the slackening in growth rates in this sector are as follows.