Doing Business with China. the United States Officially Recognized the People's Republic of China (PRC1 on 1, 1979

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.TITLE Doing Busiiess with China. INSTITUTION Department of Commerce, Washington, D.C. Industry and Trade Administration. PUB DATE Feb 79 NOTE 48p.: Pages 4-5 and the Appendices may not reproduce clearly from EDRS in paper copy or microfiche due to small print and fading ink throughout original document. AVAILABLE FROM Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402 (Stock Number 003-009-00316-4, $1.801.

EDES PRICE MFOI /PCO2 Plus Postage. DESCEIPTOPS *Business: Exports: Foreign Countries: *Marketing: Merchandise Information: Merchants: Travel IDENTIFIERS *China: International Trade

ABSTRACT This publication provides background and practical information for those interested in doing business with China. The United States officially recognized the People's Republic of China (PRC1 on 1, 1979. Chinese leaders view international trade as an important factor in transforming China into a modern industrial state as well as an instrument to foster the overall political and economic goals of making China a strong unified nation capable of exercising leadership in Asia and the world. China now has trading relations with more than 150 countries. Prior to approaching the Chinese foreign trade corporations (FTCs), many firms .may want to assess the potential PRC market for their goods and services* Various groups in the United States attempt to survey Chinese_industries and to assess the potential for American goods and services. Some of these may be found as sectoral reports in the "China Business Review" published by the National Council for United States -China Trade. The Commerce Department also has an ongoing effort to develop further market information. The publication lists Chinese FTCs describing the commodities handled by each. Specific steps for establishing contact with FTCs are discussed. The document then goes on to describe other trade related entities of the People's ,Republic of China. in China, end-users play a major role in deciding what commodities are to be procured. One excellent way to contact end-users in an attempt to influence their decisions is by exhibiting equipment where engineers and other representatives of consuming entities have an opportunity to observe and ask questions. Various Chinese fairs are described. Other topics discussed in the publication include currency, shipping and insurance, United States regulations governing trade with the PRC, trademarks, inventions and copyrights, and travel to China. United States domestic exports and imports are listed in the appendices. (Author/RM)

*********************************************************************** * Reproductions supplied by EDRS are the best that can be made * * from the original document. * *********************************************************************** . U.S. DEPARTMENT OF HEALTH. EDUCATION A wei.FARE NATioNAI. INSTITUTE OF CV EDUCATION CV THIS DOCUMENT HAS BEEN REPRO- DUCED ExACTLy AS RECEIVED FROM 44. THE PERSON OR ORGANIZATION ORIGIN amp IT POINTS OP VIEW OR OPINIONS ....1. STATE() DO NOT NECESSARII.Y REPRE. SENYOFFiCial.NATioNal. INSTiTuTEDF EDUCATION POSITION OR POIJCv r-4 CZ:b Li.J DOING BUSINESS WITII. 1

U.S. DEPARTMENT OF COMMERCE Industry and Trade Administration

February 1979

OCT 141980 2 Contents Page

Introduction 1 U.S. Policy PRC Foreign Trade Policy Approaching the Market 2 Researching the Market Foreign :Trade Corporations Establishing Contact The U.S. and Chinese Embassies The National Council for U.S.-China Trade Other PRC Trade- Related Entities The Guangzhou Trade Fair Other Fairs and Exhibitions Contract Negotiations 13 Arbitration 14 Currency 14 Payments 15 Shipping and Insurance 15 U.S. Regulations Governing Trade with the PRC , 16 Imports Exports Financial Restrictions and Assistance PRC Tariffs 17 Trademarks, Inventions, and Copyrights 18 Going to the PRC 19 Travel Visas Health Currency Regulations Personal and Prohibited Items Visiting in the PRC 20 Travel Facilities Accommodations Restaurants Sight- seeing and Entertainment Social Customs Photography Dress Climate Language Time Public Holidays Hours of Business Weights and Measures Electricity Communication Facilities Mail Service Emergency Contact of Visitors Exit Procedures Bibliography 23 Books Periodicals Appendix 1U.S. Domestic Exports to China: JanuaryNovember 1978 26 Appendix 2U.S. General Imports from China: JanuaryNovember 1978 33 Appendix 3Commodities for Export and Import 41 Appendix 4Beijing Addresses and Telephone Numbers 42 Market Profile 44

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..... v ti. 4 introduction A NOTE ON PINYIN U.S. Policy On January 1, 1979, China adopted officially the "pinyin" system of writing Chinese characters in The United States officially recognized the the Latin alphabet. A system of romanization in- People's Republic of China (PRC) on January vented by the Chinese, pinyin has been widely used 1, 1979. The status of the U.S. Liaison Office for years in China on street signs and commercial in Beijing (Peking) and the PRC Liaison Office establishment signs, as well as in elementary Chi- in Washington is to be raised to that of an nese textbooks as an aid in learning the Chinese characters. Now pinyin is to replace the familiar embassy on March 1, 1979. Wade-Giles romanization system even inChina's This action by the two countries was the English language publications destined for foreign distribution. Therefore, pinyin is used throughout culmination of an effort set in motion 133 Presi- this report, giving the Wade-Giles romanization in dent Nixon's trip to China in February 1972. parentheses after the first occurrence of each pin- The Shanghai Communique issued on February *? expression. Some words frequently used in this 28, 1972, signified a dramatic shift in Sino- report are given below in WadeGiles and pinyin. American affairs, ending the near absence of WADE411.ES PINYIN relations with the Mainland that dated back to before the Korean War. As a result, liaison Peking Beijing Kwangchow/Canton Guangzhou offices were opened in the respective capitals Tung Fang Oong Fang in May 1978, the National Council for U.S.- Erh U Kou Erligou China Trade was formed, and trade between Hsi Chisel Kills° the United States and China began to expand. Kuanghua Guanghua Mao Tse-tung Mao Zedong It is the policy of the U.S. Government to pro- Teng Hsiao-ping Deng Xiaoping mote trade in nonstrategic goods with the PRC. Hua Kuo-fang Hua Guofeng Although trade in 1978 exceeded $1 billion, Chou Enlai ZhouEnlai unresolved trade and commercial issues continue to hamper its growth.* Neither country enjoys A prevailing theme in PRC foreign trade most-favored-nation (MFN) tariff treatment, policy has been economic independence. Until and China does not have access to Export- recently, China has avoided long-term foreign Import Bank loans and guarantees and other credit, preferring to scale imports to the amount financial programs of the U.S. Government, of foreign exchange available from export earn- except for CCC (Commodity Credit Corpora- ings. However, the goal to thoroughly modern- tion)agriculturalcredits.Theunresolved ize China by the year 2000 and the objectives Maims and assets issue inhibits or precludes of the Ten-Year Plan (1976-85) are so ambi- direct banking relationships, direct shipping or tious that China has found it necessary to rely airline connections in flag carriers, and the on some foreign financing. Until recently the exchange of trade exhibitions. It is the policy PRC had attempted to become self-sufficient of the U.S. Government to seek resolution of through development of its own productive these and other barriers to the full development capacity; now it realizes that the industrializa- of trade and commercial relations. tion program can not be successfully completed in the desired time period without a major PRC Foreign Trade Policy infusion of foreign plant, equipment, and technology. Generally, the PRC seeks to avoid Its leaders view international trade as an becoming too dependent on any one country important factor in transforming China into a as a source of trade. modern industrial state, as well as an instrument to foster the overall political and economic Development of foreign trade and economic goals of making China a strong unified nation relations with most nations of the world is an capable of exercising leadership in Asia and the important part of China's present policy to world. Import policy is directed at the acquisi- maximize the potential contribution of foreign tion of capital goods that embody the modern trade to economic development. China now has technology needed to develop China's industry. trading relations with more than 150 countries. Trade also is used to overcome serious short- To date China has joined very few international comings and bottlenecks in domestic production. economic or financial organizations, but Bei- jing's interest in arrangements that promote Appendix I lists U.S. domestic exports to Chino for January- November £918. and Appendix 2 lists U.& general imports from trade should increase as the country becomes China for the some period. more involved in international commerce. 5 1 Approaching the Market commodities handled by each, with their street, cable and telex addresses. Researching the Market China National Arts and Crafts Import Prior to approaching the Chinese foreign and Export Corporation trade corporations, many firms may want to 82 Dong'anmen Street assess the potential PRC market for their goods Beijing, People's Republic of China and services. This is a difficult process since Cable: ARTCHINA BEIJING the Chinese do not issue requests for global- Telex: 22165 CNART CN BEIJING tenders and publish little about their plans that Pottery and porcelain, drawn-work and permit an accurate assessment of the market. embroidered articles, ivory carvings, jade and semiprecious stone carvings, pearls For the potential exporter, it is important to and gems, jewelry, lacquer wares, cloisonne understand that the Five- and Ten-Year Plans wares, Chinese paintings and calligraphy, set out general goals, while the annual plan antiques, straw, wicker, bamboo and rattan provides morespecifictargets,production articles, furniture, artistic handicrafts, and levels, and allocates resources needed to achieve plan objectives. Emphasis is placed on the other handicrafts for daily use. supply of material and equipment from domes- China National Cereals, Oils and Filed- tic resources and, while the long-standing policy stuffs Import and Export Corporation of "self-reliance" has been modified, it is by 82 Dong'anmen Street no means dead. Beijing, People's Republic of China Cable: CEROILFOOD BEIJING When the requirements cannot be met from Telex: 22111 CEROF CN or 22281 CEROF domestic resources, however, the foreign trade CN BEIJING corporations in Beijing are commissioned to turn to foreign sources of supply. In 1978, for Cereals, edible vegetable and animal oils example, they probably spent about $10 billion and fats, vegetable and animal oils and on imports. Generally, the Chinese will allocate fats for industrial use, oilseeds, seeds, oil their scarce hard currency resources to the cakes, feedstuffs, salt, edible livestock and purchase of agricultural commodities and in- poultry, meat and meat products, eggs and dustrial products needed for modernization, egg products, fresh fruit and fruit prod- allowing little for the import of consumer ucts, aquatic and marine products, canned goods. goods of various kinds, sugar and sweets, wines, liquors and spirits of various kinds, Various groups in the United States attempt dairy products, vegetables and condiments, to survey Chinese industries to assess the bean flour noodles, grain products, nuts and potential for American goods and services. dried vegetables (some nuts, dried fruits, Some of these may be found as sectoral reports in the China Business Review published by the and vegetables alsocarried by Native National Council for U.S.-China Trade. The Produce). Commerce Departmentalsohas published studies and has an ongoing effort to develop China National Chemicals Import and Ex- further market information. port Corporation Erligou, Xijiao Beijing, People's Republic of China Foreign Trade Corporations Cable: SINOCHEM BEIJING Foreign trade is a State monopoly controlled Telex: 22243 CHEMI CN BEIJING by the Ministry of Foreign Trade. It is con- Organic and inorganic chemicals, chemical ducted exclusively through a network of cor- raw materials, rubber, rubber tires, and porations according to priorities established by other rubber products, crude petroleum the country's economic plan. The trade corpora- and petroleum and petrochemical products tions are organized by commodities or services (except aromatics), chemical fertilizers, for which they are responsible. They have main insecticides,fungicides,antibiotics and offices in Beijing with branch offices in various pharmaceuticals, medical instruments, ap- industrial centers. The following is a listing of paratus and supplies, dyestuffs, pigments, Chinese Foreign ,Trade Corporations (FTC), and paints.

2 6 eziri pm I, China National Lig uatnal Koauctfst4t' Iona! Naiive Produce and Animal Import and Export Corporation By-Products Import and Export Corpora- 82 Dong'anmen Street tion Beijing, People's Republic of China 82 Doug% n me n Street Cable: INDUSTRY BEIJING Beijing, People's Republic of China Telex: 22282 LIGHT CN BEIJING Cable: C111NATU HSU BEIJING General merchandise of all kinds, paper, Telex: 22283 TUSI1U CN BEIJING stationery,musicalinstruments,type- Tea, coffee, cocoa, tobacco and cigarettes, writers, cameras, film, radios, refrigera- fibers (hemp, ramie, jute, sisal, flax, etc.), tors, sporting goods, toys, building ma- rosin, manioc, starches, and seeds, cotton terials (plywood, insulation board, p.v.c. linters and waste, timber, certain papers fittings and pipe,tiles,glass, sanitary and forest products, waxes, spices, essen- ware, etc.) and electrical appliances, clocks tial oils, aromatic chemicals, nuts, dried and wristwatches,fishnets,net yarns, fruits and vegetables (see also CEROIL- leather shoes, and leather products. FOOD), patent medicines and medicinal herbs, fireworks, nursery stock as well as China National Machinery Import and Ex- other native produce, including bristles port Corporation and brushes, horsetails,feathers, down Erligou, Xijiao and down products, feathers for dw.ora- Beijing, People's Republic of China tive use, rabbit hair, goat hair,wool, Cable: MACHIMPEX BEIJING cashmere,camelhair,casings,hides, Telex: 22242 CMIEC BEIJING leathers, fur mattresses, fur products, car- Machine tools, presses, hammers, shears, pets, living animals. forging machines, diesel engines, gasoline engines, steam turbines, boilers, industrial China National Technical Import Corpora- and institutional refrigeration and air con- tion ditioning equipment, mining machinery, Erligou, Xijiao metallurgical machinery, compressors and Beijing, People's Republic of China pumps, hoists, winches and cranes, trans- Cable: TECHIMPORT BEIJING port equipment (aircraft, railroad, auto- Telex: 22244 CNT1C CN BEIJING motive, ships and parts thereof), power Importation of complete plants and tech- and hand tools, agricultural machinery and nology. implements, printing machines, knitting and other textile machines, building ma- China National Textiles Import and Export chinery, machinery for the chemical, rub- Corporation ber, plastics and other industries, ball and 82 Dong'anmen Street roller bearings, tungsten carbide, electric Beijing, People's Republic of China machinery and equipment, telecommunica- Cable: CHINATEX BEIJING tionequipment,electric and electronic Telex: 22280 CNTEX CN BRIJING measuring instruments, and scientific in- Cotton, cotton yarns, raw silk, steam fila- struments (except medical instruments) . ture, wool tops, rayon fibers, synthetic China National Metals and Minerals Import and manmade fibers, cotton piecegoods, and Export Corporation woolen pieeegoods,linen, garments and Erligou, Xijiao wearing apparel, knitted goods, cotton and Beijing, People's Republic of China woolen manufactured goods, ready-made Cable: MINMETALS BEIJING silk articles, drawn works. Telex: 22241 MIMET CN BEIJING China National Complete Plant Export Steel plates, sheets and strip, steel sec- Corporation tions, steel pipe and tube, railway materials, An Ding Men `Val cast iron products, pig iron, ferroalloys, Beijing, People's Republic of China fluorspar,limestone, nonferrous metals, Cable: COMPLANT BEIJING precious rare metals, ferrous ores, non- ferrousores,rareearths,nonmetallic Exporters only of complete factories, works minerals, refractories, coal and coke, ce- and production units, usually, but not ex- ment, granite, marble, bricks and other clusively, as part of an economic aid agree- construction materials, and hardware. ment. 7 3 BEST COPYAVAILABLE

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5 9 China National Machinery, and. Equipment commodities of interest to you. Then you pre- Export Corporation i) ti 1;loi/tOsiretd. pipowksi and send it to Beijing. If the 12 Fu Xing Men Wai Streei Chinge are irested in your sales proposal, Beijing, People's Republic of China they may request additional information or a Cable: EQUIPEX BEIJING reworking of the proposal based on specifications they provide. In some instances, they may Exporters only of machine tools, forging invite you to Beijing to discuss the matter and pressing equipment, wood-working further. If you Pre buying Chinese goods, you machinery, measuring and cutting tools, would normally hope to receive an invitation heavy-duty machinery, mining machinery, to attend the Chinese Export Commodities Fair machinery for petroleum and chemical in Guangzhou (Kwangchow or Canton). You industries,generalutilitymachinery, may wish to request an invitation in the pro- agricultural machinery, power-generating posal. Sales of some commodities, of course, machinery, electric generating sets, auto- are negotiated directly by mail, without the mobiles,rollerbearings,hoisting and need for direct contact. In a few cases, where transport equipment, building machinery, the Chinese need a commodity, they may con- printing machinery, electric motors, elec- tact the American firm directly. tric devices and equipment, electric instruments and meters, physical instruments, The form of the initial proposal is important, optical instruments, complete equipment even though the ultimate FTC decision to pur- for hydroelectric power stations, refriger- chase a commodity rests on the Plan require- ating works, ice-making machinery, wood ments of the Chinese economy. The sales pro- screwmachinery,rubber-makingand posal should clearly define the products or plastic-making machinery. product lines you wish the Chinese to focus on. Too often, especially with multidivision cor- Establishing Contact porations or with. conglomerates, confusion is created by sending the FTC annual reports or It takes time and patience to enter the China other brochure material describing all product market successfully, whether exports or im- lines. The proposal should be straightforward ports are involved and whether a large or small and sufficiently explicit and technically com- firm is participating in the transaction. Prior prehensive to permit an in-depth evaluation by to establishing contact, for any but the simplest the Chinese of the products in question. The purchase transactions, you should give thought balance of the material in the proposal, designed to the following questions: to acquaint the FTC with your corporation and other products, may be included, but should be (1) Am I prepared to invest considerable clearly distinguishable from the commodities, money initially without assurance of technology, or service you hope to sell. an early return? In selling to China, the best approach is to (2) Am I prepared to negotiate the first propose a technical exchange or seminar. The transaction for up to i year or longer? basic idea is to select some start-of-the-art (3) Am I prepared to obligate the neces- developments concerning the manufacture or sary senior technical talent that will application of your product, technology, or be needed? service and to offer to bring a team of highly qualified technical people to Beijing to discuss (4) Am I prepared to walk away from an them. During 1978, more than 80 American unpromising negotiation at any time? firms and several U.S. delegations held such seminars, as did many firms from Japan and (5) Am I prepared to resist granting con- Western Europe. In your proposal, care should cessionary term to penetrate this be given tc totalling the technological and cost market? advantages of your commodity, and details of Ifsome of your answers to these questions design, manufacture, and application should be are negative, you may want to rethink entering appended. It is also useful and courteous to this market. invite the Chinese tt the United States to see your plant, equipment, or technology in actual Generally, the first step in establishing com- operation. mercial contact, regardless of whether exports or imports are involved, is to determine which The FTC is interposed between you and the of the above FTCs has jurisdiction over the Chinese end-users, at least initially. For this

6 I0 reason, it is essential to provide the FTC with (China Petroleum Corporation and the 20 copies of your proposal. These copies are Ministry of Petroleum) forwarded to the appropriate planning agency, design institute, or manufacturing entity for China Petroleum Corporation (Ministry of review. Unless the FTC has already been com- Petroleum) missioned to procure what you are selling, the China National Radio Equipment Corpora- chances of receiving an invitation to come to tion (Fourth Ministry of Machine Build- China hinge primarily on what the various ing) end-users tell the trade corporation. If the product lines you wish to sell are in different China National Underwater Cable and Con- FTCs. it would be best to prepare separate pro- struction Corporation (Ministry of Posts posals. Firms should always include the words and Telegraphs) "United States" or "U.S.A." in their company's China Railway Technical and Equipment address. A firm whose name and location are Corporation (Ministry of Railways) quite well-known in the United States may be totally unfamiliar to the Chinese and cannot be China Waste Materials Reclamation Cor- readily identified with the United States. poration (possibly the Ministry of Public Health) In addition to the FTC which has jurisdiction over your commodity, there are other These corporations may be addressed to the places in Beijing where it might be useful parent ministries in Beijing. It may also be to send your proposal. One of these is the useful to send several copies of the pertinent Technical Exchange Department of the China technical information to: Council for the Promotion of International The Center for Introducing Literature and Trade (CCPIT) ;see CCPIT's address under Samples of New Foreign Products, CCPIT Other PRC Trade-Related Entities. Also, the P.O. Box 1420 Chinese recently have established a number of Beijing, People's Republic of China corporations under respective ministries whose function is to operate plants and other facilities. This organization has been set up to keep These corporations probably play a key role usersofforeign products andtechnology in determining what technical seminars are to abreast of the most recent developments. The be heard and what equipment is to be bought. center does not engage in business negotiations, Some of these corporations and their parent however. Copies of your proposals, or at least ministries are: the covering letter also should be sent to: Commercial Office China Agriculture Machinery Corporation Embassy of the People's Republic of China (First Ministry of Machine Building) 2300 Connecticut Avenue, N.W. China Cereals and Oils Corporation (Min- Washington, D.C. 20008, and istry of Agriculture and Forestry) Commercial Officer China Seed Corporation (Ministry of Agri- Embassy of the United States of America culture and Forestry) 17 Guanghua Lu Beijing, People's Republic of China China Chemical Construction Corporation (Ministry of Chemical Industry) Should the proposal be put in Chinese? Of course, this is the courteous thing to do and China National Chemical Fibers Corpora- it probably will facilitate the handling of your tion (Ministry of Textiles) proposal in the PAC. On the other hand, the China Coal Industrial Technique and Equip- number of adequate translation services in the ment Corporation (Ministry cf the Coal United States that are familiar with the sim- plified characters used in China is very limited. Industry) If your proposal covers products for which China NationalFeedstuffs Corporation the need is unclear, it may be quite wasteful (Ministry of Commerce) to have a lengthy proposal translated although a translation is probably helpful to the Chinese. China National Geological Exploration Cor- If in doubt, have the covering letter translated; poration (State Geology Bureau) this should serve to show your interest. Any China National Oil and Natural Gas Ex- proposal in Chinese should be accompanied by ploration and Development Corporation the English original.

