Analysis of the Economic Trends in China, 2003–04

The gross domestic product of China increased from 360 billion yuan in 1978 to 1000 billion yuan in 1985 through seven years of endeavors at the beginning of the reform which was introduced in the 1980s. The gross domestic product will quadruple by then, compared with 2000, with a target of annual economic growth rate remaining at 7.2 percent. The economic growth rate in China reached 9.1 percent in 2003, beginning a new upward trend. The socialist market economic system in China has preliminarily been established. The new round in the economic cycle is the first one under the socialist market economic system. Under the market economic system, enterprises are the main bodies in the market, bearing the sole responsibility for their profits or losses. The history of the Chinese and foreign economic cycles reveals that the core of the violent ups-and-downs is the intensity of fluctuations in fixed-assets investment.