ABSTRACT
The Central Economic Working Conference, held in November 2003, employed the concept of economic cycle for the first time to analyze and estimate the economic trends in China and pointed out that "currently the economic development in China is in the ascending stage of the economic cycle". Controlling economic growth rate creates a dilemma. If the economic growth rate is as low as below 8", it will be difficult to resolve unemployment problem, and enterprises will have difficulties operating. Fiscal revenue will be reduced, leading to great difficulties in the development of various social undertakings. The historical experiences and lessons of violent economic ups-and-downs are actually being drawn from original planned economic system and the transitional process, and are learnt from the Western market economic system. Private enterprises have reacted strongly to macro regulation. Some people believe that macro regulation is directed at private enterprises, but in fact, it is aimed at whole economic operation issue, regardless of enterprise ownership.
