On Controlling Demand and Improving Supply

Premier Zhao Ziyang, when talking about the current economic situation and 1986 tasks at the national planning and economic work conference on January 13 this year, pointed out that, in the past year, due to a series of measures taken by the Party Central Committee and State Council to strengthen macroeconomic control and eliminate factors of instability in the nation's economic life, there has been great improvement of the situation in which total social demand exceeded total supply. Referring to remaining factors of instability and the phenomenon of "chopping off everything with one blow of the knife" [indiscriminate treatment in reform] which occurred last year in regard to the tightening of the money market and control of currency circulation, he stressed that this year, while continuing to strengthen macroeconomic control, particular attention should be paid to improving it; that, while controlling demand, particular attention should be paid to improving supply; and that, while reducing the extremely high rate of growth, particular attention should be paid to maintaining a proper rate of growth on the basis of economic results. He also pointed out that economic reform this year should concentrate on "consolidating, digesting, supplementing, and improving" measaures already put into practrice last year, so as to be ready to take major new strides next year. We consider it imperative that these points be borne in mind in this year's economic work.