TNAG-1623-FCO40-2237-Relations-between-Hong-Kong-and-China-1987 — Page 131

CONFIDENTIAL ##

1

CRC INF 10/87

(CEC 5/87)

Price reforms in China and their implications for the Chinese economy

Introduction

Contents

China's price system prior to the reforms and the causes of price irrationality

Background leading to the price reforms

Price reforms up to 1984

Price reforms in 1984 and thereafter

Difficulties encountered in the process

of price reforms and their recent slowdown

Implications of China's price reforms

for its economy

Paragraph

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2 - 9

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16

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(i)

Economic growth

23

24

(ii)

China's inflation problem

25

32

(iii)

Income redistribution caused by inflation

33

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- 39

Prospects for the further implementation

of price reforms in China

Summary and conclusion

Tables

G.F. 326

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