Reasons of China’s rapid economic development in a quarter of a century  Since the beginning of 1970s, China has entered a historical period of economic reform, opening up and modernization. Within a timeframe of 25 years, the Chinese economy has consistently maintained its rapid growth momentum.
Second, underlying inflation remains close to the upper end of this inflation objective, which means that the 4 - 6 percent range remains both a desirable and feasible objective for 2003. Third, there remain concerns about the risks of further VAT-induced increases in inflationary expectations. Hence it is important for the Bank to promote expectations of a sustainable low inflation.