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foreign exchange reserves halved. This was achieved
through controlling the growth of imports (especially
consumer durables) while increasing exports.
Export
performance was good, increasing 13%, despite the drop in
earnings from oil sales, the most lucrative export item
over recent years, due to the fall in world prices.
Textile exports recorded fast growth in 1986 to take over
as the leading foreign exchange earner. But further
growth will be difficult: some of China's exports are
meeting protectionist barriers and there is a general
problem of poor quality and uncompetitiveness.
enterprises are generally cut off from and ill-prepared
to compete in international markets. The official
currency, the Renminbi Yuan (RMBY), has been steadily
falling in value over recent years and there are now Y5
to £1.
Chinese
5. Reform has brought great success in agriculture with
marked increases in production of non-staples such as
meat and vegetables as well as grain. Yet here, too,
there are problems. Grain production rose in 1986 over
the 1985 level but was below the record 1984 harvest.
Although far from a disaster in economic terms, the
reformers have suffered a presentational set-back.
government has offered incentives to prevent more
The
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