Related stories

Implementation Measures of the "Rules of the People's Republic of China on Customs Protection of Intellectual Property Rights" Decision on Amendments to the Law of Judges of the People's Republic of China Hot on the Trail of Chinese Cowboys Beijing Mayor’s Report Highlights “Scientific Concept of Development” Business Beijing, An “Irreplaceable” Source of Information

Key Phrases of 2004

Macroeconomic Regulation

In 2004, the Chinese Government adopted a range of macroeconomic regulatory policies. These policies were effective in ensuring a stable, fairly rapid development of the Chinese economy for the year. Despite that, problems remaining in China’s economic operations are serious and have prompted the leadership to continue exercising macroeconomic regulation in 2005.

Full-Market Economy Status

In 2004, China continued working hard to get itself recognized as a “full-market economy.” It has won recognition from 26 countries, but not from the United States and the European Union, the two largest economic blocks in the world.

Rise of the Central Region

The “rise of the Central region” was emphasized at the Central Economic Working Conference in early December 2004, indicating that the government realizes that there is a problem with the central region falling behind the western region in economic growth and the eastern region in development. Central authorities in 2005are expected to publish a set of special policies for promoting the development of the central region.

Negative interest rates

On February 26, 2004, the People’s Bank of China predicted that consumer prices would rise by about 3 percent in 2005, while the rate of interest on one-year fixed renminbi deposit would be a mere 1.98 percent. For a depositor who has deposited 10,000 yuan in a bank, the price hike, plus a 20 percent tax on interest, would result in a negative interest rate and a net loss of 150 yuan. This suggests that China has entered an era of negative interest rates.

County Economies

In China’s official terminology, a “county economy” refers to an economy operating within the jurisdiction of a county, which, centered in towns and townships of the country and based in its rural areas, comprises economic undertakings under ownerships of different types. County economies serve to bridge China’s macro and microeconomies, hence its importance to the national economy as a whole. In 2004 a great expansion of county economies was recognized. 

Migrant Labour Shortage

Guangdong, Fujian and Zhejiang, which are among the best developed provinces on the Chinese mainland, had an acute shortage of migrant labour throughout 2004. According to conservative estimates, in the Pearl River Delta alone there was a shortage of up to two million migrant labourers, in sharp contrast to those years when millions of rural people flocked to the area for work. Why is it that so many migrant workers have returned home? Why have rural people become increasingly reluctant to leave their native places for work in cities? Questions like these are alarming for the government and employers.

Capability of Governing the Country

On September 19, 2004, the Fourth Plenary Session of the 16^th Central Committee of the ruling Communist Party of China adopted a Decision on Improving the Party’s Capability of Governing the Country. The decision represents a courageous step taken by the Party to face challenges and tests in guiding China’s modernization drive.

Auto Prices Down

Auto prices plummeted shortly after the Spring Festival in 2004, which began on January 22, and continued dropping for the rest of the year. Despite that, auto sales went down 10 percent after May Day.

The Rich in a Negative Sense

The “rich in a negative sense” refers to those who, despite high incomes, are up to their necks in debt because they have spent too much on luxury items such as cars and homes. The “rich in a negative sense” or the “debt-ridden rich” are to increase in numbers, sociologists report.