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15 Balassa, Bela, The Process of Industrial Development and Alternative Development Strategies, Essays in International Finance, No. 141 (Princeton: Princeton University Press, 1980), pp. 5–11. For more information on China's IS strategy, seeGoogle ScholarLardy, Nicolas, Foreign Trade and Economic Reform in China, 1978–1990 (Cambridge: Cambridge University Press, 1992), ch. 2; The World Bank,Google ScholarChina: External Trade and Capital (Washington, DC: The World Bank, 1988), pp. 95–99Google Scholar;Reynolds, Bruce, “China in the international economy,” in Harding, Harry (ed.), China's Foreign Relations in the 1980s (New Haven: Yale University Press, 1984), pp. 83–90.Google Scholar

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19 “Utopians” also engaged in “incremental learning.” See Lieberthal, “The Great Leap Forward,” pp. 354–55.Google Scholar

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29 For instance, see “Guanyu shougou zhongyao jingji zuowu shixing liangshi jiangli de zhishi” (“Directive on carrying out the grain bonus in procuring important cash crops”), issued by the CCP Central Committee on 3 04 1961, inGoogle ScholarZhongguo de jingji guanli bianjibu, Dangdai, A Chronology of Major Events in the PRC's Economy and Management, p. 157.Google Scholar

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32 Xiannian, Li, “Yiju xin qingquang zuohao waimao gongzuo” (“Do a good job in foreign trade work according to the new situation”), speech to the National Foreign Trade Planning Conference, delivered on 26 11 1963, inGoogle ScholarXiannian, Li, Discussions on Finance and Trade, Vol. 2, p. 151.Google Scholar

33 Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, pp. 18–19.Google Scholar

34 Qingfeng, Tanet al.Google ScholarIbid. p. 69. The exact method of loan dispersal was first codified in 1964 and recodified in 1972, 1975 and 1982. See Qingfeng, Tanet al. p. 70; “Chukou gongyepin shengchan zhuanxiang daikuan banfa” (“Specialized loan procedures for the production of industrial products for export”), Maojizongzi 82.35, issued by the Ministry of Foreign Economics and Trade, the Ministry of Finance and the People's Construction Bank on 13 05 1982, inGoogle Scholarrenmin yinhang jihuasi, Zhongguo (ed.), Lilü wenjian huibian (A Collection of Documents on Interest Rates) (Beijing: Zhongguo jinrong chubanshe, 1986), pp. 803–806.Google Scholar

35 Xiannian, Li, “Shangye he waimao ruogan gongzuo wenti” (“Certain problems in commercial and foreign trade work”), delivered at an Office Conference of the State Council Office of Finance and Trade on 25 08 1965, inGoogle ScholarXiannian, Li, Discussions on Finance and Trade, Vol. 2, pp. 254–55.Google Scholar

36 “Guanyu zhengzhi guashuai wenti de yijian” (“Opinion on putting politics in command”), submitted by Wang Renzhong, and approved/transmitted by the CCP Central Committee on 10 04 1966, inGoogle ScholarZhongguo de jingji guanli bianjibu, Dangdai, A Chronology of Major Events in the PRC's Economy and Management, p. 231.Google Scholar

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38 Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 70.Google Scholar

39 “Guanyu quxiao feimaoyi waihui fencheng banfa de tongzhi” (“Circular on abolishing the method of apportioning foreign exchange for non-trade channels”), issued by the State Council on 9 05 1967, inGoogle ScholarZhongguo de jingji guanli bianjibu, Dangdai, A Chronology of Major Events in the PRC's Economy and Management, p. 240.Google Scholar

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44 “Guanyu zhuanfa ‘duanqi waihui daikuan shixing banfa’ xi zunzhao zhixing (fu: duanqi waihui daikuan shixing banfa)” (“The letter of instructions concerning the issuance of ‘The provisional measures for short-term foreign exchange loans’ (attached: The provisional measures for short-term foreign exchange loans)”), Maochudaierzi 73.99/Yin-waizi 73.135, issued by the MFT and the People's Bank of China on 16 06 1973, inGoogle Scholarrenmin yinhang jihuasi, Zhongguo, A Collection of Documents on Interest Rates, pp. 378–79.Google Scholar

45 jingji maoyibu renshi jiaoyuju, chukou huoyuan gailun bianxiezu, Duiwai (ed.), Chukou huoyuan gailun (An Introduction to Export Sourcing) (Beijing: Zhongguo duiwai jingji maoyi chubanshe, 1986), p. 89.Google Scholar

46 Between 1973–1979, 2,010 projects received loans totaling US$247.37 million. See Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, pp. 93–94, 104Google Scholar; jingji maoyibu renshi, Duiwai, An Introduction to Export Sourcing, p. 90Google Scholar; Xiaoxian, Li (ed.), Duiwai maoyi yuanli yu shiwu jiaocheng (Text on the Principles and Practices of Foreign Trade) (Shanghai: Shanghai renmin chubanshe, 1986), pp. 60–61Google Scholar; Wutong, Wu, Introduction to the Basics of Foreign Trade, pp. 33–34.Google Scholar