11 In your proposal do not overstress past vela- For further information or advice on con- tionsiips with China. The PRC is more inter- tacting the Chinese on commercial matters, call ested in current performance than in any past or write to: connections, either prior to 1949 or since then U.S. Department of Commerce with Taiwan. Naturally words such as Red Industry and Trade Administration China or Mainland China and other offensive Office of East-West Country Affairs terms should be avoided; refer to the People's PRC Affairs DivisionRoom 4044 Republic of China or simply China. Washington, DC 20230 If the Chinese are interested in a proposal, (Telephone: 202-377-3583/4681) they can be expected to reply, even though they may not acknowledge its receipt. However, it The U.S. and Chinese Embassies takes considerable timeoften monthsfor a proposal to be disseminated and assessed. There Liaison Offices, opened iu the respectiim capi- may be no reply at all, probably indicating no tals of both countries in :373, become embassies requirement for such commodities at he time on March 1, 1979. Both embassies contain (Appendix 3 contains a list of commodities economic/commercial sections and provide im- thought to be of interest to the Chinese). portant points of contact for business people Firms that are convinced that their products from both countries. mesh withChinese developmentpriorities While U.S. firms should consider keeping the should keep their products and literature before PRC Embassy in Washington informed of their the appropriate foreign trade officials. Because capabilities and their desire to do business in of mailing and distribution time lags, 8 to 12 China, the basic approach to selling in the PRC weeks should be allowed before initiating any is through the appropriate FTC in Beijing. follow-up activities. In general, it is advisable The U.S. Embassy in Beijing will assist Ameri- to follow up periodically with additional material cans by providing advice on the FTCs and by and samples, especially with regard to any generally apprising U.S. business people of the product developments that would enhance the economic situation and commercial opportuni- initial approach. Any additional literature or ties in China. The Embassy has a room with samples should be accompanied by a covering copier, typewriters, and other equipment to letter that refers to the original proposal. service the business visitor. It can arrange the The Tres alone are responsible for nego- loan of projectors for slide or movie presenta- tiating contracts, although this too may change. tions. During 1979, it is expected that a telex In addition to sending copies of proposals to connection to service business visitors will be the CCPIT and the various operating corpora- established at the Embassy. tions under their respective ministries, it may be helpful on occasion to visit the Hong Kong The National Council for U.S.-China Trade agents of the FTCs. The agents can explain The formation of a National Council for U.S. - the current situation and usually report fully China Trade was announced on March 22, 1973. to their principals in Beijing. In some instances The Councila nonprofit, private organization they are allowed to conclude trade deals. maintaining close liaison with the U.S. Govern- In addition to communicating by mail with mentserves as a forum for the discussion of the FTCs in Beijing or by visiting their agents trade policy and issues. It also serves as a focal in Hong Kong, several other approaches may. point for business contact and the dissemination be taken. These include: Attendance at the of information on marketing in the PRC. The Guangzhou (Kwangchou or Canton) Trade Council maintains a business counseling service ; Fair; participation in an exhibition in or trade it also publishes the China Business Review mission to the PRC; contacting PRC commer- bimonthly. The Council facilitates the reciprocal cial/technical missions to the United States; arrangements of trade missions and trade exhi- utilizing the services of the U.S. and PRC bitions in the United States and China. A re- Embassies in the capitals of the two countries; lated organization, the National Council for and becoming a member of, or consulting with, U.S.-China Trade Translation Service provides the National Council for U.S.-China Trade. a competent translation service. In general, the Chinese prefer to deal with To promote these activities the Council main- American firms directly, but will not refuse to tains a working relationship with the China negotiate through agents when necessary. Council for the Promotion of International

8 12 Trade in Beijing and the PRC Embassy in China National Chartering Corporation Washington. Individuals and firms interested Erligou, Xijiao in these activities should consult either the Beijing, People's Republic of China National Council or the PRC Affairs Division Cable ZHONGZU BEIJING within Commerce's Industry and Trade Admin- Telex: 22153 TRANS CN; 22154 TRANS istration. The National Council may be reached CN; 22265 TRANS CN at Suite 350, 1050 17th Street, N.W., Washing- ton, D.C. 20036 or by phone at (202) 331- Under the direction of China National For- 0290/0294. eign Trade Transportation Corporation, this corporation charters foreign vessels Other PRC TradeRelated Entities and books shipping space required for Chinese import and export cargoes. It also Bank of China (BOC) does similar business on behalf of princi- 17 Xijiaomingxiang pals located abroad. Canvasses cargoes for Beijing, People's Republic of China ship owners. Cable: IfOCHUNGII1U0 BEIJING Cable for all branches CHUNGKUO China National Export Commodities Pack- aging Corporation The BOC handles all of China's external 2 Chang'an Street financial dealings, finances the FTCs, and for all intents and purposes acts as the Beijing, People's Republic of China foreign branch of the People's Bank of Cable: CHINAPACK BEIJING China, China's national bank. The BOC has It supplies packing materials for export branches throughout China and four abroad commodities. (Hong Kong, Singapore, London and Lux- embourg). It also maintains corresponding China National Foreign Trade Transpor- banking relationships with scores of for- tation Corporation eign banks, of which 30 or so have branches Erligou, Xijiao in the United States. Beijing, People's Republic of China Cable: ZHONGWAIYUN BEIJING China Council for the Promotion of Inter- Telex: 22153 TRANS CN; 22154 TRANS national Trade (CCPIT) CN; 22265 TRANS CN 4 Taipingqiao Street Beijing, People's Republic of China This corporation arranges customs clear- Cable: COMTRADE BEIJING ance and delivery of all import/export cargoes by land, sea, and air, or by post. It Although the CCPIT is said to be a non- may act as authorized agent clearing and governmental "public" organization, it is delivering goods in transit through Chinese an important part of China's foreign trade ports. In addition, it arranges marine and structure. As such it works with the Min- istry of Foreign Trade and the FTCs on other insurance and institutes claims on China's external trade and serves as a behalf of cargo owners on request. liaison between China's trade enterprises China Ocean Shipping Company and their counterparts abroad. Its respon- 6 Dongchang'an Street sibilities include informing foreign trade Beijing, People's Republic of China organizations of China's trade and keeping Cable: COSCO BEIJING abreast of developments in foreign mar- Telex: 22264 CPC PK CII kets; arranging economic and trade-related exchanges, which include Chinese exhibi- The company engages in cargo and pas- tions abroad as well as foreign exhibitions senger services, handles clearing of foreign in the PRC ; and registration of trade- ships and booking of shipping space and marks. The CCPIT does make "unofficial" transshipment cargo. trade agreements with foreign organiza- China National Publications Import Cor- tions in its own name. Through its Foreign poration Trade Arbitration Commission and Mari- P.O. Box 88 time Arbitration Commission the CCPIT Beijing, People's Republic of China has responsibility for settlement of legal Cable: PUBLIM BEIJING disputes related to foreign trade and maritime affairs. China's importer of books and periodicals.

9 13 Guozi Shudian arranges transshipment of goods to and P.O. Box399 from the PRC through Hong Kong. Beijing, People's Republic of China Cable: GUOZI BEIJING Hua Yuan Company 37-39Connaught Road West Guozi Shudian exports China's books and Hong Kong periodicals and arranges subscriptions to Cable: HYCOMP HONG KONG Chinese newspapers and periodicals on be- Hua Yuan represents China. National Light half offoreignreaders. Industrial Products Import and Export People's Insurance Company of China Corp., and China National Native Produce 108 Xijiaomingziang and Animal By-Products Import and Ex- P.O. Box2149 port Corporation. Beijing, People's Republic of China Cable: 42001 BEIJING Ng Fung Hong Telex:22102 PICC Bank of China Building Hong Kong This company provides international trade Cable: NGFUNG HONG KONG and marine risk underwriting at competitive rates. It has overseas agents in lead- Ng Fung Hong represents China National ing countries. Cereals, Oils, and Foodstuffs Import and Export Corp. Scientific and Technical Association 31 Ganmianhutong Teck Soon Hong Ltd. 87-39Connaught Road West Beijing, People's Republic of China Hong Kong With the CCPIT, this organization plays a Cable: STILLON HONG KONG role in and may be consulted on arranging Teck Soon Hong represents China National scientific and technical symposia in China. Native Produce and Animal By-Products It is responsible for planning scientific re- Import and Export Corp., China National search and development and plays a lead Light Industrial Products Import and Ex- role in organizing and controlling the pro- port Corp.. and China National Textiles fessional societies, such as the Society of Import and Export Corp. Automation, Society of Electronics, and many others. Ministries, Enterprises, and Other End-Users. Some ofthetradeorganizationshave The FTCs import commodities and technology agents in Hong Kong. These agents, their ad- on behalf of ministries, enterprises, and other dresses, and the FTCs they represent are as consuming entities in the PRC. The operating follows: corporations serving some of the ministries have already been mentioned. It would be ideal China Resources Company (CRC) to reach all end-users, since they play a major Bank of China Building role in deciding what commodities are to be Des Voeux Road Central procured within the constraints of plans and Hong Kong budgets. If you are invited to Beijing for dis- Cable: CIRECO HONG KONG cussions with the FTC, especially if you are engaged in a technical seminar or exchange, CRC represents China National Machinery you will be aware that end-users are present Import and Export Corp., China National during these discussions. Chemicals Import and Export Corp., China National Metals and Minerals Import and Another way to contact end-users in an at- Export Corp., and China National Textiles tempt to influence their decisions is by exhibit- Import and Export Corp. ing equipment in China where engineers and other representatives of consuming entities Far East Enterprises Corporation (FAR- have an opportunity to observe and ask ques- ENCO) tions about the equipment being demonstrated. Bank of China Bldg. The U.S. Government will be working to remove Des Voeux Road Central the remaining barriers to exchanging trade Hong Kong exhibitions between the two countries. Some FARENCO represents the China Foreign U.S. firms with subsidiaries in Canada, or TradeTransportationCorporationand Western Europe have managed to exhibit their

10 4 equipment in Canadian, British, or French exhi- number of invitations issued to and the attend- bitions in Beijing. ance of American business people have had Useful contact with end-users may be made marked increases. At the Fall 1978 Fair, for when they visit the United States or third example, about 600 American business people countries as members of trade missions and attended and did approximately $140 million delegations. In any event, if PRC end-users can worth of business. be reasonably identified, it may be useful to Bujness people who wish to attend should communicate by letter with them, outlining the request an invitation from the appropriate technical and economic advantages of given foreign trade corporation or one of its agents, products. It also is possible to get information such as the China Resources Company (CRC). about your products to Chinese end-users by The commercial office of the PRC Embassy in advertising in Chinese in publications about Washington is also able to assist in securing American industrial products that are published an invitation to the Fair. Invitations are some- by American firms. (See Bibliography.) times obtained by writing to the Chinese Ex- port Commodities Fair, Guangzhou, People's The Guangzhou Trade Fair Republic of China. The Chinese Export Commodities Fair in Invitdtions are us..ally extended tofirms Guangzhou, sponsored by the foreign trade rather than to individuals. It is advisable to corporations,isheld twice a yearin the request places for as many buyers as neces- Spring (April 15 May 15) and Fall (October sary to properly conduct discussions on the 15-November 15). While the Fair is heavily range of commodities you may wish to pur- export-oriented and only Chinese commodities chase. Individuals representing a firm must are displayed, the FTCs do purchase foreign show some evidence, usually in the form of a products during this event. Since its inception letter from the company, that they are the ones in 1957, the Fair has grown steadily. In the designated by the firm to attend the fair. Spring of 1974 it was moved to a new building complex in the Liu Hua district on the outskirts Reaching the Fair. Travel from Hong Kong of Guangzhou. The new exhibition hall is near to Guangzhou takes about 6 hours by train. the new train station serving Hong Kong, Bei- Changing trains at the border takes several jing, and Shanghai and is a 10-minute walk hours during which time a meal is served and from the Dong Fang Hotel, which accommo- customs clearance is carried out. Starting in dates U.S. business people. Completion of the late 1978, hydrofoil connections between Hong new complex indicates that the Fair, now ac- Kong and Guangzhou began speeding up the counting for roughly half of China's exports, travel significantly. Some air connections be- will continue to play an important role in tween the two cities also commenced, but it is China's trade. uncertain whether they will become perma- nent. On arrival in Guangzhou, foreign business The Fair offers the best opportunity for U.S. people are met by a representative of the China importers to transact business with China, International Travel Service and taken to and it affords U.S. exporters some chance to their hotel, which in most cases is the Dong approach the FTCs. It provides a unique oppor- Fang. tunity to assess the type, availability, and price of various Chinese products. By viewing the Conducting Business.To be able to enter new products exhibited at each Fair, foreign the Fair exhibition hall and view products or business people may obtain a convenient over- discuss business, it is necessary first to register view of the technological progress of the Chi- at one of the liaison offices set up by Fair au- nese people, and the direction such progress is thorities in the three main hotels accommo- taking. dating foreign visitors. Upon presentation of Only business people or firms specifically in- the letter of invitation ane identification, the vited by an official PRC agency may attend tha liaison office issues the vistor a numbered badge Fair. in the past, invitations generally were that constitutes a door pass and can be used extended to firms with whom the PRC already as a convenient form of identification at y- had well-established relations or with whom where in Guangzhou. After registration the it felt there was a good possibility of doing visiting business people may request the liaison business. In recent years, however, both the office to make an appointment for them with

11 15 the appropriate FTC officials. The liaison office Fair. In some cases, U.S. firms may be invited can also arrange for business representatives to go from the Fair to Beijing. to attend various cultural events and visit local American business people attending the Fair factories and communesduring their free time. can now obtain assistance from officers of the In general, the liaison office acts as the Fair U.S. Government and the National Council. authorities' representative in providing for all Commercial officers from the U.S. Embassy in the needs of foreign business visitors. Beijing and staff members of the Council main- If business people wish, they can make tain suites at the Dong Fang Hotel. In addition their own appointments by directly approach- to offering advice on Fair procedures and Chi- ing FTC officials on the floor of the exhibition nese business conditions and practices, business hail. Each of the eight major exporting FTCs representatives are provided access to a num- has permanently assigned quarters in the exhi- ber ofusefulreference works and office bition hall where its products are exhibited. machines, including typewriters, a copying Representatives of FTCs can be found at tables machine and a telex tape cutter. These repre- set up near product exhibits in their desig- sentatives give receptions, which have been well nated areas. They can be approached during attended by FTC officials, providing unique business hours, which are from 8 a.m. to noon opportunities for U.S. .business people to be- and 2 to 5 p.m. daily except Sunday. Discussion come better acquainted with Chinese trade may take place at these tables or in special officials. discussion rooms. Importers of Chinese prod- Trade and Products.The Fair has grown ucts known to be in short supply may in some in recent years with an estimated 20,000 for- cases find it advantageous to approach rele- eign businesspeople, representing the major vant FTC officials promptly after the opening of industral and commercal firms of about 110 the Fair. If an importer already has established countries, attending the 1978 Fall Fair. Since relations with certain officials, writing to them 1969, trade from the Fair has been steadily prior to the Fair about products and quantities increasing; for the 1978 Fall Fair, it totaled desired may facilitate discussions at the Fair. more than $1 billion. The past several fairs The FTC supplies the necessary interpreters; have witnessed an increase in the amount of of course, understanding is improved if the finished and semifinished goods sold by the visitor speaks Mandarin Chinese. Chinese. Discussions may cover any item of interest Chinese products purchased at the Fair con- to either side, including price, quantity, pack- sist mainly of foodstuffs, textiles, animal by- aging, delivery schedules, and such things as products, metals and minerals, basic inorganic meeting U.S. labeling laws, U.S. food and drug chemicals, pharmaceuticals, hospital and other requirements, tailoring goods to U.S. specifica- medical equipment, and arts and crafts. Chinese tions, and use of U.S. trademarks. At recent prices are generally competitive with world Fairs, some FTCs have shown increasing flexi- market levels, but they can fluctuate sharply. bility in meeting the specific needs of U.S. importers. Shoes, for example, have been made Other Fairs and Exhibitions to U.S. importer specifications and, in at least one instance, an FTC consented to placing a Each year the PRC participates in trade U.S. firm's trademark beside its own although fairs and exhibitions in a number of foreign the Chinese still decline to place only U.S. countries. It also hosts foreign exhibitions in labels or trademarks on their products. China, usually in Beijing, but occasionally in Shanghai. In addition,various FTCs have While the Fair is principally concerned with been holding mini-fairs in Shanghai, Tianjin, Chinese exports, some sales and contract nego- and other centers located near producing fa- tiations do take place in Guangzhou. These cilities. Such fairs, covering forest products, sales to China are mostly in commodities such carpets, straw products, wines and spirits, as chemicals, synthetic fibers, pulp and paper, pharmaceuticalsandmedicalinstruments, steel, and similar industrial products. FTC of- feather and down, and furs are h..0:1 irregularly ficials, some highly qualified technically, will although some of them are expected to become form a delegation to listen to or hold extended regular events. They are designed to comple- discussions with the American exporter. Tech- ment, not replace, the semiannual Guangzhou nical seminars have been presented at the Fair.

