ABSTRACT
As the central government has gradually adopted a series of measures to expand domestic demand and stimulate economic growth, the effects of these measures are beginning to become apparent. Local governments have gradually changed from their previous fixation on “blind borrowing” for processing projects to their present focus on economic profitability and locating viable financial sources. Based on a survey completed by the related government departments charged with monitoring investment attitudes among some 5,000 industrial enterprises, the intervention of government in enterprise investment has fallen to a very low level. In 1998, in order to ensure economic growth, the government tried to jump-start it by stimulating investment demand. The focus of investment was in infrastructure projects like transportation, agricultural irrigation, telecommunications, reconstruction of urban and rural electricity grids, and urban infrastructure facilities.
