ABSTRACT
The economic growth China achieved in 1998 was accomplished during a time in which the Southeast Asian financial crisis was spreading to all Asian countries and some Eastern European and North American countries as well. After several years of high economic growth, China has entered into a period of slow but stable economic growth, characterized by predominant production capacity excess in most sectors, many unemployed social resources, and a marked drop in consumer demand. In stimulating economic growth, policy normally consists of mostly short-term adjustments supplemented by an improved macroeconomic environment, along with some long-term policies. When economic growth enters a new period, ushering in a new development paradigm, government policy choices should be based on the interaction of short- and long-term plans. In particular, to increase the strength of industrial structure adjustments in sectors like the coal and textiles industries is a mandatory administrative priority.
