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By Li Zuojun　

Date: 2003/10/29

Abstract：

There are three kinds of views with regard to the present economic performance: it is already overheating; there are signs of overheating, but not yet overheating; generally speaking it is normal, but is overheating in some sectors. The paper maintains that if economic performance is viewed from the mid- and long-term cycle, the present economy is neither totally overheating, nor locally overheating and nor normally developed without new features. The fact is that the present industrialization in China has entered a new historical phase characterized by the vigorous redevelopment of heavy industry. Therefore, the government should prudently formulate industrial regulation policies in accordance with economic performance, appropriately raise the expectations for economic growth and guard against overheated investment by governments at various levels.