GF 323
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(10)
But
more
strong upsurge in
investment demand,
importantly,
it
was fuelled by the
China's domestic
demand, particularly
which in turn was being accommodated by
the loose monetary and credit conditions prevailing up to the middle of the year(11).
9.
(c) External sector
According to its own customs statistics, China's
visible trade amounted to US$77.9 billion in the first half
of 1993, representing an increase of 13.3% in US dollar
terms over a year earlier.
Exports were up by 4.4% to
US$37.2 billion. Imports were up much more, by 23.2% to
as the buoyant demand within China's
lift imports as well as divert
US$40.7 billion,
economy
continued
to
(10)
According
to
two-thirds of
an estimate from Chinese sources, about the price increases in China in 1992 were due to price decontrol measures implemented during that year.
This proportion might well be smaller in the first half of 1993 than in 1992, given that the more recent upsurge in inflation was due primarily to buoyant domestic demand, as the main demand indicators clearly showed.
to
The Chinese government's intention, as reported in the press, is
complete the process of price restructuring within the next five
years. As a further step in this direction, price controls in Beijing on grain, edible oil, soy sauce, vinegar and fresh milk were lifted in May. Other major cities This put an end to the use of food ration coupons which had been maintained since the 1950s.
followed suit.
However, faced with the sharp rise in retail prices during the second quarter, in early July the Chinese government decided to suspend the programme for further price liberalisation tentatively for six
months.
(11)
Earlier in the year, the Chinese government estimated that total bank loans in 1993 would increase by more than 20% over 1992. The corresponding increase in It was reported that credit expansion was already beyond the annual target for 1993 by May or June.
1992
was
19.6%.
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