China’s township enterprises have developed on the basis of the handicrafts industry and the processing of agricultural products and by-products. They have flourished since 1978, becoming the mainstays of the rural economy. In 1999, 2,500 billion yuan in industrial output value was produced by the township enterprises, and the value of exported commodities came to 720 billion yuan. Now there are more than 20 million township enterprises in China, having 125 million employees. Township enterprises are involved in industry, agriculture and transportation, along with the building, commerce, and catering trades. They produce a variety of goods, from products needed in agriculture to daily necessities, foodstuffs, sideline products and light industrial materials. Many of these products are exported.