12 16 Contract Negotiations emphasize mutual understanding and the development of good long-term relationships, both Business propositions that elicit Chinese in- corporate and personal. terest usually result in invitations to go to the The Chinese provide interpreters, and talks Guangzhou Fair if the Chinese are exporting are conducted in English so it is not necessary and to Beijing if China is considering import- to have an interpreter present. If a member of ing. For special reasons, businesspeople may be the company's delegation speaks Chinese in invited to other Chinese cities for discussion, addition to his other abilities, however, this for plant visits or to attend a specialized prod- can speed the discussion and resolve possible uct fair. Chinese FTCs also have begun to send difficulties in transmitting technical and com- buying and selling missions to the United mercial information. Knowledge of Chinese States. As emphasized above, contacts with business practices as well as a sensitivity to Chinese FTCs should be opened directly. Nor- Chinese customs also can be quite useful, but mally, however, the businessperson's ability to contracts have been successfully negotiated by begin serious negotiations depends on obtain- American companies without relying on such ing an invitation from the FTC to come to expertise. Beijing or to visit the Fair. For small value transactions or for standard Business negotiations with the Chinese are products, the contracts used by FTCs are ba- marked by efforts to obtain as much technical sically unchanged although they differ some- and commercial information about a company's what from corporation to corporation and from product as possible. When companies have been commodity to commodity. All standardized con- unwilling to discuss proprietary technical in- tracts are short, usually two pages. They are formation, they have found that the Chinese printed in English or in English with matching understand and accept a simple statement to Chinese. The FTCs will make revisions to that effect. They are usually well informed not these contracts. In general, they are more will- only about the company with whom they are ing to amend their import (purchase) contract negotiating but about the company's competi- than their export (sales) contracts. It is impor- tors and market conditions as well. Competition tant for businesspeople to press for inclusion of among Western business firms may be used by all terms, since the Chinese have a "strict con- the Chinese as a lever to get a company to structionist" attitude toward contracts. improve its offer. Chinese sales contracts generally afford the Negotiations with the Chinese emphasize FTCs more protection against nonperformance technical aspects and are extremely detailed. than do their standardized purchase contracts. It is very important to include highly qualified, Both sales and purchase contracts contain force tactful personnel on the negotiating team both majeure clauses, but for Chinese exports the to resolve difficult technical problems and to coverage clearly specifies various natural dis- demonstrate the company's technical compe- asters and a catch-all phrase to cover "any tence and serious intentions. Commercial ne- other causes beyond their control." Exporters gotiations with the Chinese often include ex- to China should be aware that the standard tensive discussions on relatively minor aspects force majeure clause would not be interpreted of the transactions. Careful preparation is a to include "acts of God," strikes, or government must. Businesspeople should have all previous correspondence and expect to confront very intervention. astute bargainers. According to the standard contracts, inspection of both Chinese sales and purchases is The nature of the negotiations is frustrating done in the PAC by the China Commodities In- for many business people. Negotiations are pection Bureau (CCIB). Such inspections are often recessed while the Chinese consider the characterizedbytheirthoroughnesseven company's presentation. This provides a mar- counting small items that are packed in bulk. velous opportunity to enjoy Chinese hospitality On some projects or for some equipment, the and tourist sites, but it can involve excessive time of valuable staff. Decisions are usually Chinese may also insist on inspection ex-fac- group decisions, made in coordination with a tory, or at the U.S. port prior to loading. number of Chinese entities Including the FTC, Finally,China'spurchasecontracts nor- the relevant ministry and the end-users. It is mally include penalty clauses for late shipment characteristic of Chinese negotiating style to while their sales contracts are silent on the sub-

13 17 ject. In some cases, the FTCs have waived The PRC will enter into licensing arrange- payment when they recognized that the cause ments, technical assistance agreements, co-pro- of the delay was beyond the control of the ex- duetion projects, and consulting arrangements, porter: however, in other cases penalties for including management consultancies. The PRC late deliveries and for late payment have been will barter and switch trade, too, if it is in their assessed. interest, but these types of transactions seem On large, complex transactions (such as turn- to be less significant. key projects) standard contracts are not uti- As the Chinese move further into the mod- lized. The FTCs strive for contract provisions ernization of their economy, they may find still similar to those on the standard contracts, but other, flexible types of arrangements conducive depending on their desire for the product and to increased earnings of exchange. It behooves the degree of competition for the transaction, an exporter to visit Beijing with a number of tend to be more flexible. such options in mind. TypesofContracturalArrangements. Changes in Chinese foreign trade policy that became evident in 1978 now encourage counter- Arbitration trade and a wide variety of contractual arrangements not practiced earlier. In an effort Chinese practice, domestic as well as foreign, to maximize export earnings, the Chinese now is to avoid formal arbitration proceedings as a appear willing to engage in the following types way to resolve contract disputes. Even when of arrangements: the contract contains an arbitration clause (1)Accept raw materials into China for and when a dispute has been unresolved for processing and reexport; some time, FTCs generally strive to settle the dispute through "friendly discussion." Indeed, (2)Accept components into China for as- in many contracts, "friendly discussions" or sembly, further processing, and reex- "friendly negotiations" are cited as the pri- port; mary vehicle for dispute resolutions. (a)Enter into joint ventures where the Chinese side supplies the factory shell The FTCs will likely suggest that if arbi- and raw labor and the foreign partner tration is necessary, it should be submitted to brings in the raw materials, if needed, the Arbitration Committee of the China Council the equipment, and supplies the train- for the Promotion of International Trade in ing of the labor, technology, and su- Beijing, under the Arbitration Committee's pervision,if required. The foreign rules. however, in recent years, FTCs have in- partner receives the product at a re- creasingly accepted Sweden, Switzerland or duced price until his costs, including a other third countries.as sites for arbitration. profit, are paid off ; The most important fact, however, is the (4)Enter into joint venture arrange- degree to which FTCs go to avoid any arbitra- ments of various types in Hong Kong tioneven in Beijing under Chinese rules. The andpossibly elsewhere outsideof very few cases that have been arbitrated were China. reportedly conducted very fairly. In the Chinese The Chinese hope to induce foreign oil com- view, such disputes should be resolved by the panies to assist them in the development of two parties if they have a good long-term rela- what are thought to be considerable resources tionship. Often the Chinese methods of contract of offshore petroleum. To do this, Beijing will resolution are indirect and take the form of allow the return on investment to consist of better terms on future contracts. It is prefer- crude oil delivered over a sustained period of able to explore all avenues for resolving dis- time. Other forms of buy-back compensation putes before seeking recourse in arbitration. are in practice or are being discussed. Foreign firms will assist the Chinese in the develop- Currency ment of their nonferrous metal resources in return for a share of the mined ore or concen- The currency of China is called Renminbi trated product. Even equity participation with repatriation of profits seems acceptable al- (RMB) or people's currency. Basic units: though the Chinese are apt to require a ma- Yuan (Y) = 100 fen (cents) jority share in the venture, jiao = 10 fen 14 18 Notes are issued in denominations of Y10, cial letters of credit. With diplomatic recogni- Y5, Y2, and Y1; and 50, 20, and 10 fen. Coins tion, the possibility of resolving the barriers to are issued in denominations of 5, 2 and 1 fen. fullU.S.correspondentbankingrelations seems much improved. The RMB is an inconvertible currency. Bank deposits can be maintained at the Bank of The Bank of China has an excellent reputa- China, but usually RMB is bought and sold as tion both for its efficiency in handling the tech- needed for commercial and travel purposes. nical details of financial transactions and for paying promptly and in full. In general, Chi- The exchange value of the RMB is deter- nese financial practices are not greatly differ- mined by the Bank of China and changes peri- ent than those in the West. but they do strin- odicallygenerally in response to international gently implement some contract and L/C pro- monetary conditions. The Bank of China posts visions to their own advantage. For example, bid and offer rates for the RMB against major when China is the seller, the standard form Western currencies. The offering price of the contract usually stresses that the buyer is to RMB has risen recently from 59.01 U.S. cents open the L/C promptly and may say little about on January 4, 1978, to 63.56 cents on December the shipping and other documents that China 30, 1978. During the year, it fluctuated be- is to present to obtain payment. When the PRC tween 57.6 and 63.6 cents. is purchasing, the documentation required by Since August 1975, the Bank of China has the BOC before it will make payment is spelled permitted businesspeople with RMB denomin- out in detail. Moreover, in many PRC purchase ated contracts to purchase RMB forward. How- contracts, payment is to be made only after the ever, the relatively high cost of forward RMB shipping documents are received by the branch (30 percent for a 6-month contract), the avail- of the BOC that opened the L/C. This will in- ability of dollar denominated contracts, and crease the amount of time between the shipping the stability of the RMB-U.S. dollar exchange date and the receipt of payment by the number rate have combined to minimize businesspeo- of days it takes the documents to reach China. ple's interest in such transactions. In addition, there will be a certain period during which the seller is without goods, documents, or payment. The PRC also does not follow the Payments accepted international practice of having its letter, of credit confirmed with a bank in the Most transactions in the China trade call for seller's country. Against these examples of payment by irrevocable letter of credit (L, C) somewhat unusual financial practices, however, against presentation of sight draft and ship- one must set the Bank of China's well-earned ping documents. In some cases American im- reputation for financial integrity. porters have been offered contracts with pay- Since the early 1970's RMB has been used to ment in sight draft documents against payment denominate many foreign trade contractses- (DIP) terms. Letters of credit are negotiated pecially for Chinese exports. FTCs generally on the Chinese side by the Bank of China prefer to use RMB to denominate contracts be- (BOC), headquartered in Beijing, with do- cause this minimizes their exposure to the fluc- mestic branches in most ports of China. Four tuation of western currency values. However, foreign branches of the BOC are located in the question of the denominating currency is Hong Kong, Singapore, London, and Luxem- open to negotiation between the parties. FTCs bourg. In negotiating letter of credit transac- readily accept foreign currency denomination tions, the BOC utilizes an extensive network of when China is importing. On large turnkey correspondent banks established throughout the projects, some preference is now being shown world in areas where China trades. The Bank to financing in dollars owing to the depressed of China has not established full correspondent state of the dollar worldwide. bank relationships with any U.S. bank although it will accept traveler's checks, traveler's letters of credit and remittance payments Shipping and Insurance drawn on certain American banks having a limited correspondent relationship. To facili- China prefers to buy goods on an f.o.b. basis, tate trade finance, the BOC has made arrange- handling all freight charges and insurance. It ments with the branches of a number of foreign prefers to sell goods on a c.i.f. or c.&f. basis, correspondent banks for negotiating commer- sometimes having the foreign importer handle

15 19 their own insurance. In this way, the PRC pre- lem seems to be moderating as experience is serves foreign exchange, retains the insurance gained and as more ships have begun to arrive business, and maintains greater freedom of on a more regular basis. A hopeful sign for the action in handling cargoes. future is that China has begun to introduce con- tainerization in a few of its ports. Containers 'A noticeable change in the last few years used in U.S.-China trade will for the most part has been the switch in China from selling on a have to be transshipped in Hong Kong or Ja- purely c.i.f. basis to allowing foreign Importers pan, but it should make the problem of com- to handle their own insurance. In China, insur- bining many smaller shipments more manage- ance is managed by the People's Insurance able, Also, FTCs have shown some willingness Company of China (PICC)which under- to ship U.S.-bound commodities to Hong Kong, writes insurance not only on transport of ex- This allows the U.S. firm to obtain control over ports and imports, but also on such things as shipping at that point. ocean-going ships and aviation, the property of foreign embassies in China, fire, and motor cars, among other things. In insuring foreign U.S. Regulations Governing trade, the Chinese state, "The People's Insur- Trade with the PRC ance Company of China holds that transport insurance on imports and exports should be Imports arranged by the cargo owners, so China's imports are generally insured with the People's With the exception of certain embargoed furs Insurance Company of China whereas insur- (ermine, fox, kolinsky, marten, mink, muskrat, ance on China's exports is generally arranged and weasel furs and skins, dressed or un- by the foreign importers. However, the Peoples dressed), goods may be imported into the Insurance Company of China will also under- United States from the People's Republic of write exports from China if foreign importers China subject to the same general rules that so require." apply to imports from other countries(i.e., In the FTC's sales confirmation contracts, proper labeling, food and drug regulations). therefore, the 'U.S. importer will now note that Goods imported from the PRC, however, are insurance is simply "To be effected by the dutiable at rates listed in Column II of the Tar- Buyers-Sellers" with the Sellers being x'd out. iff Schedules of the United States. These rates A typical clause used to read : "Insurance: to are generally higher than those on goods from be effected by Sellers covering all risks and war countries with which the United States has a risk as per The Ocean Marine Cargo clauses reciprocal most-favored-nation (MFN) tariff of the People's Insurance Company of China, agreement (Column I rates). for 110 percent of the invoice value." Information regarding the duties applicable In the case of China's imports, a typical to specific goods may be c" tained by sending an clause reads: "Insurance: to be covered by the adequately detailed description of the goods in Buyers after shipment." It should be noted that question to the U.S. Bureau of Customs, 1301 "after shipment" generally means after the Constitution Avenue, N.W., Washington, D.C. goods are "stowed." In other words, in buying 20229. f.o.b. the Chinese buy f.o.b. "stowed" to assure Importers should be award of the regula- that no title problems arise during the actual tions of the Department of Agriculture, Food loading of the goods. Whether the goods are and Drug Administration, and other agencies purchased f.a.s. or f.o.b. stowed should be of the United States applicable to imports from clearly understood. all destinations. The rapid growth of China's trade has im- posed heavy requirements on China's fleet and Exports port facilities. Delays due to loading and un- loading have been common although the diffi- U.S. exports to China and other Communist culties have eased as China's maritime facilities destinations are subject to controls provided for have been modernized. The problem of timely by the Export Administration Act of 1969, as delivery has been particularly acute for U.S. amended by the Equal Export Opportunity Act firms partly because 'U.S.-China trade has been of 1972. One purpose of this legislation is to so recently resumed and partly because of the authorize controls over the export of goods and lack of regular shipping schedules. This prob- technology that would contribute to the mill-

16 20 tary potential of these countries to the jeopardy The Equal Exprt Opportunity Act of 1972 of U.S. national security. The legislation also further provides that representatives of a par- declares it to be the policy of the United State ticular industry may request the Secretary of to encourage trade in nonsensitive items with all Commerce to appoint a Technical Advisory nations, including China, with whom the United Committee in that industry to consult with States has diplomatic or trading relations. the Office of Export Administration on licensing requirements and procedures. Such committees For detailed information on licensing re- have already been established for manufac- quirements U.S. exporters should consult the turers of computer systems; computer periph- Export Administration Regulations and sup- erals, components and related test equipment ; plementary Export Administration Bulletins at semiconductors; semiconductor manufacturing any U.S. Department of Commerce district andtestequipment; numerically controlled office in 43 major U.S. cities. Included in the machine tools; telecommunications equipmeit; Regulations is the Commodity Control List and electronic instrumentation. (CCL); this is the key to determining whether a specific shipment may be exported under an Financial Restrictions and Assistance established general license authorization, or whether a validated license is needed. A vali- The provisions of the Johnson Debt Default dated license is required for those commodity Act that prohibit all private U.S. individuals, groupings designated by a "Y," the country partnerships, corporations or associations from category for China and most countries of East- certain types of financial transactions with any ern Europe, including the U.S.S.R. foreign government or agency in default in the payments of its obligations to the United Once it has been determined that a validated States Government may apply to the PRC. export license is required for a specific export, On May 9, 1967, an advisory opinion by the an application for the license should be sub- Attorney General clarified the application of mitted to the Office of Export Administration, the Johnson Act to private financing of exports U.S. Department of Commerce, Washington, to those countries affected by the Act. The D.C. 20230. Application forms can be obtained opinion stated that the Johnson Act does not free of charge from any U.S. Department of prohibit export financing by U.S. firms or bank- Commerce district office. ing institutions if the terms of such transac- U.S. firms are encouraged to contact the tions are based on bona fide business considera- Office of Export Administration for information tions and do not involve a public distribution on export licensing, including pending trans- of securities. actions. Telephone inquiries may be directed to Prior to. this opinion, there was uncertainty the Exporter Services: (202) 3'7'7-4811. While whether certain financial transactions connected no official determination on licensing can be with exports, such as lines of credit, barter made before formal application isfiled, the transactions, and deferred payments, were pro- Office of Export Administration can often in- scribed by_the Act. The opinion makes it clear formally indicate the prospects for issuing a that the Johnson Act is not intended to restrict license. such credit arrangements so long as they are comparable with those commonly given for ex- Outside of domestic short supply and foreign policy considerations, the principal criterion in port of the same commodities to other countries. reviewing license applications is whether the technical data or commodity is designed for, PRC Tariffs intended for, or could be applied to a significant military use. Availability of comparable foreign- China has a customs administr4.tion and a made equipment is also taken into account. The published schedule of tariffs embodying most- cases most difficult to assess from the stand- favored-nation and ordinary (higher)rates, point of strategic implications are subject to However, for purposes of U.S. exporters, import review by other interested U.S. Government licensing, customs formalities and tariffs do not agencies. Export applications for certrin com- exist as processes separate from the conclusion modities must finally be submitted for approval of contracts and need not concern the potential to the Coordinating Committee for East-West exporter. Foreign visitors to China are assessed Trade Policy (COCOM), a group of delegates duties on goods brought in for personal use in from Japan and the NATO countries, except excess of specified nominal duty-free amounts for Iceland. (see Section on Personal and Prohibited Items),

