CONFIDENTIAL
DSR 11C
SECTION III:
COMMERCIAL CONSIDERATIONS
32. China's imports from non-Communist countries in
1976 were $4.8 billion; larger than Czechoslovakia's
or Hungary's, and less than Foland's. Japan's share
of this was $1.67 billion, and the EEC's $1.3 billion.
Of the EEC total the UK accounted for only $125 million
(down $53 million from 1975) against German exports of
$623 million and French exports of $355 million. The
United Kingdom now ranks tenth among China's non-
Communist trading partners. China in turn is Britain's
55th most important market. Two-fifths of UK exports in
1976 were aircraft; the remainder was predominantly textile products, iron and steel products and machinery. Details of China's foreign trade and the British part in
it are set out in Annex 1.
33 The Chinese placed few orders in 1975 and 1976, due to
balance of payments problems, political uncertainty and
doubts over the wisdom of importing foreign technology,
so exports to China in 1977 are generally well down.
With the much more positive attitude of China's new
leaders towards foreign trade as part of her modernisation
/programme