Vol. 31, No.5 February 1-7, 1988 Balance Achieved in Foreign Trade I Beijing Review HIGHLIGHTS OF THE WEEK

VOL.. 31. No. 5 IT.n. V- 7. 19SX

CONTENTS Zhao Outlines Strategy for Coastal Development NOTES FROM THE EDITORS 4 l.,aml-Use Rights for • After an inspection tour, Zhao Ziyang, general secretary of t-orcigncrs the CPC Central Committee, says it is high time for China's coastal areas to become export-oriented and attract more EVENTSARENOS 5-9 foreign investment. He stresses the significance of this Zhao Maps Out Coastal development strategy (p. 5). Development Sevemh NPC Assembiv Scl for March New Year Marred b\ China Achieves Balance in Foreign Trade Accidents • China achieved a favourable balance in its 1987 imports and Sino-Norwegian Ties exports, a great improvement on the country's trade deficits of Strcnuthcned previous years (p. 18). Police l"ree 59 Held Over Riots in Tibet Tibetan Resolution Blasts Separatists Land-Use Rights for Foreigners

Weekly Chronicle ••• • • I iV-' It ' • The accusation that this is akin to the foreign concessions in (Jan. 18-24) old China is quite wrong. Buyers of these rights will not own the land, they will be free to use and improve the land only for 1 INTERNATIONAL 10-13 20-50 years (p. 4). Ihiitcd Nations: Cordose/'s V;: : IVlission (fn :th

NIngxIa Seeks Co-operation Woman Lessee on Leasing System With Islamic World 14 1987; Basic Balance in • Guan Guangmei, the famous lessee of eight grocery stores, Foreign Trade IS discusses how she embraced the cause of management under 1 China Opens Securities lease, the key to her success, and how she feels about the leasing 1 IVIarket 20 policies (p. 22). Famous Lessee on Leasing System 22 Attitude Survey of City Dwellers 24 COVER: The Nanguan Mosque in Yinchuan. the capital city of the FROIM THE CHINESE PRESS 29 Ningxia Hui Autonomous Region. 1 BUSINESS/TRADE 30-31 Chen Siyu CULTURE/SCIENCE 32-33 FORUM 34

tjul'i.i,npIion (al3b n ycdf) USA ... US$24.00 Published every MoruJoy by General Ediloii.il Office Tel 8314318 Australia A.$24.00 Canada.. ..Can.$23.00 BEIJING REVIEW English Dopt Tel: 831 5699 txt 546 New Zealand NZ.$33.00 24 Baiwanzha;in9 Road Disiiituirr (1 i.y China tnternational Book UK £13.00 Bei|ina 10003/ Trading Corporation (GUOJI SHUDIAN) The People's Republic of China P 0 Box 399. Bei|incj. China NOTES FROM THE EDITORS

Land-Use Right for Foreigners

by Zhang Zeyu

The government of Haikou, cities. In fact the state must auction. It is reported that at first Hainan Islands major city, apportion large sums of money for 2.9 hectares will be offered. recently published a set of rules urban development. The more There is a view that the transfer governing the transfer and sale of new urban areas are developed, of land-use rights by the Chinese land-use right. This has made the heavier the financial burden on government is.no different from Haikou the third city after the the state. This vicious circle takes allowing foreign invaders to Shen/hen Special Economic Zone its toll on the circulation of establish concessions in coastal and Shanghai to try out the construction funds, thus hindering cities in old China. This is a transfer of land-use rights. urban economic developmenl. misunderstanding. First, renting The land-use rights transfer out land for a fee is not a concept implies that the right to use state- peculiar to the capitalist world, ov\ned land is given to foreign but one for any society with a intlividuals or companies, which commodity economy. Therefore, ma\n turn transfer the right to _ he transfer signals the it can be employed in both others and sell the buildings on the end of an era of free use of capitalist and socialist countries. land. state-owned land without Second, the transfer of land-use compensation, as land-use rights means allowing overseas The duration of such rights is right is now seen as a businesses to rent land within usually 20-50 years. Enterprises restricted areas in the open cities and other economic organizations commodity. This reform in with the expectation that they will as well as citizens of certain the land system will he construct roads, build water, countries, i.e. those which have conducive to the investment electricity and gas supply systems, diplomatic relations with China or environment, the open sewers and drains and tele• have business representative off• policy and the development of communications facilities.. They ices in China, may appK lor such the urban economy. can put up residential, commercial land-use rights. or factory buildiBgs on the rented land which ilhey,,can sell, use or rent out. The transfer signals the end of an era of free use of state-owned Many places abroad reap great What the foreign businesses get land without compensation, revenues from their publicly is only the right to use the land, because land-use right is now seen owned land resources. For while the ownership of the land as a commodity. This reform in instance, in Hong Kong land- and the powers to legislate and the land system will be conducive related income accounts for up to administer in the rented area to the investment environment, 30 percent of the governmenCs remain with the Chinese govern• the open policy and the develop• revenue. The income is used for ment. Foreign enterprises and ment of the urban economy. development of other areas and individuals must abide by Chinese for social welfare. China might try For a long lime, the Chinese law and respecl the judicial power doing the same. government has allowed indefinite of the Chinese courts, unlike the and free use of its land. In recent The transfer of land-use rights is situation in the foreign con• years, with the establishment and a complicated mailer. The Shang• cessions before liberation. At that improvement of a socialist hai municipal government pro• time, the concessions were like commodity economy and the mulgated the Regulations Gov• "states within a stale" and j introduction of market mechan• erning the Transfer of Land-Use foreigners in the conces- | ism, the drawbacks of this old Rights last month. This year it will sions enjoyed extraterritoriality, j system have become more and enact another 10 legal documents which harmed the country's | more apparent. While urban land concerning investment conditions sovereignty. No such status will be is often wasted, the stale receives and environment. Only then will it enjoyed b\s of land-use no revenues from the land in the begin to put some land up for rights. •

