We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
To save content items to your account,
please confirm that you agree to abide by our usage policies.
If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account.
Find out more about saving content to .
To save content items to your Kindle, first ensure [email protected]
is added to your Approved Personal Document E-mail List under your Personal Document Settings
on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part
of your Kindle email address below.
Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations.
‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi.
‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Foreign direct investment (FDI) in China is the most dramatic manifestation of China's open-door policy. Together with continuous import and export expansion, FDI has increasingly exposed the Chinese economy to the western world during the past decade. There are, however, several differences between FDI and foreign trade in terms of their implications for the domestic economy. The most obvious is that FDI directly helps to relieve domestic capital supply bottlenecks and to promote employment and economic growth. By contrast, increased capital formation through imports of machinery and equipment must be financed by extra export earnings.
Although not commonly recognized as such, China is a sizeable oil exporter in the world. In 1985, for example, it exported 36.24 million tonnes of crude oil and oil products, accounting for 2.41 per cent of total oil exports in the world. Oil also satisfied 17 per cent of total domestic energy needs and generated 25.9 per cent of all export earnings of the country in 1985.
The varied experience of China's agricultural economy during the 1980s highlights the challenges and opportunities facing the farm sector during the present decade. Until 1985 agriculture's performance was widely regarded as an unqualified success. Decollectivization and institutional initiatives provided a framework which allowed, for the majority of farmers, an unprecedented degree of independence in decision-making. Farming was once more practised on a household basis, peasants' activities were increasingly geared towards market signals and their economic relationship with the state defined by legal contracts. Large increases in the purchase prices of major farm products provided the material incentive for the expansion of all branches of the agricultural economy. These same increases were the source of substantial gains in income, which contained the wherewithal for large-scale investment in agricultural production.