The Heart of Economic Reform

by Daochi Tong

Published 3 October 2002
Banking reform lies at the heart of economic reform in China and is central to sustaining the country's high economic growth. This text covers an important economic policy issue in China - the existing and potential roles of the financial sector in the development of the Chinese economy. It explores the relationship between the reforms of the financial sector, of state-owned enterprises and of the social welfare system. The text presents a variety of data accompanied by insights and interpretations. It also examines the original estimates of the cost of the social welfare burden, given that social services such as healthcare and education are provided by state-owned enterprises rather than by the private or public sector.