Incremental reform is the code of China's reform. To carry out such economic reform in a large country with 1.3 billion people is unprecedented and China has no model to follow. It must move forward inch by inch,paving the way as it goes.
Looking back on 20 years of reform(1978-1998),we can see how it has gone from rural households to townships,from enterprises to cities,from coastal areas to hinterland and from micro-actions to macro-policies. It has been characterized by "pilot projects being tried before nationwide implementation" and "economics reform first,political reform second".
The most prominent feature of China's economics growth over the past few years since 1998 is tha the growth rate has been maintained at a 7-8 precent level for four successive years. This shows,on the one hand,that the Chinese government has been successful in its expansionary fiscal policy and prudent monetary policy while resisting the impact of international economic slowdowns and financial turmoil,and that it has overcome the inadequacy in domestic demand.
