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15
rights were
delegated to some 500 companies. A larger
proportion of the
Trade operations
economy was opened up to market forces.
became more flexible. Between 1988 and
1990, a system of contracting out foreign trade operations
was implemented. MOFERT authority was delegated to local
offices in provinces to deal with foreign trade matters.
Agreement was reached with the local offices in the
provinces on 3-year targets. Excesses would be retained by
them.
Since 1991, foreign
introduced.
trade operations had been
further relaxed. A policy of equality in competition was
Local offices were expected to assume sole
responsibility for their profits or losses.
manner, they were given more incentive to do well.
In this
9.
The various reforms had resulted in success. The
volume of external trade had increased from US$20 billion
billion in 1990. China's foreign
in 1977/78 to US$110
currency reserve had increased
Furthermore, the import and
changed from 30% to 70%
primary product in 1990.
to US$36 billion in 1990.
export product structure had
manufactured product and 30%
The future direction was to
increase the manufacture of high skill products.
10.
Notes on trade between China and Hong Kong, Hong
Kong and Macao investments in China and China's management
of external trade are at Annexes E, F and G respectively.
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