CONFIDENTIAL # 3
N.
2
in the first half of 1985. But the capacity of all major modes of transport in China is still subject to great
demand pressure.
3.
The consumption boom in China continued into the
first half of 1985. According to a report published by the Economics Department, Dr. Sun Yatsen University, sales
of TV sets, electrical fans, tape recorders, washing machines and refrigerators increased by between 63% and
450% compared with the same period in 1984. Besides
consumer durables, sales of garments and of foodstuffs
also grew by 32.5% and 32.4% respectively. Many of these consumer products were imported. But China's production of consumer goods also increased.
4.
In part reflecting the consumption boom, China's
visible trade balance recorded a large deficit of US$6.41
billion in the first half of 1985, according to figures
released by the Chinese Customs authorities. It was
reported that imports grew by 60.8% to US$18.4 billion
(1) while exports dropped by 2.3% to US$11.99 billion
•
(1) China's foreign trade statistics by country for the
first half of 1985 are not yet available. But according to the Chinese Customs authorities, Japan, Hong Kong and the United States are China's most important trading partners in 1984, both in respect of its exports and its imports.
Ranking of
Japan
Hong Kong
United States
As China's export
market
2
1
3
As China's supplier
of imports
1
3
2
As China's trading
partner
1
2
3