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arranged in 1986 amounted to US$6.93 billion.
Of this
sum, US$4.83 billion has already been made use of. At the
end of September 1986, China's foreign exchange reserves stood at US$10.4 billion, compared with US$11.9 billion as
at end-December 1985 and US$10.5 billion as at end-June 1986. It appears that China's foreign exchange reserve
position has now stabilized at around US$10 11 billion, sufficient to cover about three months of its current
import requirements.
22.
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As regards the developments in the special economic zones (SEZ), the twenty-two new provisions on the encouragement of foreign investment, which extend tax benefits to technologically advanced projects and export-oriented enterprises in all parts of the country, will tend to reduce the competitive edge previously enjoyed by the SEZS. With a view to enhancing their attractiveness, some further measures have recently been adopted. Service centres providing comprehensive coordination services for foreign enterprises will soon be set up in the Shenzhen and Shantou SEZS. Services
relating to such aspects as labour recruitment, leasing of land and buildings, and company registration can be obtained from these centres. In another development, the State General Administration of Exchange Control has approved the liberalisation of trading in foreign exchange. at the forex service centres in Shenzhen, Zhuhai and Xiamen. In future, the exchange rates in these centres are expected to be determined to a greater extent by
market forces.
23.
A total pledged investment of US$513.6 million
of foreign capital was absorbed by the Shenzhen SEZ in 1986, down 50% compared with 1985. But largely due to work in progress in connection with a number of capital
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