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Qualitative Escalation of Superpower Arms Race Ten Major Changes in China's Economic Research Sporuqht

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Qualitative Escalation of Superpower Arms Race Ten Major Changes in China's Economic Research Sporuqht Vol. 28, No. 4< December 9, 1985 JING A CHINESE WEEKLY OF REVIEW NEWS AND VIEWS Qualitative Escalation of Superpower Arms Race Ten Major Changes in China's Economic Research SPOrUQHt Xiamen Today A wharf at Xiamen's Dongdu Harbour. After tfie comple• tion of 23 deep-water berths, V - the annual handling capacity BP' of Xiamen Harbour will increase from 4 million tons to 1 5 million tons. Xiamen International Airport. The Xiamen Special Economic Zone has es• tablished trade relations with more than 80 countries and regions. Xiamen has stepped up coustruction of its commu• nications and energy facil• ities, and improved its administration to keep abreast of its changing needs. Workers at the Xiamen Synthetic Fibre Weaving Mill operating with jockquard looms imported from the Federal Republic of Germany. BEIJING REVIEW HIGHLIGHTS OF THE WEEK Vol. 28, No. 49 December 9, 1985 Superpower Arms Race Enters a New Stage Both the United States and the Soviet Union are researching CONTENTS and developing space weapons. This represents a qualitative escalation in their arms race, bringing about changes in their NOTES FROM THE EDITORS 4 military strategies. The implications of the new trend have No Relaxation in Groin Production not yet been fully revealed, but it can be said for certain that LETTERS 5 it will profoundly alter the world strategic situation (p. 15). EVENTS & TRENDS 6-10 Study of Economics Undergoes Vast Changes Price Reform: 6 Months Later Sino-Maiaysion Relations Develop Spurred by the cascading current economic reforms, China's Students Spurred to Renew Spirit American Writers Dearly Re• study of economics is witnessing changes in 10 major aspects, membered from critical to constructive economics, from the categorical rejection of contemporary Western economics to its analysis INTERNATIONAL 11-14 and use, and from theoretical to applied economics (p. 17). North-South: Co-operation Bene• fits Both Sides Central America: Contadora Per• Price Reform: Good Beginning in 1985 sists in Peace Pursuit Chinese grocery markets were gripped by price hikes soon Afghanistan: Major Shakeup in after the government decontrolled the prices of non-staple food Kormal's Party items earlier this year. But with pay rises and subsidies, city Australia: Sandwiched Between dwellers find it easier to cushion the higher cost of living Partners (p. 6). United States: Trade Policies Re• main Sensitive Seelfing Steady Grain Production A Qualitative Escalation in the Superpower Arms Race 15 Despite an estimated reduction in China's grain output for Ten Major Changes in China's Study 1985, the nation's total agricultural output value is expected of Economics 17 to remain steady, with peasants' average incomes showing mod• China's Fish Farming Jumps Up• est increases due to the cultivation of more cash crops and stream 21 the overall development of the rural economy. The current Tianjin Has Something for Everyone 24 tendency to neglect grain production, however, must be check• FROM THE CHINESE PRESS 26-27 ed, and measures must be taken to ensure the steady develop• BUSINESS & TRADE 28-29 ment of China's grain production (p. 4). CULTURE & SCIENCE 30-31 China's Fish Farming Jumps Upstream BOOKS 32-33 China has been able to supply two more kilogrammes of SPORTS 34 fish to each person this year. This improvement can be at• COVER: Fishermen hauling in a con• siderable catch ot the XInanjiang Re• tributed to the adjustment of fishing policies, the reform of servoir in Zhejiang Province. China's economic structure, and the scientific methods of fish Photo by Shoe Shuchang farming (p. 21). Published every AAonday by Distributed by China International Book SubtCTipHen prices (1 year): Troding Corporrtlon BtlJING REVIEW (GUOJI SHUDIAN), Australia A.$ 22.00 USA VSSZm 24 Boiwanihoono Rood, Beijing P.O. Box 399. Beijing, China New Zealand... NZ.$30.00 UK £12.00 Jhe People's Republic of Chino Canada Can. $2t00 NOTES FROM THE EDITORS No Relaxation in Grain Production ing poorer than those from indus• capita amount of grain in by WANG DACHENG trial production and cash crop cul• China has reached 400 kg. The (Economic Editor) tivation. problem of feeding the country's 1 It is estimated that China's total In recent years, a responsibility billion people has been basically grain output this year will be some• system has been adopted in the solved, which is by any standard what les's than its all-time high of countryside in which remuneration an amazing achievement. 