4 1U;I.1ING RFVirW, M-HRl!.\R"»,1-7. I'?8S m EVENTSARENPS

Zhao Maps Out Coastal Development

hina should miss no opportun• should edge their way into the management and to allow foreign C ity to engage coastal areas in world market in a planned, entrepreneurs to run joint drawing more foreign investment systematic way. By doing this, ventures. and boosting export-oriented they can speed up development in The contract system should be production in a bid to become their local economy as well as help introduced in enterprises, and involved in international exchange economic development in other foreign businessmen should be and competition, according to poorer parts of China, Zhao said. involved in the direct management Zhao Ziyang, general secretary of The country's traditional fore• of joint ventures. the Chinese Communist Parly ign trade management system "Their involvement in enterpr• Central Committee. should be restructured to give ise management will help shake off Zhao has inspected Shanghai local governments and enterprises the fetters of the old Chinese and the coastal provinces of a greater role in foreign trade, he system and make enterprises Zhejiang, Jiangsu and Fujian since continued. profitable, attract more foreign last November and feels it is investors and train more Chinese Village and township enterpr• important to develop low-wage management personnel and ises in the areas should be more export industries in China. workers," Zhao said. competitively aware and more He emphasized that scientific "We should work towards export-oriented to increase their and technical personnel should be attracting sizeable foreign invest• foreign exchange earnings, Zhao encouraged to give full play to ment since our coastal areas boast said. the advantages of low-paid their initiative in coastal economic To revitalize enterprises in labourers with high expertise, a development. (Please see our next coastal areas, greater efforts go.od infrastructure, efficient issue for detailed co\erage of should be made to improve transport facilities, and scientific Zhao's talk — Ed.) • • and technological development capabilities," Zhao said. He was referring to the Seventh NPC Assembly Set for March Zhujiang (Pearl) River and Changjiang (Yangtze) River de• ltas, the southern Fujran triangle area, and the Sharfgdong and he Seventh National People's operative enterprises, as well as Liaodong peninsulas. TCongress will hold its first the move to make Hainan Island a meeting in Beijing on March 25, it province. "This development strategy is was decided on January 21. During the session, the commit• of significance both politically and The 24th session of the Standing tee appointed Peng Peiyun, 58, economically," he said. Committee of the Sixth National former vice-minister of the State Coastal areas should give top People's Congress made this Education Commission. as priority to developing labour decision while adopting a series of minister of the State Family intensive industries, and industries resolutions. Planning Commission. She re• processing imported materials. The agenda of the new congress places Wang Wei. 69, who has They should also place more includes electing the state presi• retired. emphasis on launching solely dent and vice-president and NPC The 10-day session of the foreign owned enterprises, joint leaders and deciding candidates committee passed a law on water ventures and co-operative enterpr• for premier, vice-premiers, state conservancy and two supplemen• ises using foreign investment, councillors and ministers. tary rules on punishments for Zhao said. The congress will listen to the smuggling, embezzlement and He said opportunities to State Council's annual report and bribery. develop the areas have been examine reports on this year's plan The rules specify that indiv• missed in the past and "we must for economic and social develop• iduals who embezzle more than not allow ourselves to miss this ment and the stale budget. 50,000 yuan will receive sentences chance again. We should have a ranging from 10 years to life sense of urgency." Ft will also examine the laws on imprisonment. In extremely seri• With a population of 100 to 200 state-owned industrial enter• ous cases the death penalty will be million, coastal area enterprises prises and Sino-foreign co- meted out. The property of the

BEIJING REVIEW. FEBRUARY 1-7. 19XS criminals will be confiscated. year-old business manager. express from Kunming to Shan• Those who embezzle less than The accident occurred when ghai derailed and overturned at a 2,000 yuan will receive sentences Southwest China Airline's flight spot between Qiewu and Deng- of less than two years' imprison• No. 222 from Beijing to Chong• jiacun stations. 346 kilometres ment or disciplinary sanctions qing was approaching Baishiyi from Kunming, the capital of from their work units. Airport in Chongqing. The 4- Yunnan Province. propeller plane crashed about Ding Guangen, minister of State employees and workers in eight kilometres away from the collectively owned economic Railways, rushed to the scene. airport. A work team from the Later apologizing for the accident. organizations who illegally accept national Civil Aviation Admini• property from others in return for Ding said it indicated defects in stration of China (CAAC) is railway work. He pledged to do his favours are guilty of bribery, investigating the accident. according to the rules. best in the rescue work and in According to a CAAC official Those who, under any pretext, handling the aftermath. in Beijing, the major cause of the receive a commission for Sent by the Acting premier Li crash was that the No.4 engine of economic transactions will be Peng, Chen Junsheng, secretary- the Soviet-built Ilyushin 18 caught charged with bribery. general of the State Council, fire, and then the No. 1 engine ran As well as the individuals arrived at the scene by air at 6:00 into trouble. The pilot attempted pm the same day. He called for an involved, state enterprises and an emergency landing but failed. institutions accepting bribes will investigation into the cause of the be fined. Their chiefs and others Four Ilyushin 18 planes are accident and punishment for directly responsible will receive reportedly in use in the country. anyone proved responsible. sentences of less than five years" Last year was free of accidents and On January 17. the day before imprisonment. China's civil air passengers the air disaster, 17 people died and Those who give property to numbered 12.8 million. 73 were injured when a passenger state employees and workers in This crash was one of the worst train collided with a freight train collectively owned economic in China's history. In the only in northeastern Heilongjiang organizations in return for favours worse accident in recent years, a Province. will be charged with bribery. CAAC Trident crashed on April The No. 438 passenger train Supplementary rules on smug• 26, 1982 near the southwestern was on route from Sankeshu near gling specify that smugglers of city of Guilin, killing 112. Harbin, capital of Heilongjiang, narcotics, weapons, ammunition In the early morning of January to Jilin in Jilin Province when the or counterfeit money will receive a 24, at least 90 people were killed driver saw a red stop light near minimum of seven years' im• and another 66 seriously injured in Beiyinhe Railway Station. How• prisonment in addition to fines or a train accident in Southwest ever, the brakes failed and the confiscation of property. • China, according to the Ministry train sped through the station, of Railways. running into a freight train At 1:35 am, the No 80 special entering the line from the opposite

