development. High inflation, caused by a demand for more exchange medium on the Chinese market is causing Chinese currency to depreciate relative to other national currencies. A lack of emphasis on the agricultural market is causing that sector of the Chinese economy to fall behind, and soon the supply of agricultural products will fall below the demand for these goods, resulting in a shortage.Another problem is the inefficiency of large, state-owned production facilities can be explained by excess bureaucratic red tape and corruption. Finally, there has been an uneven distribution of development between the land-locked, western section of China and the industrialized east coast, consequently causing ineffective land use.China has quickly become a world leader in trade and will only increase inimportance to the global economy. These facts are proven with China's current economic statistics growing at over nine percent per year, and economists' projections of the nation's future -- China will double its gross domestic product of the year 2000 in the year 2010. The way the Chinese government achieved these impressive economic figures are through a thorough renovation of Chinese trade policies. Reform measures in the country range from reduced trade barriers and technical contracts for agriculture, to infrastructure investment policies and improved standards for pharmaceutical products. However, stemming from China's economic growth are dilemmas such as inflation and uneven development of the country.On July 1, 1997, Hong Kong reverted to Chinese sovereignty after over 150 years under British rule. The Sino-British Joint Declaration, signed in 1984, and the Basic Law, passed by China's National People's Congress in 1990, form the legal basis for China's "One Country, Two Systems" guarantees for the Hong Kong Special Administrative Region (SAR) of China. These documents, which guarantee a high degree of autonomy for the HKSAR except in mat...
