China’s Strong Economic PerformanceAfter a period of dramatic shifts in economic policy, China has decided on a stable and promising economic course.It is aimed at adjusting the pace of modernisation to China.s resource capabilities and its goal of major increases in employment, providing incentives for agricultural and industrial productivity; strengthening light, labour intensive industries, using technology to modernise and promote the technological transformation of existing industries; and removing bottlenecks imposed by energy and transportation constraints. In many of these areas, particularly agriculture, the results have been very positive. Food production is increasing rapidly. Modernisation of industrial production is occurring throughout the country, and production units are merging to achieve important economies of scale.