New Year Marred Wreckage of the passenger plane which crashed on January IS. ^^^^ JIUXIANG By Accidents

he first month of 1988 in China Twas marred by four traffic accidents which claimed 249 lives and injured 169 people. At 10:17 pm. January 18, a passenger plane crashed near Chongqing in Southwest China's Sichuan Province, killing all 98 passengers and 10 crew members on board. Four of the victims were foreign passengers, three Japanese and one British. The three Japanese were confirmed as Osamu Tanaka and Masato Haga of the Toshiba Corp. and Sumio Kudo of the Mitsui Trading Corp. The British passenger was a 59- ft BEIJING REVIEW, FEBRUARY 1-7. 1988 direction. Li Peng said that the improve• to the development of Sino- A vice-minister of railways and ment of traffic facilities should be Norwegian relations." Heilongjiang provincial officials given top priority on the Zhao praised Norway for the rushed to the scene and organized investment list by central and local positive attitude it has adopted in rescure efforts. Preliminary inves• governments and be regarded as co-operating with China. Norway tigations indicated sabotage and the major task of transport was among the first Western further investigations into the departments. countries to establish diplomatic accident are being conducted. Meanwhile the State Council relations with New China. For On January 7, a fire on board a has issued an emergency circular more than three decades, the two Guangzhou-Xian passenger train calling for more attention to countries have achieved a great killed 34 and injured 30. railway safety, and especially the deal through friendly exchanges in According to a report from the safety of passengers. political, economic, scientific, Guangdong provincial public technological and cultural areas. security department, the fire broke The fruits of this co-operation are out on train No. 272 at 23:25 while evident in the Lubuge Hydro- it was stopped at the Matianxu Sino-Norwegian power Station in Yunnan Pro• Station in Hunan Province. The vince and the Dalian Shipyard in blaze took 30 minutes to Ties Strengthened Liaoning Province. extinguish, and completely de• Zhao said that China is most stroyed two cars, causing damages ino-Norwegian co-operation satisfied with the growing devel• of about 180,000 yuan. S has reached a new level in opment of friendly relations recent vcars, and still has much 1 between the two countries, and A few days later, a 24-year-old man was arrested in connection with the fire on the train. Guo Zhongqi, once an employee of a railway engineering company, was picked up in Liuyang County, Hunan Province, and is now being held for questioning, according to a Guangdong Railway Bureau official. Guo was travelling to Liuyang on the No. 272 train to get married. A bucket of highly flammable paint he was carrying spilled as the train passed through Chenzhou Prefecture, and the liquid was ignited when a man nearby started burning some waste paper. Guo escaped through a train window and ran home. Only 11 of the 34 fatalities have been identified. Six of the 30 injured passengers are now Chinese Leader Deng Xiaoping meets Norwegian Prime IVIinister Gro Harlem reported out of danger. Brundtland and her husband. On January 22, Li Peng called on all departments concerned to untapped potential, according to expressed his belief that Sino- ensure safe transport and guaran• Chinese leaders and Norwegian Norwegian economic and tech• tee the lives and property of Prime M mister Gro Harlem nological co-operation will passengers. Brundtland who began a week- increase. He made these remarks at a long official visit to China on meeting with delegates attending January 18. Brundtland expressed national conferences on civil Chinese Acting Premier Li Norway's hopes for increased co• aviation, railways and communic• Peng, Party General Secrctry operation with China. "We have ations in Beijing. Zhao Ziyang and Deng Xiaoping already conducted successful in- He said that transport depart• held important talks with the depth studies of some co-operative ments should strive to improve Norwegian prime minister. projects," she said. safety standards for the coming Li described Brundtland's cur• The leaders of the two countries Spring Festival holiday period. rent visit as "giving fresh impetus exchanged views on many major

BEIJING REVIEW, FEBRUARY 1-7, 1988 7 • EVENTSARENDS international issues. Botii Li and direction," Deng said. Police said the rioters, waving Brundtland welcomed the recent A Norwegian commercial de• "snow lion" flags, a religious US-USSR summit and the legation which accompanied the symbol, and shouting "Tibet intermediate-range nuclear forces Prime minister has investigated wants independence," smashed agreement. But they also urged business co-operation with its police vehicles, attacked police• continuing efforts to ease inter• Chinese counterparts and three men and burned down a police national tension. co-operative contracts have been station and a neighbourhood "We feel that the cessation of signed between the two countries. committee office in downtown the arms race and elimination of Under one contract, Norway Lhasa. regional conflicts are necessary will provide China with US$2,445 Thirteen of those detained were steps to maintain world peace," Li million to construct a Beijing- released on October 28. Over 10 said. He also said that China based coastal satellite station. others now remain in custody. attaches great importance to its The China National Offshore Namgyal said most detainees ties with all countries in both Oil Corp. and Statoil (the national have repented their actions, and Western and Eastern Europe. oil company of Norway) signed a some have exposed others in the Zhao talked with the Nor• contract to drill a wildcat well in past three months. wegian guests about China's the South China Sea. Located 30 Three of the released people, domestic situation, saying that to 50 kilometres southeast of Tjambai Cering, Losang Dagwa efforts will be intensified to try to Hainan Island, the area involved and Qamba Danzim, spoke at the boost productivity. Touching on covers 3,740 square kilometres meeting. China's foreign policy, Zhao said and reaches a depth of about 90 the country's foreign policy metres. Qamba Danzim, a lama from focuses on two major goals — A contract on the design, the Jokhang Monastery who maintaining world peace and construction, marketing and man• suffered burns in the October 1 developing economic and tech• agement of the Beijing Hua Wei riot, said, "Ed like to express from nological ties with all countries. Centre was also signed. Both the bottom of my heart my "China and Norway share the China and Norway will invest apologies and remorse to the same view on this," he said. USS51.9 million in the project government and the people." He which is expected to be completed thanked the government for the During his discussions with in September, 1989. • medical treatment he had re• Brundtland. Deng Xiaoping said ceived, and pledged henceforth to the threat of war still exists but is abide by the laws. outweighed by the force of peace. "It is on the basis of this premise When receiving monks and that China has devoted itself Police Free 59 Held nuns in Lhasa on January 20, wholeheartedly to its moderniz• Bainqen Erdini Qoigyi Gyaicain, ation drive," Deng replied to Over Riots in Tibet vice-chairman of the NPC Stand• ing Committee, said,"Buddhist Brundtland's question on which monks and nu'iis in Tibet should domestic and foreign issues most n January 21 police released 59 do whatever is good for their concerned China. people detained for taking O country, people and monasteries, Deng affirmed the reforms part in two riots last autumn in and on no account should they do underway in China and said the Lhasa, capital of the Tibet anything to harm them." future of China's development Autonomous Region. depends very much on its own Their release was proposed by "This constitutes a Buddhist efforts. "But we cannot achieve the Bainqen Lama, who is on an rule and embodies the expec• our aims without the co-operation inspection tour of the region, said tations of the Party and people," added the Bainqen Lama. of the tieveloped nations," he Namgyal, a senior Lhasa law added. official. The disturbances in Lhasa last Deng also exchanged views on The decision was announced at year raised concern among monks international issues with his a meeting attended by monks from and nuns as to whether this years Norwegian guests. He said the the Zhcbung, Sera and Jokhang Moinlam Qenmo could be held. days of superpower supremacy monasteries, as well as heads of a Bainqen Lama assured the and domination were over, but neighbourhood committee in monks and nuns attending the "We musi not lower our gilard"". Lhasa. meeting, "The ceremony will be "We are developing our country More than 80 people were held on schedule, and it will be not only to improve our people's detained in connection with the even more successful." lives but also to contribute to Seplcmber 27 and October 1 riots The Moinlam Qenmo is Tibet's world peace. This will also be our which police said' were led by grandest summons ceremony and contribution to mankind. We wish separatists at the instigation of the religious festival. It is held to continue moving forward in this Dalai Lama clique. annually from January 3 to 25. •

