AS CHINA'S new central bank governor, vice-premier Zhu Rongji is as likely as his predecessor to face a major obstacle in cooling down the economy: local resistance to the dictates of Beijing.
A look at Guangdong province illustrates some of the problems that Mr Zhu might run up against.
The complications stem partly from the fact that local officials see the situation differently from Beijing.
Perhaps more important, economic reforms have proceeded so far in Guangdong that most of the economy falls outside the direct control of government, and non-state-run companies now have the wherewithal to continue expanding their operations.
In Guangdong, ''the reaction to higher inflation is more relaxed,'' said one Western observer.
''Government officials are not as concerned about it.'' Officials in Guangdong argue they have already begun to take steps aimed at cooling the economy by targeting areas where inflationary pressures are the most acute.
