Opening
to the outside world has greatly promoted the development
of China's foreign trade. China's import and export
volume increased from 1.13 billion US dollars-worth
in 1950 to 360.65 billion US dollars-worth in 1999,
or an increase of 319 times. The total import and export
volume in 1999 increased by 17.5 times, as compared
with that in 1978. In terms of foreign trade, China
ranked 32nd in the world in 1978, and rose to ninth
in 1999.
Over the past 21 years, great changes have taken place
in China's import and export trade. First, the structure
of import and export commodities has been constantly
improved. The export volume of primary products, with
food, agricultural and sideline products, and crude
oil as the mainstay, has been reduced by a large margin
from 53.5 percent of the total export volume in 1978
to 10.2 percent in 1999; and the proportion of industrial
products increased from 46.5 percent in 1978 to 89.8
percent in 1999. Remarkable progress has been achieved
in the export of machinery and electrical products,
rising from 1.41 billion US dollars-worth in 1980 to
77 billion US dollars-worth in 1999. Second, foreign-invested
enterprises, which grew from nothing, have become new
factors contributing to the growth of China's foreign
trade. In 1981, the export volume of foreign-invested
enterprises made up 0.1 percent of China's total export
volume, and 0.5 percent of the import volume. By 1999,
the export volume of foreign-invested enterprises made
up 45.5 percent of China's total, and the import volume,
51.8 percent. Third, China's international trade market
is becoming more diversified. In 1980, nearly 180 countries
and regions had trade exchanges with China, a figure
which rose to 228 in 1999. In 1999, along with the recovery
of the Asian economy, China's exports to other Asian
countries restored growth, and its exports to North
America, Europe, Oceanic and Africa constantly grew.
Fourth, foreign trade has been expanded through various
flexible trading forms. Processing trade and small-scale
border trade have increased by a large margin. A situation
in which ordinary trade, processing and assembling with
supplied or imported materials, and small-scale border
trade are competing with each other for development
has been formed.
While running the special economic zones, China has
undertaken a series of reforms in the foreign trade
system, such as expanding local governments' examination
and approval authority over foreign trade and exports,
and enlarging foreign trade enterprises* autonomy over
export trade and operations. Consequently, the old system
featuring monopolized operation by the state, highly
centralized management, integration of government administration
with enterprise operations and the state assuming responsibility
for profits and losses has basically been changed: The
state has gradually cut back on mandatory plans for
foreign trade enterprises, and a management system which
indirectly regulates and controls foreign trade through
Customs duties, foreign exchange rates, credits and
tax refunds has been put in place step by step.
In 1986 China formally applied for reinstatement as
a signatory state in the General Agreement on Tariffs
and Trade (GATT), so as to make its foreign trade conform
more to international practice. Since the World Trade
Organization (WTO) was founded in 1995, China continually
applied to participate in it. During this period, China
lowered its import tariff rates on several occasions
and realized the convertibility of RMB in regular items.
Over the past 14 years, China's enthusiasm for acceding
to the WTO has never flagged and it has put its commitments
into practice. That is to say, with its status as a
developing country as the premise and the Uruguay round
of negotiations as the basis, China undertakes its obligations
suitable to its economic development level, actively
strengthens negotiations with the United States, European
Union and other member states. Bilateral and multilateral
negotiations for China's entry into the WTO have reached
the final stage. The day for China to join the WTO is
not far away. Meanwhile, China actively participates
in the activities sponsored by the Asian-Pacific Economic
Cooperation Organization, and plays an important role
in the organization. The bilateral trade relations between
China and the United States, the European Union, Russia
and Japan have been constantly strengthened.
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