s BEIJING RBVIEW, FEBRUARY 1-7. 1988 Tibetan Resolution Weekly Chronicle SOCIAL (January 18-24) Blasts Separatists January 18 • The Beijing Railway Station POLITICAL makes preparations for providing resolution adopted by Tibet's more services for holiday-makers A legislative body on January .lanuary 20 over the Spring Festival period. 23 calls on the Tibetan people to • Chinese Acting Premier Li The volume of passengers uphold China's unification, stren• Peng tells a meeting attended by through the station during late gthen unity among different leading members of family January and early March is nationalities, and oppose any planning commissions from all expected to amount to 7.08 separatist activity. parts of the country. "As China is million, 180,000 more than for the same period last year. Spring The resolution, adopted by the experiencing a child-birth boom, Festival, China's most important sixth session of the Fourth practices such as late marriage, traditional holiday, will fall on Tibetan Regional People's Con• late birth, and "one couple, one February 17. gress, denounces the Dalai Lama child' should continue to be for his "five-point plan" advocat• encouraged." ing the independence of Tibet He says the policy should be FOREIGN RELATIONS which he unveiled to the , US carried out only through educ• Congress in September last year. ation and on a voluntary basis January 21 rather than through compulsory • At the banquet in honour of a The resolution also denounces a measures. visiting Cuban government deleg• few separatists in Tibet for staging ation led by government minister two riots last autumn. The Jose A. Nargnjo, Chinese Foreign resolution describes the riots as Minister Wu Xueqian says that "serious political incidents" .(anuaiA 22 provided China and Cuba cont• meant to split China and sabotage • Slate Council spokesman inue to look forward, make unity among various nationalities. j Yuan Mu says that the council has common efforts and take positive They are criminal acts violating j approved in principle the draft and practical steps, the relations China's Constitution and laws. provisional regulations on the between the two countries will see The resolution also condemns contract managerial responsibility great improvement. the US Congress for wantonly svstem in state-owned industrial interfering in China's internal enterprises and the draft provi• ECONOMIC affairs by repeatedly using the so- sional regulations banning irre- called "Tibet question" to damage gLilar financial impositions on January 20 Sino-US relations. enterprises. The two sets of draft • As a step to deepen the ongoing It ficilerates. "Tibet is an regulations will be issued for economic reform, 27 factories on inseparable part of (China's sacred implementation after further the verge of bankruptcy in territory and an autonomous revision. Wuhan, Hubci Province, have region of the People's Republic of been recently sold by auction, China." Xinhua reports. "A few separatists have attem• According to the local in• pted by relying on anti-China CULTURAL dustrial and commerical bank, forces in other countries and those failing factories now unable fomenting riots in Tibet, to split January 20 to repay their loans should be' Tibet off from the motherland in • A large photo collection merged with local profitable order to restore the feudal serf entitled Tlic Great Life of Soong enterprises. system and plunge the Tibetan Chiiig Ling has been published by people again into the misery of the Peace Publishing House to January 21 being oppressed, exploited and commemorate Soong's 95th birth• • The China National Automo• enslaved," it says. "This will never day which will fall on January 27, tive Industries Corp. and the be allowed by the 2 million Rcnmiii Rihao (People's Daily) General Motors Corp. (GM) of Tibetan people and entire Chinese reports. the United Stales sign an people of all nationalities." The collection, with an inscrip- agreement in Beijing under which It stresses that any question j lion from Deng Xiaoping, honor• GM will sell production lines and related to Tibet is purely China's ary chairman of the Soong Ching related technology for the manu• internal affair, in which no Ling Foundation, contains 292 facture of a two-litre GM engine. country or individual has the right photo< recording Soong's family When put into operation in 1990, to interfere. backgroimd and life-long the production lines will be able to i activities. turn out 150,000 engines a year.