17 21 Trademarks, Inventions, and Copyrights tral Administrative Bureau for Industry and Commerce (CABIC), which, according to the China is not a party to any m .lateral or 1963 Regulations, is responsible for adminis- bilateral treaty with the United States relative tering the PRC Trademark Regulations. The to the protection of patents, trademarks or CABIC still performs this function. When copyrights. applying for registrations, American firms must provide to the CCPIT the following documen- Trademarks tation : v4 (1) A separate application, in duplicate, "Measures for the Control of Trade Marks," for each trademark the firm wishes to issued by the PRC on April 10, 1963, and sup- register. plementary "Enforcement Regulations" issued April 25, 1963, govern trademark protection in (2) a power of attorney, in duplicate, for that country. Foreign firms must file all trade- each trademark. (This document em- mark applications through the China Council powers the CCPIT to act on behalf of forthe Promotion of InternationalTrade the foreign firm to register the trade- (CCPIT) in Beijing. mark with the CABIC.) (3) a certificate of nationality (no pre- Registration of a trademark is granted to the scribed form), which should show that first applicant. Marks registered by local enter- the corporationisorganized under prises have no fixed duration ; they are valid U.S. law. until withdrawn by the registrant. Marks registered by foreign parties are valid for periods (4) 12 prints of the trademark for each of 10 years and renewable for further 10-year application. The meaning and deriva- periods. The owner of a registered trademark tion of the trademark word must be acquires the exclusive right to its use in the clearlyexplained.The Regulations PRCRegisteredforeign-ownedtrademarks state that the original copy of the may be assigned to other foreigners provided power of attorney and the certificate the latter meet the same requirements, noted of nationality must be "LEGALIZED' below, as the original applicant. (i.e., notarized) by a Chinese Embassy. According to CCPIT officials, the PRC A foreigner may apply for a trademark regis- Embassy in Washington is empowered tration only if (1) a reciprocal agreement on to do this. registration of trademarks exists between the applicant's country and the PRC and (2) the The furnishing of evidence that the foreign - applicant's mark is already registered by them origin trademark was registered in its own in their home country. The CCPIT informed country also is no longer required for the the United States Liaison Office in Peking and United States since it does not require Chinese The National Council for U.S.-China Trade in corporations to provide such certification.. Also Washington, D.C. early in 1978 that it would according to the CCPIT, U.S. trademarks ap- permit trademark registrations by U.S. na- plied for and registered in the PRC may include tionals., U.S. nationals may now apply for and English words. Foreign trademarks registered receive registrations, as of January 1, 1978. there are not limited to Chinese raid may use The Regulations' requirement (Article 12) of any language. reciprocity between the PRC and the country If two or more enterprises apply for identical of nationality of the applicant is considered by or similar trademarks, regktration is aecoNled the PRC to be met by the United States since to the first application. The validity of the PRC foreign trading corporations already are trademark registration begins frori the date of permitted to apply for and register trademarks approval of CABIC and is effective for 10 years. in this country. An application for renewal can be filed soon before expiration for 10 years. An application U.S. firms desiring to file applications or to for renewal can be filed soon before expiration, correspond with the PRC on trademark matters for another 10-year period, and this can be shouldwriteto:TrademarkRegistration followed by re-application for a further 10 Agency, China Council for the Promotion of years. International Trade, Beijing, People's Republic of China. In trademarks matters, the CCPIT In some cases, subsidiaries of U.S firms in acts as the foreign firm's agent with the Cen- countries with bilateral trademark agreements 18 22 with China may have already applied for trade- State Council. These regulations replaced earlier mark registrations in the PRC. American firms Rules of 1950 and 1954 that had provided for thathavealreadyregisteredtrademarks t.crtitin patent rights. The new "Regulations" through a foreign subsidiary located in a coun- establish a system under which a party may try that does have a bilateral agreement with apply to the state for official recognition of an China may, if they wish, use the assignment int ention or technical improvement. Should the procedure in the Chinese Regulations to assign state find the invention useful, the party is the trademark from the subsidiary back to the granted a registered certificate and given cash parent firm headquartered in the United States. awards, and perhaps other bonuses based on Under the PRC Regulations, the "owner" the invention's use and value to the state. Tech- (i.e., holder) of the registration enjoys an ex- nical improvements, if adopted, also qualify for clusive right to its use. If the track:mark is cash awards and "commendation" based on registered in the name of a subsidiary, only their use. The state retains ownership of all that subsidiary "owns" the right W use it. such inventions and technology. Foreigners may unless, under the above-mentioned assignment apply and qualify for the above certificates and procedure, the subsidiary assigns the trademark awards for their inventions and technology. to the parent corporation. There is no indication in the "Regulations" Currently, Canada, the United Kingdom, whether payments to foreigners are remittable. Sweden, Switzerland, Denmark, Finland, Italy, The PRC reserves the right to sell to foreigners, Belgium-Luxembourg, Netherlands, West Ger- through its Ministry of Foreign Trade, those many, New Zealand, Australia, East Germany, inventions that are authorized for sale by the Norway, Czechoslovakia, Hungary, Greece, and State Scientific Commission. France have reciprocal trademark registration Although there is no patent protection per se agreements with the PRC. available to foreign firms in China, the Chinese Other salient features of the PRC's "Trade have shown some willingness, on a case-by-case Marks Measures and Rules" follow. Not regis- basis, to give contractual assurances to limit trable are words or markings similar to China's the use of the seller's belmology within China national flag or other official emblems or medals, and to prohibit the reexport of the technology similar to national flags or emblems of other to third countries. countries, similar to marking of the Red Cross or Red Crescent and those "which have an ill Copyrights effect politically." There are no opposition pro- The PRO has not joined the Universal Copy- visions, nor time limit for governmental proc- right Convention or Berne Copyright Conven- essing of application& A trademark registration tion, or concluded any bilateral copyright pro- may be cancelled where the quality of the prod- tection agreement with the United States. So uct does not meet governmental requirements, far as is known, U.S. authors have no copyright where it is altered without governmental au- protection available hi the PRC for their works thority, where a registration has not been used first Published outside that country. Thus, U.S. - for 1 full year and no permission for such non- authored books, plays, music and other literary use has been granted, and where a third party and artistic works presumably may be freely applies for cancellation and, after examination copied, translated and reproduced in the PRC of the reasons for this request by the Govern- without authorization from or compensation to ment, it approves the cancellation. For trade- the U.S. copyright owner. For further infor- mark registration purposes, there are 78 classes mation on the PRC's laws on the above subjects, of goods. An appi:cation for a trademark for contact the Foreign Business Praetices Divi- a medical product must be accompanied by a sion, Office of Internationail Finance and Invest- certificate approving the product's manufacture ment, U.S. Department of Commerce, Wash- issued by the Health Department. ington, D.C. 20230. Inventions Going to the PRC The PRC has no patent law. Procedures governing recognition of inventions and technology Travel for use and compensation are embodied in the "Regulations on Awards for Inventions" and The PRC may be reached by the following "Regulations on Awards for Technical Improve- internationalair service: Japan Air Lines, ments," approved October 23, 1963, by the PRC Pakistan International, Ethiopian, and Iran

19 23 rIlilw Air, each twice weekly to Beijing and Swiss the Hong Kong-toGuangzhou train. Receipts Air, Aeroflot, Tarom, and Air France, once a for these transactions must be kept and turned week; Swiss Air, Pakistan International, and in upon departure. Japan Air Lines, once a week to Shanghai. The Chinese airline, CACC, serves Tokyo, Moscow, Personal and Prohibited Items Paris, Tehran, Karachi, and Bucharest. Regular CACC flights from Hong Kong to Guangzhou Personal items essential to the visitor during (Canton) began during the Fall 1978 Fair, thus the trip and in reasonable quantity may be ending the necessity of traveling by train to brought into China. Small amounts of medi- reach the Fair. In addition, in November 1978 cines, up to four bottles of foreign liquor, and hovercraft service from Hong Kong to Guang- up to 600 cigarettes may be brought in for zhou was initiated. personal consumption. Visitors maY also receive medicines, liquor, or cigarettes through the Visas mail, but the total value each time should not exceed 50 RMB; for visitors from Hong Kong Visa applications may be made through the and Macao the amGunt should not exceed 20 PRC Embassy in Washington, D.C. (normally RMB. allow 3 days for receipt) or through the China Visitors may bring in a typewriter, a tape Travel Service (CTS) in Hong Kong or Kow- recorder, a film projector, a copying machine, loon (normally allow 4 days for receipt). Two and similar items necessary for conducting copies of the visa form and four passport-sized business in China. Such items will be exempt photos are required. from customs duties if taken out of China on To obtain a visa for a business visit, an invi- departure. tation from a FTC or other government entity Certain items are prohibited entry into China is usually required. Persons who have applied including Chinese national currency, lottery for visas and have not yet received them prior or raffle tickets, and any books, journals, films, to arrival in Hong Kong should produce evi- and tapes, which would be harmful to or cast dence that their visit has the concurrence of aspersion on Chinese politics,culture and an official organization in China. Without such morals. Such items are subject to confiscation evidence, an invitation from the appropriate before entry. Chinese authorities must be negotiated, a process that could take considerable time. Visiting in the PRC Health Travel Facilities For American travelers an International Vaccination Certificate bearing current small- Domestic airservice consists of regular pox and cholera entries is necessary; however, CACC air flights within the PRC. Trains are if a traveler is coming from areas where other comfortable and efficient, although long dis- diseases are endemic, appropriate inoculations tances may be involved. It takes 24 hours from may be required. Guangzhou to Shanghai, and 36 hours from Guangzhou to Beijing. Within the cities, taxis are available. Fare is usually 60 fen per kil- Currency Regulations ometer but can vary. There is a minimum The China Travel Service in Hong Kong or charge for 2 kilometers. Since it is impossible the inbound airline provides forms for declar- to hail a taxi from the street, it is advisable to ing personal effects such as calculators, watches, keep one's taxi for short shopping trips, or jewelry and other items of value, in addition to arrange with the hotel to be met by one after the amounts of foreign currency (including meetings. In Guangzhou and Beijing, restau- traveler'schecks)taken into China. This rants will call taxis for their patrons. declaration is necessary for the exchange of traveler's checks or cash into Chinese currency. Accommodations Foreign currency (including American dol- Reservations can be made through Luxingshe lars and traveler's checks) may be changed by (China International Travel Service), but fre- the. People's Bank of China located in the cus- qucntly the host organization in the PRC toms building at the border, in hotels, or on selects one's hotel. Hotels are the Xin Chiao 20 24 and the Beijing Hotel in Beijing; the Peace Social Customs Hotel, Qing Chiang, and Shanghai Mansions in Shanghai; and the Dong Fang Hotel in Guang- In China, the family name is always men- zhou. Most offer rooms with bath or showers. tioned first. Thus, Wang Fuming should be addressed us Mr. Wang. HotelsinBeijing cost approximately 50 Normally a visitor will be invited to dinner Renminbi per day, and those outside Beijing at a restaurant during his stay, most often charge 20-25 Renminbi daily. by the organization that is sponsoring his visit. Dinner usually begins about 6:30 or 7 p.m. The guest should arrive on time or a little early. Restaurants The host normally toasts his guest at an early All hotels for foreigners offer both Western stage in the meal with the guest reciprocating and Chinese food. There are many fine restau- after a short interval. The usual procedure is rants in Beijing including: The Large Beijing to leave shortly after the meal is finished. The Dnek, the Small Beijing Duck, the Capital, the guest makes the first move to depart. Minorities, and a Mongolian restaurant in the Tipping is forbidden. However, it is appro- Bei Hai Park. (See Appendix 4.) In Guangzhou, priate to thank the hotel staff and other serv- there are the North Garden (Pei Yuan), South ice people for their efforts on your behalf. Garden (Nan Yuan), Riverside (Pang Qi), Generally, gifts should be of nominal value and Moslem (Hui Min), and Floating Restaurant. presented to the host group; individual gifts When taking a party to a restaurant, some are not necessary although little mementos of meals may need to be ordered 12 to 24 hours the occasion may be appreciated. in advance to allow for proper preparation. Hotels and Luxingshe can recommend good It is customary to present business cards, restaurants. and it is helpful if one side is printed in Chinese. Presentation of cards may not be reciprocated. Cards may easily be printed in Chinese in Hong Sightseeing and Entertainment Kong. Visitors should conduct themselves with re- Inquiries may be made of the host organiza- straint andrefrainfromloudboisterous tion, the sponsoring trade corporation, or Lux- actions. ingshe concerning visits to places of historical ,interest. Some of the more popular are: Photography Beijing.The Forbidden City, Temple of Generally, photographs are allowed although Heaven, the Summer Palace, the Valley of the Chinese may exhibit sensitivity to shots of the Ming Tombs and the Great Wall. airports, bridges, ports and the like or any- thing of military significance. If there is doubt Guangzhou.Cultural Park, Island of Sha as to the suitability of the subject, consult your Mien, Cung Hua Hot Springs, and Martyrs tourist guide or a Chinese official before taking Memorial Park. the picture. The Chinese generally allow un- There are frequent performances of the Chi- developed film to be taken out of the PRC, but nese national opera, ballets, and theatre groups reserve the right to make exceptions, and occa- as well as sporting demonstrations. In addition, sionally do. trips to nearby communes and factories can be Only certain brands of film can be processed arranged. Cars with drivers and guides may in the PRC: Kodacolor (negative), Agfa Color be hired through Luxingshe. and Sakura both positive and negative, Fuji Color only negative and Ektachrome only Generally, the initiative for entertainment positive. should be left to the Chinese officials. Business visitors normally find it difficult to reciprocate. Dress However, when one is entertained at a banquet, it is acceptable and often desirable to host a It is cold in Beijing from December to March "return" banquet before departing for home. and visitors are advised to dress warmly. Since Normally the Chinese will provide assistance offices are not heated to levels most Americans in arranging for the return banquet, are accustomed to, sweaters and even 'long

21 25 johns" may provide real comfort. In the sum- through Saturday (w th minor variations dur- mer in North China and during the greater ing the cold and hot seasons). Sway is treated part of the year in the South, tropical or light: as a holiday. Appointments are rarely made weight clothing may be worn. Visitors to the before 9 a.m., and it is not advisable to seek Guangzhou Fair dress informally in open- a Friday afternoon appointment. The Chinese necked sport shirts and light-weight trousers. negotiati both in the morning mid the after- Women will probably feel most comfortable noon. Business discussions tend to last longer wearing pantsuits or slacks. A lightweight pull- than in the West. over may be useful in the evening. It is also Shops are open from 9 a.m. to 7 p.m. every- advisable to take cool, comfortable footwear, day, including Sunday. "Friendship Stores," a lightweight hat, and mosquito repellent. for foreigaers only, are located in major cities and carry a wide variety of Chinese goods, Climate especially arts and crafts. In North China the temperature ranges from The U.S. Embassy is open from 8:30 a.m. 5°F in January to 104° in July and August. to 5:30 p.m. Monday through Friday. A security Exceedingly dry and dusty for most of the officer is on duty 24 hours a day and may be year, Beijing becomes rather humid during the contacted in an emergency. (See Appendix 3 rainy season of July and August, South China for telephone number.) is subtropical and fairly hot until the end of October. The climate around Shanghai in East Weights and Measures China is very similar to South China with much higher rainfall than Beijing. Spring and au- Most of the PRC's foreign trade is condurt-A tumn are the best times to visit China, from in the meteic sYstem but domestic Chinese the point of view of temperature. Bust storms weights and measures should be understood: can be expected in north China during April 1 jin (catty) r.--- 1.102 pounds (or .5 kilo- and May. gratns) 1 dun (picul) ,---- 0.0492 tons Language 1 ntu T--- 0.1647 acres Chinese (also called Mandarin, Guo Yu, and The domestic Chinese measuring system is Pu Tung Huaicommon speech) is the national limited to agricultural accounting and shops language, although several other dialects are dealitu in agricultural produce. frequently used, especially Cantonese in the South. The written language is uniform. Busi- Hketricity ness visitors will find that the people with whom they negotiate either speak English or will have Both single phase, 220V AC, 50 cycle and 3- interpreters available. Luxingshe can advise phase 38CV AC, 50 cycle power are in use. business visitors on reliable translation services. Plugs are normally 2 or 3 pin flat (5 amp), but in hotel rooms there is usually one connection Time for a 2-pin round continental-type plug. The bathrooms in the Beijing Hotel have I IOV out- All of China as well as gong Kong is on lets. Beijing time, 12 hours ahead of EDT. Communication Facilities Public Holidays Telephone, telex and cable can be used for Official public holidays are Jan. 1New Year, communicating withChina'sforeigntrade May 1Labor Day, Oct. 1, 2National Days. curpuratit,ns and w ith visitors to China. Telex The 3-day Spring Festival (Chinese New Year) and cable facilities at the Guangzhou Trade occurs in January or February, varying from Fair may involve considerable delays due to the year to year. large number of businesspeople at the fair. Telephone services to Hong Kong have been Hours of Business excellent since the installation of a new coaxial cable. International telecommunications facili- Governmentofficesand corporations are ties in Beijing are easier to use because fewer open 8 a.m. to noon and 2 to 6 p.m. Monday foreign businessvisitors are trying to use them.

22 26 Telephone charges for a 3-minute call to Emergency Contact of Visitors China are $12 plus tax (early 1979). Telex facilities cost $3 per minute and there is a In the event it is necessary to contact a trav- 3-minute minimum usage. Cible charges are eler in China on an emergency basis, it is best 34 cents per word for the full rate and 17 cents to notify the China Travel Service in Hong per word for the night rate. (Charges from Kong or the U.S. Embassy in Beijing. (See China to the United States appear to be Appendix 3 for phone numbers.) similar). Exit Procedures Head offices of foreign trade corporations ._ have both cable and telex facilities. Branch Before leaving the country, the traveler offices can be reached by cable. International should exchange Chinese Yuan for foreign cur- cable credit cards are accepted. rencies, since Chinese money may not be taken out of the PRC. Visitors to China can utilize public telex facilities in Beijing and Guangzhou but must Before exit, the traveler's declarations of punch their own tape. However, there is no personal belongings will again be checked. Val- provision for two-way_ telex service unless the uable items such as watches, cameras, pens, receiving party is able to send a telex back and radios registered at the customhouse at immediately upon receipt of the incoming mes- entry must be brought out again on the visitor's sage before the direct circuit is closed. return trip. Items forbidden to be taken out of the PRC will be confiscated. These include: The telephone system in Beijing and other Chinese national money; gold, platinum, silver cities is automatic. Domestic telecommunica- and other precious metals such as personal tions charges are relatively inexpensive. In ornaments (unless they had been declared at some cases, a domestic cable to a Chinese for- entry), any books, photos, tapes, or other media eign trade corporation from a businessperson in which pert, in to Chinese national secrets; items China may facilitate communications. of artistic value pertaining to the Chinese Rev- olution, history or culture. Permission of the Mail Service Chinese Cultural Agency is necessary to export any ancient artistic items or books. Mail from the United States can be sent directly to China either by surface or air. The After clearing custonts, the visitor must walk rates as of January, 1979 are: from the Chinese side of the border to the Hong Kong side if traveling by rail. If leaving Airgram-220. via CAAC, the traveler will clear Chinese customs at Bai Yun airport in Guangzhou and Letter (surface)-200 for 1 oz.; 360 for 1 must clear Hong Kong customs upon arrival at to 2 oz.; 480 for 2 to 4 oz.; 960 for 8 to 12 Kaitak Airport. oz.; $1.84 for 13 oz. to 1 lb. Letter (air)-310 per 1/2 oz. up to 2 oz.; 260 per additional 1/2 oz. Bibliography Parcel (surface)$2.34 for first 2 Ibs; Books 590 each additional pound or fraction Andors, Stephen China's Industrial Revolution: thereof. Policy, Planning and Management Mg to -C.' Parcel (air)$3.08 for first 4 ce.; $1.37 the Present. New York: Pantheon Books, for each additional 4 oz.or fraction 1977. thereof. Barnett, A. Doak. China and the Major Powers Surface mail takes 6-8 weeks for delivery; air- in East Asia. Washington, D.C.: Brookings, mail takes 7-9 days. Be sure to show the Peo- 1977. ple's Republic of China as the country of des- Cahill, Harry A. The China Trade and U.S. tination when mailing to China. Tariffs. New York: Praeger, 1973. It costs 60 fen to mail a post card from the Call, Odile. Fodor's Peking. Edited by Eugene PRC to the United States and 70 fen per 1, Fodor, rev. ed., New York : David McKay, ounce for ail mail letters. 1973.