407.3 million tons reached last The enormous increase in grain year, making the 1985 harvest the production has paved the way for country's second largest. Because a more diversified, balanced and of the planting of more cash crops vigorous rural economy. It has and the growth of rural industry, Although the problem of also contributed to the country's the nation's total agricultural out• feeding 1 billion people overall economic development as put value has remained steady, al• well as political stability and unity. lowing the peasants' ayerage in• has been basically solved, come to increase to some degree. Efforts in improving grain pro• The sizable harvests in the last China's level of grain duction, however, still should not few years have enabled both the consumption is still very be slackened. The Chinese peo• state and the peasants to store re• ple's consumption level is still very serves. As the reduced output this low compared with that of low compared with that of the de• year will not affect the balance be• the developed countries. veloped countries. With the de• tween supply and demand, grain velopment of the foodstuff industry prices have remained stable. The increase of population and animal husbandry, as well as The drop in grain output can be at the rate of 10 million with changes in people's diet, the attributed to three main factors. every year and the demand for grain is expected to in• First, the acreage sown to grain has crease. Furthermore, some areas been reduced. According to in• expansion of food stuff in China are developing more formation collected from 11 prov• industry and animal rapidly than others. The current inces, the reduced area accounts per-capita amount of grain consum• for more than half of the reduction husbandry call for ed in 16 provinces and autonomous in output. When China had a num• continued efforts in grain regions is lower than the national ber of bumper harvests several average. Peasants in a few areas years running and when its grain production. are still leading a difficult life. reserves had been significantly in• Moreover, China's population is creased, it was necessary for China expected to increase by about 10 to reduce grain growing areas to million every year for the next few make room for more cash crops. has been tied to output, agricultur• years, putting an added burden on The reduction this year, however, al taxes have been reduced or ex• grain reserves and production. did seem to be too large. empted, and the state monopoly on It is unrealistic for a large coun• Second, serious natural disast• grain purchase has been replaced try like China to rely on imports ers also adversely affected by purchases according to contracts to solve the country's food prob• production levels. The grain and the market. These policies, lems. In addition, China has a output in the three northeast China designed to support and boost pro• limited amount of cultivated land provinces alone was reduced by 10 duction, have stimulated the peas• and there is not much cultivatable million tons as a result of serious ants' interest in grain growing. In land that can be turned to good ac• summer flooding. And third, the 1984, China's total grain output count. For all these reasons, the peasants' enthusiasm for grain pro• went up more than 100 million steady development of grain pro• duction was dampened by an un• tons over that of 1978, an average duction is a basic state policy. favourable price system that made annual increase of 5 percent. At economic returns from grain grow• present, the average annual per- It is estimated that the country's 4 Beijing Review, No. 49 LETTERS Enhancing Sino-US their personal interests to this Relations goal" (Beijing Review, August 19, 1985). I enjoyed reading the article But it is sad to say that the pres• "Sino-US Relations: Opportunities ent trend now existing in our and Potential Crisis" (Beijing country is contrary to what it Review, No. 41, October 14, 1985). should be. Instead of making sac• As an economist and president of rifices for the benefit of the com• ADA Digital Systems, Inc., I can total grain output will reach 450 mon people and our country, many only envision opportunities ahead, million tons by 1990 and 500 mil• young graduates and well-trained because any crisis would be too lion tons by the year 2000. professionals are seeking greener costly for the United States. pastures in other lands in hopes of Currently, some cadres and peas• fulfilling their selfish interests and ants emphasize the importance of The future economic relation• of becoming rich, no matter what rural industries at the expense of ship can be healthy and mutually might happen to the socio-eco• grain production. This tendency, rewarding. To enhance the rela• nomic and political situations in however, has not gone unnoticed tionship and improve the abil• their country, and despite the fact by the government. Chinese ity of both nations to meet shared that such a "brain drain" is sure leaders have repeatedly stressed global concerns, I have to stress to have a detrimental effect on that the problem of feeding and the positive scenario for the best their country.
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