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65.3% of the total, and grew even more rapidly by 70.7%.

93%/% of such investment was in capital construction,

technical renovation and housing development projects. Their respective values, at Rmb 124 billion, Rmb 52 billion

and Rmb 27 billion, increased by 67.9%, 68.1% and 143.5%.

The "16-point plan" announced by the Chinese government on

3 July can be expected to significantly dampen investment

expenditure on projects related

to

real estate and

development zones, or more generally on projects without the requisite approval, but not on projects pertaining to of infrastructure, transport and

the bottleneck sectors

energy supply.

6.

rise.

Lately

The

consumer

spending was also strongly on the

value of retail sales amounted to

first half of 1993 and grew by

Rmb 639.6 billion in the

about

10.5%.

21.6% over a year earlier. In real terms, the increase was

This compared with the corresponding

increases of 15.7% and 9.8% in 1992. One major underlying

factor was the substantial rise, by 21.3%, in workers' payroll(7)

As the increase in real terms in light

industrial output, at 22.2%, continued to be faster than

that in retail sales, at 10.5%,

there was nevertheless

still no shortage in the overall supply of consumer goods

against demand.

The situation in respect of different

commodity items varied, however. On consumer durables, for output of colour television sets fell markedly by first half of 1993, while output of cars and

substantially by 44.2% and 22.3%

instance,

3.6% in

cameras

the

rose

(7)

in

by to

Comparing the first half of 1993 with the same period 1992, wages in state-owned enterprises (SOEs) rose 21.7%, bonuses by 38%, and allowances and subsidies

workers by 28%.

The increase in wages in non-state-owned enterprises was marginally slower. Lately, it was reported that the Chinese government would seek to limit wage and bonus increases in SOES, as an additional measure to cool down the economy and to curb inflation. Only profit-making SOEs would be allowed to award increases. Loss-making SOES which failed to make sufficient efforts to pay off their debts would start to lose their subsidies.

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