Dealing Again

Peking revives two projects

When China's Communist planners last winter abruptly canceled $2.5 billion worth of industrial development projects with West German and Japanese construction, manufacturing and engineering firms, it looked as if the country's much touted Four Modernizations program, which was launched in 1978, was about to take a Great Leap Sideways. Now it seems that the government is having second thoughts about its hasty budget chopping.

Two weeks ago, China and Japan wrapped up a $1.3 billion financing deal that gives new life to two of the most important of the earlier, canceled projects:

Phase 1 of a $5 billion iron-and...

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