illion dollars worth of public works projects were allocated by the central government for Shanghai in 1993 (Tyler A1). These public works projects include new sewers, a new water system, new gas lines, a new bridge, and extensive roadwork. With all the new public works improvements Shanghai joined the ranks of the modern metropolis. However, this was not necessarily a beneficial development. Inflation was rampant: prices more than doubled in the industrial zones in only five years. Nevertheless, the fact that Shanghai possessed some of the most expensive office space in the world showed that demand was high and that the prospects for future growth were promising. (Tyler A8) Shanghai is by no means the only city to show growth. Additional foreign investments have continued to pour into other areas of China. For example, in 1994 the Boeing Company announced its intention to invest $100 million in a plant in Xian, China, to make tail sections for 737 jetliners ("Boeing" D4). In addition, the Du Pont Company predicted that its investments and business in China could increase as much as ten times by the end of the century ("Du Pont" D2). Du Pont's chairman attributed the company's negotiations in China to the fact that the country's financial changes, improved infrastructure and rising disposable income has encouraged the company to expand its business activities ("Du Pont" D2). The Chinese government had to make conscientious attempts to promote the strength of the country's economy while protecting its citizens. And so, in 1994, the Chinese government instituted tight-money policies, intended to control inflation and slow what was the world's fastest growing major economy (Shenon "China Halts" D1). However, after doing so, China's Securities Regulatory Commission was forced to stop the issuing of new issues on the Shanghai and Shenzhen Stock Exchanges because the value of the markets had decreased so greatly. This move was "meant to c...