23 2 Chao, Kang. The Construction Industry in Com- Perkins, Dwight H., ed. China's Modern Econ- munist China. Chicago: Aldine, 1968. omy in Historical Perspective.Stanford, Chen, Nai-Ruenn and Galenson, Walter. The Calif. : Stanford University Press, 1975. Chinese Economy Under Communise. Chi- Perkins, Dwight (et al.) Rural Small-Scale In- cago. Aldine, 1969. dustry in the Peoples Republic of China. Cheng, Chu-yuan. China's Petroleum Industry: Berkeley: University of California Press, Output Growth and Export Potential. New 1977. York : Praeger, 1976. PRC. New China's First Quarter Century. Bei- jing, China: Foreign Languages Press, 1975. Dingle,John.Technical SellinginChina. Princeton: Roger Williams Technical and Szuprowicz, Bohdan and Maria. Doing Business Economic Services, Inc., (Undated). with the Peoples Republic of China: Indus- tries and Markets. New York : John Wiley & Eckstein, Alexander. China's Economic Devel- Sons, 1978. opment: The Interplay of Scarcity and Ide- ology. Ann Arbor, Mich.: University of Mich- U.S. Central Intelligence Agency. Peoples Re- public of China: Atlas. Washington, D.C.: igan Press> 1975. -.Government Printing _ _ Eckstein, Alexander. China's Economic Revolu, U.S. Congress Joint Economic Committee. Lion. Cambridge :CambridgeUniversity China: Reassessment of the Economy. Wash- Press, 1977. ington, D.C.: Government Printing Office, Fairbank, John K. China Perceived: Images 1975. and Policies in Chinese-American Relations. U.S. Congress Joint Economic Committee. Chi- New York : Knopf, 1974. na's Economy Post Mao. Washington, D.C.: Fairbank, John K. The United States and Chi- Government Printing Office, 1978. na. 3rd ed., Cambridge, Mass. : Harvard Uni- Whitson. William W. Doing Business with Chi- t asity Press, 1971. na: American Trade Opportunities in the Felber, John E. The American's Tourist Man- 1970s.. New York : Praeger, 1974. ual for the Peoples Republic of China. New- ark, N.J.: International Trade Index, 1975. Periodicals Hsiao, Gene T. The Foreign Trade of China: Policy, Law and Practice. Berkeley: Univer- Business China published by Business Interna- sity of California Press, 1977. tional, Hong Kong. China Business Review published bimonthly by Kaplan, Frederick, et al. Encyclopedia of China the National Council for U.S.-China Trade Today. Fair Lawn, N.J.: Eurasian Press, Suite 350, 1050 17th Street N.W., Washing- 1978. ton, D.C. 20036. Lardy, Nicholas R. Economic Growth and Dis- China Exchange Newsletter published six times tribution in China. Cambridge: Cambridge a year by the Committee for Scholarly Com- University Press, 1978. munication with the People's Republic of Leng, Shao-chuan (ed.). Post-Mao China and China, National Academy of Sciences, 2101 U.S.-China Trade. Charlottesville, Va.: Uni- ConstitutionAvenue, N.W., Washington, versity Press of Virginia, 1977. D.C. 20418. Lin, Hsien C. The Petroleum. Industry of the The China Quarterly published by the Contem- People's Republic of China. Stanford, Calif.: porary China Institute, School of Oriental Hoover Institution Press, 1975. and African Studies, Malet Street London WC1E 7Hp. Liu, Jung-chao. China's Fertilizer Economy. Chicago : Aldine, 1971. China Reconstructs published monthly in the People's Republic of China, distributed by Nagel's Encyclopedia-Guide to China. New Guozi Shudian, P.O. Box 399, Beijing, Peo- York : Paragon Book Gallery, Ltd, 1974. ple's Republic of China. Oksenberg, Michel, (ed), et al. Dragon and Ea- China Trade and Economic Newsletter pub- gle: U.S.-China Relations Past and Future. lished monthly by Monitor Consultants, 25 New York: Basic Books, 1978. Bedford Row, London WC1R 4HE, England. 24 28 China Trade Report published monthly by the Beijing Review published monthly in English Far Eastern Economic Review, Ltd., P.O. in the People's Republic of China, distributed Box 47, Hong Kong. by Guozi Shudian, P.O. Box 399, Beijing, China's Foreign. Trade published quarterly in People's Republic of China. English in the People's Republic of China, Special Reports published irregularly by the distributed by Guozi Shudian, P.O. Box 399, National Council for U.S.-China Trade Coun- Beijing, People's Republic of China. cil, Suite 350, 1050 17th Street, N.W., Wash- The Par Eastent Economic Review published ington, D.C. 20036. weekly by the Far Eastern Economic Re- China's Economy and Foreign Trade, 1977-78 view, Ltd., P.O. Box 160, Hong Kong. published by the Department of Commerce, Jetro China Newsletter published monthly by for sale by the U.S. Government Printing the Japan External Trade Organization, 2 Office (Stock No. 003-009-00262-1), Wash- Akasaka Aoi-cho, Minato-ku Tokyo, Japan. ington, D.C. 20402.

25 29 Appendix B.S. DOMESTIC EXPORTS TO CHINA -- JANUARY - NOVEMbtK 1978 ICVEK $10,000 VALUEI

SCHEDULE BSCHEDULE E AG NON-A4 CODE CODE COMMOOIlY VALUE 4*) CODE

1300540 4410640WHEAI,UNMILLED,NOT DONATED 217,472,193 0 3001066 2631640 GUILIN NT CRU I TO 1-1/8 IN 132,378,423 1303465 0440045 YELLOW CORN, NOT DONATED 51,905,534 C 3094242 2665200POLYESTER FIBERS NONCONTIN 42,891,341 I 1765220 4232020 SOYBEAN OIL, CRUDE, DEGUMMEU 26,117,742 4808005 5629520 OIAMMONIUM PHOSPHATE FERMI 17,013,301 1 3011550 2631080COTTON 01H, 1-1/8 IN OR MORE 16,878,927 1775640 4113040 TALLOW, INEDIBLE 11,657,449 502040_UREA 11,512,12C 1 649 5040 6954175 RCK DKL, CKBITS.A RMRS NSPF' 9;0514427 1754m 2222440 SOYBEANS, NSPF 7,804,450 0 6640584 723902C PTS NSPF OIL /GAS DRILL NCH 0,502,141 I 6604137 7135424 01tScE dfte, NSPF 1001-1500 HP 4,506,455 1 4847050 5622240 CONCENTRATED SUPERPHOSPHATE 3,795,750 1 6603040 7120054PARIS NSPF OF STEAM TURBINES 3,30,319 I 6609496 7429000 PIS NSPF OF PUMPS FOR L1QUDS 2,569,504 1 2500284 2516000WV PLP,SP ALPHA, DSSLVb bROS 2T413,2.83 I 0921600 7822t00 TRUCK MOUNTED DRILLING EQUIP Z,403,510 I 6839540 7413166PTS NSPF INDUS FURN OVEN tiC 2,342,975 1 6926560 78210581lF-HWAY IRKS N /MIL OIES NEW 2,231,722 1 6923400 7224690 TRAC NH TYP NSPF, OV 99 NEHP 20945455 I 4860902 5177015 HJNI,1610ES, UNMIXED, NSF+ 1,942,109 1 6743250 7361524 COMB 80R, GRILL ETC NCH HORZ 1,920,779 1 7112420 8746025 ARTCLE STKNI,TH TEST EDP ELEC 1,9C4,829 1 7125G52 87460 88 tat QTY MEAS INST, KECORDNG 1,818,123 1 5213110 3222420 COw VOLATILE IsIIUM1NOUS COAL 1,040,1C 1 6611271 7437020 PARTS, AIR C GAS COMPRESSORs 1,575,372 1 2500225 251E1206 AD PLP,S0LPHITE,BcCHO,NSPF 1,557,914 I 4331060 5982690 LUG OIL A GREAS ADD MIX NSPF 1,555414 I 7102826 8746011 beOPHYSICAL 1NST L PIS, ELEC 1,547,502 1 0926570 7821094ON-HAY IRKS N/M1L OV 44404 1,529,848 1 3100010 6514440 POLYESTER LENT ItXTUKED YARN 1,30,519 1 4868900 5910005 ntkU1C1DE PREP, NSPF 1,197.219 0743592 7367050METAL FORMING MACHINES, NSPF 1,103,651 0743550 73019868ROAchlNi, MACH, METALCUITIN0 10.10,88Z 3094245 206 5306 ACRYLIC. FIBER NONCON11NUOUS 1474,393 1 4441620 5881326 PULYETHY RESIN HIGH DENSITY 1478,970 1 7118710 8746006CHEH ANALYSIS ELI KEG E PTS 1,029,779 1 6802210 7492022 TAPS ETC 1KN/STC GA 0 2.5% C 926,027 1 6785090 7286804 MALHINES, 912,075 I 357 6020 6537501CELLULOSIC TIRE FABRICS 887,846 1 6640566 723903*PIS NSPF bOKING/DOULLING MCh 848,462 1 6645464 7149920 PARIS OF INOUST GAS TUKBINiS 602,937 1 486 2600 5177055METHYL PARATHION 793,122 1 0923240 7224020 CON OFFtiwY WH TRAC 300-499HP 788,209 1 7118054 8740052 LNG CAUL INST NELEC IND Pk 750,087 1 0923801 7843050 PARTS, NSPF, OF TRACTORS 732,455 I 6605440 7139070PIS NSPF, TRACTOR DIESEL EN4 684,790 '1 6743 240 7361516VERT 8UK MACH INC VcT LATH 681,937 1 6762700 7522006D11,11AL ELECTRONIC COMPT ETC 071,u14 1 6921660 7822080 SPEC PUR VEH NONMIL NSPF 063,822 1

26 30 Appendixl-Continued U.S. DOMESTIC EXPORTS TO CHINA -- JANUARY - 40VbM8ER 1978 LOVER *10,000 VALUE)

SCHEDULE b SCHEDULE E AG NON-AG CODE CODE COMMODITY VALUt t*) CODE

6 749002 7373184 PARTS FOR MACH L APR., NSFF 640,387 1 7244565 8983154 CLMPUTER TAPE, UNRECORDED 641,544 4662900 5177065 INSECTICIOtS, UNMIXED, NSPF 631,748 6680824 725910PTS Of PULP C PAPER MAK MCHS 590,37i: 1 4442 520 5881645POLYMERIZ, CCPOLYMEKIZ TYPE 561,486 4722500 5256040 CAR813ft BLACK INCL THERMAL 540,440 68)4075 7649960 TAPt RcCRURS NSPF C PIS NSPF 532,544 1 357 8440 6533500NONCbLLULUSIC TIRt FABRICS 524,454 1 40430' 5172036*Mina A THEIR DERIVATIVkS 523,270 I -41833CC 525340--CALCIUM-COMPUDNOS.;-NSPf 51C,445 1 4331095 5968055 MIX A PREP NSPF 514,749 421620C 5253774 SODIUM CUMPOUNOS, NSPF 512,550 6T4)440 7369040 PAM, NsPF,uF MET-FOR MCHTL 468,132 1 7118754 8746071 PHYSICAL ANAL tw ELtC E PTS 459,552 6856046 7648344kAUIU NAV RECEPT APPARA NSPF 453,596 6826064 7712060 ELEC GEN EU NSPF & PTS NSPF 45,46$ 6079030 67165601-tRKEWANAUIUM CV 35% VANA0uM 45,031 1 6605445 7139080 PTS NSPF, OlcSEL LW, NSPF 449,0>7 *802205 7492020 TAPS ETC IRN/SIL CK C 2.5Z C 445,199 1 2527810 6413120 KRAFT LINLR8OARD, UN5LtACHED 43b144b 6802430 7492008 TAPS COP GATc ETC 125 LOS CV 41997:,..1 4231020 5253530CHROMIC ACID 407,362 6E26050 7712020 ELtC RcC111-YING APPAKATUS 3970)8 1 6802230 7492032 TAPS eIC IRN/STE,NSPF,0 Z.5Z 397,6)3 4204804 5253742 SOD CHROMATE A DICHROMATt ib1,214 7118046 8746048 LIQUID CNTRL INST ELC IltD PR 388,847 6941400 7822030 FIRE ENGINeS 36i ,;.0 0 1 6626015 7452730 STEAM & BLASI CLEAN RCM NSPF 364,211 712 5045 8746086EQUIP NSPF TEST ELEC CIRCUIT 30C101 0426460 7843094 PTS NSPF NON SLF- PRUPLD VLM 359,017 1 4331035 5489840COMPOUND CATALYSTS, NSPF 354,94Z 6640513 7234414DRILL & WRING MACH, NSPF 330,136 6921640 7822050 HYDRAULIC CRANES, lkuCK m10 334,043 1 6617060 7416042 RAMS TREAT ChEm TEMP CHANGE 323,875 6743564 7367034 METALCUTTING MACH TOOLS NSPF 300,000 1 10083ft OC1300) SWINE, LIVE 240,098 6619854 7438060 WATER FILltit, SOFTEN k() ETC 292,988 1 4331E20 5982030 TETRA ift1HYL-ETHYL) LEAL, 2.9t,632 6876036 7764025 IOS MONOLITHIC bIPOLAR 1TL 287,928 6648587 7239040 PTS NSPF SHOVELS,OKULNLS ElC L67,412 1 4873420 5178460 RUbbkR-PROC ChtM ACCEL, ETC 264,544 . 6662 570 72724E0FOOL PRICES MACH E PTS NSPF 270,745 6619870 7436084FILTERING 4 PUR1F EQUIP NSPF 275,294 6859039 7721030GLASS CRTRDGC FUSE UN 23G0 V 269,865 4345010 2924020GINSENG ROOT CRUUt 265,400 7101820 8746010 METEUREGCL C HYDRO INST ELEC 262,140 1 6846652 7712430CUILS, E IMUCTRS MTRS GEN ETC Z60551 415220 5251025FLUORINE, tROMINE A 1001Nk Z4967t 1 6922985 7843046 PIS, NSPF, CF MOTOR VEHICLES 240,843 6676089 7768980PTS OF tLECTRON CRYSTAL COMP 242,991 404 2260 5172032 PL)LYCARbOX ACID ETC NSPF 246,410

27 3.! Appendix 1-Continued U.S. 00mtSTIC tXPORTS TU CHINA -- JANUARY - NOVEMBER 1978 (OVER 010,406 VALUtt

SChEOuLE B SCHEOULt AG NON-A CODE CLOE cOMM301TY VALUE is CODE

6859690 7721078 PTS ELL SWICh RELAY ETC NSPF 232,128 1 6743572 7362240 8tNU ANU FORM MACH METAL FOR 227,547 1 69465(.6 792 9064 PTS NSPF FOR AIR/SPACE CRAPT 223,1D4 1 4591932 5176C80 CHEM LOWS FOR FLAY ETC NSPF 2E3,40C 1 4043504 5172038 AMINES hAV 1 0 MOkE OXY FuNC 231,696 1 7118C14 8746035 TEMP 1NbTMT lhOuS PROC htLEC 192,702 1 0011046 7434480 PARTS, NSPF, FAN & BLOWER 191,553 I 6084346 6732425 ALLOY NOT RAWL. BARS, NSPP L128,668 1 120140S 2111426 CAITLt HMS, WHOLE 168,41 6926040----71101435--OFF-hwl-TRIAS-&-WA6NS-EX.FRM__ 4041844 5172016 RESORC1kOL 176,954 1 7118002 8740457 uISPLAY INST ETC, ELECT SIWL 173,315 6852765 7649350 RA010 EQUIP NSPF & PIS NSPF 1013,035 1 6923355 7224474 Abk TRAC Wh TYP CV 179 PTOHP 168,061 1 6603024 7126626 STEAM TuRBINts N /CV scce HP 165,195 1 6864060 7788864ELEC APPAR & ELEC PARTS NSPF 161,463 68C2270 7492048 TAPS, ElL NAND OPERATED kSPP 157,944 1 444800 5381754 AKT1F M1XT TWO OR MORE PLASI 157,099 1101 7215020 8852920 WATLH MOV'tNI PARTS 156,534 1 7E91655 7741654 ELECTRuCA.J1OGRAPHS 156,326 7125035 8746484 WAVE FORM MEAS LO E PTS NSPF 152,792 6923344 7224055 A6R TRAC wh TP 12C-139 PTOHP 148,968 707832 8718046 ELECTRON & SIM M1CKOtD1FF AP 147,262 7102846 8741240 GtOPHYS1CL 1NST & PTS, NELEC 146,60 6626635 7452764 PURER SPRAYks S uUSThS FARM 142,769 6106033 6785012 CST lk ETTGS NT MAL F ThRO P 142,719 6083593 7491056 TAPER ROLLER BEARINGS tPRIS 142,524 661705 7410448 mACHS TREAT MATRL NSPF & PTS 136,988 6183920 0706434 SMLS LINE PIPE, 1K -ST EX ALI, 125,771 7491674 7741080 ELELTRO-MeOlCAL APPARAT NSPP 121,743 6854454 7638144 TAPE RECORDERS, V1080, COLOR 121,45. 4874500 5908470 MIXTURES A PREP, CRb A 1NCRG 120,258 7118064 8746033 TEMP INSTRT 1NDUST PROC ELEC 119,564 676 2870 7526490COMMuX 1. PERIPHERAL EQ ETC 1.8,033 6130550 6822580 PIPtS, UNAL Cu NSPF tX PLMBb 115,870 7125U0 8746681 VOLT CURRENT RESIST TEST EQP 114,282 4925240 3351260 POROLEUN WAX, UNBLEND, NSPF 111,283 4010543 8171046 OTh N11R0 CORP 1NCL CAKB ETC 110,140 4043920 5172042 TCLUENEDIISOCYANATES 149,744 4331044 5982054 FUEL OIL ADDITIVE PREP, hSPP 169,648 6802280 7492056 PARIS FOC TAPS ETC HMO OPEK 1C8,30`. 6664041 7212220 COmb1NES,SELF-PROPtLLt0 106,415 7125055 8746090 tLL QTY MEAS DVSI, NRELDRONG 133,895 6802749 7492406 PARIS F TAPS ETC EX NOM oPER 101,144 4643940 5172044 NITROGEN FUNC COMP ETC NSPF 100,848 6840444 7644080 IELEbRAPh APPARAI/PARTS NSPF 99,667 6846420 7644040 TELEPR10/TELETYPEWRITE MACH 1,c1,683 4461521 2331744 NEOPAtAit RUbBER 93,604, 4442534 5381654 THERMOPLASTIC RESINS, NSPF 93,362 6605250 7131900 PTS NSPP Of PISTON A/C ENG 92,390 6613598 7414960 PARIS NSPF F REFIUG LQ NSPF votsua

28 32 Appendix 1Continued D.S. DOMESTIC EXPURiS TO CHINA -- JANUARY NOVEMBER 1,70 IUVtR $10.400 VALUE)

SCHEDULE B SChEDuLE E AG NON-46 COCE COOL COMMO011Y VALUE 1st WOE

6859038 7721228 ELEL Sw1TCHES C RELAYS. NSPF 94,502 1 7118430 0746042 DIAL PRESS GAGS INDUS PR ElC 8,1,564 6884C10 7788820 SIGNAL GENERA1ORS 88,352 1 6403820 6924560 TANKS Ov 75GAL LAP F sTG MFG 48,234 1 6745430 7369030 PARIS, NSPF,OF METCul MCHTL 67,75 1 712E032 8746083 OSC1LL5CPE5 OSC1LLGRPh L PTS 87.747 1 6802220 7492030 TAPS ETC 1RN/STL 8T / 2.57 C 87,537 1 6802225 7492028 TAPS ETC 1RN/STL 8L C 2.5% C Set179 1

