TNAG-1343-FCO40-1773-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Beijing-fo-1984 — Page 102

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CONFIDENTIAL

BRIEF NO 7

PRIME MINISTER'S VISIT TO CHINA AND HONG KONG 18-21 DECEMBER 1984

CHINA

TRADE: BACKGROUND NOTE

1

Trade

UK trade with China is small:

£ million

1982

1983

1984 (Jan-Oct)

UK exports to China:

103

160

271*

UK imports from China:

193

231

239

*includes an exceptional item: £82 million of silver shipped in June 1984

These are UK trade figures: Chinese trade figures differ widely from those of her western trading partners, eg in 1983 China's customs statistics showed overall UK-China trade about twice as large as the UK figures, with only a small balance in China's favour. Further trade figures at Annex 1.

Main UK exports to China are machinery, chemicals, scientific instruments. Main imports are textiles and clothing, foodstuffs, other agricultural and light industrial products. Japan accounts for about 46% of OECD exports to China and the USA for 18%. The Federal Republic of Germany (FRG) is the most successful European exporter to China with 9% of the OECD total: exports in 1983 were $1080 million, over four times greater than Britain's.

2

Chinese Economic Plans

China has great natural energy and mineral resources and steadily improving agricultural productivity. However, the development of infrastructure and industry is still backward and average output per head is very low. China has announced the target of quadrupling output from industry and agriculture over the last 20 years of this century. High priority is placed on the development of infrastructure (especially energy, transport and

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