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China’s Export Miracle: Origins, Results and Prospects by Noel Tracy, Thomas Chan, Zhu Wenhui

By Noel Tracy, Thomas Chan, Zhu Wenhui

An research of the factors and outcomes of China's transformation from a minor participant to the world's 10th greatest dealer in lower than 20 years. It locates the transformation within the synergy created by means of new forces unleashed in China and their interplay with marketers in Hong Kong, Taiwan and Southeast Asia, who invested capital, transferred construction amenities and supplied the promoting channels through which chinese language items reached global markets. The ebook additionally examines the dynamics at the back of Japan's expanding position in China's international exchange within the past due Nineteen Nineties and the growing to be exchange friction among China and the U.S., which it argues is produced by way of the failure of the latter to recognize the dynamics of China's export growth.

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Additional resources for China’s Export Miracle: Origins, Results and Prospects

Example text

This took place with the support of the respective provincial governments as the loophole Explanations 39 created enormous opportunities for them to engage in profitable transactions. 5 per cent in 1979 and 9 per cent in 1980 on the increased value of exports over the previous year, but even this was a major improvement for enterprises and provinces, which in the past had had no access to foreign exchange for their own purposes whatsoever. By 1983, however, the retained component had risen to an average 25 per cent, which constituted a considerable incentive.

This latest reform, which forced FTCs, ministries and enterprises to take account of the world price and partially assume responsibility for profitable international trading, marks the real beginning of foreign trade reform in China. From this time on, more and more FTCs were established at all levels. These often exported in the first instance in order to gain the foreign exchange to engage in the very profitable importing of both consumer and capital goods to meet the huge demand now growing in the cities as the benefits of economic reform spread from the countryside.

FIEs in Tianjin, in the Northeast of the country, in the Bohai Gulf region, now exceeded those in the Southeast, albeit in a substantially smaller total than Guangdong or even Fujian. In Tianjin, the exports of FIEs had risen from 5 per cent of the total in 1990 to almost 45 per cent in 1995 and to more than two-thirds by 1997 13 and this has considerable significance for the future. What is of greater significance, particularly for future directions, however, is the growing number of provinces and cities with provincial status 14 in which FIEs have contributed the greater part of the increase in exports since 1990.

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