Characteristically, Zhu was being hard on himself. Amid Asia's Crisis, it is proving nearly impossible. Zhu's chief dilemma is how to balance growth, reform and social stability amid a hostile international economic environment. His response has been Keynesian.
Deflation remains a threat as failing state factories churn out unwanted goods.
In new government initiatives to spur the crucial domestic economy, state banks will provide more credit for the purchase of major consumer durables such as cars and appliances. The use of credit cards will be encouraged. In rural areas, electricity rates may be cut to boost purchases of electric machinery for farm production. Funds are also being made available to local governments for unemployment insurance and job retraining. Some reform programs have obviously slipped.