....3A01040 . _8746008NAVIGATIONAL 1N5T NSPF, ELEC 44,1,37 2703080 8921155 TEChNCL.5C1ENIFC,PRF5SNL BKS 82.699 1 6765560 7599040 PARTS OF AUP MACHINES A UNIT 82.302 1 6923330 7224045 AbR 1RAC Wh TYP 84-99 PTO hP 80.610 6103020 6786004 LINE PIPE WLO Si Ni AL 0 CST 80.340 1 6803595 7491044 ROLLER bEAR E1C.PAR1S, hSpF 79,923 1 6617 600 7435000 CEN1ROUGES 4 PARTS, NSPF 19,073 1 6601526 7119900PARIS NSPF, AUX PLANT BLR TY 78.670 1 608913 5 6748260ALLOY STL SLITS CLU RLU NSPF 78.653 1 6612380 7415010 AIRCOND MAChY 4 PARTS NSPF 77.513 1 6859068 7721060 TERMNLS S ELC SPLCRS/COUPLR5 76.832 1 712 5640 8746085COM8NiN ELEC CHARC MEAS IQP 75,849 1 6802020 7492006 TAPS COP ChECK LT 125 LOS UV 75,775 1 722 3620 8812920 MOVlt CAMERA PARIS NSPF 75,474 1 6862040 7492010 TAPS LOP GLOBE.ETC 125 LES 74.876 1 6470860 6991335 SulLDERS> HARDWARE, NSPF 73.988 1 7121520 8746078 RAO1Al1ON MEAS/DEIECT 1N5TMT 73,734 1 6762820 7523400 DIGITAL CENTRAL PROCESS ETC 72.136 1 270400 8921175 WOKS, NSPF 72.669 1 7223640 8811900 STILL CAMERA PARTS NSPF 71,302 1 2703085 8928626CATALOGS 70.815 1 4171902 5253320 ALUMINUM COmPOUNuS NSPF 70,400 1 6106056 6785015 CASI AR PPE A TbE FTGS NSPF 69,274 1 6876043 7764046 105 MONLTHC EX BIPOLAR, MOS 68,133 1 7118022 874b039VAC LTC INSTM1 1ND PROC ELEC b6058b 1 6605270 7139040 PTS N5PF, GASOLINE ENG NSPF b3,329 1 6494590 6954220 1NSkTS F 1NTRCHNDL MTL Cu TL 62,524 1 6640580 7239060 PIS NSPF EXCAVAi1NG MCH NSPF 62,337 1 4441010 5081605 PETROL HYDROCARBON RESIN ETC e2 1,2 15 1 682 b040 7163000 MOTOk GEN C RCTATNG CONVRTRS 60,669 1 4713040 5312340 DISPERSE DYES 59,555 1 7118730 8746068 CHROMTGRPHC INSI NELEC C PTS 59.410 1 6857050 7788260 SIGNAL ED EXC RU KLWY C PTS 54.317 1 6640524 7442820 TkACT ShOV LORS, NSPF, NEW 53.938 1 3854640 6581040 MMF BAGS SACKS CONTAINERS 52,02o 1 6604133 7135010DIESEL OWNS NSPF 201-500 HP 50,888 1 6745405 7368060WORK hOLD 4 POSIT UEV10E ETC bet4b3 1 6601040 7119140 PARTS NSPF OF VAPOR BEN OLMS 49,515 1 7089400 8710960 OPTICAL APPL 1NST tiC C PTS 49,4bo I 666 0034 7212320 MAY1NG MACH1NbS NSPF 48.748 1 666 0024 7211220 PLANTING MACHINES 47.977 1 031700 6996580 WLOG RODS. WIRE ETC NSPF 47,404 1 6846210 7644016 TELEPtiN 4W14h00 E( C PT NSPF 40,952

29 33 Appendix I-Continued U.S. DOMESTIC EXPOK1S 10 CHINA -- JANUARY - VOVeMBER 1974 (OVER slO,CLC VALUE)

SCHEDULE 8 SCHEDULE t Ali NON-AG CODE CODt COMMODITY VALUEOS) CCUt

6876015 7762030MICROWAVE TUBES, MAGNE1R6N ..6,40.r. 1 7691620 7741640 ELEC-MED IHERAP1C DEVCE NSF* 46,1E6 1 6611251 7431025 AIR COMP 67,41-15 HP L eNDER 48,00 1 6103420 6786018 6S PR6SuR 1u8G, PIPE. wELDEO 44,824 1 6640546 7234034 OlChKS-1KNChRS EXC LOOK TYPE 42,614 1 6856042 764B330 RAD NAV RECEPT APPARA AIRCF1 41.954 1 6745420 7369420 PARIS OF MACH TOOL FUR HUbbR 41,C12 1 7118G02 8746031 COOKL INST HEAT SY t1L L P1 4G,922 1 . 1454313___05.7.7441_ALMUNDScSIIELLED4NOT.bLANChtu 49,62.:,_ u 6747427 7451960 PARIS L AllACh, NSPF, CPC 38,670 1 b803588 7491450 PARIS DF BALL BEAKINGS 37.664 1 7725115 4252000 Ph 1Ruck ETC TIRES. NEW 37,544 1 b802215 7492024 LAPS ElC 1RN/STL GI. C 2.5t C 37.314 1 6921650 7442270 HYOKAUL CRANES,M0bIL3r.NSPF 36,764 1 8181000 9314140 US VALUE REPAIRS ltAp IMPGR1 35,696 1 126b160 2925062 ONION SEED 34,230 0 6923345 7224060 AGR 1KAL opi11) I4C-159 P1UHP 33,275 1 64E4011 7211320 1.uL1IVA1RS TRCTR uRios OR M10 32,547 1 (2660044 7212374 HARVtST1N6 MACHINES. NSPF 32,344 1 6617015 7416016 STERILIZERS I. AUTOCLAVtS PIS 30,62) 1 661237Z 7414114 CEN1RAL STATION A1R.-NAND UN1 30,459 1 343104 2631020 CO1TON NI CR0 OK CMB UN 1 IN 30,388 7125025 8746082 FREW TESI APPARATUS E PARIS 40.362 1 7118740 8746069 CHtM ANAL Eu NONELEL NSPF 29,b7 1 )35100 7732320 PORULAIN 1NSuLA1CRS 28,686 1 6660048 7863040 PARK wAbON6 AND CARIS 1 7119240 8746077 PARIS NSPF, REV COUN1ERS ETC 2::764.31 1 6656025 7648320 RADAR APPARATUS. NSPF 26,706 1 6465520 6940030 80L1St SIDS, STUNG IR OR SU 26,414 1 6876031 7764020 IC>S MONOL1MC LINEARIANAUDG) 26,266 1 67628b0 7526084 INPUT OUTPUT L (.OMBLN ETC 24.264 1 6660026 7211240 SEEDING MCh INCLUDING DRILLS 27,62C 1 6863520 7732130tLEC COW FITTING 1RN E ST N 27,154 1 67835)7 7286842 PARIS FCR TIRE WILDING MACH 27.040 1 6619820 7436040 OuST (.OLLtC1 E AIR PUR E4u1P 26.158 1 7118720 8746067 SPEL1ROM1KC 1NST NcLtC 4. PTS 25,350 1 6923335 7224050 A61( 1RAC WH )P 100-119 PlOnP 25.126 1 6852085 7649330 lv APPAKA1 NSPF E PhK1S NSPF 24.691 1 6517600 6954280 SETS NW 42 0 NOR OIP TLS) 24,115 1 7726280 8910150 HUSk, ETC NSPF, KUBK E PLAST 24,0$4 1 6824545 71644)6 MUTORS, AC, 21 TO 20 HP 23,774 1 2703040 8921125 01C1ILNAKIt6 AND 1htSAukUStS 23,759 I 680,425 7424022 RECIPROCATING PuMPS, NSPF 23,457 1 6745005 736901e 1OUL NOLDEKS, NSPF, Ell. 22,653 1 6529195 6911085 STRCIRs A PT6 1K A STL NSPF 22,5'a4 1 6802242 7492036 LAPS tIC 1RN/SiL GA 2.5% uNO 21,45c I 6749001 7373160 GAS-OPER WELD ETC, NSPF 21,432 1 6782022 7283920 PARIS I. AlACH, NSPF, El POi 21,4:44 1 6534680 8121045 COOKING APPARATUS, NSPF 20,756 1 6921036 7610020 PASSENGER LARS, CV b CYLINLI, 10470 1 6853970 7649940 PARTS UN TAPE PLAYERS, NSPF 20,C1C 1 30 34 Appendix --Continued u.S. DOMESTIC. EXPORIS 10 UIINA JANuAkY NOVOWER 1978 (OVER $10,000 vALLAI

SCHEDULE B SLmEDuLE E AC hON-AG CODE CODE GOMMOuITY VALUE 44/ GUDE

6859048 7721040 CONNtC1ORS, COAXIAL 20,000 I b088120 6743006 ALLOY hUI RLD PLATES, NNFF 19,872 1 6852075 7649325 TV APPARA FOR CABLE IV & PIS 19,0.48 I 6660031 72123IC hAY bA0ERS 19,799 1 6600034 7211140 MOLDBUARU PLOWS 19,397 1 7096120 7742010X-RAY IuuES 19,ICC I 6617045 7416012 NUNMIXINb PRUCES VESS & PTS 18,846 I 6859055 7722000 PKINIED CIRCUIT BOARDS 18,687 I 7244575 8983170_COMfulEk oISLS, uNRECDROEU__ 18,59& 1 6876(46 7764046 IC>S MONL1mL EX 81POLAk NSPF 10,52U I b921015 7810010 PASSNbR CARS,NEW,6 CYL E uND 16,421 I 7725150 6257454PN OFF-HIGHWAY IIRES NSPF NW I7,94t. I 1912000 2919550 MARINt ANIMAL PRODuC10, NNPF I7,85C I 6844091 7758940 PIS NSPF tLEC SIOR OR h1RS 17,284 1 7714400 568616uFILM EEC, POLVET.OLEXt 17,195 I 6861030 7723015VAR KESISTRS E POINTMTR WRWU 17,185 1 *876025 7763010SI6NAL IRANSISTOKS 17.124 I 2707400 8928680ADVER1ISNG PkIN1 MAILER NSF* 16,599 I 2749540 8928800 PKIN1LD MAHER, NSPF 16,000 I 6108054 6785082 FITTINGS NSPF OF IRN OR S1L 15,934 1 6762855 7526070 PRINIERS FOR A.U.P. I5,961 1 6876021 7762045 LIGhl-StNSING ELEORNIC 1ubt 15,66V 1 6120920 2882120 ALLOYED COPPER WASTt A SCRAP 15.574 1 7096640 7742060RADIAIN MEASMNT tO ETC & PTS 15,44C I 722954C 881395C NI FILM FINISH t0uIPMM1 NSPF 15,150 1 6876007 7760960 LhPS, UICL, WAF, SEMIC.ON PIS 15,137 1 6606640 7188050 PIS, MAIER WhEEL. IUKS & tNG 15,000 1 2042680 635l 60 WDN PKG 13xS,ETC,NSPF,ASSA/N1 15.000 1 6884030 7788840 PIS, NSPF, OF ELECI CAPACTKS 14,726 1 6662510 7272020 AtAl/POUL1RY PROC MACH & PIS 14,662 I 6495100 6954.166 INTRChGeL TOOLS hSPFFmOM 14.665 1 6609470 742884TuR6INE PUMP:. F LIQUIDS NSPF 14,4140 1 6871050 7782580 ELEL DISLHARGt LAMPS, NSPF 13.939 I 7110026 8746040 VAC cIC INSTMIS, ELK, NSPF 13.9144 1 7091690 7741090 PIS NSPF ELEC-MED & IhER APP 13,744 I 1230000 2116000 ShEEP,ETC,SKNS,whL,FOR FURS 13,b43 0 0861035 7723024VAR KESISTRS & POINTOR NSPF 13,550 I 6107515 6765025LST IR FIYINGS, MALASLE NSPF 13,195 I 4165509 5252080 INORGANIC ACIDS NSPF 13,162 I 7231550 8822645Si AnA1EuR FILM, UNEXPOSED 12,0/: i 6857070 7788330 buRGLR I. FIRE ALIO, L PI NSPF 12,847 I 6802730 7492056 NCLENO1u VALVES 12,648 I 6785065 7286832MACHS, PROD l ASSiM SEMICONG 12,494 I 7244585 8983190 MAGA MtDiA NSPF, uNkECDKOED 12,487 I 6002741 7492058 PNEGMAIIC CONTROL vALvES,ETC 12,400 I 2703070 892114,5 TEXTBOOKS 12,37 I 6572180 6997370 ARTICLES OF IRON/SIEEL, NSPF 12,374 1 1010'220 0014010CHICKENS, 8REE0tR STOCK,LIVE 12,CIb 0 6660066 72111b0 DISC. PLOW 11,492 I 7732540 8910965 GASKEIS NSPF, Kul:43ER tIC 11,0I3 1 6923325 7224040 AU( TKAC Wh 111) 64-19 PTO hP 11,006 I

31 35 Appendix 1 Continued U.S. DOMESTIC EXPORTS TO CHINA -- 4ANuARY - NOVEMBER 1974 *OVER 4.10.000 VALUE)

SCHEDULE 8 SCHEDULE E 4i. NUN-AG CODE CODE COMM:1011Y VALUE is) CCUt

4743750 5334515 1NDuS1R1AL PAINTS AM) ENAMEL. 10,919 1 6762825 7526010 RANDOM ACESS AUX STOK UNITS 10,7U0 1 6871030 7782570 MERCURY VAPOR OTSUIRGE LAMPS 10,470 1 6920506 7821006 TRKS NONMIL NEW GAS 6000 UN 16,402 1 6609460 7428860PUMPS FOR LIQUIDS. NSPI- 111,3'!9 1 6857065 778832 INDICTR PNLS NSPF O. PTS NSPF 10,3bb 1 7112440 8747200 "ARTCLE SIRNG1H lEST ELI NELEC 11.007 1 6763024 7516246 PHOTOCOPYING MACHINES. NSPF 10,13 1 687030 - -7642060--A0010-FREu_ELEC AMPS/PREAMES._ ._ .__10,14, 4.___ 1 3212915 6522635COTTON OTHER SHEETING Eh COL 10,0113 1 7723010 6123025 FOOINEAR Mt RUM E. PLASTIC 10,017 1 7118075 8746060GAS VAR INST. NELEC IND PROC 10,C00 1 1911526 2919540 BULL SEMEN *BOVINE) 1C,COC 0 COUNTRY TOTAL 647402,059

FINAL TOTALS 6471,002.059

319 RECORDS TOTALED

32 Appendix U.S. GENERAL IMPORTS FKCM CHINA -- JANUARY - NOVEMBER 1,78 tOVER 450,040 VALUL)

1SUSA SChEDULE A AG NUN -AG CODE CODE COMMOD11 Y VALUE U.) LODE

3202032 6521733 PC SH1R1 NES vim (.OT NFBC 19,751,741 62402006871020TIN OIHLK THAN ALLOYS UNwGRT 15.493,84 1861560 2919040 FEATteRb Ni MELTING FtD SID 15.20$123.1 75515005723000 FIREWORKS 111126.131 7662560 8960600 ANIlgutS NSPF 9,978,722 1661565 2919660DOWNS h01 MLEIIN6 FLO SIDS 9.8511653 0 3201038 6521738 AbC ShEE1 Wh COI NFBC CkU 71261,567 2224000 8 947140 BASKtIS AM) BAGS BAMBOO °I.:051897 1b633)i 291924.3 SRISILES CRUDE OR PROCESSED 6,395,376 145..400- -6177300-- CASHEW -iriUTS" SWECC-05--EIC 61373,137 301SL0 6592010FL C PILE tIC OV 66-2/3 CI 5,777,925 3802788 844117 0 MiNS OT SP- -SHIRT COI NK NOk 5,578,704 651)400 2b74200TUN6SIEN URE 5,4W,267 1 70440108471440cal 6L0VES k0 1DUKCht1IES 5,125,447 1 16C5000 040.25 TEA. CRUDE uR PREPARED .,495,202 4521200 5520080CASSIA OlL 4.2141269 3080440 2613000 SILK RAw IN SKEINS LIC NES 4,173,976 32(3032 6521733PL shIRT NES wH COI kfbC 3.7411161 6323200 6649720 ANTIMONY UNWR WSTE A SCRAP 31644116;i 3 823349 6437062G 1 SLACKS EIC Y-UIL NO NK 114241044 3066260 2683 055 hAiK CAShMEkt 60AI SORT LTC 3,046,629 4554000 5922830 GELATIN INEDIBLE UN 40CIS L13 2.932.644 4376400 5170920MENTHOL 219101833 1 360i5I0 6592 010 FL C PILL EIC OV 66 2/3 Cl 2,633,163 741$424%; 8949200------FEATHLRS S ARTICLES OF NSP 2.621.146 176631)0 4228020 TUNG OIL 21 685.130 2225703 6597(44fLR COVeR,UNSP vt6 HIRLINES 2,60 1,906 41750005260105ANTIMONY 0X1UE 2,594,019 3823347 8437062 N OT COT TROUSERS ETC NK NO 21554.133 1 22260!0 8997160 AKT14 NESIbAMBOOTRAI.W1LICHP 2,507,133 1924000 2924020 L1COR1Ct R001 2.473.64) 0 366921 8423200MEN TRS A SL CI UtN NKI NOR 214.43.4)63 64626 22 6940120 NAILS, IRN/SIL UNCOATED 4259,104 1 70237656578390 n-WEAK 01 F18 NO SEw LTC N8 2.253.066 0803926 8423200BOY TKS A SL CI DEN Ilia NOR 1,916,982 3823353 8437062 W COT SLACKS ETC C-ROY NKNO 1,756,188 2226400 6997160ART NES. uNSP Fib Vtl, MIL £,737,2b7 1 7606045 8510275 FEALL FTWK UNLKE u.S., OXFD 1,692,182 1 3827873 8455048 wG SwEAIERS KT MI* N ORN 1,6159,136 1 3803923 8423200M IRS A SL CI CORO N 101 NOR 1,655,773 1 1564000 0722000 COCOA UNSwiET AND CULDA CAKE 1.592,434 0 3b278706455048 SWEATEkb MMF KT WAN 1,480,871 2224406 8997140BSKTS BAG UNSPUN VEG mA1 NE: 11363.308 36233558437062 G 1 COT SLACKS ETI. GkUY NKNO 113E0,990 1 1611300 0752220 CASS1A, CAS BUD A VERA UNGRO 1,3614179 1905640 2919340 INIESIINt FCR SAUS CSN6 NSPF 1,342,627 4721000 2789200BARYTES ORE CRUDE 1,306,329 3620660 8466030 0TH W G I COI KT 1- SHIRTS NO 112401461. 38(2782 8441150mtNS C SPORT ShiR1 CORD MOW 1,264,616 704402$ 8471440GLOVtS NES MCh-wUV COI NuRN 11199.315 1 32020 58 652176sTWILL NES CC1 NFbC CR0 11154,296

33 37 Appendix 2Continued U.S. GENERAL IMPORTS FROM CHINA JANUARY NOVtAbtR 197u Malt $50,400 VALUE)

