Gross Domestic (Regional) Product  refers to the final products at market prices produced by all resident units in a country (or a region) during a certain period of time. It is calculated with three approaches, i.e. production approach, income approach and expenditure approach, which reflect gross domestic product and its composition from different aspects.
        Value-added  refers to value newly created in the process of production by resident units and the transfer value of fixed assets. It can be calculated by both production approach and income approach. In terms of production approach, it is the total output minus intermediate input. In terms of income approach, it is the summation of laborers’ remuneration, net taxes on production, depreciation of fixed assets and operating surplus.
        Laborers’ Remuneration  refers to the whole payment of various forms earned by laborers from productive activities they are engaged in, including wages, bonuses and allowances earned in monetary form and in kind, as well as free medical services provided to the laborers and the medicine expenses, traffic subsidies, and social insurance fee and housing fund paid by the laborers’ working units for them. In terms of individual economy, since laborers’ remuneration is not easily distinguished from the operating profit, both are treated as laborers’ remuneration.
        Net Taxes on Production  refers to the residual of the taxes on production minus the subsidies on production. The taxes on production refers to the various taxes, extra charges and fees levied on the production units on their production, sale and business activities as well as on some factors of production, such as fixed assets, land and labor force, used in the production activities they are engaged in. In contrast to the taxes on production, the subsidies on production refer to the unilateral transfer of part of the 〖BF〗government’s〖BFQ〗 revenue to the production units and are therefore regarded as negative taxes on production. They include subsidies on the loss due to implementation of government policies and price subsidies, etc.
        Depreciation of Fixed Assets  refers to the depreciation of fixed assets of a given period, drawn in accordance with the stipulated depreciation rate for the purpose of compensating the wear loss of the fixed assets or the depreciation of fixed assets calculated in a fictitious way in accordance with the stipulated unified depreciation rate in the national economic accounting system. It reflects the value of transfer of the fixed assets in the production of the current period. The depreciation of fixed assets in various enterprises and institutions managed as enterprises refers to the depreciation expenses actually drawn and calculated as part of the cost. In government agencies and institutions not managed as enterprises which do not draw the depreciation expenses, as well as for the houses of residents, the depreciation of fixed assets is the imputed depreciation, which is calculated in accordance with the stipulated unified depreciation rate and the original value of the fixed assets. In principle, the depreciation of fixed assets should be calculated on the basis of the repurchase value of the fixed assets. However, there is no actual condition to reevaluate all the fixed assets in China. Therefore, the above-mentioned methods are temporarily adopted at present.
        Operating Surplus  refers to the balance of the value-added created by the resident units deducting the laborers’ remuneration, net taxes on production and the depreciation of fixed assets. It is equivalent to the business profit of the enterprises plus subsidies on production, but the wages and welfare expenses paid from the profits should be deducted.
        Gross Domestic (Regional) Product Calculated by Expenditure Approach  refers to total expenditure on final consumption, total capital formation and net exports of goods and services by resident units of a country in a certain period of time. It reflects the use of gross domestic product produced in the current period.
        Final Consumption  refers  to  the total expenditure  of resident units on final consumption of goods and services in a certain period, namely the expenditure of the resident units for purchases of goods and services from domestic economic territory and abroad to meet the requirements of material, cultural and spiritual life. It excludes the expenditure of nonresident units on consumption in the economic territory of the country. The final consumption is classified into household consumption and government consumption.
        Household Consumption  refers to the total expenditure of resident households on the final consumption of goods and services. In addition to the consumption of goods and services paid for in monetary form by the resident households , the expenditure on goods and services obtained by the resident households in other ways is also included in the household consumption, which includes: (a) goods and services provided to the households by the units in the form of payment in kind and transfer in kind; (b) goods and services produced and consumed by the households themselves, where services refer only to services related to residential buildings owned by the households and paid services for the households; (c) services of financial intermediary provided by financial institutions; and (d) insurance services provided by insurance companies.
        Government Consumption  refers to the expenditure on the consumption of public services provided by the government to the whole society and the net expenditure on goods and services provided by the government for households free of charge or at low prices. The former equals the output value of the government services minus the value of operating income obtained by the government departments. The latter equals the market value of goods and services provided by the government free of charge or at low prices for households minus the value charged by the government on households.
        Total Capital Formation  refers to the net value of change within a certain period calculated as fixed assets acquired minus those disposed plus inventory, which includes total fixed assets formation and increase in inventory.
        Total Fixed Capital Formation  refers to the value of fixed assets acquired minus the value of fixed assets disposed within a certain period, where fixed assets refer to assets produced through productive activities with a term of use of over one year and a unit price above designated standards, excluding natural assets. Total fixed capital formation can be classified into total tangible assets formation and total intangible assets formation. Total tangible assets formation includes the value of the construction projects, installation projects completed and the equipment, apparatus and instruments purchased as well as the value of land improved, the value of draught animals, breeding stock, milk, wool and recreational animals and newly-increased economic forest in a certain period. Total intangible assets formation includes value acquired through the prospecting of minerals, computer software, and other operations minus the disposal of them.
        Increase in Inventory  refers to the market value of the change in inventory in resident units, i.e. the difference in value between the beginning and the end of the period minus benefits aquired through the posession of inventory that have appreciated during the period. The increase in inventory can be positive or negative. A positive value indicates the increase in stock while a negative value indicates the decrease in stock. The inventory includes the raw materials, fuels and reserve materials purchased by the production units as well as the inventory of finished products, semi-finished products and work in progress, etc.
        Net Outflow of Goods and Services  refers to the difference between the outflow of goods and services andthe inflow of goods and services. The outflow includes the value of various goods and services sold or gratuitously transferred by resident units to nonresident units. The inflow includes the value of various goods and services purchased or gratuitously acquired by resident units from non-resident units. As the provision of services and the use of them happen simultaneously, the inflow and outflow of services do not involve border crossing. The acquisition of services by the resident units from nonresident units is usually treated as inflow while the provision of services by the resident units for nonresident units is usually treated as outflow.
        Three Industries  are the classification of industrial structure according to the historical sequence of development  of  social production.  Primary industry refers to direct extraction of natural resources; secondary industry involves processing of primary products; and tertiary industry provides services of various kinds for production and consumption. Such classification is a common practice in the world, though grouping varies to some extent from country to country. In China the three industries are defined as follows:
        Primary industry  refers to farming, forestry, animal husbandry and fishery.
        Secondary industry  refers to mining, manufacturing, production and supply of electric power, water and gas, and construction.