Unirule Institute of Economics released the Macroeconomic Report for the 3rd Quarter of 2009. Prof. Zhang Shuguang, Head of Academic Committee, Unirule Institute of Economics introduced the report.
The report point out the macro economy is rebounding. Driven by the policies such as the 4 trillion investment plan and the plan for revitalization of ten major industries, a clear trend of economic recovery emerged in the first three quarters of 2009, during which the GDP increased by 7.7%, demonstrating a quarter-by-quarter recovery. The economic growth is heavily relying on investment. The first three quarters saw a substantial increase in infrastructure investment, demonstrated by the 52.6% growth in power investment, 87.5% in railway transport industry, 50.7% in road transport industry and 17.7% in real estate development investment over the same period of the previous year.

On the other hand, the trend of advance of state-owned enterprises and retreat of private ones was evident. The leading position of state-owned economy in a number of important basic industries is constantly strengthened, and in many sectors the phenomenon of mergers of private enterprises by state-owned ones, i.e. advance of state-owned enterprises and retreat of private ones become increasingly prominent, and are going beyond the original coal industry to other industries such as civil aviation, steel, machinery and real estate. Data from National Bureau of Statistics show that in the first half of 2009, the investment in fixed assets from the whole society, the government and state-owned enterprises increased respectively by 33.5%, 50.7% and 27.2%, while such investment from the non-state sector declined by 1.3 percentage points.

In summary, the trend of advance of state-owned enterprises and strengthen of the administrative monopoly might undermine the market-based economic growth, deteriorate institutional environment of economic development.