BElJINt; RFVtF.W. FEBRUARY 1-7. ISiKS m INTERNATIONAL

UNITED NATIONS damages to 1,000 planes and 2,000 armoured vehicles, estimated cost at over US$10 billion. Cordovez's Mission on tiie Afgiian issue The Soviet invasion of Afghan• istan has caused the Soviets a great deal of embarrassment in the United Nations mediator Diego Cordovez's recent visit to international community and Islamahad has drawn the attention of the international presented an obstacle to the community, hut he has described his mission as "both hopeful implementation of their new diplomatic philosophy. Almost and apprehensive." every year since 1980 the UN General Assembly has passed a resolution demanding the with• uring his recent visit to previous condition to link troop drawal of foreign troops from D Islamabad. United Nations withdrawal with the formation of Afghanistan. The United States mediator Diego Cordovez held the future government in Kabul. and other Western countries see consultations with Pakistan for• The United States has also the issue as a test of the sincerity of eign ofllce officials and govern- repeated its promise to stop the Soviet Union's new diplomacy mciil leaders on the next round of military aid to Afghan resistance and goals of disarmament. The the Geneva talks between Isla• forces if the Soviet Union Soviet occupation of Afghanistan mabad and Kabul begun in 1982, withdraws its estimated 115,000 has damaged both Moscow's and briefed them about his talks in troops from Afghanistan. Before efforts to develop relations with Moscow and his meeting in Rome leaving Pakistan for home, other countries as well as its efforts with former Shah of Afghanistan Armacost quoted US President King Zahir last December. His to carry out domestic reform. Ronald Reagan's press conference mission has drawn worldwide Pakistan's foreign policy on statement that he hoped to see a attention as particularly relevant Afghanistan is consistent. It solution to the Afghan issue in to the present international supports the Afghan people in 1988. On January 7 US Secretary situation. their struggle against foreign of State George Shultz welcomed aggression and demands the On the eve of Cordovez's the Soviet intention to pull out of Soviet troop withdrawal from mission, the iwo superpowers for Afghanistan by the end of the year Afghanistan, while seeking the the llrsi lime expressed a message but urged that a firm schedule for earliest possible political solution ol'compromise and reconciliation the withdrawal be made. to the Afghan issue. During the on the Afghan issue, which raised Following Shevardnaze's visit meeting with Cordovez on hopes of a speedy solution'of the to Kabul, Soviet foreign ministry January 22, Pakistan's President problem. spokesman Yuri Alexeyev said Zia ul-Haq also exchanged views At the beginning of this year, that the key to ending the eight- with him on the participation of both US Under-Secretary of State year Soviet occiipation of Afghan• the Afghans in finding a solution for Political Affairs Michael istan was the UN sponsored talks to the problem which will enable Armacost and Soviet Foreign between Afghanistan and Paki• Soviet troops to withdraw and the Minister Eduard Shev• stan in Geneva. Looking back at refugees to return, allowing ardnadze Hew lo Islamabad and official Soviet statements of the Afghanistan to remain an inde• Kabul lo engage in discussions on past six months, one has noticed pendent, non-aligned, neutral all ;ispecls of ihe Afghan issue. that Moscow has shortened the state. The Afghan resistance Armacost also met with Afghan timetable on the withdrawal from forces, however, have so far resistance leaders for the first time four years to one year. Alexeyev refused to recognize the Soviet- in Ihe Pakistan capital. Islamabad. claimed that the timetable was still backed Kabul regime or co• Although both Armacost and flexible "if progress is made on the operate with its leader Najibullah. Shevardnadze were tight-lipped reconciliation process inside They have even rejected the idea of about the essence of their talks, Afghanistan." from whal has already been including elements of the People's revealed it is evident that the All indications point to a real Democratic Party — the current Soviet Union and the United intention on the part of the Soviets ruling party — in Afghan's future Stales have agreed in principle to to end the war and the Soviet transitional government. There• politically solve the eight-year• Union's eight-year occupation of fore, it remains to be seen whether long Afghan conflict. the troubled Moslem country. The UN mediator Cordovez can come protracted war has been very up with a solution to the Soviet leaders declared their costly for the Soviet Union, taking complicated Afghan issue. intention to quit Afghanistan this a toll of more than 30.000 deaths year and have given up their or injuries on Soviet troops, and by Chang Qing

U) BEIJING REVIEW, FEBRUARY IfV. ,198S EGYPT between Iran and Iraq and the resolution of the conflict through negotiation, and expressed its increasing Role in ttie Arab Worid desire to strengthen military co• operation with the Gulf states. But Egyptian President Hosni Mubarak visited the six Gulf Egypt is reluctant to send troops countries last month. With the resumption of diplomatic to the Gulf. According to reports, relations with 10 Arab states since last November, Egypt has the Gulf countries are planning to form an united Arab defence force returned to the Arab world and is increasing its role in the and Egypt will possibly send region. military advisers and trainers to them. President Mubarak also met with US Defence Secretary Frank gyptian President Hosni deal with external threat by Gulf Carlucci while visiting the Gulf. Mubarak made successful countries. Mubarak's Gulf tour E Carlucci indicated that the United visits to Saudi Arabia, the United was seen not only a step to States would not reduce its Arab Emirates, Kuwait, Qatar, strengthen solidarity between commitment to the Gulf region, Bahrain and Oman from January Arab countries, but also a but he also sounded out on 9 to 14, The tour, his first to the significant move to put into play reduction in the level of US Gulf Co-operation Council Egypt's influence on the Gulf military presence. This added to (GCC) stales following the situation. the anxiety of the Gulf countries, extraordinary Arab Summit in During his visits, Mubarak virtually stressing Egypt's position Amman last November, came at a repeatedly stated that the Gulf as an Arab defence force. time of tense confrontation in the security is linked with Egypt's Gulf and an upsurge in the security and "under no circum• It is uncertain whether further Palestinian struggle against Israel. stances will Egypt relinquish its fighting between Iran and Iraq can According to reports, the aims obligation to safeguard the be avoided despite current dialo• of Mubarak's tour are to discuss security of its sister Arab powers." gues between the Gulf countries defence strategy with the heads of The Egyptian government ap• and Iran and mediation from the six Gulf states and to pealed for an earlier ceasefire Syria. So the military co-operation strengthen further political, economic and military co• operation with the Gulf countries. President IVIubaral< (ieft) was met by King Fahd of Saudi Arabia. The Iran-Iraq war directly threatens neighbouring Arab countries. The aggravated tension last year increased fears in the six Gulf countries and other affected Arab nations. Towards the end of last year, Arab countries held two important conferences to consider countermeasures. In the Amman summit of last November, they unanimously agreed to strengthen their solidarity and after the summit, up to now 10 countries resumed diplomatic relations with Egypt. This conciliation indicated that the importance of Egypt's position in Arab affairs was reaffirmed.