47 Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, pp. 111–15Google Scholar; jingji maoyibu renshi, Duiwai, An Introduction to Export Sourcing, pp. 91–92Google Scholar; Xiaoxian, Li, Text on the Principles and Practices of Foreign Trade, p. 61Google Scholar; Wutong, Wu, Introduction to the Basics of Foreign Trade, pp. 34–35.Google Scholar

48 “Guanyu shixing nong-fuchapin tongyi jiangshou banfa de qingshi baogao” (“Report and request for instructions on implementing a unified bonus scheme on agricultural sideline products”), submitted by the SPC and approved/transmitted by the State Council on 19 03 1973, inGoogle ScholarZhongguo de jingji guanli bianjibu, Dangdai, A Chronology of Major Events in the PRC's Economy and Management, p. 275Google Scholar; Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, pp. 21, 38–41.Google Scholar

49 Yun, Chen, “Liyong guonei fengfu laodongli shengchan chengpin chukou” (“Use China's abundant labour to produce finished products for export”), in Yun, Chen, Chen Yun wenxuan (Chen Yun's Selected Works), Vol. 3 (Beijing: Renmin chubanshe, 1995), p. 224.Google Scholar

50 For instance, a Chinese delegation visiting the Kodak Corporation in 1974 was presented with a glass snail. Jiang Qing strongly criticized the gift and the importation of the colour kinescope production line to the PRC. See Dashen, Xu (ed.), Gongheguo shiji, di sanjuan (A Chronology of the Republic), Vol. 3 (Changchun: Jilin renmin chubanshe, 1996), pp. 899–901.Google Scholar

51 For instance, see the “Politics in command” coalition's attack on China's foreign economic policy during the 25 June 1976 Political Bureau meeting: Dashen, Xu, A Chronology of the Republic, Vol. 3, pp. 1241–42.Google Scholar

52 Reardon, Lawrence C. (ed.), “China's coastal development strategy, 1979–1984 (I)” Chinese Law and Government, No. 27 (1994), pp. 9–18.Google Scholar

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54 According to “Guanyu shangpin fenji guanli banfa de baogao” (“Report on the managing procedures for commodity classification”) of 12 February 1959, commodities were divided into three different categories: commodities whose export was restricted (e.g. cotton, vegetable oil); limited commodities demanded by both the domestic and export markets (e.g. tea and pork); and all others. On 17 October 1979, the State Council approved the Ministry of Commerce's “Guanyu dangqian shangye gongzuo jidian yijian de baogao” (“Report on several opinions on current commerce work”) that reaffirmed the 12 February 1959 classification, in Zhongguo de jingji guanli bianjibu, Dangdai, A Chronology of Major Events in the PRC's Economy and Management, pp. 122, 364.Google Scholar

55 Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 55.Google Scholar

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57 “Investment measures for commodity production” originated in 1973 and distributed close to 800 million yuan between 1973 to 1981 for 615 export production projects.Google ScholarSee Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 111Google Scholar; jingji maoyibu renshi, Duiwai, An Introduction to Export Sourcing, p. 91.Google Scholar

58 “Specialized loans for the production of commodities for export” were instituted in 1964 to increase industrial export quality and variety and improve packaging. Between 1972 and 1980, the loans financed the acquisition of 110,000 pieces of equipment at a total cost of 1.84 billion yuan. See Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 69Google Scholar;jingji maoyibu renshi, Duiwai, An Introduction to Export Sourcing, p. 86.Google Scholar

59 Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 120.Google Scholar

60 Xiannian, Li, “Jiejue hao renmin de chuanyi wenti” (“Find a solution to clothing the masses”), speech delivered on 23 May 1998 to the National Conference on the Textile Industry Studying Daqing, inGoogle ScholarXiannian, Li, Discussions on Finance and Trade, Vol. 2, p. 333.Google Scholar

61 The “Administrative measures” were combined in 1981 with the State Science Commission's “Supplementary funds for scientific research used for foreign trade” (“Waimao keyan buzhufei”) to form the MFT's “Trial management procedures for science and technology used for foreign trade” (“Waimao keji guanli shixing banfa”). Between 1979 and 1981, the two original funds issued 18.95 million yuan to over 400 successful projects. See jingji maoyibu renshi, Duiwai, An Introduction to Export Sourcing, p. 93,Google ScholarShouchun, Wang and Kanghua, Li, Zhongguo duiwai jingji maoyi de xin fazhan (The New Developments of China's Foreign Economic Trade) (Beijing: Duiwai maoyi jiaoyu chubanshe, 1986), p. 43Google Scholar;Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 115–18.Google Scholar

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64 “Guanyu chukou shangpin waihui liucheng shixing banfa” (“Trial procedures of the foreign exchange retention scheme earned from export commodities”), issued on 13 08 1979 by the State Council under “Guanyu dali fazhan duiwai maoyi zengjia waihui shouru ruogan wenti de guiding” (“The regulations regarding problems in putting great effort in developing foreign trade and increasing foreign exchange revenue”), State Council document 79.202, in Reardon, “China's coastal strategy, 1979–1984 (I),” pp. 9–18.Google Scholar

65 “Guanyu feimaoyi waihui liucheng shixing banfa” (“Trial procedures of the foreign exchange retention scheme earned from non-trade activities”) was also issued under State Council document 79.202, Ibid.

