China Economic Development Forum

Author: Editorial Board of "Forum on China's Economic Development"
Publisher:
Publish Date: 2005-01-01
Features: What is the biggest problem in China's economy? Perhaps no one can clearly define or explain it. China's economy has developed and grown in a tortuous path, creating a world miracle at an astonishing speed. This is an undeniable fact. With the reform of the economic system, the difficulties in economic development remain uncertain. Here are a few examples to illustrate. First, what is the ideal growth rate for the economy—7%, 8%, or 9%? Look at the enthusiasm for rapid development across regions and the statistics reported in local newspapers. Second, take unemployment. The official figure is 4%-5%, but that is the "registered unemployment rate." The actual unemployment rate has never had accurate, economically meaningful statistical data. Third, interest rates and exchange rates. From an economic perspective, both interest rates and exchange rates are essentially market prices for capital. As prices, they should fluctuate with the market. But things are not that simple. Fourth, financial issues, which are particularly prominent in two aspects. One is the capital market, especially the securities market, which has not gone as expected.