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29.
Under the Plan exports will be given priority over domestic consumption. Economic levers like prices,
tax rates, interest rates, exchange rates and customs
duties will be manipulated in such ways as to increase the production and supply of exportable commodities.
30.
The efficient management of China's foreign
exchange reserves is identified as a difficult but vital
task as foreign exchange has to be used in order to - facilitate technological progress and to enhance export ability. Emphasis will be placed on the importation of -software, advanced technology and-key equipment. Imports
of most raw industrial materials and consumer goods are to be allowed only in cases of acute shortage.
31.
Foreign participation or investment is
considered an essential element in the overall strategy of accelerating economic development and generating foreign exchange earnings through exports. In respect of foreign trade and investments, the advantages possessed by the Special Economic Zones, coastal cities and coastal river
delta areas are to be further exploited.
Economic reforms
32.
It is planned to re-structure the economy in three main areas. First, the productivity of all enterprises, especially the large and medium ones owned by the state, is to be further stimulated by making them relatively more independent of administrative control from above and more responsible for their earnings and deficits. Second, the scope for market activities is to be further expanded and the market system further
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CONFIDENTIAL #3
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