Statistics show that by September 1995, China had established 75 funds and more than half of their money were directly invested in industries. The farm, to be set up in China, the world's largest pork counsumer, will be located on Chong Ming island, about 15 kilometetres from Pudong, Shanghai. It is expected to develop in phases over the next 10 years and to have an annual production of about 1.7 million pigs when completed. The initial paid-up capital of the venture is 7.5 million US dollars. The bureau also reported that IP from collective and private enterprises grew much faster than from state-owned enterprises.
Analysts say the problem is insufficient demand in the economy.
Many companies have maintained supply despite poor demand, thus a build-up of stocks. The slow growth indicates that companies have been slow in reacting to interest rate cuts in May and August, each averaging 2 percentage points. But the tax unification will avoid double taxation and will help corporate structures. Mr. Chiu also said that foreign nationals' taxes were not affected because their maximum assessments were already capped at 25 per cent. China's pilot programs to reduce the debt burden of state-owned enterprises, involving roughly 100 major companies in 50 cities, are proving successful, the official Chinese media reported over the weekend.