ABSTRACT
Jiangsu province has taken the lead in all aspects of work and will certainly make good achievements in the next step of adjusting urban-rural relations, reforming the pattern of one country, two policies, and expanding domestic demand. Domestic demand accounted for only 38.5%, which shows that China’s domestic demand was small and its potential was huge. In 1996 and 1997, the government proposed to expand domestic demand and develop markets. In 1997, the statistics of the State Economic and Trade Commission showed that two-thirds of 610 major commodities were in oversupply and one-third were in balance between supply and demand. Planned economic systems as the household registration system, the cadre system, and the employment, social security, educational, financial, and credit systems, as well as the system of medical and health care, should all be reformed in accordance with the principles of the socialist market economy.