66 guoji jinrong xuehui, Zhongguo (ed.), Waihui tizhi gaige taolun wenji (Collected Works on Discussions of Foreign Exchange Structural Reforms) (Beijing: Zhongguo jinrong chubanshe, 1986), p. 146.Google Scholar

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70 Tan Qingfeng etal.Ibid. p. 60. Export taxes were reimposed on 30 April 1982 with“Guanyu ruogan shangpin zhengshou chukou guanshui de qingshi” (“Request for instructions concerning the imposition of export taxes on certain commodities”), submitted by the MOF et al. and approved by the State Council on 30 April 1982, in Dangdai Zhongguo de jingji guanli bianjibu, A Chronology of Major Events in the PRC's Economy and Management, p. 470.Google Scholar

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72 The devaluation finally began in February 1981, when RMB value dropped from 1.5487 yuan to 1.6106 yuan. Daily settlement rates were only provided after 28 05 1981. See waihui guanliju, Guojia (ed.), Huijia shouce (Handbook of Currency Values) (Beijing: Zhongguo jinrong chubanshe, 1986), pp. 352–53Google Scholar;“Guanyu dui waimao danwei jiehui yilü gaiyong dangtian jiage de tongzhi” (“Circular on the change-over to a daily foreign exchange settlement rate for units dealing in foreign trade”), Zhongzongzi 81.623, issued by the BOC on 28 05 1981, in renmin yinhang bangongshi, Zhongguo, Yijiubayi nian jinrong guizhang zhidu xuanbian (Selections of the 1981 Financial Rules and Regulations) (Beijing: Zhongguo jinrong chubanshe, 1983), p. 381.Google Scholar

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74 Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 50.Google Scholar

75 “Yijin yangchu shixing banfa” (“Trial procedures for the importation of materials to develop exports”), issued on 26 March 1979 by the State Council, in Zhejiang sheng sifating, Zhejiang sheng duiwai jingji maoyiting (ed.), A Selection of Foreign Economic Laws and Policies, Vol. 1, pp. 175–78. Processing and assembly activities were greatly expanded, including the importation of major pieces of equipment such as boat motors and instrumentation. The yijin yangchu programme was included within the Plan, and thus was different from the processing and assembly activities and compensation trade first approved by State Council document 78.139 in 07 1998.Google Scholar See Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 4Google Scholar; Xinhao, He, “Yijin yangchu shi woguo fazhan duiwai maoyi de yixiang zhanlüexing cuoshi” (“Using imports to develop exports is a strategic measure to develop China's foreign trade”), in Jikun, Wu (ed.), Foreign Trade Development Strategy, pp. 119–126.Google Scholar

76 Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 48; ch. 2's discussion of “Five priority” status.Google Scholar

77 “If either the RMB price of imported raw and supplementary materials or the profit/tax rate is too high and causes large export losses, and if there is a foreign market [for the product] and a reasonable rate of return of foreign exchange, then imported materials will be priced according to the actual import cost and a 3 per cent administrative fee.” See State Council document 79.206.Google Scholar

78 Shouchun, Wang and Kanghua, Li, The New Developments of China's Economic Trade, p. 103; Renmin ribao, 11 05 1969. For background on past joint ventures with the Soviets, Poles and Czechs, seeGoogle ScholarXiangdong, Liu (ed.), Liyong waizi zhishi shouce (The Handbook of Investment Knowledge) (Beijing: Shijie zhishi chubanshe, 1986), pp. 7–8.Google Scholar

79 “Guanyu daikuan gei Zhonghua renmin gongheguo de xieding” (“Agreement on a loan for the People's Republic of China”), signed by the PRC and the Soviet Union on 24 02 1950, in zhongyang wenxian yanjiushi, Zhonggong (ed.), Jianguo yilai zhongyao wenxian xuanbian, diyi ce (Selected Important Documents Issued Since the Establishment of the PRC) (Beijing: Zhongyang wenxian chubanshe, 1992), pp. 123–24.Google Scholar

80 Usually foreign countries extended sellers' credit to finance transactions with China. China would pay 10–15% of the cost in convertible currency and the rest over an extended period. This is not to be confused with buyers' credit. In the Chinese case, buyers' credit was only used at the end of 1998 in the form of officially supported credit extended by foreign Export/Import banks. See Xiangdong, Liu (ed.), The Handbook of Investment Knowledge, p. 125Google Scholar;Shouchun, Wang and Kanghua, Li, The New Developments of China's Economic Trade, p. 108Google Scholar;The World Bank, China's Socialist Economic Development, Vol. II (Washington, DC: The World Bank, 1983), p. 462.Google ScholarFor a cryptic description by Xiannian, Li, see “Shichang qingkuang haozhuanhou xuyao jixu jiejue de wenti” (“Problems which must continue to be resolved after the improvement of market conditions”), in Xiannian, Li, Discussions on Finance and Trade, Vol. 2, p. 171.Google Scholar