To counter threats from the escalating Iran-Iraq war, the eighth session of the GCC passed a general security strategy which was for a long time the subject of dispute. Egypt was regarded as a force strong enough to effectively

BEIJING RRVIF.W. FEBRUARY 1-7, 1988 11 m INTERNATIONAL

between Egypt and the Gulf form a joint delegation. It should markets reached a high of US$22 a countries must be increasingly be seen that, despite differences barrel. This in turn stimulated the close. According to reports, Arab between Egypt and Arab countries production and export of oil. countries have re-established the and the PLO on the form and OPEC exceeded its ceiling by 2.4 organization in charge of military procedure of the proposed million barrels a day. Added to industry in Cairo and are investing international peace conference, this, the Soviet Union, the world's USSI billion in the development their ultimate goals are identical. largest oil producer, also increased of advanced weapons. Egypt's efforts to facilitate the its oil production by 15 percent While Mubarak was conducting conference will undoubtedly in• over the previous year. Under the his Gulf tour, a rising tide of crease the influence of the Arab circumstances, oil price fell once Palestinian resistance against countries in Middle-East peace again. In mid-December spot oil Israel hit the West Bank and Gaza negotiations, and help mend prices once dropped below USSI 5 Strip. Mubarak, strongly con• internal splits in the Arab world. a barrel. demning the brutal Israeli op• All this indicated that fluctu• pression of the Palestinian people, Working towards the interests ations in oil prices are a reflection accused Israel of violating the of the Arab nation, Egypt and of international political, military Camp David accords. He re• other Arab countries should seek and economic factors, as well as iterated that the only way to interdependence. President the instability of the oil market. resolve the problem in the Middle- Mubarak's trip will have a definite At the meeting of OPEC oil East is to hold an international impact on the Middle-East ministers in Vienna last De• conference with the participation situation as Egypt's role in Arab cember, 12 of the 13 OPEC of the Palestine Liberation affairs becomes increasingly members — excluding Iraq — Organization (PLO), and ap• strengthened. agreed to continue their produc• pealed to Jordan and the PLO to by Lin Jiaoming tion quotas of 15.06 million barrels a day through the first half of this year to keep the oil price at US$18 a barrel. But given the OPEC current surplus, it is fairly difficult for OPEC to reach its target. In the first place, the OPEC's Facing a Severe Test current daily oil production exceeds their set quotas by some 2 OPEC should strengthen its solidarity and live up to its million barrels. commitment if it wants to maintain oil prices at US$18 a Second, some Western oil- barrel. consuming countries, taking ad- vange of the "price war," stored huge. Winter is passing away, rospects for oil prices are far reeslablished last year its strategy which means the demand for oil Pfrom bright due to a glut in oil of maichinsz oil production with will dwindle. As Bahman Karbas- supplies, and the average price will the officiar price of US$18 a sioun, a Vienna-based oil consult• probably fall below US$18 a barrel. OPEC imposed its own ant, noted, "Even if there is no barrel, according to some oil production ceiling of roughly 15.8 (further) cheating, and we add experts. million barrels of oil a day and, Iraq's production of 2.7 million Oil prices on the world market with collaboration on production barrels a day, we have already last year were relatively stable. In cuts from other non-OPEC oil exceeded the demand for OPEC tiie first half of the year oil prices producers such as Norway, Egypt oil in the first quarter." fluctuated and tended to rise, and China, oil prices were while in the second half, prices fell stabilized and tended to rise above But oil prices will not crash, as slightly. The average oil price in the official price. some people feared. Although 1987 was a bit above the US$18 a^ non-OPEC oil producers are barrel level. In July, tensions in the Gulf increasing their production, it will Learning the bitter lesson of the mounted with US armed escorting not be expanded significantly as '"price war" of 1986, in which of Kuwaiti tankers, bloodshed in their oil resources are limited and members of the Organization of Mecca, and large-scale Iranian the cost of production is high. Petroleum Exporting Countries naval manoeuvres. These events Also, while OPEC would potenti• (OPEC) competitively increased led to growing fear among oil ally increase production, it will be their oil production and brought dealers and encouraged a buying restrained in its own interests. As the price of oil down sharply to as frenzy, pushing up oil prices. For a for Western countries, it is widely low as US$8 a barrel. OPEC time the price of oil on spot held that the Western economy

