Imports from non-Communist countries in 1976 fell for most major commodities except sugar, steel, iron, copper and chrome. Grain imports declined by a further 50 per cent (having fallen 50 per cent in 1975) while agricultural imports as a whole declined in value by over $500 million. In 1977 total imports of agricultural produce from non-Communist countries were valued at about $1,500 million. Japan supplied 3.5 million tonnes of steel in 1976, three-quarters of China's total steel imports. A further 1 million tonnes were imported mainly from West Germany and Australia. In 1977 Japan delivered over 4 million tonnes.
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Machinery and equipment imports declined in 1976 because deliveries on current contracts were completed and few new orders had been placed in 1975. was a brief increase in orders for new plant in the first quarter of 1976, consisting of five petrochemical plants from Japan and West Germany. Only two other large contracts were placed in 1976 an iron ore pelletising plant from Japan, and centrifugal compressor technology from Italy. Machinery and equipment imports continued to fall in 1977 and only two major plant contracts were placed
for a polyester fibre plant from West Germany and a natural gas refining plant from Japan, though Chinese representatives investigated petrochemical (particularly fertiliser) plants in Europe, had talks with the Italian consortium ENI, with the Japanese about liquified natural gas (LNG) plants, and with the West Germans for open-cast mining technology. During the Chinese Foreign Trade Minister's visit to the UK, he indicated that China was interested in purchasing marine gas turbines, a Marconi marine telecommunications system and coal mining equipment.
The general expansion in world trade in 1976 enabled China to maintain her overall export position although the results for particular commodities were mixed. Sales of foodstuffs and tin declined while textiles and light manufactured goods improved.
Contrary to most predictions, oil exports also declined from about 11 million tonnes in 1975 to a little over 9 million tonnes in 1976, due to lower production and problems in marketing the oil, which is waxy and requires special facilities for handling and refining. Exports to Japan fell from 7.9 million tonnes in 1975 to 6.1 million tonnes, a shortfall of 700,000 tonnes being carried over to 1977, when 6.5 million tonnes were supplied. Deliveries to the Philippines were also late, with probably about half of the 900,000 tonnes contracted being delivered in 1976 and a total of 800,000 tonnes delivered in 1977. Sales to Hong Kong, where the Chinese also started retailing petrol through Communist-owned filling stations, were maintained. Exports to Thailand increased slightly in 1976 and amounted to about 150,000 tonnes in 1977. Romania imported about 500,000 tonnes in both 1975 and 1976. Deliveries to North Korea, Vietnam, Laos and Cambodia probably approached 1.5 million tonnes, the majority going to North Korea; Vietnam is probably now receiving very little Chinese oil.
China's major non-Communist trading partners in 1975, 1976 and 1977 were Japan, Hong Kong and West Germany. Although Japan took 24.2 per cent of China's total trade in 1976, turnover fell from $3,793 million in 1975 to $3,039 million in 1976 the first time that trade had declined since 1968. China's trade deficit with Japan fell from $730 million to less than $300 million, mainly due to the reduced Chinese demand for fertiliser and machinery imports. Chinese exports decreased by 19 per cent, due entirely to problems in oil exports. Exchanges recovered in 1977 and were estimated at $3,500 million by JETRO. In February 1978 China and Japan signed a $20,000 million long-term trade agreement, based on balanced two-way trade and with an eight-year life. The main Japanese export items will be plant and technology,
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