ABSTRACT
The forecast of economic trends for the five years from 1991 to 1995 was accurate. It is difficult in forecasting the economic trend in 1996 since it is a rather special year. First, 1996 is special in China's economic cycles. China has experienced a total of nine economic cycles to date since the massive socialist economic construction started in 1953, in which five cycles took place prior to the economic reform and four cycles afterwards. Second, the year 1996 is distinct in terms of macroeconomic regulation and control. There are two criteria for securing the economic "soft landing". First, China's economic growth should come down to the level at which social production potential can afford it. Second, the price should decline to the proper level at which customers could bear. Industrial structural adjustment is crucial for improving supply. The traditional production mode of Western firms is characterized by a massive quantity, single species, standardized and efficiency-centered production.
