TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 131

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reserves in the first three quarters of 1988 were high by historical standards, reflecting the substantial reduction

in the visible trade deficits in both 1987 and 1988

compared with 1985 and 1986

(13)

•

The previous peak of China's foreign exchange reserves at US$16.7 billion was recorded at the end of September 1984.

14.

According to China's Ministry of Foreign Economic Relations and Trade (MOFERT), from 1979 to the end of August 1988, China has approved a total of 13,000 enterprises with a foreign investment content (mostly equity and cooperative joint ventures). These involved a total contracted direct foreign investment of US$25.6 billion, of which US$10 billion had been realised. Of the 6 000 enterprises that have been put into operation, 85% are "doing well" and more and more foreign investors are re-investing their profits in China. In the first eight months of this year alone, 3 085 enterprises with foreign investment content (+206% more than in the same period in 1987) were approved. They involved a total contracted direct foreign investment of US$2.85 billion (+75% over the same period in 1987), of which US$1.31 billion (+25.6%) had been realised. Such rapid increases were

(13)

China's visible trade balance

(US$ bn)

1985

1986

1987

1988 ΟΙ 3

Exports

27.35

30.94

39.49

32.91

Imports

42.25

42.91

43.24

36.32

Balance

-14.90

-11.97

-3.75

-3.41

Source : China's General Administration of Customs

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