81 Youngson, A. J. (ed.), China and Hong Kong: The Economic Nexus (Hong Kong: Oxford University Press, 1984), p. 26. The leaderships' definition of foreign debt is revealed in Chen Yun's 18 09 1979 speech to the Finance and Economics Commission: “Basically speaking, there are only two types of foreign debt: the first type is buyers' credit … The second is convertible foreign exchange loans.”Google ScholarSee Yun, Chen, “Zai caijing weiyuanhui zhaokai de huibao shang de fayan” (“Speech to the report-back meeting of the finance and economic commission”), in zhongyang wenxian yanjiushi, Zhonggong (ed.), Sanzhong quanhui yilai zhongyao wenxian xuanbian (Selected Important Documents Issued Since the Third Plenum) (Beijing: Renmin chubanshe, 1982), pp. 172–73. He doesn't consider sellers' credit to be a form of foreign debt.Google Scholar

82 According to the Chinese sources, long-term financing was available, but the majority of terms were five years' long. See Chucai, Long (ed.), Introduction to the Use of Foreign Capital, p. 230.Google Scholar

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84 After China was branded an aggressor state in the Korean conflict, the UN imposed an embargo on “strategic” exports to China in May 1951. Subsequently, the China Committee (CHINCOM) was established within the Consultative Group Co-ordinating Committee (COCOM) to impose stricter limitations on Western trade with China and North Korea than those imposed on other Soviet bloc countries. For further information on the lessening of CHINCOM restrictions, see Qing Simei, “The Eisenhower administration and changes in Western embargo policy against China, 1954–1958,” in Cohen, Warren I. and Iriye, Akira (eds.), The Great Powers in East Asia, 1953–1960 (New York: Columbia University Press, 1990), pp. 131–36Google Scholar;Hughes, T. J. and Luard, D. E. T., The Economic Development of Communist China, 1949–1960 (New York: Oxford University Press, 1959), p. 136.Google Scholar

85 For instance, see “Huaqiao dingqi chuxu cunkuan zhangcheng” (“Regulations regarding Overseas Chinese fixed savings deposits”), issued by the People's Bank of China in January 1958 and revised in April 1960 and July 1960, in Zhongguo renmin yinhang jihuasi, A Collection of Documents on Interest Rates, pp. 273–74Google Scholar;“Guanyu xiugai huaqiao chuxu cunkuan lilü he zengjia cunqi zhonglei de tongzhi” (“Circular on revising the interest and deposit schedules of Overseas Chinese fixed savings deposits”), Yinguoqingcaozi 60.154, issued by the People's Bank of China on 19 June 1960, in Zhongguo renmin yinhang jihuasi, pp. 277–78; and“Guanyu chuxu ruhe jisuan lixi deng wenti de zonghe jieda” (“A comprehensive response to calculating interest rates on savings and other problems”), Shangchuzi 65.71, issued by the People's Bank of China on 28 07 1965, in Zhongguo renmin yinhang jihuasi, pp. 349–352.Google Scholar

86 “Guanyu lizheng yijiuliusi nian chaoe wancheng yiyierqianwan meiyuan qiaohui renwu de qingshi baogao” (“Report and request for instructions on working hard to meet and exceed the Overseas Chinese U.S. dollar remittances for 1964 of US$120 million”), submitted by the Small Group on Overseas Chinese Remittances and approved by the Central Committee and the State Council on 21 05 1964, in Dangdai Zhongguo de jingji guanli bianjibu, A Chronology of Major Events in the PRC's Economy and Management, p. 207.Google Scholar

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88 Lin Jinzhi, Ibid. p. 484.

89 Weizhong, Fang, A Chronology of Major Events, 1949–1980, pp. 463–64, 495.Google Scholar

90 “Guanyu caizheng maoyi he shougongye fangmian ruogan wenti de baogao” (“Report on several policy problems in finance, trade and the handicraft industries”), submitted by the State Council's Office of Finance and Trade and the SPC, and approved by the CCP Central Committee on 24 September 1966, in Dangdai Zhongguo de jingji guanli bianjibu, A Chronology of Major Events in the PRC's Economy and Management, p. 236.Google Scholar

91 “Guanyu chexiao huaqiao touzi gongsi de baogao” (“Report on closing the Overseas Chinese Investment Company”), submitted by the Military Representative of the People's Bank of China and approved by the State Council on 12 05 1970, in Dangdai Zhongguo de jingji guanli bianjibu, A Chronology of Major Events in the PRC's Economy and Management, p. 258Google Scholar;“Guanyu huaqiao touzi jige wenti de dafu” (“Response to several problems in Overseas Chinese investment”), Yinjunmiyezi 70.154, issued by the People's Bank of China on 29 05 1970, in renmin yinhang jihuasi, Zhongguo, A Collection of Documents on Interest Rates, pp. 362–63.Google Scholar

92 Xiangdong, Liu (ed.), The Handbook of Investment Knowledge, p. 125Google Scholar;Shouchun, Wang and Kanghua, Li, New Developments in China's Foreign Economic Trade, p. 108Google Scholar;The World Bank, China's Socialist Economic Development, p. 462.Google Scholar

