7
A
the State's direction to cool down the overheated economy;
and infrastructural investment will concentrate on that
related to industrial development. Development of high
technology in the SSEZ was particularly emphasized. Gu Mu was quoted as saying that the manufacture of lower end products would not be undertaken in the SSEZ; even
industries in the medium range would be reduced. As part of the plan to upgrade technology in Shenzhen, the
Shenzhen Electronics Group was formed in September 1985. It offers help to more than 100 electronics factories with respect to quality control, fund raising, penetration of overseas and domestic markets, technological development and manpower training.
16.
The
The difficulty in converting earnings in Rmb
into foreign currencies has been a chronic problem facing
many enterprises in the Special Economic Zones. With a
view to tackling this problem, the SSEZ authorities in November 1985 promulgated temporary regulations covering the operations of a centre to trade in foreign
currencies. Enterprises in the SSEZ which wish to trade
foreign currencies may register with the centre.
exchange rate of each transaction is calculated according
to the trader's cost of funds. In other words, if an
enterprise incurs a high cost in earning the foreign
exchange, a higher price will be offered to it. It is
generally expected that the exchange rates for foreign
currencies traded in the centre will be higher than those
quotea by the Bank of China. The rigging of the exchange market in this way is likely to have the effect of encouraging further illegal and quasi-illegal transactions.
COMADENTIAL #5