CONFIDENTIAL #
- 3 -
(b) Export orientation versus import
substitution
5.
Reflecting the influence of market forces and notwithstanding the claims by the Guangdong officials that more or less equal emphasis is placed on export promotion and import substitution, Guangdong has adopted an export oriented development strategy and paid only lip service to
This has enabled Guangdong to import substitution.
exploit the advantages it has; which include natural ones like its being near to Hong Kong and having a large supply of developable land, and acquired ones like its large and fairly adaptable, though relatively unskilled, workforce and an economy which is flexible and responsive by China's standards. By manufacturing a fairly narrow range of products for export, Guangdong has avoided the weakness inherent in having a narrow and under-endowed resource base (paragraph 17).
6.
(c) Role of foreign investment
By the
Foreign investment in Guangdong is valued most for the foreign exchange that comes with it and the number... of new jobs that can be created as a consequence. end of 1987, there were reportedly 5 100 Sino-foreign joint ventures and 10 000 outward processing plants in Guangdong. These Sino-foreign joint ventures were mainly in the manufacturing and services sectors and reportedly employed up to half a million people. Also, approximately one million workers were then employed in outward processing plants, nearly all of which were commissioned by Hong Kong companies. In both 1986 and 1987, foreign exchange earnings from processing fees amounted to US$280 million (paragraph 18).
G.F. 326
CONFIDENTIAL #
Page 165Page 166
No comments yet.
Private notes are available after approval.