ABSTRACT
The summer of 1998 saw a large harvest because, despite the catastrophic floods that affected the Yangtze River region and the Northeast, the weather in general was normal in most parts of the country. It is estimated that this year's grain harvest will reach or slightly exceed 1997 levels. In the first and second quarters of 1998, the growth rates of industrial value-added production were 8.2% and 7.7% respectively. At the National People’s Congress convened in March 1998, the government decided on the direction the macroeconomic adjustment program should take in order to stimulate domestic demand and increase investment in infrastructure with the long-term goal of stimulating economic growth. In order to strengthen the supervision of financial institutions and prevent a Chinese financial crisis, the government implemented a series of new measures, showing its determination to maintain the order of the country’s financial system.
