TNAG-1268-FCO40-1617-China-s-economic-relationship-with-Hong-Kong-Shenzhen-econom-1983 — Page 50

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importation of foreign technology and machinery,

China's visible trade balance swung from surpluses to

a deficit of US$1,140 million in 1978. The deficit

increased to an historic high of US$2,010 million in

1979. By 1979, China came to realise that many of

the ambitious projects could not be fulfilled and

that the strategy of confining rapid growth to the

most sophisticated sectors of the economy could lead

to unbalanced development and the wastage of economic

resources. With the financial constraint in mind, a

re-adjustment programme was implemented in 1979. So far this programme has placed greater emphasis on agriculture and light industries (that is, the production of foodstuffs and consumer products) and

on rationalising the over-ambitious projects. The

visible trade deficit decreased to US$1,280 million

in 1980 and further to an insignificant US$12 million

in 1981 (Table 8).

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