Finally, the sample regional indexes were weighted to form a sample index for total industrial production. This sample index was then forced to equal the upper and lower ends of the range in the final index for total industrial production in order to introduce a range into the regional indexes. Unlike the weighted average of the sample indexes for the functional sectors, the index of total industrial production derived from the sample regional indexes was slightly above the upper end of the range in the final index. The inability to include the production of machine tools and timber, both of which grew relatively slowly, has probably introduced an upward bias into the indexes, but this bias has been corrected by the forcing process described above.

TABLE B-1.-ESTIMATED PRODUCTION OF SELECTED INDUSTRIAL COMMODITIES, 1949-70

TABLE B-2.-ESTIMATED PRODUCTION OF SELECTED INDUSTRIAL COMMODITIES, BY REGION, 1952, 1957, 1965,

1 Production is measured in standard units of fixed nutrient content. For nitrogen fertilizer, the standard is 20 percent nitrogen; for phosphorus fertilizer, 18.7 percent phosphoric acid; and for potassium fertilizer, 40 percent potassium oxide.

2 Large-scale plants only.

TABLE B-3.-GROSS VALUE OF INDUSTRIAL AND HANDICRAFT OUTPUT, BY PRODUCER AND CONSUMER

1 State Statistical Bureau, Ten Great Years, Peking, 1960, pp. 16 and 87.

2 Total industrial production less handicrafts.

3 State Statistical Bureau, "Kuo-min ching-chi t'ung-chi t'i-yao" ("Statistical Abstract of the National Economy"), ap; pended to the pamphlet Kuan-yu 1956 nien-tu kuo-min ching-chi chi-hua chih-hsing chieh-kuo ti kung-pao (Communiqué on Results of Implementation of the 1956 Economic Plan), released Aug. 1, 1957, Peking, no publication date, pp. 28-29

except as noted.

Producer and consumer goods are derived as 52.8 percent and 47.2 percent of industrial production, respectively. See State Statistical Bureau, "Communiqué on Fulfillment and Overfulfillment of China's First Five-Year Plan" NCNA-English, April 13, 1959; in American Consulate General, Hong Kong, Current Background, No. 556, April 15, 1959, p. 4.

5 Handicraft production of producer and consumer goods are total production less production by industry alone, respectively.

TABLE B-4.-GROSS VALUE OF INDUSTRIAL OUTPUT, BY SECTOR AND BRANCH 1956

1 Robert Michael Field, "The Growth of Industrial Production and Productivity in Communist China: 1952-57" (doctora thesis, Harvard University), 1966, p. 156. Unless noted below, the production of an individual branch is not divided between producer and consumer goods, but allocated to the category which predominates.

? The sectoral total is the sum of the gross value produced by the branches within the sector.

3 The difference between the value of all producer goods and that produced by the specifically listed branches. Producer goods and consumer goods are derived as 93 percent and 7 percent of machinery production, respectively. See Chao I-wen, "Hsin chung-kuo ti kung-yeh" (The industry of New China), Peking, 1957, p. 43.

State Statistical Bureau, "Wo-kuo kang-t'ieh tien-li mei-t'an chi-hsieh fang-chih tsao-chih kung-yeh ti chin-hsi" (Chinese Iron and Steel, Electric Power, Coal, Machinery, Textile and Paper Industries-Past and Present), Peking, 1958, p. 164-165.

The difference between the value of all consumer goods and that produced by the specifically listed branches.

TABLE B-5.-GROSS VALUE OF INDUSTRIAL AND HANDICRAFT OUTPUT, BY REGION, 1952 AND 1956-57

1 State Statistical Bureau, "Kuo-min ching-chi t'ung-chi t'i-yao" ("Statistical Abstract of the National Economy"), appended to the pamphlet Kuan-yu 1956 nien-tu kuo-min ching-chi chi-hua chih-hsing chieh-kuo ti kung-pao (Communique on Results of Implementation of the 1956 Economic Plan), released Aug. 1, 1957, Peking, no publication date, p. 23. ?State Statistical Bureau, Ten Great Years, Peking, 1960, pp. 16 and 87.

3 Derived as the sum of industry and handicrafts.

The coastal and inland areas are derived from the percentage distribution given in Yang Ch'ing-wen, "Two Problems of Industrial Location," Chi-hua ching-chi, No. 8, 1957, p. 13.

The coastal and inland areas are derived from the percentage distribution given in Ho Cho, "An Elementary Understanding of Chairman Mao's Theory on the Arrangement of Production," Kuang-ming jih-pao, July 18, 1960; translated in Joint Publications Research Service, No. 5481, Oct. 4, 1960, p. 11.

The coastal and inland areas are derived from the percentage distribution given in Fu Shih-hsia, "The Role of Handicraft Industry in China's National Economy," Ta-kung pao, July 19, 1959. The figures probably refer to 1954, but it was assumed that the distribution did not change during the first 5-year plan period.

THE ELECTRONICS INDUSTRY OF CHINA

By PHILIP D. REICHERS

I. SUMMARY AND CONCLUSIONS

Since the founding of the People's Republic of China in 1949, the Communist government has transformed a few small electronics plants into a mature and powerful industry, consisting of hundreds of plants which produce a broad spectrum of electronics products. Among Communist countries, China now ranks second only to the U.S.S.R. in the volume of electronics production. The industry has enjoyed a priority claim on China's resources because of the importance of its products to both military preparedness and industrial modernization. One-half to three-quarters of total production is procured by the military, with most of the remainder destined for industry. A small volume of radios and other consumer equipment reaches the general population. Despite the rapid gains of the industry China has had to import strategically important advanced electronic products from non-Communist countries in order to keep military and industrial programs moving.

Value of Output and Major Products

During 1971 the value of output of China's electronics industry totaled at least $1 billion, roughly 1 percent of China's GNP. The industry, which is controlled by the Fourth Ministry of Machine Building, produces:

Almost all types of standard components plus special-purpose vacuum tubes, transistors and integrated circuits, and printed circuit boards;

Standard laboratory test instruments and computers, many completely transistorized;

Specialized military transmitters and receivers;

Microwave equipment, shortwave radio transmitters, automatic telephone switching apparatus, and black and white television transmitters;

Radios, phonographs, and black and white television receivers; and

An impressive assortment of radar, sonar, avionics, and missile and nuclear instrumentation for the military.

Facilities and Labor Force

At present the backbone of the electronics industry consists of about 200 major plants emploving approximately 400,000 persons. In addition, there are 500 smaller plants and workshops employing less than 500 workers each-most employ less than 50 or a total of 50,000