CONFIDENTIAL &
THE
their enjoying trading advantages over the rest of China. Recently there has been some recognition by China, in official and unofficial analysis, that the pattern adopted by the SEZs cannot serve as a pattern for the economic development in the country as a whole and that the SEZS are little more than an experiment from which valuable experience can be drawn.
Locomotive of growth in the context of the national economy
5.
In terms of the growth rate of the size of its economy since 1979, the performance of the SSEZ has been spectacular, though it should be remembered that these growth rates are calculated on a very small economic base. The SSEZ's gross industrial output (including industrial and residential construction works) is estimated to have reached Rmb 1.8 billion in 1984, nearly
30 times that in 1979. The growth rate of investment in capital construction (including plant and machinery as well as building and construction works) was equally rapid and expenditure probably exceeded the Rmb 1 billion mark in 1984.
6.
Notwithstanding the very rapid growth in the industrial output of the SSEZ since 1979, its contribution to the national total is still insignificant. At Rmb 1.8 billion in 1984, the industrial output of the SSEZ made up less than 0.3% of the national total of Rmb 701.5 billion
in 1984. The industrial sector of the SSEZ is still very small when compared with other well-established industrial centres like Shanghai. The industrial output of Shanghai Municipality in 1984 was valued at Rmb 74 billion, which represented around 10% of the national total in that year.
G.F. 316
CONFIDENTIAL # 3
No comments yet.
Private notes are available after approval.