ABSTRACT
The economic policies adopted by China should be formulated sensibly in full recognition of the severity of the situation now confronting the world economy. Therefore, while exploring the international markets, the expansion of domestic demand should become the special feature of China’s own economic development strategy in 1999. China’s market has gone through the transformation from a seller’s market to a buyer’s market, and some products are in oversupply. The Asian financial crisis has most heavily influenced the areas of trade, the investment environment, and the expected risks. Trade is affected by the decline in both prices and income in countries suffering from the financial crisis. In 1999, the exchange rate policy of China should be to maintain the basic stability of the RMB, and gradually push forward the process of currency marketization.
