We believe the reduction should be easily 【offset】 by the unexpected increase in investment growth.

Passage 1Analysis and forecast of China's export situation in 1998In term of export policy environments in 1998, the reform of China's foreign trade mechanism required by the socialist market economy will progress with new changes in the administrative functions of the government. By means of support and preferential policies, the state will encourage the development of backbone industries that display strong competitiveness in intemational market hi-tech industries and capital-intensive industries. Policies that encourage exports will be further implemented. Under these premises, the state will adjust export policies in line with its macroeconomic development program New foreign trade policies are beginning to play active roles. They have raised tax rebates of textiles and will continue the effort to bring about a zero-rate terminally so as to reduce export costs. The policy environments in 1998 will work to foster growth in exports. International and domestic markets are revealing the following favorable factors. First, importing countries are continuing to raise demand for Chinese products. Second, domestic production capacity has been upgraded although domestic investment and consumption are still limited. Third, inflation was kept under control in 1997. However the intemnational market has given rise to some negative impacts on China's exports. The financial crisis that shock South-east Asia in 1997 has caused many nations to devaluate their currencies. This has led to new level of competition within the region.The devaluation of the Yen has burt Chinese exports to Japan. A large share of the processing and assembling activities in China and around East Asia will be seriously affected by the currency devaluation. The financial turmoil has had a massive impact on many sectors of the economy.Capital-intensive industries require large amount of capital investment.

Passage 1Analysis and forecast of China's export situation in 1998In term of export policy environments in 1998, the reform of China's foreign trade mechanism required by the socialist market economy will progress with new changes in the administrative functions of the government. By means of support and preferential policies, the state will encourage the development of backbone industries that display strong competitiveness in intemational market hi-tech industries and capital-intensive industries. Policies that encourage exports will be further implemented. Under these premises, the state will adjust export policies in line with its macroeconomic development program New foreign trade policies are beginning to play active roles. They have raised tax rebates of textiles and will continue the effort to bring about a zero-rate terminally so as to reduce export costs. The policy environments in 1998 will work to foster growth in exports. International and domestic markets are revealing the following favorable factors. First, importing countries are continuing to raise demand for Chinese products. Second, domestic production capacity has been upgraded although domestic investment and consumption are still limited. Third, inflation was kept under control in 1997. However the intemnational market has given rise to some negative impacts on China's exports. The financial crisis that shock South-east Asia in 1997 has caused many nations to devaluate their currencies. This has led to new level of competition within the region.The devaluation of the Yen has burt Chinese exports to Japan. A large share of the processing and assembling activities in China and around East Asia will be seriously affected by the currency devaluation. The financial turmoil has had a massive impact on many sectors of the economy.Raised tax rebate will help the export of textiles.

Passage 1Analysis and forecast of China's export situation in 1998In term of export policy environments in 1998, the reform of China's foreign trade mechanism required by the socialist market economy will progress with new changes in the administrative functions of the government. By means of support and preferential policies, the state will encourage the development of backbone industries that display strong competitiveness in intemational market hi-tech industries and capital-intensive industries. Policies that encourage exports will be further implemented. Under these premises, the state will adjust export policies in line with its macroeconomic development program New foreign trade policies are beginning to play active roles. They have raised tax rebates of textiles and will continue the effort to bring about a zero-rate terminally so as to reduce export costs. The policy environments in 1998 will work to foster growth in exports. International and domestic markets are revealing the following favorable factors. First, importing countries are continuing to raise demand for Chinese products. Second, domestic production capacity has been upgraded although domestic investment and consumption are still limited. Third, inflation was kept under control in 1997. However the intemnational market has given rise to some negative impacts on China's exports. The financial crisis that shock South-east Asia in 1997 has caused many nations to devaluate their currencies. This has led to new level of competition within the region.The devaluation of the Yen has burt Chinese exports to Japan. A large share of the processing and assembling activities in China and around East Asia will be seriously affected by the currency devaluation. The financial turmoil has had a massive impact on many sectors of the economy.Domestic consumption raised together with the upgrade of domestic production capacity.

