The speeches reflect the division of labour now made between two
Zhao's men.
functions appear to have been restricted following Beidaihe where he faced criticism for his handling of the economy. He has had to relinquish the executive reins on the economy to Li Peng and settle for
General. Secretary
So far more
he general role
to be weathering the storm appears
and maintaining an important position in the formulation of policy.
4
as
But
a
The evolution of Zhao and Li's roles moved in parallel with the development of economic policy since the Autumn. The economic rectification and stabilisation policy introduced in September, was a hurried response to inflation and over heating. It has now developed into a longer term and
This strategy.
has involved the addition of 'adjusting the economy'' to the process of stabilisation, the objective being that when the time comes to expand the
will be equipped to
in grow rational way.
5
more
one
constructive
[1
economy
it
a
The "People's Daily" New Year editorial was positive in tone. It said that people inside and outside the party had been unprepared for the problems experienced in 1988 but that
of the achievement s of the
past
was year
the realisation that a new deeper stage of reform could only be achieved by resolving some extremely complex questions.
in 1989 could be Progress
made by the combination of stabilisation and rectification with the restructuring and deepening of reform.
Student Demonstrations
6
The situation involving demonstrations by Chinese students against their African classmates in Nanking has now quietened down. However, the problem remains of tackling the long standing difficulties caused by the Chinese policy of providing education for students from the third world.
are
7
There have been several examples in the past of tension between African and Chinese students. But this is the first time that incidents have been on such a large scale and have spread to other cities. The demonstrations probably as much a symptom of Chinese students' frustration with the system as racially motivated, although it is not able that Africans have been singled out. For the present they live in cramped and primitive conditions receiving little money from the Government. For the future, the system is not flexible enough to offer them their choice of career the city in which to live. In a open door China their role as intellectuals holds no financial reward. Taxi drivers can earn at least five times what they will.
or even