93 Xiaoping, Deng, “Guanyu fazhan gongyc de jidian yijian” (“Several suggestions to develop industry”), in Deng Xiaoping, Deng Xiaoping wenxuan, 1975–1982 (Selected Works of Deng Xiaoping) (Beijing: Renmin chubanshe, 1983), p. 29.Google Scholar

94 “Guanyu jiji zhengqu qiaohui de yijian” (“Opinion on actively striving for Overseas Chinese remittances”), State Council document 78.29, issued in early 1998, cited in “Guanyu juban waibi dingqi cunkuan de tongzhi” (“Circular on conducting foreign currency time deposits”), Zhongzongzi 79.2004, issued by the BOC on 31 10 1979, in Zhongguo renmin yinhang jihuasi, A Collection of Documents on Interest Rates, p. 674.Google Scholar

95 On 13 08 1998, the Central Committee established a Small Group on Hong Kong and Macau. See Zhonggong zhongyang dangshi yanjiushi, Zhonggong dangshi dashi nianbiao (A Chronicle of Major Events in Central Party History) (Beijing: Renmin chubanshe, 1987), p. 418. The State Council also reopened its Office on Overseas Chinese Affairs that had been closed since 1970; Jinan University (Guangzhou) and the Overseas Chinese University (Xiamen) reopened. Meetings of various Overseas Chinese groups were held in December 1998 and new Overseas Chinese Associations were established.Google ScholarSee Lizhou, Yuan (ed.), Tongzhan zhishi yu zhengce (Knowledge and Policies of the United Front) (Harbin: Harbin gongye daxue chubanshe, 1985), pp. 476–77Google Scholar;Yongchun, Li, Yuanqin, Shi, and Xiuzhi, Guo, Shiyijie sanzhong quanhui yilai zhengzhi tizhi gaige dashiji (Chronicle of Political Structural Reforms Since the Eleventh Plenum) (Beijing: Chunqiu chubanshe, 1987), p. 42; Renmin ribao, 21 10 1985.Google Scholar

96 The Central Committee presumably decided to use foreign capital, and this decision was then discussed during the State Council Ideological Discussion Conference. An allusion to the Central Committee decision was made by Chen Yun in his 21 03 1979 speech. See Yun, Chen, “Tiaozheng guomin jingji, jianchi an bili fazhan” (“Readjust the national economy, support proportional development”), in zhongyang wenxian yanjiushi, Zhonggong (ed.), Selected Important Documents Issued Since the Third Plenum, p. 75–76. Both Zou Chuntai and Fang Weizhong (A Chronology of Major Events, 1949–1980, pp. 425, 603 respectively) state that the decision to use foreign capital was adopted during the 1998 Ideological Conference. Thus, it is a “chicken and egg” problem.Google Scholar

97 MacDougall, Colina, “Policy changes in China's foreign trade since the death of Mao, 1976–1980,” in Gray, Jack and White, Gordon (eds.), China's New Development Strategy (New York: Academic Press, 1982), p. 160Google Scholar;The World Bank, China's Socialist Economic Development, p. 462. For the Chinese definition of buyers' credit,Google Scholarsee Yun, Chen, “Speech to the report-back meeting of the finance and economic commission,” p. 172.Google Scholar

98 “Guanyu xishou huaqiao, waijiren deng zijin xingjian lüyou lüguan wenti de baogao” (“Report on the problem of absorbing capital from Overseas Chinese, foreigners and others to construct tourist hotels”), Jiji 78.583, submitted by the SPC on 26 August 1998, as cited in “Guanyu xishou qiaozi, waizi jianshe lüyou lüguan jinkou wuzi zhengmianshui wenti de qingshi” (“Request for instruction on the problem of reduction or elimination of taxes on imported materials for tourist hotels constructed with capital from Overseas Chinese and foreigners”), Maoguanshuizi 79.498, submitted to the State Council on 30 October 1979 by the MFT, in Zhejiang sheng sifating, Zhejiangsheng duiwai jingji maoyiting, A Selection of Foreign Economic Laws and Policies, pp. 787–89.Google Scholar

99 “Kaizhan duiwai jiagong zhuangpei yewu shixing banfa” (“Trial procedures for developing processing and assembly operations for the foreign market”), State Council document 78.139, issued on 15 July 1998, cited in “Yinfa ‘duiwai jiagong zhuangpei yewu de waihui jiesuan shixing banfa’ de tongzhi” (“Circular on the publication of ‘The trial procedures of foreign exchange settlement for processing and assembly operations for the foreign market’”), Maozonghuizi 78.203/Yinwaizi 78.399, issued by the MFT et al. on 28 08 1998, in Zhejiang sheng sifating, Zhejiang sheng duiwai jingji maoyiting, A Selection of Foreign Economic Laws and Policies, pp. 475–77.Google Scholar

100 Xiannian, Li, “Zai guowuyuan wuxuhui shang de jianghua” (“Speech to the State Council Ideological Conference”) 9 09 1998, in Xiannian, Li, Discussions on Finance and Trade, Vol. 2, p. 370.Google Scholar

