MAINLAND CHINA NEW ECONOMIC-PROSPECTS

Currently, mainland China intends to thoroughly implement Teng Hsiao-p'ing's reform and opening-up policies. These policies set forth moderate objectives for economic growth, stress the development of agriculture and large and medium-sized state-owned enterprises, furthering the economic reform and opening wider to the outside world while guarding against "Left" tendencies and eliminating obstacles to reform and opening-up. However, due to the deficiencies of the economic structure and the inherent shortcomings of the public ownership system, there are still many bottlenecks of economic development to be tackled-such as the signs of an overheated economy, the disproportionate economic structure, low economic performance, a worsening budget deficit, and increasingly serious inflation and unemployment rates. If Teng can continue to dominate mainland China's political and economic situation, more radical reform and opening-up measures may be introduced. Some capitalist methods and measures may even be adopted to enhance socialist construction after important leaders declare their stands and the ideological obstacles are eliminated. The mainland economy is expected to show renewed vitality, although Teng's emphasis on accelerating economic reforms and economic development will aggravate such problems as the overheating trend of the economy, the imbalanced economic structure, financial deficits, and inflation.