ABSTRACT
This chapter analyzes key economic bottlenecks and imbalances that represent potential constraints on China's future development, with particular attention to challenges in the areas of agriculture, state-owned industry, infrastructure, macroeconomic management, and foreign exchange. It focuses on the extent and nature of China's increasing interaction with the global economy, which will greatly influence both the economic opportunities and difficulties China will face as it approaches the 21st century. While sustained agricultural growth is required to meet China's increasing need for food and industrial inputs, industry itself is also a key component of China's future economic progress. Transportation, telecommunications, and energy all represent serious bottlenecks in China's economy. China possesses a diversified telecommunications system that links all major cities by telephone, telegraph, radio, and television. As with other areas of infrastructure, China's Ninth Five-Year Plan addresses the energy problem. China has been successful in earning foreign exchange through trade and investment, and to a lesser extent, loans.