101 State Council document 78.139; MacDougall, “Policy changes in China's foreign trade,” pp. 160–62.Google Scholar

102 Hu Yaobang, “Guanyu duiwai jingji guanxi wenti” (“The problem of foreign economic relations”), in Zhonggong zhongyang wenxian yanjiusi (ed.), Sanzhong, p. 1119.Google Scholar

103 This amount included US$8.2 billion in Eurodollar credits arranged by 31 Japanese non-governmental banks and 22 companies. For details, see “Guanyu he Riben minjian yinhang qianding xindai xicyi de qingkuang ji shiyong gaixiang xindai ying zhuyi youguan shixiang de tongzhi” (“Circular on the conditions under which a credit agreement was signed with the Japanese non-governmental banks and the relevant matters that must be attended to utilize this credit”), Zhongyezi 79.1624, issued by the BOC on 5 September 1979, in Zhongguo renmin yinhang jihuasi, A Collection of Documents on Interest Rates, pp. 672–74.Google Scholar

104 LIBOR is the standard by which international banks set foreign commercial loan interest rates. In May 1979, the rate was set a 10.5%, jumping to 17% by August. As for the Japanese non-governmental loans, the interest rate the Chinese would have to pay was set at 0.25–0.5% over the LIBOR rate.Google Scholar

105 On 18 12 1981, the agreement was adjusted to finance commodity purchases for two “New Great Leap Forward” projects, the Daqing Petrochemical Complex and the Baoshan Steel Complex. See Long Chucai (ed.), Introduction to the Use of Foreign Capital, pp. 253, 288, 300; Kokubun, Ryosei, “The politics of foreign economic policy-making in China: the case of plant cancellations with Japan,” The China Quarterly, No. 105 (1986), pp. 19–44Google Scholar; Davie, John L. and Carver, Dean W., “China's international trade and finance,” in U.S. Congress, Joint Economic Committee (ed.), China Under the Four Modernizations (Washington, DC: GPO, 1982), p. 27.Google Scholar

106 Davie and Carver, “China's international trade and finance,” p. 28; The World Bank, China's Socialist Economic Development, p. 462.Google Scholar

107 “Guanyu shiyong Ying, Fa, Yi yinhang maifang xindai jinkou chengtao shebei youguan wenti de tongzhi” (“Circular concerning the problems of using sellers' credit from English, French and Italian banks to import turnkey factories”), Zhongyezi 79.1417, issued by the BOC on 5 09 1979, in Zhongguo renmin yinhang jihuasi, A Collection of Documents on Interest Rates pp. 670–72.Google Scholar

108 In 1980, China recovered its seat in both the World Bank and the IMF. During 1981, the World Bank agreed to lend China US$800 million; the IMF lent SDR759 million to help cover a foreign exchange deficit; and the International Agricultural Development Fund lent US$35 million to be paid back over a 50-year period at a 1% interest rate.Google Scholar

109 Chen Yun, “Jingji xingshi yu jingyan jiaoxun” (“The economic situation and the lessons from experience”), in Zhonggong zhongyang wenxian yanjiusi (ed.), Sanzhong, pp. 601–02.Google Scholar

110 “Guanyu Zhongwai heying qiye ji ge wenti de qingshi baogao” (“A report and request for instructions concerning several problems involving joint venture problems with foreign countries”), Central Committee document 80.14, submitted by the Foreign Investment Management Commission and approved in principle on 6 February 1980, in Dangdai Zhongguo de jingji guanli bianjibu, A Chronology of Major Events in the PRC's Economy and Management, p. 377.Google Scholar

111 See “Guanyu duiwai jiagong zhuangpei yewu kaizhan qingkuang de baogao” (“Report on developing processing and assembly operations for the foreign market”), State Council document 79.135, submitted by the SPC on 10 April 1979 and approved on 21 May 1979, in Zhejiang sheng sifating, Zhejiang sheng duiwai jingji maoyiting, A Selection of Foreign Economic Laws and Policies, pp. 932–940.Google Scholar

112 Central Committee document 80.14, in Reardon, “China's coastal development strategy, 1979–1984 (I),” pp. 45–58.Google Scholar

113 “Zhongwai hezi jingying qiye laodong guanli guiding” (“Labour management regulations for equity joint ventures between China and foreign businessmen”), State Council document 80.199, issued on 26 July 1980, in Guojia jingwei jishu gaizaoju, guojia jingwei guanli yanjiusuoGoogle Scholar, jinchukouju, guojia jingwei (ed.), Jishu gaizao jishu yinjin wenjian huibian (A Collection of Documents Relating to Technological Transformation and Importation) (Beijing: Zhongguo jingji chubanshe, 1985), pp. 417–19.Google Scholar

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115 “Zhongwai hezi jingying qiye dengji guanli banfa” (“Management procedures for the registration of equity joint ventures between China and foreign businessmen”), State Council document 80.200, issued on 26 July 1980, in Guojia jingwei jishu gaizaoju et al. Documents Relating to Technological Transformation and Importation, pp. 420–21.Google Scholar

