The World - News from July 20, 1989

The Chinese government accelerated forced borrowing from its own people, demanding that workers accept up to 25% of some monthly wages in government bonds. Chinese and Western sources said that workers and their factories have been required to buy about $6 billion in bonds so far this year, twice the annual average. The sources predict even more forced borrowing as officials search for funds to control prices and prevent another politically devastating inflationary spiral. The government’s cash shortage has been aggravated by the collapse of the tourist industry and the delay of several trade deals brought on by worldwide reaction to the June 3-4 massacre of pro-democracy demonstrators in Beijing.