China, Hong Kong, Mongolia, And Taiwan - China

Under the seventh 5-year plan (1986-90), the Chinese Government continued to implement reform and to open the country further to the outside world in order to accelerate the growth of its national economy. As a result of expanded foreign economic exchanges and domestic achievements in education, science and technology, and cultural and public health undertakings, the national economy was strengthened. In 1988, there was impressive growth in the Chinese economy. The gross national product (GNP) grew by 11.2070 reaching $373.4 billion; 2 the national income grew by 11.4070 to $310.9 billion. The major problem in the Chinese economy was the imbalance between high demand and insufficient supply. Chronic shortages resulted in price increases and high inflation, which averaged 19% for China as a whole and about 30% in urban areas. Macroeconomic stability took precedence over market-oriented reform initiative. Because of rapidly growing inflation, the Government re-imposed price controls and rationing in major cities in the fall of 1988. China continued to be a major world producer of minerals, metals, and fuels. Output of the principal commodities continued to rise. The largest in-crease in production was salt which rose 24% in output in 1988; followed by sulfuric acid, 14%; cement, 12%; soda ash, 9%; caustic soda, 7%; and steel, 6%. For fossil fuels, the increase in output of natural gas was 14% in 1988; followed by coal, 3%; and crude oil, 2%. The output of electricity by thermal-fired powerplants rose by 9% while that for hydroelectric power-plants rose 7%. Although China's overall energy output has increased annually since 1980, the growth in demand continued to outstrip the supply.