TNAG-2293-FCO40-3305-Official-visits-from-Hong-Kong-to-China-1991 — Page 65

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rights were

delegated to some 500 companies. A larger

proportion of the

Trade operations

economy was opened up to market forces.

became more flexible. Between 1988 and

1990, a system of contracting out foreign trade operations

was implemented. MOFERT authority was delegated to local

offices in provinces to deal with foreign trade matters.

Agreement was reached with the local offices in the

provinces on 3-year targets. Excesses would be retained by

them.

Since 1991, foreign

introduced.

trade operations had been

further relaxed. A policy of equality in competition was

Local offices were expected to assume sole

responsibility for their profits or losses.

manner, they were given more incentive to do well.

In this

9.

The various reforms had resulted in success. The

volume of external trade had increased from US$20 billion

billion in 1990. China's foreign

in 1977/78 to US$110

currency reserve had increased

Furthermore, the import and

changed from 30% to 70%

primary product in 1990.

to US$36 billion in 1990.

export product structure had

manufactured product and 30%

The future direction was to

increase the manufacture of high skill products.

10.

Notes on trade between China and Hong Kong, Hong

Kong and Macao investments in China and China's management

of external trade are at Annexes E, F and G respectively.

p-visit