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enterprise autonomy or is it subject to fluctuations in the

Which enterprises country's foreign exchange position?

currently are "autonomous" and what are the constraints imposed on their autonomy by Beijing?

E. Subsidies. What is the definition of a subsidy in a non-market economy such as China? If almost all of China's trade is run by the state, can it not be argued that almost all of China's trade is subsidized? What steps has China taken to

Is reduce the level of state subsidies in its trade system? there a linkage between domestic reform, which has reduced certain subsidies (e.g., agricultural price subsidies) and foreign trade reform? Is China using the exchange rate lever to lessen the influence of subsidies in trade?

F. Trade transparency (general). Although not referred to specifically in the Secretariat document, an additional question is what are the existing channels for exchange of information about the Chinese trade system? Is information easily obtainable? Are the Chinese generally reluctant to provide outside observers and interested parties with this information? Perhaps most important, is China's foreign trade system regulated by a set of laws, regulations, and policies

Are the that are restricted to internal consumption? regulations that outside observers have access to merely the tip of the iceberg?

USDEL:5/27/86

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