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This report suggests that the speeding-up of depreciation can be used as the main method to cut tax burdens by enlarging applications and shortening the years of low depreciation.

In 2004, the features of the new round of economic growth were fully brought out with the macro control policy basically shifted from a rapid expansion type to a neutral and steady growth model.

In 2004, the global finance monitoring and supervision effort focused on continuous international and regional cooperation, with more consideration in efficiency, steadiness and transparency in the supervision actions.

The year-on-year growth rate of CPI rose continuously from January to September 2004, resulting in an accumulative increase of 4.1%. In the third quarter, the chain index of CPI made an upward turn, and new inflationary factors get stronger.

In the third quarter of 2004, the growth rate of fixed capital investment and bank loan is still in decline, which is an indication of the macro control policy effect.

Self-growth has been a distinctive character with the Chinese economy since reform and opening up.

In the first half of 2004, domestic CPI rose by 3.6%, a large part of which is considered a carryover effect whereas current factors account for only 40% of the rise.

In 2003 China's financial sector experienced a relatively smooth year, with significant success in it's restructuring but some problems remained.