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The Jiang Zemin leadership faced both internal disturbance and external threat in 1999. What with the worst growth record in a decade, the Falun Gong's sect siege of Zhongnanhai, NATO's bombing of the Chinese embassy in Yugoslavia, and Lee Teng-hui's new "two-state" theory, the Chinese leadership was under tremendous pressure throughout the year. This is an analysis of how the Chinese leadership coped with the crises of 1999. Though there was fair success in managing those crises, serious crises lie ahead which could significantly impact the leadership.