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The most

4. This last development is a continuation of the process of establishing

specialised agencies to promote contacts with foreign investors.

important of these agencies already in operation are the Guangdong Trust

and Investment Corporation based in Guangzhou and Guangdong Enterprises Ltd

(Yue Hai) in Hong Kong. Two more liason agencies, a construction engineering

and a labour service, are apparently planned. It seems that Guangdong is

preparing to act as the coordinator for nation-wide trade contacts and

foreign investment elsewhere in China. For example, a "joint foreign

trade centre" representing the chemical and rubber industries of 14 Chinese

cities has been set up in Guangzhou. The centre will coordinate exports

from these industries and handle imports of foreign technology and capital.

The 14 cities represented are: Guangzhou, Shenyang, Wuhan, Nanjing, Harbin, Changchun, Xi'an, Changqing, Hangzhou, Taiyuan, Luda, Qingdao, Changzhou

and Shashi.

Dalian's share in exports to Hong Kong and Macao

5.

China's northeast port city of Dalian exported US$394 million worth

of goods to Hong Kong and Macao in 1980. This represents a share of

8.8 percent in the US$4,480 million worth of goods exported to Hong Kong and Macao from all ports in China in 1980. (Whilst Guangdong clearly has the largest share, precise figures are not yet available).

Guangzhou Trade Fair, Spring 1981

6. The Trade Fair opened in Guangzhou's Foreign Trade Centre on 15 April. Its opening was heralded by widespread coverage in the local Hong Kong press. A number of newspapers (notably Da Gong Bao and Wen Hui Bao) issued special supplements devoted to the Fair and containing articles designed to reassure potential investors that China remained an excellent market for investment despite the current policy of economic readjustment. Nevertheless, it is clear that the Fair no longer plays the role it once did. With the development of more frequent contacts and easier access between the Fairs, most major deals and contracts are settled outside the Exhibition Hall. The Fair is now more obviously inclined towards

Chinese export commodities although even in this sphere businessmen have complained of shortages and the inability of Chinese manufacturers to

meet demand.

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