GY. 20%
CONFIDENTIAL #B
3
aggregate demand tending to exceed its productive
capacity.
4.
The amount of electricity generated
This growth rate, and
were lower than the
increased by 8.5% in 1986. those of other energy items (3)
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growth rate of industrial output. Thus, energy supply continued to be a serious bottleneck. It is estimated that electricity demand, for example, currently exceeds supply by about 30% and hence rationing is needed.
5.
To cope with the energy shortage, it is planned to increase overall electricity generating capacity from 86 000 megawatts to 120 000 megawatts during the period of the Seventh Five-Year Plan (1986
90) (4), which would imply a planned average
growth rate of about 7% per annum. This growth rate is the same as the targetted annual growth rates of both industrial output and national income during the same period.
6.
In 1986, China entered into deals with a number of countries, including some Eastern European countries, to purchase foreign equipment with a total
(3)
(4)
Production of crude oil increased by 5% in 1986 and that of coal was little changed from its 1985 level.
To raise funds for the development of power supply, China plans to issue domestic bonds totalling Rmb 3 billion in 1987. This is the first domestic bond issue for such a purpose.
CONFIDENTIAL # 2
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