Projected Trends in Chinese Consumption Women As Half the Sky (Photo by Bapbtepmchana, USSR) Represents the Labour Strength of Women Who Make up Half the Workforce
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A CHINESE WEEKLY OF NEWS AND VIEWS Vol. 31, No. 40 October 3-9, 1988 Projected Trends in Chinese Consumption Women as Half the Sky (photo by Bapbtepmchana, USSR) represents the labour strength of women who make up half the workforce. The photo is selected from the International Photo Exhibition, China Through Foreigners'Eyes. by Zhang Yanbo BeijingR^vir HIGHLIGHTS OF THE WEEK VOL. 31. NO. 40 OCT. .Vy, Future Development of Chinese Consumption CONTENTS • Despite being labelled an underdeveloped country, China's consumption of basic commodities in 1986 was already way NOTES FROM THE EDITORS 4 ahead of 1990 estimated averages for all developing countries. I'actory I.)ircLtors" Worries Based on the level of its current productive forces, China should EVENTS/TRENDS 5-9 now diversify its patterns of consumption (p. 20). Zhao: China's Future r<eforms To Focito on Three Pioblcm.s Technology C'oine-, Before Loans Factory Directors' Worries Governmcnl Sees a Brain Drain Taiwan 'Legisiaior' Visits for • At a recent forum organized by the China Enterprise Unity Association to discuss improvements in the economic Train Dri\ers Sentenced environment, factory directors and managers called for the Begging Becomes Popular elimination of "the three pests" — officials reselling goods in Profcsion short supply at high prices for exorbitant profits, indiscriminate China Trains High-level and arbitrary charges, and interference in enterprises' decision- ~ Judges making powers.' The State Council has ordered the banning of Weekly Chronicle (September "official racketeering" and public opinion demands 19-25) punishment (p. 4). WTERHAflONAL 10-13 United Naiions: 4.^rd Session Cilina Promotes Its Traditional Arts Laces Challenges US-L;SSR: IDelente Reflects • Ninety-six Chinese artists and craftsmen have been given the Hconomic Pressures honourary title of "Master of Chinese Art" as part of a Laos: Foreign Trade Ties government campaign to foster traditional arts and crafts (p. H.xpand 14). A look at the work and contrasting styles of four Chinese PLO: .Arafat Drums Up World-wide embroiderers (p. 18). Support Arts and Crafts: Protection, Expansion, Innovation 14 Taiwan "Legislator" Visits the Mainland Modern Chinese Embroidery 18 Projected Clianges In Chinese • Visiting Taiwan "legislator" Hu Chiu-yuan said both sides Consumption 20 of the Taiwan Strait have achieved much success in the past 40 Non-Governmental Bank in years, and if they can successfully reunify, China will surely Chengdu Successful 22 prosper and become strong. Hu was expelled from the KMT for Facts & Figures (A Decade of his mainland visit (p. 6). Reform II): The Industrial Economy 23 43rd UN Session Faces Challenges FROM THE CHINESE PRESS 28-29 BUSINESS/TRADE 30-31 • With the settlement of some difficult problems such as, the CULTURE/SCIENCE 32-34 Iran-Iraq war and the conflict in Afghanistan, the United COVER: .\rt master Zhang Tonglu Nation's role in the world scene has become increasingly (centre). depui\r of the Beijing important. Under such circumstances, the current session of Huayi Cloisonne Factory, leaching UN General Assembly will meet opportunities and face young workers. challenges (p. 10). Xu XIangjun and Xue Chao Subscription rates {1 year); USA _ US$24.00 Published every Monday by General Editorial Office Tel: 8314318 Australia A.$24.00 Canada CBn.$23.00 BEIJING REVIEW English Oept Tel: 831.5599 E«, 546 New Zealand ltlZ.$33.00 24 Baiwanzhuang Road, Distributed by China International Book UK £13.00 Beijing 100037 Trading Corporation (GUOJI SHUDIAN) The People's Republic of China P.O. Box 399, Beijing, China •i NOTES FROM THE EDITORS Factory Directors' Worries by Jin Qi t a recent forum organized by street with everybody yelling kill strative organizations. It has been Athe China Enterprise Manage• them! Kill them!" disclosed that a director of the ment Association to discuss But why has it proved so Balizhuang neighbourhood com• improvements to the economic difficult to handle cases that have mittee in Beijing's Chaoyang environment, directors and man• been investigated and confirmed? District openly reprimanded fac• agers called for the elimination of A commentary published in tory directors: "As long as your "the three pests"—officials who Renmin Ribao (People's Daily) on factories are located on our street, resold goods in short supply at September 16 analysed a case that no matter how large they are, we high prices (the "official rack• occurred in Shangyu County, have our own way to rule over eteers"), indiscriminate and arbit• Zhejiang Province, pointing out them." rary charges, and administrative that it could not be effectively Clearly the