The general level of consumer prices in China in 2002 was down 0.8 percent from the previous year. Of this total, the consumer price level in urban areas dropped by 1 percent and in rural areas by 0.4 percent. The retail prices for commodities dropped by 1.3 percent, the producers' prices for manufactured goods dropped by 2.2 percent, and the purchasing prices for raw materials, fuels and power went down by 2.3 percent. The prices for investment in fixed assets were up 0.2 percent. Prices of service items in household consumption rose 1.8 percent.

By the end of 2002, the number of employed people in China totaled 737.4 million, or 7.15 million more than that at the end of 2001. Of this total, 247.8 million were in urban areas, an increase of 8.4 million over that at the end of 2001. At the end of 2002, the number of workers laid off from state-owned enterprises and not re-employed was 4.1 million, or 1.05 million less than the previous year. The urban unemployment rate through unemployment registration was 4 percent at the end of 2002, up 0.4 percentage points. According to statistics of the Ministry of Agriculture, by the end of 2002, the number of people employed in rural enterprises totaled 133 million. That means a quarter of China's rural labor had moved out of farming, transferring from agriculture to non-agricultural sectors.

In 2002, China's trade surplus was $30.4 billion. The actually utilized foreign direct investment during the year was $52.7 billion, up 12.5 percent over 2001. By the end of 2002, China's foreign exchange reserves had reached $286.4 billion, an increase of $74.2 billion over the pervious year. The exchange rate of the RMB was stable, standing at $1 to 8.2773 yuan at the end of the year.

The year 2002 saw market competition take initial shape after deepened reforms in monopoly-controlled sectors such as telecommunications, civil aviation, and power generation and supply. The reform and loss reduction of enterprises in the defense industry progressed smoothly. Reforms continued in the fields of government finance and taxation, banking, social security, and circulation systems for grain and cotton. Reform of the administrative procedures for examination and approval sped up. Experiments in the reform of the tax and fee collection system in rural areas were gradually expanded and notable progress was made. Positive advancement was scored in the development of the western region, with accelerated progress in the construction of infrastructure and conservation of ecological environment. Agricultural production quickened its pace toward regional concentration, quality improvement and industrialization. Adjustment of industrial structure was accelerated by expanding the share of industries with high or new technologies represented by information technology. Innovation took place in domestic trade, reflected by the rapid development of modern circulation and distribution systems.

Main problems that remained in economic performance included: the constraints of insufficient effective demand and irrational supply structure on economic growth, still high pressure for employment, problems in increasing farmers' incomes, difficulties in the lives of some urban and rural households, persistent market disorder, and occasional occurrence of serious production accidents. Statistics showed that in 2002, there were altogether 1.07 million accidents of various types throughout the country, which caused 139,400 deaths. Of those, 128 accidents incurred more than 10 deaths at one time, totaling 2,341 deaths.