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are also likely to grow steadily.
now
35. While the Chinese are/prepared to use long-term
supplier credit (probably extending up to seven years)
.and short-term inter-bank arrangements to finance their
imports, they have consistently refused offers of long-term
buyer credit from Western banks. In spite of rumours in
the press, Chinese Ministers and officials continue to
stick forcefully to this line. However, in the future
they will probably be prepared to increase the overall
level of debt they will accept. Eventually, as their
development plans for the economy unroll, they may well
have to overcome their ideological objections to long-
term buyer credit. Such a decision would significantly
increase their import capacity, as their credit rating
is excellent and Western banks would be very ready to
lend them large sums. The Chinese may also increasingly
seek barter deals as a means of financing imports
the exchange of Western equipment for raw materials or
the produce of Western installed plant.
eg
36. China will never become one of Britain's major
trading partners (since 1970 she has taken on average
only ab 0.4% of British exports), but, at a time when
world trade prospects are uncertain, she could offer a
steadily expanding market for British industrial goods.
The contracts which individual companies could hope to
obtain may be large ones, and some will be in those areas of acrospace where competition with the United States and
France elsewhere in the world is at its fiercest. The UK
cannot hope to compete on an equal footing with the
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