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The year 2008 marked a historical turning point for China, with the 30th anniversary of the launch of China’s opening and reform policy, and the Olympic Games in Beijing. On a negative note, the year was also marked by the Sichuan earthquake and the subprime mortgage crisis in the USA. China maintained a growth rate of 10% from 2003 to 2007, and began to adjust its industrial structures, shift development modes, and reform the urban-rural duality. China also increased its investment in employment, education, healthcare, social security, and public service sectors, especially in rural areas. The international economic crisis has however dragged down the international economic situation, in response to which the Chinese government is aiming to invest RMB 4 trillion over the next two years to confront this major challenge. China’s economic and social development situation in 2009 will have major significance in the drafting of future economic policy.

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