116 “Zhongwai hezi jingying qiye suodeshui fa” (“The equity joint venture enterprises income tax law”) approved and issued by the National Peoples' Congress on 10 September 1980; “Geren suodeshui fa” (“The individual income tax law”) approved and issued by the National Peoples' Congress on 10 September 1980.Google ScholarSee tiaofa bangongshi, Guojia jihua weiyuanwei (ed.), Zhongyao jingji fagui ziliao xuanbian, 1977–1986 (A Selection of Important Economic Laws, Regulations and Materials) (Beijing: Zhongguo tongji chubanshe, 1987), pp. 879–880, 885–87.Google Scholar

117 “Kaizhan duiwai jiangong zhuangpei he zhongxiaoxing buchang maoyi banfa de tongzhi” (“Circular on procedures for developing processing and assembly operations for the foreign market and medium- to small-scale compensation trade”), State Council document 79.220, issued on 3 September 1979, in Guowuyuan tequ bangongshi, bangongting mishuju, Documents Relating to the Opening of the Coastal Cities and the Special Economic Zones, pp. 353–57. This document was preceded by one month by “Guanyu buchong xiuding ‘kaizhan jiagong zhuangpei yewu shixing banfa’ de qingshi baogao” (“Report and request for instructions on supplementing and revising ‘Trial procedures for developing processing and assembly operations for the foreign market’”), submitted to the State Council by the SPC, the SEC, the SCCIEA, and the MFT on 4 August 1979, in Zhejiang sheng sifating, Zhejiang sheng duiwai jingji maoyiting, A Selection of Foreign Economic Laws and Policies, pp. 925–29.Google Scholar

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119 Chen Yun, “Readjust the national economy, support proportional development,” p. 79. Discussions for joint offshore exploration had already begun by the summer of 1998, with letters of intent signed in April 1979. For more information, see Lieberthal, Kenneth and Oksenberg, Michel, Policy Making in China (Princeton: Princeton University Press, 1988), pp. 169–268Google Scholar; MacDougall, “Policy changes in China's foreign trade,” p. 158; Davie and Carver, “China's international trade and finance,” p. 29.

120 “Jianyi sheli guoji touzi xintuo gongsi de yixie chubu yijian” (“A few initial opinions on recommending the establishment of an international trust and investment corporation”), submitted by Rong Yiren to the Central Committee and the State Council in March 1979, cited in gaige weiyuanhui, Guojia jingji tizhi (ed.), Zhongguo jingji tizhi gaige shinian (Ten Years of Economic System Reform in China) (Beijing: Jingji guanli chubanshe, gaige chubanshe, 1988), p. 751.Google Scholar

121 For an excellent analysis of CITIC's origins, see Guojia jingji tizhi gaige weiyuanhui (ed.), Ibid. pp. 750–754.

122 Duiwai jingji maoyibu renshi, An Introduction to Export Sourcing, p. 49; Zhongguo duiwai maoyi gailun bianxiezu, An Introduction to China's Foreign Trade, p. 140; Li Xiaoxian, Text on the Principles and Practices of Foreign Trade, p. 53.

123 Li Xiannian, “Jiajin fazhan dazhong chengshi jiaoqu de fushipin shengchan” (“Step up the production of agricultural sideline products in the suburban areas of large- and medium-sized cities”), 4 July 1959Google Scholar, in Xiannian, Li, Discussions on Finance and Trade, Vol. 1, p. 361; “Guanyu chengshi renmin gongshe wenti de pishi” (“A comment on urban peoples' communes”), issued by the CCP Central Committee on 9 March 1960, in Dangdai Zhongguo de jingji guanli bianjibu, A Chronology of Major Events in the PRC's Economy and Management, p. 138; Fang Weizhong, A Chronology of Major Events, 1949–1980, pp. 266–67.Google Scholar

124 Yun, Chen, “Carry out well foreign trade work,” in Chen Yun, Chen Yun Tongzhi Wengao XuanbianGoogle Scholar (Selections of Comrade Chen Yun's Manuscripts, (1956–1962)(Beijing: Renmin chubanshe, 1981), pp. 116–19.Google Scholar

125 Li Xiannian, “Do a good job in foreign trade work,” p. 151.Google Scholar

126 Tan Qingfeng et al. The Practice of Supporting Foreign Trade Production, p. 14.Google Scholar

127 Dangdai Zhongguo de jingji guanli bianjibu, A Chronology of Major Events in the PRC's Economy and Management, p. 261.Google Scholar

128 “Jianli chukou nongfu chanpin shengchan jidi shixing banfa” (“Trial procedures for export commodity production bases for agricultural sideline products”); “Jianli chukou gongyepin shengchan jidi shixing banfa” (“Trial procedures for specialized factories for industrial product exports”) approved by the State Council and issued by the SPC. A detailed description of the text is provided in Tan Qingfeng et al. The Practice of Supporting Foreign Trade Production, p. 123–27; Fang Weizhong, A Chronology of Major Events, 1949–1980, p. 123. The “Trial procedures” were updated in 1979 and issued by the Import/Export Management Committee on 10 August 1980.Google Scholar

129 For a complete list of single item export bases as of 1982, see Duiwai jingji maoyibu renshi, An Introduction to Export Sourcing, pp. 69–78.Google Scholar

