What exactly is government plan attempting to coordinate? Based on these deliberations, the macroeconomic policy-making has improved significantly, and we have also learned how to apply economic leverages appropriately and timely, and how to deal with the inflation.
Through the 1990s, the Chinese banking sector faced a predicament characterized by the underdevelopment of a sound “credit culture.” During this period, shortcomings of the credit culture were exemplified by two main types of bank lending. The first was policy lending, including those determined by the government plan or under variety of administrative interventions. The second was so-called “relationship-based lending”.