Passage 1Analysis and forecast of China's export situation in 1998In term of export policy environments in 1998, the reform of China's foreign trade mechanism required by the socialist market economy will progress with new changes in the administrative functions of the government. By means of support and preferential policies, the state will encourage the development of backbone industries that display strong competitiveness in intemational market hi-tech industries and capital-intensive industries. Policies that encourage exports will be further implemented. Under these premises, the state will adjust export policies in line with its macroeconomic development program New foreign trade policies are beginning to play active roles. They have raised tax rebates of textiles and will continue the effort to bring about a zero-rate terminally so as to reduce export costs. The policy environments in 1998 will work to foster growth in exports. International and domestic markets are revealing the following favorable factors. First, importing countries are continuing to raise demand for Chinese products. Second, domestic production capacity has been upgraded although domestic investment and consumption are still limited. Third, inflation was kept under control in 1997. However the intemnational market has given rise to some negative impacts on China's exports. The financial crisis that shock South-east Asia in 1997 has caused many nations to devaluate their currencies. This has led to new level of competition within the region.The devaluation of the Yen has burt Chinese exports to Japan. A large share of the processing and assembling activities in China and around East Asia will be seriously affected by the currency devaluation. The financial turmoil has had a massive impact on many sectors of the economy.Yen is Japanese currency.

Passage 1Analysis and forecast of China's export situation in 1998In term of export policy environments in 1998, the reform of China's foreign trade mechanism required by the socialist market economy will progress with new changes in the administrative functions of the government. By means of support and preferential policies, the state will encourage the development of backbone industries that display strong competitiveness in intemational market hi-tech industries and capital-intensive industries. Policies that encourage exports will be further implemented. Under these premises, the state will adjust export policies in line with its macroeconomic development program New foreign trade policies are beginning to play active roles. They have raised tax rebates of textiles and will continue the effort to bring about a zero-rate terminally so as to reduce export costs. The policy environments in 1998 will work to foster growth in exports. International and domestic markets are revealing the following favorable factors. First, importing countries are continuing to raise demand for Chinese products. Second, domestic production capacity has been upgraded although domestic investment and consumption are still limited. Third, inflation was kept under control in 1997. However the intemnational market has given rise to some negative impacts on China's exports. The financial crisis that shock South-east Asia in 1997 has caused many nations to devaluate their currencies. This has led to new level of competition within the region.The devaluation of the Yen has burt Chinese exports to Japan. A large share of the processing and assembling activities in China and around East Asia will be seriously affected by the currency devaluation. The financial turmoil has had a massive impact on many sectors of the economy.Currency devaluation in other Asian countries help Chinese Enterprises to improve competitiveness on the intemational market.

Passage 2 A Healthy Appetite for World Markets The food industry accounts for a quarter of exports in Denmark and has been hit by the recent GATT deal. Denmark is the world's fifth-large exporter of food products. The food industry provides between 12 and 18 percent of Denmark's domestic employment Manufacturing industry long ago overtook agriculture as the country's main export industry, and now provide about 70 percent of the employment and roughly the same share of total production. The rise of the primary food industries-pig meat,dairy products and fish-has been accompanied by the development of compaues in assuclateu mnuustries, many of them world leaders. And the government helps to finance a research program to lift the quality of its products. The country's food and food technology industry has never looked back. Since entry into the European Community further support has come from the common agricultural policy, which subsidizes exports to non-member countries. Yet, a threat does now hang over the sector in the shape of the recent GATT agreement, which calls for a reduction of 34% in the volume of exports of subsidized products. The Danish minster for agriculture sees the GATT agreement as a challenge, which opens up opportunities to win new markets. And he is calling for an attacking policy on the part of Europe to make the best of the opportunities. Prospect for the riary food claly dend markets, Denmark has one important advantage, Pig meat is not directly supported under the common agricultural policy and its exports are therefore not threatened by the GATT agreement in the same way as dairy products and beef. Though pessimists focus on the food surplus in European countries in considering the future of the agriculture food industry, others focus on the global market. They predict a strong increase in demand for food and see limits to the potential for Danish production and exports.Agriculture is the largest export industry in Denmark

