The Discovery Of Chinese Marcocontrol--To Launch Structure Finance Tools

The economic growth rate of China had begun to decrease after China implemented "Soft landing" successfully on 1996. People's Bank of China has reduced interest for seven times to promote economic growth rate. Positive finance policy had been carried out from the year 1998. It is clearly that the result of government regulation is great, because Chinese economy has been accelerated at the beginning of 1999. After a fast growing period, the growth rate of GDP had reached 7.8% in 1999 and 8.0% in 2000. But the statistical data indicated that the economic situation became hard in 2001. The world economic environment had been deteriorated after Asia finance crisis happened in 1997. The economic growth of China got in serious trouble. The government has emphasized the "pull demand" again recently. Because of the ineluctable limit between positive finance policy and stable monetary policy, both of them are not implemented effectively. The effect of policy on personal consumption and non-government investments is insufficient.It is clearly showed that the gross economy model resulted in the policy losing its effect. The conflict between supply structure formed on seller's market and demand structure formed on buyer's market has become the main conflict in Chinese economy. It destroys economic balance, decreases the economic growth, and increases unemployment. All of these imply that the government must make adjustment and launch policy tools for the changes of conflict.Based on the economic reality in China, the paper analyzed the limit of relying on finance or monetary policy separately. It put forward the points that the government should launch the structure finance tools and put the structure policy into important place. At last, it proposed some detailed operating advice on how to implement the structure finance policy.