TSUSA SCHEDULE A AG NON-AG CODE CODE COMMODITY VALut (A) LODE

3201044 6521740 S-F ShtEl wh COT NF BC CkO 1,145,529 1 3803928 6423200 8 'IRS A SL Cl CORD N KT NOR 1,139,140 1 1223500 0483000 MACAKON1 ETC CONTG NU EGGS 1093,00 0 381'2770 8441146M IS WDRK ShlkTS LDT NK N DR 1,477,811 1 72710008210035 FURN uF uNSPN VEG MATL A P7 1, v64,, 67 5 1 7021220 4484340 hEADWEAR NO7 KNIT OF COTTON 1.061.266 1 7054520 8482040 PL GLOVtS I.OURChtTIES EIC 1,060,981 1 3805900 8455011 M B soL w-AP ti 0$18L8 whL SW 1,042,111 1 3o33020.6684010 COT P-CASES N-ORN N COMBED 951,742 1 1618344a-moo PEPPtN LAPS1CuM ETC UNGRDuNU 931,959 0 3820669 846603007 w Sh1R7S COT KT NOT ORNA 876,842 1 5206100 6673 050 SEMI PREC STONES A AK7S, NES 866,347 1 3803920 8423200 MB SHORTS COT TON N ICI N URN 862,811 1 3607000 6592060 FL COV WOOL EU. PILE DV 40CT 844,773 1 1067620 0119043 RABBIT NES, FR F2 OV3OCT LB 836,430 3372450 6541020 FAB Wh SILK OVER 1.46 Oi ElL 834,539 1885025 5981400 GUM RDS1N $26.4i43 1 30642932683010 LAMEL hAlg SOR7Eu ETC 3823333 8437062 W 4 1 LOT ShOKIS NK NCRN 74161:93.: 1 3821222 8431225 WGIOV CL 0S4 3/4 L NKNO 5173130 2782240 GWAPhIlk NATURAL tIC NES 741:51:4; 1 3 822400 8443020 W 4 I CC7 PJS C$1.50 NK NO 7130:48 1 1465606 0562 040 VEG, WV), OEWIDNIV NES 0 4 528042 5520060 01S7 Oh ESENT NSPF 0 11035753340654 FISH, NES, FROUX o70,669 I 43916905418600 NATURAL C$tuuE DRUGS NES 000,571 3823331 2437491 W G 1 0Th CO7 PL -SUIT NKNO 662,553 1 3821870 8437 072 WGIOLO-t 0$2.50 NK NO 038,850 2224100699714 bASKEIS ANO SAGS WILLOW 638,033 1 22242008997144 BASK7S A BAGS, RA7761. PLM LF 620,011 1 6537500 8973540 400 PLATEu hp' ANU SAN! WARE 618,942 1 4393090 5416600 NATURAL DRUGS NES AUVANCED 613,236 1 7662540 8960660 ANTIQUE FuKN17uRt 612.926 1 7273540 8210474 -----WOCO FURNITURE NSPF 697.694 1 38Z7264 8437436 WG1 SLK BLOUSES N-0 GTh 593,036 1 1483855 2922674 CASHEW NO Shoal LIQUID 591,853 1 3220606 8456480 TANK rOPS COI KNIT NO7 0 377,679 I 3202092 6521795 FAb kkS Wh C07 AFtC CR0 5650v44 1 32010586521765 Twill NtS Wh CO7 NFBC CKu 547,403 1 14552 00 0577840 P1GNOLIA NUTS, ShELLED, tTL 642,364 43720B1 5414640 ALKALOIDS A CPDS SYNTh NSF 536.424 1 3803924 6423200 M 07 US A St. L07 N KT N OR 527,001 1 3635130 6584C20 CUVL1 ETC VE N -hD B-P NJ NU 499,265 1 1144590 6372050 ShELLFISh AND PROUUCIS, NtS 4990249 1 3811640 6425;20 Mb COT G-GwN NES NK OV 62.50 492,741 1 3823361 8437062 W SLACK EU OT COT FA8 NKNO 489,8:5 53494006664046 NONBONt ChINA hh ART NES 1 455,907:5597 36586706584640 ---- -NET 0 ORN 7-CL7H A NPKN MM 1; 381.6145 6455015 M SWEAT WOOL K7 NOR OV AbLe 455,392 1 3666000 6584190 CO7 FUK NtS VELvEl ETC N-0 452,10? 1 1418180 0565080 VEGETABLES, PRtP, PRES, NES 460,725 34 38 Appendix 2-Continued U.S. GENERAL 1MPORIS FROM CHINA -- JANUARY - NOVEMBER 1978 f0Vkft *50,040 VALUE/

ISuSASCHEN:LE A Ab NON-AG CO0c CODE COMMCD1TY VALUE (3) LCDE

38233638437002 G A 1 SLAS EfC 07 C FAB NKNO 449,'W 1 3868152 8455 019 NETS SWEAIERS M-M-F KI NORN 447,43S A 38256C0 8455041 W wL K WHC SW OVSIbL8 N U 4400.14 1 3662744 65840;64 COI SmOP luw NES N URN N J-F 443,804 1 4703000 2929840GALL NUTS CRUDE Oh PRCCESD 41.7Z4 1 3366051 654374507 w-F wOOL 0S2 0601 N08 SY 441,092 7650300 8960156 PAINTINGS ElL, by PIANO 435,671 1 5337 350 6664040 TABLtWARE NO 80% UMINA LOYAL 4213.244 1824504 0980420 SOY SAuLt, 1h IN 414,707 C 4522600 5520025GERANIUM OIL 416,131 38006 20 0455620 N f3 C61 K1 0-GOwNS el N CRN 4i7,184 1 3657865 65840060110N Ntl OR ORN FuKNIShNG 4:0,320 70623408310150 hANWAGS V-F EX C NP tIC NES 367,874 1 6260200 6861220 uNWRO ZINC except ALLOYED 384,268 1 1703210 1214030 CIG LtAF NI SIMO FLut-CURkD 371,093 C 3820581 8437 699 WbIW-A 0Th FIb NI ORN E1C 363,99. 1 25648 00 6421030 PPR BOXES, PPR COV 0 LINED 354,127 I 6323440 5221640 MERCURY tX WASTE A SCRAP 3S0.147 1 45218005520020 LITRONELLA OIL 347,358 C 38039348423200 601 IRS A SL COT N KI N OK 345,489 1 74821008999344 ARTIFICAL FLOwtRS ETC NtS 342,988 1 3823310 8437032W UIH 601 bLOuSkS NOT ORN NA 336,798 1 1829890 0981604 E0I8L2 PREP NtS NOV 5.5( 8F1 329,679 C 20667)6359570WO 8LINOS,SHullERS ETC hkS 324,967 33660496543740 U w W-F WOK 032 0602 NO8 SY 324,955 1 32..2038 6521738 AbC SKEET wh COT NF86 CRo 313,820 1 8000035 9311010 uS GOODS Rt1uRNk0 312,161 1 3808139 8466015 ShIR1S MMF AT N OR NSP 338,398 1 1461200 0579980 APPLES, LIcItO 29b,279 0 7vC2500 8999630NANO FANS 290,444 I 52337006633584 1ALC SItAlIlt kIC NES V AR1I 108,657 I 9999500990U0C3 LN 251 FURm A INF EST 288,300 1 3662460 6584068 C low NES 1EK 01145C CV $1.45 287,696 1 1861550 2919640 FEA1hRS NES mttliNG FtD S10 287,593 7484020 82i3200 FEAINER SLEEPING bAOS 283,993 1 38t3990 8427010M b COY COATS NES NK NO % 34 2b2,179 I 612101 2879570COLUMBIUM ORt 275,784 1 1865524 2685140HORSE MANE A TAIL HAIR, NES 272,496 3662160 6584068 C TOW NtS lER OV 45CNN1,1.45 27w,I35 1 1761500 4245000 CASIOK OIL OVER rOCT LB NES 268,61 0 38212 2C 8431225W b 1 0 uCC 0 *4 3/4L NKNu 267,094 1 38444 22 8455018 RENS SwEAURS M-M-F ORN AN1 465.164 I 74(1026 8973106 JEWELRY bIC PREC mcIALS 264,426 1 6540300 6976030 BRASS hh A SAO WARES N 070, ZS40.13/7 1 380 6130 8455(11 M 8 wL W-AP A OS5LB CSW NtS 253,99C I 7484054 8999200NO 0 -FILL LIS IX O-Sh EX C7 252,547 I 1865510 2685426 BOYNE EAR.CII,ET.EIC HAIR 241,224 2C4500C 6354944 WO bittS it LINLO TEXTILE 239,916 I 32C3301)6521717DOCK PWPF WM COI NFbC CKD 239,878 1 3823391 8437092 10-4-1 C01 w-APPAR N AI N 0 239,701 1 7003575 8 510243 FINK, LtA1mR, FUK MEN, NSpl. 237,285 1 35 39 Appendix 2--Continued U.S. GENERAL IMPORTS FROM CHINA -- JANUARY - NOVEMBER 19711 10VtR 150,0u6 VALISE )

TSUSA 4LHMILk A AG NON-AG CODs CODE COMMODITY VALUE (s) LOOk

32;1003 6521717 DUCK SWPP NH COT N7-1/2 E11 23o.413 1 15570600616020 HONEY 232,402 3827816 845564.1 G A 1 DT e LOATS M -M-F IOk 231,53$ 1 3372C20 6541C26 FAD WH 41LK TWILL-WOV NJ k1L 1 9231500 6664040NONBONE LhINA NOT SETS 223.165 1 1613506 4752000 GINGER ROOT, UNGROUNU 222.828 0 1115440 035 0576 FISH PCKLD NES 6V 1528 CONT ?22,203 1 36258608455043 w G 4-L-H SWtAl KT NU OV 1 210,978 1 3201426 652172 9 PB CLOTH Wm COT NFBC CR0 216,835 1 3800060 8441120 M-8 LOT ORN SHIRTS NCT KNIT 215.404 1195000 0250000 POULTRY tioGS NT CH1CktN WHLE 213.905 0 53377006664640 TABLEWARE,NONbON 6H1HA,H1 VA 213,420 1 2220509292303* bAMbOU /RAT STICKS ROUGH/CUT 210,454 3820671 8466030CT G I COT KT SHIRT MC URN 2%0.150 1 7003550b510243 FUR, LEA, NeS, MEN. CEMENT 209,5:6 1 7046500 847216* GLVS WOOL CV 40CL DPR ETL 206,709 1 4177000 5260170 BARIUM CHLORIDE 199.471 1 1378070 0543240 PRkSH, CHILLED, NSPF 198.335 5330500 6604040 CHINAWARE SPCC SETS $10-124 197.597 1 7624060 6578396 H-WtAR Cl PIO NOT StW ETC bL 190.790 1 715295 C 8852070 -----LLOCKS 12.20 -$5, NONELEC K 192.393 1 34556400 6584044 DT LC NT ORN FUR VF EXC CDT 190.615 1 3825431 8455045 WGI WL slew K1 NOR NOSS Le 190.245 1 14729 00 t588030 U,ANGLS, MANDARIN, LANNtD 169.830 C 5337500 6664040 T 8LEMAKE,NON0ON CHINA Mk() V /80,547 1 526394: 6673440 PRkC A 4tM1PR STN CT N/S NES 185.802 1 22050006330080CURK MANLFALTUKE4 NSPF 1134.91 1 6462626 6940120 ---- -NSA LS ETC IOS CID w VL R CM 182.347 1 70060358510275 MALE PINK UNLIKE U.S. 0700 178.%8 7,26060 8991440 IVORY MANUFACTURES 177.828 1 4661500 5541000 TOILET SOAP OV 20LENTS MUNI, 170.782 1 38661408455013 M B WL W-AP SW EX CASHM CS5 175.231 1 3820430 8455048 NG KT SwtATERS MMF OEN kT6 175.177 1 3808153 8455019 BOYS 4wEATEKS M-M-F KT NCRN 170.37t 1 64626446940120 -----NL4 tT0 104 NSPF EX SM Sisk 108.408 1 70060558510275 FUR, NES, UNL1Kt U.S. -GXFD 100.757 1 38006408466005 M B COT T-SHIRT NES N ORN 165.591 1 654 0535 6976060 COPPtR hh AND SAKI WARES Nk4 103.880 1 43930502924C6C ----- GINSENG IN AUVANCEDFORM 103.703 45236 00 5520080LEMON GRASS OIL 18:.344 7403860 8972037 JEWELRY ftE4 OVER 202 ODZ 10:i.226 1 37016008471110 COT LACk 11- CHIEFS ORN NSPF 159.414 1 30706002686136 WOOL ARILS NOT ADVANCED 152.637 1 7900556 6354246 CLO1HtSPINS NES 152.53 1 4372400 5414056ALKAS INCL ART AIX NAT 151, .3C 1 2500420 2511000 FLAX A hkMP FIBERS PAPR MFR 150,970 38024 00 8442505 M C B COT PJS OV Sle LZ klu 149.592 1 4 932200 5170940 SYNTHETIC CAMPHOR 149.357 1 74130.10 6653942 SCADS, BUGLES, SPANbLtS NES 149,228 1 38278558466030 G A 1 OT KT SHIRTS MMF NURN 148.894 1 4520400 55200P: ANISE OIL 148.020 36 40 Appendix 2Continued U.S. GENERAL IMPORTS FROM CHINA -- JANUARY - NOVEMBER 1978 (OVER $50,003 VALUE/

TSUSASCHEDULE * AG NCN-AG CODE COOE COMMODITY VALUE ($) CODE

38436 20 8425030 M-E. 01 COT VST OVS21A NKNO 147.630 1 7485508472140 GLOVES KN1 NtS M-M N LCt NC 146,983 1 38276488455063 W CT COATS KNIT M-M-F W URN 144.911 1 14740;0 3579610 DAUS.M.ORD.PIIS NOV 10 LbS 143,500 33600530543750 0 W US2 OWL NOIGOZ SYD 141.346 1 22255006597043 FLR COVER 0 ChINAtETC,SIRAw 138,996 1 7925006 8991040 ARTICLES OF SHELL NSPP 136.858 18252060980500 SOUPS AND SOUP PRO', NES 137,584 0 3251092 6521795 FM; NES wh COT NFbC COW 137,127 1 443)17:0 5417440 DRUGS IN CAPSULES PILLS ETC 130.249 1 2470080 6359590 ARTICLES OF WOOD, NSPF 135,649 1 38233138431225 wIl COT COATS ETC NKI NOM 135,539 1 3825871 8415045 W OT WDL KT SWEAT OV S5LB NO 134.743 1 3372010 6541020 F Wh SILK OV 502 UOUPS N-J 134.749 38233288437491 W G I CDT C-ROY PL-.-SU11 NKNU 133.149 1 34682:40 2683070 HAIR ANGORA RA8611 SOkT tTL 132.772 751:3200 8997200 BROOMS ETC VEG MATLS NSPF 131.514 207011206354960 w000 CARVINbS, NSPF 131.378 1 12410152120925 HAKt FURSK1NS, WHOLte RAW 130.504 53487 00 0665440 EIS WARt F6 ART NES UV $10 00,404 30679346564490 UTh CUT PUR NU EX P -wOV NES 129.220 1 521916.1 2765305 CRVOLITt Uk KRYCL1Th 128.142 1 32110766522897 NAP PAb NES WH COT fiNFC CRU 127,795 1 92313006064040NON8ONt CHINA NOT SETS 120,514 1 12152006116120 GOAT SKINS VtG UMW ROUGH 126.116 1 7484502 8999260 WbI 0-FILL (.TS IX 0-SH EX C 125,573 1 1865,302685100 HAIR.HRSt 6uVeCAILE TAILOOY 124.027 0 38212238437022 W 0 COT COATS NK NO OVS4 EA 123.582 1 20698006354220 NNLO ONSL, WO Ex MAhOG NES 123,522 1 43956955418600 OTHER DRUGS INCLUDING SYNTH 122.572 1 3806417 8427 620 0Th WAIFS MMF N KT N 0 122.487 1 04020286940120 ETC NSPF CIO ET NSPF 122.470 1 3823368 8443060 INFANTS SP- SHIRTS COT NK N-0 121.953 1 79906009311090 NONtNUMtRATtO PRODUCTS NES 121,176 1 3873000 658977001 Ala V.-FIB Ex C NES NC ORN 117,944 1 4522464 55200 80 EUCALYPTUS OIL 117.732 n 38281028437035 NOM BLOUSES NK M-M-4 NO 117.223 1 53351C06604040 MOTEL HARE CHINA 0 SUBPORCEL 110.209 1 517240 5 2782220 6KAPIleNA CRYST FLAKE OV 5.5C 116.434 38204598437035 W BLGUSI NI KT MMF LCt 0 OR 113,406 I 22250006597040 BLINDS, ShOUTERS.CURINS, EIC 110.338 1 36351150584020 I .SPRL N-HO N-J NO 109,130 1 7510508994104 UMBRELLAS ANO PARASIMS 108,676 1 42026005260154 POTASSIUM PtRCHLORATE 108.382 1 73795548942670 TOYS NSPF 106.021 1 36233128437032 G A 1 0TH LOT BL6USES NO NK 1;6.360 1 37021008471140 14-I4 PIS NORFS LACE 0Th ETC 166,186 1 07435057363050 IITL-CUT NCH NOT OVER $2506 104.795 1 80020469311636 VAL RER cm ART EX EN6 tXP 103,792 1 42028 00 5260154 POTASSIUM PERMANGANATE 103,603 1 38278538466030 0TH NOM SNIKT5 M-41 -F KT NOR 100,571 1 41 37 Appendix 2-Continued U.S. GENERAL IMPOR1S FROM CHINA -- JANUARY - NOVEMBER 1978 (OVER 41:50,000 VALUE/