12 BEIJING RF.VIEW. t EBRUARY 1-7. I9XX will continue to expand, though at prices this year will rise and fall Ryzhkov criticized the Co• a slow pace. Low prices benefit somewhere between US$18. But ordinating Committee for Export Western consumers, but a crash in the possibility of prices falling Control, saying that Western prices will just as seriously affect below US$18 still exists if OPEC restrictions on the sale of high Western economies as it will fails to abide by its production technology to Moscow are OPEC nations. quotas. outdated and should be Experts predict that crude oil by Dan Lin abandoned. Although Ryzhkov's efforts to improve relations with the Nordic countries by boosting bilateral SOVIET UNION trade and economic co-operation were welcomed, his failure to sign New Ideas^Embodied in Nordic Visit an agreement with Norway on the Gorbachev's "new ideas" still have a long way to go to break Barents Sea issue was met with displeasure. The area is rich in the ice with Nordic countries. petroleum and gas reserves and, even more important to Moscow, oviet Chairman of the Council belong to Sweden and the other 25 it is on the direct path for the Sof Ministers Nikolai Ryzhkov percent to the Soviet Union. The Soviet Northern Fleet to its paid a one-week visit to Sweden demarcation line will be drawn nearby military base at Mur• and Norway from II to 16 between the northern and south• mansk. January as part of Moscow's ern points of the 13,500-square- by Gu Yaoming effort to adjust its global strategy kilometre area, which has been the and create a peace zone in the subject of dispute between the two Arctic region. Ryzhkov is the countries for decades. The Soviet CHINA-USSR highest-ranking Soviet official to Union is permitted to catch 18,000 visit Sweden in 15 years and to tons of fish each year for the next Talks Still visit Norway in 17 years. 20 years in waters owned by During his tour he repeatedly Sweden, and Sweden is allowed an Conditional said that this Nordic trip aimed annual catch of 6,000 tons in the primarily to promote proposals Soviet-owned waters. A Chinese Foreign Ministry spokesman said on January 12 made by Soviet leader Mikhail Discussions with Norway on Gorbachev last October both the disputed Barents Sea were not Deng Xiaoping had made quite economically and politically. Gor• so successful. As in the past nine clear the conditions for a high level bachev proposed at the northern rounds of talks on the Barents meeting between China and the port city of Murmansk to reduce issue, Norway still maintains that Soviet Union. military activities in the Arctic by a demarcation line should be The spokesman made these both Warsaw Pact and NATO drawn midway between the Soviet remarks when asked by foreign countries and turn the region into and Norwegian coast, while the journalists to comment on a recent a peace zone. He also presented a Soviet Union insists that the interview by the Chinese weekly series of proposals for the co• 155,000-square-kilometre zone be "Outlook" with Soviet leader operative development of natural divided according to a "fan-like Mikhail Gorbachev, during which resources in the region. zone principle." During the talks Gorbachev again mentioned the Ryzhkov suggested the joint possibility of a summit. For some time the dispute over management of natural resources "At present, it is the strong hope the demarcation line of conti• in the zone by the Soviet Union of the international community nental shelf economic zones has and Norway. that Viet Nam will withdraw all its cooled relations between the troops from Kampuchea prompt• Soviet Union and the two Arctic On the issue of security, ly, the spokesman said. countries. Ryzhkov's Nordic trip, Ryzhkov invited the Nordic following the re-establishment of countries to observe Warsaw Pact Deng has said all along that trade and economic exchanges, set manoeuvres later this year. He there are three preconditions for out to remove the main obstacles. said that the Soviet Union is his meeting Gorbachev. He said he During the visit, Soviet flexi• wilUng to discuss creating a would meet Gorbachev only if the bility enabled an agreement in nuclear-free zone in the Nordic Soviet Union got Viet Nam to principle to be reached with region. The Soviet Union and withdraw its troops from Kam• Sweden on a new Soviet-Swedish Sweden also agreed to promptly puchea. demarcation for the Baltic Sea. share important information on "Without Soviet assistance," The agreement stipulates that 75 nuclear power plant development Deng said, "Viet Nam could not percent of the disputed waters or radiation leaks. fight a single day in Kampuchea '•

BEIJING REVIEW. FEBRUARY 1-7, 1988 •i ARTICLES

Ningxia Seeks Co-operation With Islamic World by Our Correspondent Li Rongxia

he Ningxia Hui Autonomous duction, machine building, the Opening Up TRegion, which is located on the chemical industry, building upper reaches of the. Huanghe materials making, textiles and Given its low level of produc• (Yellow) River in northwest ceramics, sugar refining and in the tion and technology and its limited China, covers over 66,000 square electronics, meters and instru• funds, the region has, since it km and has a population of 4 ments, leather, paper-making, opened its door, sought to attract million. In recent years, this cigarette and foodstuffs indus• foreign funds with its rich smallest administrative region on tries. Some of them are national resources, and to develop the mainland has opened its door key enterprises. The region's economic co-operation with other and sought ways to co-operate industrial output value amounted countries, particularly Islamic especially with Islamic countries. to 2.74 billion yuan last year. countries. With one-third of its 4 Ningxia has plenty of electricity million people being Muslims, the Rich Natural Resources generating potential. It now has region is called "China's Muslim two thermal power plants and a province." hydro-electric power station with In April 1985, a Mushm Irrigated by the Huanghe River, a combined installed capacity of friendship delegation led by He Xingxia's agriculture is fairly well 508,000 kw and an annual Boli, then chairman of the developed. The region is a grain generating capacity of 2.2 billion autonomous region, visited six production centre, its per-unit kwh. Currently two other thermal Muslim countries to encourage output of rice and wheat comes power plants with a total installed co-operation with them. During top in China. Lush with grass and capacity of 1.6 million kw are the tour, the delegation was trees, the mountainous area in under construction. received by Hosni Mubarak, southern Ningxia has 2.67 million hectares of natural pasture which supports cattle and sheep. The area is also rich in herbal Flocks of sheep in Ningxia. medicines and other native products, including four of the region's five treasures — the Chinese wolfberry, licorice root, inkstonc, lamb skin and black moss. Ningxia's mineral resources include coal, phosphorus, gy• psum, barite, quartzite, clay and silica. The region's coal is of high quality and many varieties. It is shallow and easy to excavate. The coal reserves are estimated to be 200 billion tons, and over 20 billion tons have already been verified, the fifth greatest in China. Ningxia's anthracite is now sold in over 10 countries in Europe and Asia. The region's gypsum reserves total 2.36 billion tons, the largest in China. With a fairly complete in• dustrial foundation. Ningxia now boasts over 1,000 industrial enterprises which are involved in coal mining, electric power generating, metallurgy, oil pro•

