【正文】 s Economic Policies and World Trade,” Economic Reform Today, Vol. 23, , pp86 Chapter 4 ConclusionTo sum up, China owns both advantages and disadvantages in the world economy. The strengths are its economyoriented policy, huge market, and low cost and high quality of human resource. The weaknesses are its absence of credit legal system, inefficiency in state owned enterprises and financial system, inadequate infrastructure, unemployment and ine disparity and pollution. The most important task for Chinese government is to maintain the fast economic growth and to make good use of our unique advantages, in the mean time, to take measures to solve the present problems and overe the obstacles.Notes。s Economic Boom, New York Times, , , 1997, pp67~68[6] Paul Gruenwald and Jahangir Aziz, “China and the Asian Crisis,” Asian Economy, , No. 5, 2002,pp58[7] Paul Heytens and Cem Karacadag, “The Unemployment Problem in China,” Journal of Marketing, Vol. 67, , 2003, pp14~15[8]Petersen , “Reforming China39。s Future and Prospects China39。s Economic Boom, New York Times, , , 1997, pp67Reference:[1] Albert Keidel, “China39。s alarming level of air and water pollution. Five of China39。 the only real solution is more jobs. The huge ine disparity is another serious problem. The coastal regions have benefited much more from China39。s economy needs to create more jobs than it has in recent years, and stronger domestic demand is the key to meeting this need. Even though official GDP growth rates in recent years have been relatively high by international standards, since 1998 employment growth has faltered in critical ways. Enterprise reform layoffs accounted for some of this pattern, but not all. Somehow, in recent years, employment growth patterns have bee disconnected from officially reported economic growth. High productivity gains are one contributing factor, and exaggerated GDP growth statistics are another. Whatever the reason, officially reported growth of between 7 and 8 percent has not been high enough to meet China39。s economic performance has fallen short in one critical area: job creation, especially in the services sector. Overall national employment growth stayed below 1 percent in 2000 for the third year in a row and even slowed slightly from 1999. This represents a significant deceleration from jobcreation rates in the mid1990s. Paul Heytens and Cem Karacadag, “The Unemployment Problem in China,” Journal of Marketing, Vol. 67, , 2003, pp14Meanwhile, the share of employment in services hardly changed at all as employment in agriculture actually increased. Such a backward shift in the structure of employment is not typical of a fastgrowing economy, which normally experiences the classic shift of labor out of agriculture and into manufacturing and services. China39。s financial system—owned by the state and governed more by politics than by market forces—is unequipped to meet the capital requirements of a modern and growing market economy to which China aspires. In revamping the ownership structure of stateowned firms, a flexible and marketdriven financial system will be needed to ensure that capital resources are channeled towards efficient and creditworthy endusers.There is a surprising case, which is private enterprises, the most vigorous parts of the economy, have generated 130% productivity than stateowned enterprises. In other words, using the same capital, labor and resources, the production created by private enterprises is times than the stateowned enterprises. However, the amount of loans and credit get from formal financial system is little for these private enterprises, because the emphasis of formal finance system is still designed to service the stateowned enterprises. It is a big obstacle for middlesize and small private enterprises. Typical Chinese middlesize and small private enterprises get only 10% of their operating capital from bank, while in South Korea and Thailand, the number is 40%.Paul Gruenwald and Jahangir Aziz, “China and the Asian Crisis,” Asian Economy, , No. 5, 2002,pp58The current Chinese banking system is crippled by nonperforming loans to unprofitable stateowned enterprises, resulting in capital starvation among more profitable state and nonstate firms. Liberalizing interest rates, establishing full currency convertibility, and opening the financial system to private investors would help break this logjam by introducing new riskreward incentives. A deregulated financial system would be established to enable Chinese firms to pete according to their efficiency, and price and quality of their goods and services. State mercia