ABSTRACT
The MPS recommended by the United Nations is one of two most influential national income accounting systems in the world. From the beginning of the regime in October, 1949 until August, 1992, the PRC had adopted the MPS. China had basically borrowed the system used by the former USSR and Eastern Europe. However, China had brought some changes to bear on the system according to the real situation, in particular regarding the principles of national income measurements and methods of accounting. MPS takes the view that only material production sectors can create value. Therefore, national income counted by MPS is equal to the net output value of material production sectors, which will be discussed in some details in the following.
