| Abstract | The performance of the Chinese economy in the first half was better-than-expected. Economic growth has slowed but export growth has exceeded that of imports, thus narrowing the trade deficits and pushing up the country's foreign exchange reserves. The summer harvest was only marginally lower than that of last year's all-time record. Average income of both rural and urban residents also saw a steady increase. The many reforms, covering exchange rate unification, tax and banking systems have been met with initial success. However, the problem of high inflation remains. |
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