Passage 2 A Healthy Appetite for World Markets The food industry accounts for a quarter of exports in Denmark and has been hit by the recent GATT deal. Denmark is the world's fifth-large exporter of food products. The food industry provides between 12 and 18 percent of Denmark's domestic employment Manufacturing industry long ago overtook agriculture as the country's main export industry, and now provide about 70 percent of the employment and roughly the same share of total production. The rise of the primary food industries-pig meat,dairy products and fish-has been accompanied by the development of compaues in assuclateu mnuustries, many of them world leaders. And the government helps to finance a research program to lift the quality of its products. The country's food and food technology industry has never looked back. Since entry into the European Community further support has come from the common agricultural policy, which subsidizes exports to non-member countries. Yet, a threat does now hang over the sector in the shape of the recent GATT agreement, which calls for a reduction of 34% in the volume of exports of subsidized products. The Danish minster for agriculture sees the GATT agreement as a challenge, which opens up opportunities to win new markets. And he is calling for an attacking policy on the part of Europe to make the best of the opportunities. Prospect for the riary food claly dend markets, Denmark has one important advantage, Pig meat is not directly supported under the common agricultural policy and its exports are therefore not threatened by the GATT agreement in the same way as dairy products and beef. Though pessimists focus on the food surplus in European countries in considering the future of the agriculture food industry, others focus on the global market. They predict a strong increase in demand for food and see limits to the potential for Danish production and exports.After entry into the Europe Community, Denmark's primary agriculture industry get subsidies when exporting to non-member countries.

Passage 2 A Healthy Appetite for World Markets The food industry accounts for a quarter of exports in Denmark and has been hit by the recent GATT deal. Denmark is the world's fifth-large exporter of food products. The food industry provides between 12 and 18 percent of Denmark's domestic employment Manufacturing industry long ago overtook agriculture as the country's main export industry, and now provide about 70 percent of the employment and roughly the same share of total production. The rise of the primary food industries-pig meat,dairy products and fish-has been accompanied by the development of compaues in assuclateu mnuustries, many of them world leaders. And the government helps to finance a research program to lift the quality of its products. The country's food and food technology industry has never looked back. Since entry into the European Community further support has come from the common agricultural policy, which subsidizes exports to non-member countries. Yet, a threat does now hang over the sector in the shape of the recent GATT agreement, which calls for a reduction of 34% in the volume of exports of subsidized products. The Danish minster for agriculture sees the GATT agreement as a challenge, which opens up opportunities to win new markets. And he is calling for an attacking policy on the part of Europe to make the best of the opportunities. Prospect for the riary food claly dend markets, Denmark has one important advantage, Pig meat is not directly supported under the common agricultural policy and its exports are therefore not threatened by the GATT agreement in the same way as dairy products and beef. Though pessimists focus on the food surplus in European countries in considering the future of the agriculture food industry, others focus on the global market. They predict a strong increase in demand for food and see limits to the potential for Danish production and exports.The Danish minister of agriculture reacted positively toward the GATT agreement.

Passage 2 A Healthy Appetite for World Markets The food industry accounts for a quarter of exports in Denmark and has been hit by the recent GATT deal. Denmark is the world's fifth-large exporter of food products. The food industry provides between 12 and 18 percent of Denmark's domestic employment Manufacturing industry long ago overtook agriculture as the country's main export industry, and now provide about 70 percent of the employment and roughly the same share of total production. The rise of the primary food industries-pig meat,dairy products and fish-has been accompanied by the development of compaues in assuclateu mnuustries, many of them world leaders. And the government helps to finance a research program to lift the quality of its products. The country's food and food technology industry has never looked back. Since entry into the European Community further support has come from the common agricultural policy, which subsidizes exports to non-member countries. Yet, a threat does now hang over the sector in the shape of the recent GATT agreement, which calls for a reduction of 34% in the volume of exports of subsidized products. The Danish minster for agriculture sees the GATT agreement as a challenge, which opens up opportunities to win new markets. And he is calling for an attacking policy on the part of Europe to make the best of the opportunities. Prospect for the riary food claly dend markets, Denmark has one important advantage, Pig meat is not directly supported under the common agricultural policy and its exports are therefore not threatened by the GATT agreement in the same way as dairy products and beef. Though pessimists focus on the food surplus in European countries in considering the future of the agriculture food industry, others focus on the global market. They predict a strong increase in demand for food and see limits to the potential for Danish production and exports.The food surplus in European countries will severely restrict Danish agriculture production and exports.