The Changing Economic Environment in People's Republic of China

This paper looks at the recent trends in income, output and employment, money and banking, fiscal reform, and foreign capital and investment. The changing economic environment can be seen from two recent events: the 1993 Austerity Plan and the 1995 Bank Law. Two issues are basic to the new economic environment. One is the "quantity" versus "quality" debate, especially in investment and granting of bank loans. The other is the "bank-state-owned enterprises-employment" relationship. If economic policies and strategies can address these two issues properly, many of the existing economic problems can be eliminated in the foreseeable future