stipulations of 1984 interference with enterprises' dealt with because higher officials that government administrations decision-making powers. The dir• pleaded on behalf of the should not interfere with enterpr• ectors said "official racketeering" speculators. The commentary ises' decision-making powers poses the greatest threat. For refuted the argument that specul• (which were written into the example, the price of aluminium ation can develop production as Enterprise Law last year) have not ingots and siUcon steel plates has the profits obtained do not line been fully implemented. As reform doubled since the beginning of this private pockets but go to work has granted enterprises more year, forcing enterprises depend• units. rights, some administrative ent on these materials to limit It added that the Shangyu case bureaus have attempted to retain production. At present, enterpr• was only a small one, and asked their power by forming "admini• ises get about 40 percent of their whether there would be greater strative companies" and then capital goods through commercial difficulties in handling larger establishing "operational com• channels, with 60 percent directly instances of speculation where panies." allocated according to the state high-ranking officials are given plan. unprincipled protection by their By and large, they have been According to the State Admini• superiors. successful, for as the signs in front stration for Industry and Com• In recent years, with the of their buildings change over and merce, between 1987 and June development of economic reform over again, their power to interfere 1988, investigations into 317 and production, enterprises have with enterprises' autonomy has confirmed cases of speculation increasingly accumulated funds. not weakened. The argument used revealed 95 where capital goods This has led to many requests for to defend these actions runs had been resold, of which 58 "financial aid" and "support" simply that a socialist enterprise involved departments handling from local administrations. These cannot be without its superior. the supply of materials and charges, however, are often barely There are also complaints that equipment. Abusing their powers, disguised extortion. For instance, state-owned companies abuse they purchased capital goods in one instrument factory emitted their privileged buying rights. A short supply at a fair price and white smoke, but the department director of a cotton yarn factory resold them at far higher rates for responsible for checking pollution has said that under the system enormous profits, seriously dis• asserted it was black. The factory where the state had monopoly on rupting the market order. had no choice but to give a the purchase and marketing of The State Council has ordered banquet to treat these officials. capital goods, individual firms just the banning of "official racketeer• Having been feasted, they changed passed all their goods onto the ing" and public opinion strongly their minds and declared the state-owned companies. Now, demands punishment of those smoke was "white." however, these companies only involved, calling for them to be Enterprises also face many take products enjoying a ready treated like "rats crossing the charges from grass-roots admini• market — they will do nothing 4 BEUlNG REVIEW, -OCTbiBER 3-9, 1988 m EVENTS/TRENDS Zhao: China's Future Reforms to Focus On Three Problems he conditions are now right for measures to separate the owner• TChina to introduce a stock ship of state-owned enterprises system, Zhao Ziyang, general from management powers. The secretary of the Communist Party contract responsibility system will of China, said on September 19 be practised in many enterprises, during a meeting with American and then, a system of stocks, in economist and Nobel Prize winner which the state will be the major Milton Friedman. shareholder, will be introduced. He pointed out that China's "This means major reforms in future reforms will focus on state-owned enterprises," Zhao about other products. resolving three problems— said. "And now the conditions Invigorating enterprises has reforming the pricing system, exist in which China can introduce always been the core and hope of controlling inflation and introduc• a stock system." China's economic reform. There• ing a stock system in enterprises. Zhao stressed that the direction fore, the problems uppermost in Pricing reform will go to the top China's economic reform will take the minds of factory directors and of the agenda, Zhao said. The will not change. The reforms will managers are major issues that reform will not simply involve be carried out unswervingly. must be tackled to consolidate the state readjustment and control of However, he added, some mea• reform programme at its present prices but also help establish a sures may need to he readjusted to crucial stage.