Private Business Push Zeng also showed support for the role of the private sector in the Chinese economy, which caught the attention of the Western media. Government projects alone will not do the job, private enterprise will help. Despite the encouraging signs of rising exports and assurances that reforms will continue, analysts are divided on the success of current China s economic policy and its future prospects. Morgan Stanley and ING Barings are more bullish on China.
Chinese economists side mostly with the more optimistic projections.
Professor Yang also sees good prospects for economic growth this year. He cites the increase in tax revenues that will support the increases in state spending, and new policies to improve China s private credit rating system. Furthermore, Yang notes that since 2000 is the last year in China s Ninth Five Year Plan, various ministries and administrations must spend their allocated funds, which historically has always given a boost to the economy. But Yang also admits that increasingly China s economy is affected by the global economy, and any disruptions abroad could change alter growth projections.