Over the past year, the world economy has undergone the most
severe challenge since the Great Depression in the last century.
In response to the international financial crisis, the Chinese
government has adjusted macroeconomic policies in a timely and
resolute manner, implemented proactive fiscal policy and
moderately easy monetary policy, and formulated a stimulus
package to expand domestic demand and promote economic growth in
its endeavour to maintain stable and relatively fast
development. The proactive fiscal policy, which is an important
component of the Chinese governments macroeconomic policies for
fighting the international financial crisis, is composed of the
following five parts. First, expanding government investment
with focus on the key programmes. Of the total 4 trillion RMB in
the two-year investment plan, 1.18 trillion RMB comes from the
central government. In the end of 2008 the central government
allocated additional 104 billion RMB to the government-
subsidized housing programme and the pos