| BUSINESSWEEK ONLINE : FEBRUARY 22, 1999 ISSUE | ||||||||
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| INTERNATIONAL -- ASIAN COVER STORY
China's Slide into Crisis 1997 JULY Asian crisis starts in Thailand. SEPTEMBER Party Congress backs bold plans to privatize the state sector. DECEMBER China loosens monetary policy to stimulate slowing economy. Premier Zhu Rongji vows to avoid devaluation. 1998 MARCH People's Congress vows to slash bureaucracy, spend $1.2 trillion on infrastructure, end subsidized housing, and turn around state enterprises. JUNE Exports grow at a mediocre 7.6%, a third of 1997's levels. SEPTEMBER Officials crack down on unauthorized foreign exchange dealings to stem billions in capital flight and set minimum prices for 21 industries. Housing reform slows dramatically. Consumer confidence wanes. Zhu backs away from aggressive reform of state companies. OCTOBER Zhu intensifies antismuggling campaign to recover $20 billion in lost customs revenues. The central bank abruptly closes Guangdong International Trust & Investment Corp. Deflation accelerates. DECEMBER People's Bank of China cuts interest rates for the third time in a year. Authorities crack down on political dissidents, sentencing four activists to long prison terms. 1999 JANUARY China announces it will not make good on foreign loans to GITIC, triggering a credit crunch. Bank woes worsen. Investors question published growth figures. FEBRUARY Labor protests accelerate. Factory glut continues to swell. More investment trusts default. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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