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Peking axes the budget—and some major foreign contracts

"China's economic work will be able to free itself from the age-old malady of seeking quick results. Instead it will base itself on actual economic conditions, putting the stress on practical results and step-by-step development." With these words, spoken before the standing committee of China's National People's Congress Feb. 28, Vice Premier Yao Yilin described a watershed decision by the country's economic planners. Specifically, Yao announced a drastic 13% cutback of the 1981 budget; capital construction, the hardest-hit sector, would be chopped almost in...

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