ISUSASCHEDULE A A NON-AG COUE CODE COMMODITY VALUE (4) CODE

3381200 2614200 SILK WASTE EA NOILS OV 2 IN le0,133 I 5156400 6613450STONE ANL) ARTICLES NESIDECOR 99,472 1 3314000 6541C44 *Ab Wh SILK JACF DEGUM ETC 96,223 1 3841290 8427010 MS COT LOAT NES NA NU 0 34 98,00 3203044 6521747 SHEET NES NH CO1 NF BC CKU 97,374 1 5465460 6653954-----61SWK ETC NSPF VAL $.3-$1 97,226 1 1610100 0752540ANISE 97,070 380279884411748 COTSPORT SH1R1 NES N It N 0 97,665 1 70612008997130LUG0AGE ETC, RATTAN E1C. 9b,299 1 7378500 8942670KITES 94,718 1 7037240 8484640 0Th W.-WEAR RUB PLAS 01 NES 94,545 1 3803941 8424200m-s CT CDT S-T CMOS NA NORM 94,213 1 3825810 8455062 WL K N G BLOUSES OV$5 L8 N 0 94,078 1 1911540 2911710ANIMAL SUBSTANCES CRUDE ASPF 91,403 0 7401040 8973300 JEWELRY ETC PREC STONES 90,787 1 1670515 1123000 BEER, ElL NOVIGLIGLASS CNTR 901621 3805750 8455 015 M8 WOOL SWEAT NES KT NO N 35 89,576 1 79176208481090-----M-B CISA JACKOF L1R NSPF 89,481 1 3820472 8443060W G 1 M-M PJS E1C ORN NK 69,048 3701700 8471120 OT LACE WO VEG-Flb EX cca 87,865 I 38281118437015W 0 3/4L CUAl MMF NA NO 87,123 1 7t61000 8997134 LUGGAGE OA HANOCIA6S, bAME.00 861504 1 1401660 0542040--BEANS, DRY, NSPFs 9/1-4/30 66,258 3800426 8455018 BOYS SWEAIERS ORt1 ANT 85,874 1 7373000 8942615 STUFFED ANIMALS OV SPEC VAL 05,092 1 6573540 6998120CU ARIsh LID/PL1 W PRMteNSPf- 84,349 1 7006460 8510275 FUR, RU8bER/FABK1Co NES 83,732 1 3662780 6584068 COT TOWEL NES N ORN N 83,650 1 3807535 8427040N-B SILK W-APP NANO OTHER 82,955 3662480658406(C IOW NhS P OV 45C NOV $1.45 82,760 1 4608520 5514430 --ARUM SUB ETC NSPF ART M1XE 82,667 1 7058560 8482040 RUB FL GLOVES SEAL SEAMS 82,250 7410500 6671040NATURAL PEARLS AND PARTS 80,505 1 3658680 6584040 NET OR ORNA FURNIShMM tro,790 1 3202044 6521747 SHEE1 NES WH COT NF 8L CRD 66,677 1 3659110 6584044FURN URN CR NE1 SILK NES 80,671 1 1824600 0980440 SAUCES EXCEPT 'MIN SOY 80,497 6 5465960 b653950 NSPF NT CT VAL OV $3 78,797 1 36345006586500BLANKETS ft L VF ND OV47.5C 78,288 1 3462406522310LOT VELVElEalS NES UV 01.10 78,2E6 1 38608306589710L--O-N A 01h A ORN SILK NSPF 78,165 1 3802750 8441120 M C DRESS SH1R1 NES NK NO 73,325 7004540 8510248 L WOM FTWR CEMENT OV $2.50 73,195 1 347024] 2686110 WOOL WASTE CRO 0 BURR N ADV 72,755 1 70622408310151CC1 hANOBA0S NO PILE ETC NES 72,554 1 3623326 8443C60 WGIOCUI N-WEAR NK NO NES 72,091 1 43910502924060-.----GINSENG ROOTS 70,512 114a-557 0360085 SHRIMP, RAW, PEELED 70,473 1 67435257361310 EN(' LAMESsMIL-LUT OV $2506 69,436 3820470 8437075 W G 1 M.44 ROBES ETC URN NK 68,599 1 4720660 5260170BARIUM CARBONATE PRECIP11A10 o7,523 1 38 42 Appendix 2-Continued

GENERAL IMPOk1S FROM CHINA -- JANUARY - NOVEMBER 1978 (OVER $50,000 VALUE)

1SUSA SCHEDULE A AG NON-AG CODE CODE COMMODITY VALUE (t) COD

74106006671030 CULTURED PEARLS AND PARIS 67,416 1 3627282 8437098 WGI 0Th SLK W-A N-0 N-K 01h 56,578 1 7062250 8310850 01 t.01 LUGGAGE N-PI L OR TUF 66,361 1 1905000 29194:0 FISh SOUNDS 66,112 1 18655462685940 GOAT ANU KID THANE EXC BEARD 65,604 11116000356526 FISH NES DKIED, ONSALlED 65,494 1 14560000588010 NUTS, PICKLED, PREPARED NSPF 65,366 6562500 8973 560 ARTS OF BASE MIL CTD w GOLD 64,62f, 1 7221b25 8811140 $1 CAMERAS &SF+ 35MM SR0410 54,168 38962 50 6589750 01 AR1 MMP NSPF NT KT NT OR 63,945 1 3263032 6521733 PC SHIKI NES CV COT 4F6C 63,918 1 7651500evAno SCIAPluRES OR STATUARY ORIG 63,745 1 3808445 8441200 M B SPORT Sh1R1 M -14- -F N K NC 63,466 1 1621500 0752820MIXED SPICES SPCE SLEDS NSPh 63,256 0 14516000577304 CASHEW NUTS NOT SHELLED 63,2E9 3676040 6584090 -----01 1-CLOTH NAP MMF EX G he 63,137 1 1571020 :620126 CONFECTIONERY N CON CHOC NES 0 706245C8310156 HANDBAGS 10( M EX C Olh NES 62,;51 1 7003515 8510242 L AlhL FOUlwEARt NES, MALE 61,648 380/235 8424200 Mb CCR S-I-CUAI NK NO 0 1.4 61,163 1 51561066613450 STONE A ARTICLES NES N DECOR 61,132 1 70624608310850 PLAI GOODS lEx1ILE MAT NES DC,668 1 1450160 057781;k CHESTNu1S, CRUDE* [MILD, OKD 60,637 0 14960000588090 FRuITS NES PREP UK PRES 6v,159 7484064699920001 D-FILL 4-A IX 0-Sh EX Cl 60,136 1 20440L06354920 bD bxES,ET,NES,N/LIN TEXTILE sv,758 1 3823030 8443i;60 WGI COI VESTS NKNO 01/42 0Th 59,697 1 7003540 8 510243 L MEN FTWK NES, VULCAN SOLE 59,052 1 1765404 4246030 SESAME CIL* EDI8LE 59,044 0 1403000 0562 040 GARLIC* DRIED, DEHYDRATED 56,97 64103004879550 ANIlmONY ORE 58,856 36281238437075 461 m-M-F D-GOWNS ETC NK NO 58,513 1 727320G 8210820 OTH FOLDING 4000 CHRS 58,176 1 36764036510610 h-KNIT11NG FNCY 'UN WOOL ETC 57,793 1 1821500 0565(110 BEAN CAKE A SUCK, MIS°, EIC 57,7b2 6539475 6974140 I/S l$OUSEnOLD WARES NES 57,463 1 25690806428600 AKIICLES OF PAPEK PPR8RD NES 57,273 1 36350306564020 COVERLEI EIC VF h B-P NJ NO 57,000 1 1455504 0577850 WALNUTS, SHELLED, NO1 PICKLD 55,842 36618206564068 CO1 D-TOW lEKRY NOV 45 C M-0 56,223 1 1107086 0340090 FISh FILLETED NES FRSh, Fk4 56,065 1 38202198455045 WGI SwEA1ERS WL Kl LC OK CK 54,989 3200040 6521740 $-F ShtEl Wh COT NF BC CK0 54,844 1 127/0002925070 GARDEN SEED NES Ex GRASS SD 54,1592 C 2566600 6423000 BOUND BLANK BOOKS DIAktS ETC 54,538 1 1144562 0372043 SHKImPS AND PRAWNS, NES 54,355 1 18650002919100 HUMAN NAM TREATED N MFR NES 53,517 1 1133000 6371652 SluRGEOh ROE 53,1%0 1 38000458421915 M-8 ORN CUI COAT NES N K411 53,E94 1 68540247638860 TAPE RCRDRS AD0IU AC SlEREO 52,800 1 3664600 6584070Cul I-C NAP NES N-H-8-P PL-W 54,510 1 39 A0 Appendix 2Continual US GENERAL IMPORTS FROM CHINA -- JANUARY - NOVEMBER 1978 tOViR $50,000 VALUE!

ISUSA SCHEDULE A AG NON -AG CODE CODE COMMODITY VALUE ($) WA

38204278455448 INFANTS KT SWEATtRS MMF ORN 51,64Z 1 64626246940120 --NAILS RTC GALV IR ST IINAO 51,638 1 33710006541020SLK MDV FAB MO 8L ETC NG JAC 51,461 1 3824003 8455080 N KNIT T-TOPS CO1 L N 0 ORN 519306 1 1932sbe2929166 VEG SUSSTANCt, CRUDE, NSPF 51,144 0 14531no0577860 NUTS, LOMA, NES, MT SHELLED 5;1,43U : COUNTRY TOTAL 292.937,310

FINAL TOTALS 292,937930

363 RECORDS TOTALED

40 ._. Appendix 3

COMMODITIES FOR EXPORT AND IMPORT

The following is a list of some commodities Steel structurals, plates and sheets that the Chinese are currently exporting. Steel tube and pipe, seamless Aluminum and semimanufactures Live animals Copper and semimanufactures Meat and meat preparations Nickel and semimanufactures Fish and fish preparations Synthetic yarns and fibers Rice Nitrogenous fertilizers, manufactured Fruit and vegetables Phosphate rock Tea Urea Hides and skins, undressed Organic chemicals and dyestuffs Tung oil Rubber and rubber products Vegetable oils Plastic materials Edible nuts Diamonds Pepper and other spices Metalworking equipment, including transfer Mineral waxes machines and numerically controlled ma- Gum resin chine tools Fireworks Pulp, paper, and papermaking equipment Fluorite Ball, needle, and roller bearings Crude petroleum and refined products Computers and calculating machines Tin Telecommunication equipment Tungsten Scientific instrumentation Antimony Process control instrumentation Glass, glassware, and pottery Nuclear power station equipment Hog bristles Complete plants and technology for power Bicycles generation, steel making and finishing; Cameras petroleum refineries; petrochemicals; syn- Feathers and down thetic fibers; ammonia, urea, and other ni- Furs, dressed (except seven embargoed furs) trogenous fertilizers; phosphate fertilizers; Handicrafts and works of art and television tubes. Strawbaskets, hats, and other articles Puna*, centrifuges and filtering equipment Musical instruments Mining and construction machinery Raw silk, silk yarn, fabrics, and manufac- Agricultural machinery tures Commercial jet transport aircraft and heli- Cotton cloth and manufactures copters Carpets Airport ground support equipment, including aircraft landing systems The following is a list of commodities that Trucks, on and off highway the Chinese are currently importing or appear Diesel locomotives and other railway rolling likely to import in the near future. stock Paper and paperboard equipment Wheat Petroleum exploration, drilling and produc- Corn tion equipment Cotton Refinery and other high pressure compres- Soybeans and soybean oil sors Tallow Offshore drilling equipment Breeding stock Power generation equipment, including tur- iron and steel scrap bine peaking units

41 45 Appendix 4

BEIJING ADDRESSES TELEPHONE NUMBERS

United States Embassy 522 033/39 Feng Tse Yuan Restaurant 332 828 Kuang Hua Lu 17 Hsi Chu Shih K'ou Lu Aeroflot 522181 off Chien -men Wai Ma Shao Hu-T'ung Fire Brigade (Emergency Number) 119 Tung-chih Men Nei Foreign Lanoiages Bookstore 554 783 Air France 556531 235 Wang-fu Ching Room 4033 Peking Hotel Foreign Languages Printing House 898 218 Airport Erh Li Kou Arrival/Departure Inquiries 552515 Foreign Ministry CAAC Frefght Office (City) 552945 Main Switchboard 553 831 BookingsInternal 553245 Americas & Oceania Dep't 552 167 BookingsInternational 557878 Consular Dep't 554 687 Customs 550054 Information Dep't 555 505 Bank of China 330887 Protocol Dep't 552 642 Hsi Chiao Min Hsiang Foreign Trade, Ministry of 550 257 Capital Hospital 553731 Tung Ch'ang-an Chieh (Medical and Dental) Friendship Hotel 890 621 Shuai-fu Yuan Wei Kung Ts'un Cereals, Oils & F 4xlstuffs Corp. 528831 Friendship Store 593 531 Tung An Men 82 Chien-huo Men Wai Chemicals Corporation 891289 Hsiang Chiang Restaurant 661 414 Erh Li Kou, Hsi Chiao (Formerly Ch'u Yuan Restaurant) Ch'eng-tu Restaurant 336-356 Opposite Covered Market Jung-hsien Hu-Tung Hsi Tan Pei Ta-chieh Cleienmen Hotel 338731 Hsin Ch'iao Hotel 557 731 Hu Fang Ch'iao Ch'ung-wen Men Wai China Council for the Promotion of Huan Ch'iao Hotel International Trade (CCPIT) 557809 558 851 Tung An Men 82 (Overseas Chinese Hotel) Chu Shih Ta-chieh China Travel Service 553509 Chu Shih Ta-chieh Huai Yang Restaurant 660 521 Ts'inghai Restaurant 442846 Hsi Tan Pei Ta-chieh Tung Szu Pei Ta-chieh Hung Pin Lou Restaurant 336 461 Chin Yang Restaurant 331-661 Hsi Ch'ang-an Chieh Hsi Chu Shih K'ou Lu (Near Hsi Tan) off Chien -men Wai International Club 550 602 Ch'uan Chu Te Restaurant 751379 Chien-kuo Men Wai (Big Duck Restaurant) K'ao Jou Chi Restaurant 445 921 Ch'ien-men Wai Ta-chieh (Now Shou-tu Barbecue Restaurant) Ch'u Yuan Restaurant Shih Ch'a Hai (See Hsing Chiang Restaurant) Light Industrial Products Corp. 556 749 Civil Aviation Administration Tun An Men 82 of China (CAAC) Airport Office 552515 Machinery Corporation 891 243/974 City Office 555531 Erh Li Kou, Hsi Chiao Domestic Ticketing 554415 Metals & Minerals Corporation 892 376 International Ticketing 557878 Erh Li Kou, Hsi Chiao Cargo Office (City) 552945 Mintzu Hotel 668 541 Chu Shih Ta-chieh Hsi Ch'ang-an Chieh

42 46 Appendix 4Continued

Mintzu Restaurant 550 069 Railway Station (Formerly Tung Lai Shun Restaurant) Peking CentralInquiries 554 866 North Entrance Tung Feng Market, Peking CentralCustoms 556 242 Wang-fu Ching Kuang An MenInquiries 330 031 Native Produce & Animal By-Products 554 124 Kuang An MenCustoms 331 973 Corp. Fang Chin Hsiang Tung An Men 82 Shou-tu Restaurant 554 581 Omei Restaurant 660 085 Jen-min Lu Hsi Tan Market Hsi Tan Pei Ta-chieh Shoe -tu (Small) Restaurant 660 925 Peace Hotel 553 310 Hsi Szu Nan Chieh Chin-yu Hu-t'ung Sinkiang Restaurant 890 721 Peking K'ao Ya Restaurant 750 668 Erh Li Kou Road Capital Hospital Road (Near Zoo) off Wang-fu Ching Swiss Air 556 531 Peking Exhibition Center 893 417 Room 1735 -Tisi Chih-men Wai Ta-chieh Peking Hotel Peking Hotel 552 231/556 581 Tung Ch'ang-an Chieh Taxi Service International Club 593 888 Pien Yi Fang Restaurant 750 505 Central 557 461 (Now Shou-tu K'ao ya Tien- Small Duck Restaurant) Textiles Corporation 550 258 Hsien Yu-k'ou Hu-t'ung Tung An Men 82 Post, Telephone, Telegraph Building664 900 Tungfang Hotel 30 690 Hsi Ch'ang-an Chieh Kwangchow

43 47 Market ProfilePEOPLE'S REPUBLIC OF CHINA Foreign Trade Industry.Principal industries: Iron and steel, coal, textiles, food processing, machine building, petroleum. Imports.-1978, $10 billion; 1977, $7.1 billion. Principal Average annual rate of industrial growth 10%. suppliers: Japan, Federal Republic of Germany, Aus- Tourism.Major effort under way to expand tourist tralia, Canada, Romania, United States, United King- facilities. Negotiations are continuing with several for- dom and Prance. Principal imports; Machinery and eign companies for the construction of hotels in Chinese equipment, grain, steel, textile fibers (natural and syn- cities. thetic), nonferrous metals, and fertilizers. Economic Plan.In March 1978, China announced a Exports.-1978, $10 billion; 1977, $8 billion. Principal new Ten-Year Plan (1976-85) for modernization of llyers: Hong Kong, Japan, Romania, Singapore, Fed. agriculture, industry, national defense, and science and eral Republic of Germany, and United States, Princi- technology that would propel China into the front ranks pal exports: Foodstuffs, textiles, crude oil, clothing, of the industrialized nations of the world by the year chemicals and handicrafts. 2000. Mtn calls for agricultural production to increase Trade Policy.Foreign trade is a state monopoly con- 4 to 8% annually. Industrial growth must average more ducted principally through 10 foreign trade organiza- than 10% annually. Plan calls for 120 key projects, in- tions.Recent changes:Centralministriesplaying cluding: 10 new steel plants, 9 nonferrous metal com- greater rolc.in trade negotiations, industrial corpora. plexes, 10 new oil and gas fields, 8 coal bases, 30 electric Lions formed under ministries, greater flexibilityin power stations, 5 harbors, and 6 trunk railroads. Other trading practices, ideological opposition to borrowing major projects will include truck and diesel engine on international money markets dropped. Foreign trade plants, color television and integrated circuit plants, gains importance in 1976-85 Ten Year Plan. Import of and a domestic satellite communications system. complete plants, equipment and advanced technology needed for achieving ambitious plans targets. Major Basic Economic Facilities drive under way to expand export production and improve competitiveness of exports. Transportation.All major transportation facilities are Stateowne4:1. More than 880,000 km of highways, 52,000 Trade Prospects.Direct trade with the United States km of railroads, and about 176,000 km of inland water- resumed in 1972; potential for U.S. exports appears ways, 26% of which are navigable by steamer. good. Apparent best prospect categories: Agricultural commodities; complete plants; machinery and equip- Communications.Well-developedtelegraphservice; ment for the power, coal, petroleum, steel, nonferrous nationwide radio network; limited telephone and TV metals, electronics, transport, and food-processing in. systems. dustries; agricultural machinery; and industrial raw Power.Generating capacity on Jan. 1, 1978 about 40.6 materials. million kW (62% thermal, 38% hydroelectric) and production about 136 billion kW-hr. in 1977. Foreign Investment Natural Resources No direct investment has been allowed in China since Land.--3.7 million square miles, mostly mountainous or 1950. A change in policy is under consideration, however. hilly, only about 10% cultivated, 8% forest. Climate.Generally temperate in north and subtropical Finance in south. Annual rainfall increases from north to south Currency.Renminbi (RMB, the People's currency), (25 inches in Beijing, 75 inches in Guangzhou). basic unit, yuan (December 30, 1978: 1.58 Yuan= $1). Minerals.--Coal, iron ore, oil, tin, antimony, tungsten, Highly stable; not internationally convertible. mercury, molybdenum, silver, lead, copper, zinc, and bauxite. Banking System,CentrallycontrolledGovernment monopoly. Bank of China conducts foreign transactions. Population Balance of Payments. -- Beijing has excellent credit rat- ing; foreign exchange reserves (not including gold) are Size.Estimated at 1 billion in mid-1978, no. rural. roughly estimated at $2-$3 billion in early 1979. Trade More than 8.5 million in Beijing City, capital and most surpluses in 1976 and 1977 appear to have improved important commercial center; other principal cities (in the balance-of-payments position considerably. millions): Shanghai (12.5), Tianjin (7.5), Shenyang (4), Wuhan (3), and Guangzhou (8). Economy Language.National language is Chinese. Principal dialects: Beijing (Mandarinoflicial), Cantonese, Predominantly agricultural; characterized by centralized Shanghai, Fukienese, Hakka. planning, administration, and control. GNP-1978 pre- Education.A significant shift in educational policy has liminary estimate of $407 billion in 1977 dollars; esti- taken place since 1977. Current emphasis is on academic mated annual rate of growth 1952-78, more than 6%. excellence and on scientific research. A number of uni. Agriculture.Characterized by intensive farming and versitics have been reopened, and 153 new specialized high yields; irrigation is common, crop rotation prac- colleges will be established. Plans call for sending a ticed; fruits grown in great variety. Principal crops: large number of students to study abroad. Rice, wheat, potatoes, soybeans, cotton, tea, silk, and Labor.Working age population estimated at 565 mil- tobacco. Present emphasis on increasing productivity. lion, 406-452 million are in agriculture.

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