On Some Problems Relating to Economic Development in China
-- By the State Council Development Center Topics Study Group
Problems facing China in economic development at present are following:
1) The Chinese economy is ushering in an important period of structural transformation;
2) Deepening of reform and economic restructuring are needed for an expansion of domestic demand;
3) There is room for new financial and monetary policies to be adopted;
4) Attention must be given to a nonagricultural development and urbanization of the rural population
5) New economic growth points need to be developed when restructuring is upgraded;
6) Government administrative power and market force must be well used for an accelerated restructuring of industrial production; and
7) Financial reform for new administrative creations, new system and mechanism must be carried out when greater efforts are made to ward off all financial risks.
To conclude, as have been raised by the State Council Development Topics Study Group, stupendous work has to be done to cope with those problems listed and all possible challenges that may be met when a socialist market oriented economy is developed in China.
Reminbi Will Not Be Devaluated
Though following the eruption of financial crisis in Southeastern Asian countries there were the turbulence of Japanese yen and financial upheavals of Russia Reminbi had all along by its real market value stood firm last year. Since beginning of the year 1999, the world economy has come to face another troubled situation in which the Brazilian Real has been turned into a seriously devaluated currency. In this situation, will Renminbi still continue to be used as it has been unscathed? The answer is absolutely on the positive:
Instead of devaluating her Renminbi China enjoys complete political stability and a continuous growth of economy. With an actual amount of US$45.58 billion being used the country had achieved a favorable balance of US$43.6 billion in foreign trade last year. Helped by a reserve of US$145 billion it has been placed in a good stead in world financial markets with a sufficiency of foreign exchange supply. When domestic demand is expanded and helped by institutional reforms carried out in the country's import and export trade it sees to it that exports of the country be vigorously developed and an increased amount of foreign capital comes to be used. What is more, when drawing on experiences from the Southeastern Asian countries it takes care that all foreign capital found into the Chinese financial market be well used and managed and no financial market disturbances are allowed.
Economicnews 1999-02-08 Page2
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