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16.
Increased foreign borrowings, probably coupled
with an increase in gold sales, explain why China has
managed to maintain its foreign exchange reserve position
notwithstanding the continued trade deficits recorded in
1986. During the first quarter of 1987, China's foreign
exchange reserves grew slightly, by 3%, to:
US$10.8 billion at the end of the quarter. of this sum, US$2.48 billion were state reserves and US$8.32 billion
were reserves of the Bank of China.
17.
Under
In respect of foreign investment,
additional rules have been enacted to formalize and
clarify the state's present policy towards foreign
ventures. An example of this is the provisions
promulgated on 20 January on the purchase and export of
domestic products by enterprises involving foreign investment to balance foreign exchange accounts.
these provisions, enterprises experiencing temporary
foreign exchange imbalance can apply to purchase
locally-made commodities, apart from those subject to
state unified control, for export. The volume of
domestic goods so purchased, however, cannot exceed the
amount of foreign exchange required to cover the
deficit. In March this year, a set of provisional
regulations on the required ratio of registered capital
to total investment for Sino-foreign joint ventures was
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