130 Tan Qingfeng etal. The Practice of Supporting Foreign Trade Production, p. 161.

131 Tan Qingfeng et al. Ibid. p. 163.Google Scholar

132 Forty-two single item bases were dedicated to the production of grain, edible oil and food products; 51 produced local products and livestock. See Duiwai Jingji Maoyibu Renshi, An Introduction to Export Sourcing, p. 58.Google Scholar

133 Zhongguo duiwai maoyi gailun bianxiezu, An Introduction to China's Foreign Trade, pp. 140–41.Google Scholar

134 Others include Hubei province's Jingzhou prefecture (1976); Jiangsu province's Nantong prefecture (1980) and Xuzhou prefecture (1980); Zhejiang province's Jiaxing prefecture (1998) and Taizhou prefecture (1980); Henan province's Nanyang prefecture (1998); Shandong province's Yantai prefecture (1976), Weifang prefecture (1976), Linyi prefecture (1998), Heze prefecture (1980), Qingdao City (1979); Hebei province's Zhangjiakou prefecture (1976), Shijiazhuang prefecture (1981); Shanxi province's Yanbei prefecture; Xinjiang province's Tulufan prefecture (1979); Liaoning province's Lüda City (1979) and Yingkou City (1981); and Heilongjiang province's Suibei prefecture (1980). For more detail, see Tan Qingfeng et al. The Practice of Supporting Foreign Trade Production, pp. 136–154; Zhongguo duiwai maoyi gailun bianxiezu, An Introduction to China's Foreign Trade, pp. 140–41Google Scholar; renshi, Duiwai jingji maoyibu, An Introduction to Export Sourcing, pp. 55–57, 65–68Google Scholar; Wutong, Wu, Introduction to the Basics of Foreign Trade, 47–49.Google Scholar

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136 Forty-eight of the Shanghai Specialized Factories producing textiles earned US$198 million in 1978, US$310 million in 1980, US$334 million in 1982. See Ibid. p. 165.

137 Wutong, Wu, Introduction to the Basics of Foreign Trade, p. 54.Google Scholar

138 “Guanyu yinfa ‘chukou gongyepin zhuanchang shixing banfa’ he ‘chukou nongfu chanpin shengchan jidi shixing banfa’ de tongzhi” (“Circular concerning the publication of ‘The trial procedures for specialized factories for industrial product exports’ and ‘The trial procedures for export commodity production bases for agricultural sideline products’”), Jinchuchuzi 80.041, approved by the State Council and issued by the SCCIEA on 10 August 1980, in Zhejiang sheng sifating, Zhejiang sheng duiwai jingji maoyiting, A Selection of Foreign Economic Laws and Policies, pp. 1066–1076.Google Scholar

139 New Comprehensive Bases were established in Heilongjiang province's Suihua prefecture (October 1980); Liaoning's Lüda City (1979) and Yingkou prefecture (March 1981); Xinjiang's Tulufan prefecture (1979); Shandong's Qingdao municipality (October 1979) and Heze prefecture (October 1980); Jiangsu's Xuzhou prefecture (October 1980) and Nantong prefecture (November 1980); Zhejiang's Taizhou prefecture (1980); and Hubei's Shijiazhuang prefecture (August 1981).Google ScholarSee Qingfeng, Tanet al. The Practice of Supporting Foreign Trade Production, p. 140–154.Google Scholar

140 Tan Qingfeng et al. Ibid. pp. 69, 118.Google Scholar

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142 Ru, Sun (ed.), Qianjinzhong de Zhongguo jingji tequ (The Chinese SEZs on the Move) (Beijing: Zhongguo caizheng jingji chubanshe, 1983), pp. 12–13.Google Scholar For more on the March proposal, see jingjixi, Zhongshan daxue (ed.), Jingjixue luncong (A Collection of Views on Economics Studies) (Guangzhou, 1983), p. 268Google Scholar; Yuanjie, Zhao and Zhaobin, Chen (eds.), Zhongguo tequ jingji (The Economy of China's Special Economic Zones) (Guangzhou: Kexue puji chubanshe Guangzhou fenshe, 1984), p. 56; Shenzhen tequ bao, 9 August 1982.Google Scholar

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145 Zhang Ge, “Certain conditions for the SEZs and the coastal cities to further opening their economies”; Barnett, A. Doak, The Making of Foreign Policy in China: Structure and Process (Boulder, CO: Westview, 1985), pp. 20–25.Google Scholar

146 Ge, Zhang, “Certain conditions for the SEZs and the coastal cities to further opening their economies,” p. 256.Google Scholar

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150 For instance, see Ho and Huenemann, China's Open Door Policy, pp. 15–20.Google Scholar

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152 Davie, and Carver, , “China's international trade and finance,” p. 26–29.Google Scholar

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155 The World Bank, World Development Report 1987 (New York: Oxford University Press, 1987), ch. 5Google Scholar; Sheahan, John B., Alternative International Economic Strategies and Their Relevance for China (Washington: World Bank Staff Working Papers. No. 759, 1986), pp. 12–26.Google Scholar