China grew by $10.2 billion to almost $50 billion, a fifty percent increase since 1995. The Chinese government will attempt to both increase exports and domestic consumption to mitigate the slowdown in the near term. Large infrastructure spending programs are planned to absorb some of the laid off workers, which will result from reform efforts and the slowdown.The main goal for China's modern foreign policies is the development of the Chinese infrastructure. The significance of improved communication and transportation cannot be over-stressed. Economically, enhanced means of communication and transportation allows more expedient supply and demand scheduling. Two of the latest Chinese reform measures to aid in the development of the country are the Provisional Regulations on Direction Guide to Foreign Investment and the Catalogue Guiding Foreign investment in China. Both these policies place specific industries including telecommunications, machinery, and electronics on top priority. Funding for these projects come from foreign investments and appropriations from the Chinese government in the form of grant financing, and legislative or administrative support. Investment is guided to certain sectors and state-owned enterprises in many areas are protected from competition by law, regulation, and/or custom. China's leaders seek to reserve for state-owned firms leading roles in almost every key industry, from steel, to telecommunications, to consumer goods. Actual U.S. investment in China has grown every year since 1992, to reach a total of $14.1 billion, which makes the U.S. the largest "overseas" investor in China (although Hong Kong and Taiwan businesspeople are still by far the leading "foreign" investors in China).Another example of the Chinese emphasis on industrial based growth is the far-reaching goal of having just fewer than 100 million telecommunication lines by the year 2000. China's Central Ministry of Posts and Communication s...
