An Analysis of the Economic Environment and Economic Policy in China in Recent Years

Since early 1998, in order to resolve the problems of the looming financial crisis and to expand [domestic] demand, the government [of China] undertook many projects and has achieved considerable success. Nevertheless, our national economy is always a tremendous and extremely complicated system. For a huge developing country such as ours, situated as it is in the preliminary stage of the transformation from a planned economy to a socialist market economy, and faced with an environment in which science and technology are developing rapidly throughout the world, and in which there is an extraordinarily intense competition among all kinds of economic forces, it is in no way surprising or unexpected that we would frequently encounter all sorts of difficulties and problems in our economic growth and development. We ought to be confident that under normal and general conditions, for every difficulty that we encounter in economic development, there are bound to be many—and at least two—methods of resolution. We ...