ABSTRACT
Industrial capital—or industrial funds, as they are usually called in China—consists of the net value of fixed assets and the amount of working capital. The amount of working capital of state, cooperative, and joint industrial enterprises is estimated from its sources. In theory, the scope of commercial capital should parallel that of industrial capital. In other words, commercial capital can also be measured on the basis of the net value of fixed assets and working capital, although the latter usually accounts for a much larger proportion of total capital in trade than in industry. Chinese statistics also distinguish between accumulation of fixed assets and liquid assets; the latter refer to working capital and material reserves. The estimates of accumulation exclude labor investments in agriculture, while the national income figures include estimates of the value of the annual returns derived from these excluded investments.
