ABSTRACT
National income in Communist China is defined in terms of production, distribution, and final expenditures. The national income is the gross social value output net of capital depreciation and other material outlays. Beginning in 1954, the State Statistical Bureau attempted to estimate the national income of China. The national income produced by the materially productive sectors is distributed through two stages, namely, primary distribution and redistribution of national income. The redistribution of national income is achieved through fiscal, credit, and price policies, as well as the business activities of the service industries. Theoretically, the various definitions from the viewpoints of production and distribution should lead to the same national income figure; and this figure, when adjusted for the balance in the international account, should equal the national expenditure. The net value outputs of the sectors constitute the entire source of the national income, and it is measured in terms of both current and constant prices.
