Macroeconomic Issues and Policies Gene Hsin Chang Western scholars have long wondered if there would be a major change, or even a setback in Chinese economic policies after the death of Deng Xiaoping. Such speculation has gradually faded as reform became more evidently irreversible. Indeed, the death of Deng on February 19, 1997, changed nothing in the current economy and economic policies. It is now widely expected that the economic reform will continue into the twenty-first century. While few believe that China will return to central planning, most scholars agree that the road to a free-market economy will be bumpy. China has enjoyed rapid economic growth since 1978, when reform started, but it has also experienced high inflation, rising unemployment, deterioration in income distribution, failures in restructuring state-owned enterprises, and other problems. Whether China can continue its rapid growth in the long run is still uncertain; it depends on many factors, including the government’s skill in handling emerging difficulties. One of the most important requirements for......

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