14 BEIJING REVIEW, FEBRUARY 1-7. 1988 i

president of Egypt, and Zia ul- Haq, president of Pakistan. The delegation also explored the Arab market and made contact with business circles there. Since then Ningxia has exchanged more visits with these countries. In September 1985, Yinchuan, capital of the autonomous region, hosted an Islamic international economic and technological co• operation negotiations meeting. Specialists and business people from Islamic countries studied the region's investment environment and possible projects. Following this, the Ningxia Islamic Economic and Technological Co• operation Co. (NIETC) and the Ningxia Islamic Trust and Invest• ment Co. (NITIC) were founded. NIETC's business scope includes contracting engineering projects A workshop at the Great Wall Machine Tool Factory in Ningxia. and providing labour service abroad, setting up joint ventures, handling co-operative production anics to Egypt, Recently the and industrial, commercial and and compensator)' trade, import• company also sent people to trade businesses in Islamic ing technology and dealing with explore project possibilities in the countries. It also seeks and deals United Arab Emirates and North export and leasing businesses. with foreign funds. It handles trust Yemen and reached inilial agree• The company now has six and investments, sets up joint ment on a number of projects. offices abroad — three in Egypt ventures and exclusively foreign- and one each in Thailand, Hong funded businesses, issues loans, Kong and Kuwait. Zhao Xianjun, organizes co-operative produc• the company's deputy general tion, technology transfers and manager, says since January 1986, leasing, and serves as a guarantor the company has contracted five in the service of foreign and domestic clients. projects in Egypt, Thailand and ith one-third of its Kuwait, and established two joint 4 million people being Liu Zhengmo, deputy general ventures in Egypt. One of these manager of the company, says joint ventures is a heat-refiecting Muslims, the Ningxia Hui that after the company was glass factory with an annual Autonomous Region is called established it first contacted the capacity of 300,000 square metres "China's Muslim province." Faisal Islamic Bank of Egypt and of glass. The project involves an In recent years, the region has concluded with it an initial investment of US$400,000, of agreement on jointly establishing which the Saad Group of Egypt sought to attract foreign the Ningxia Faisal Islamic Intern• contributed 75 percent and the funds with its rich resources, ational Financial Investment Co. Chinese side, the rest. The Chinese and to develop economic co• in Ningxia. This will be the first side also provides technology and operation with other Sino-foreign trust and investment management skills. joint venture in inland China and The other project is a clothing countries, particularly will be founded with the special factory also funded jointly with Islamic countries. permission of the Chinese govern• the Saad Group. The venture, with ment. The company will have an annual capacity of 1 million distinctive Islamic features in that clothes, involves a total invest• it will not pay interest on deposits, ment of 1.5 million Egyptian investors divide profits in propor• pounds and is expected to go into NITIC aims to develop tion to their shares and bear risks production this year. In addition, economic co-operation with coun• jointly. Negotiations on the NIETC has signed a contract with tries all over the world, particular• project are still proceeding. Egypt on sending motor mech- ly governments, banks, consortia In addition, the company has

BEIJING REVIEW, FEBRUARY 1-7, 1988 15 •1 ARTICLES

Germany, Belgium, the United States, Australia, Singapore and Hong Kong.

Services Abroad Acclaimed

Contracting projects and pro• viding labour services abroad constitute a major part of Ningxia's co-operation with Islamic countries. The region began to send builders on contract projects to North Yemen in 1980. In 1984, Ningxia builders arrived in Egypt. Since then, the region has sent over 3,000 people abroad for the construction of 250,000 square metres of factory and hotel buildings and 7,000 apartments (totalling 5,000,000 square metres) in Egypt. signed a loan agreement with the financial, trade and industrial The Ningxia workers have been Australian National Bank for businesses in 19 countries and praised abroad for their hard and IJSSIO million. Half of the loan regions, including Islamic coun• good work. In 1984 they will go to the Ningxia Non- tries in the Middle East, contracted the building of the Fcrrous Smelter to import Amer• Indonesia, Japan, Spain, Federal October 6 City in Egypt. The low ican technology and equipment for the production of tantalum condensers. The company has also Transformers produced by YInchuan. signed a contract with a Hong Kong business for jointly es• tablishing a video-tape factory in Shen/hen. The factory is expected to begin production in the near future. Zhang Jishun, NlTICs chief engineer, says NITIC is China's only trust and investment business seeking to deal fraternally with Muslim businesses. It has at• tracted the attention of financial, trade and industrial circles both at home and abroad and has gained prestige. The Harbin Linen Mill which needed a loan for reconstruction after an explosion applied for one from Australia. The Australian side asked the Chinese side to provide a guarantee and accepted NlTIC's guarantee. So far the company has provided guarantees for over 10 hotels and enterprises for loans coming from Hong Kong, Sin• gapore, Japan and the United Stales. NITIC has also established business relations with over 50

BEIJING REVIEW. FEBRUARY 1-7, 1988 pay offered by the Egyptian side Since 1983, Ningxia has signed side. Chinese directors lack and the difficuU working con• 43 contracts valued at US$34 experience in managing joint ditions turned many other con• million for the import of advanced ventures, the contracts have many tractors off before NIETC technology. It has also expanded loopholes, and for the moment it contracted the project. The project its absorption of foreign funds and seems there is no way of keeping was later completed well, quickly loans. Since 1983, the region has up the balance of the ventures' and at low cost. In October 1985 used USS35.66 million in foreign foreign exchange account. Egypt's President Mubarak in• funds, including US$29.2 million Ma says opening up will spected the worksite and said the in preferential loans offered by continue to be important for the quality of the work being done by international monetary organiz• autonomous region. The region the Chinese company was the best ations and foreign governments, will, on the one hand, open its of the projects he had inspected and US$6.46 million of direct door to China's coastal cities and that day. foreign investment. Another inland areas and gradually catch USS 15.66 million in foreign up with the rest of the country investment and US$35.76 million through region-to-region in grant aid are being disposed of. economic associations. Last Octo• Multilateral Co-operation Although the autonomous ber, the region held its first region has made many efforts to domestic co-operation and trade strengthen its ties with Islamic negotiations. Over 1,000 Chinese To help the development of its factory representatives attended economy, Ningxia has also been countries, little by way of the meeting and signed 275 seeking co-operation with coun• substantial co-operation in China contracts with local busmesses. At tries in other parts of the world. has been achieved. Ma Yingliang, deputy chairman of the autonom• the same time, the region will In September 1984 and 1985 the continue to open its door to region hosted two international ous region, attributes this to the foreign countries and especially to economic and technological co• region's poor investment environ• the Arab countries. operation negotiation meetings ment. The region now hasjust one which attracted over 250 business airport only for small aeroplanes, The World Bank has agreed to representatives from 30 countries and it takes 26 hours to get to provide the region with a soft loan and regions. A total of 47 Yinchuan from Beijing by train, of US$40 million to help build an contracts involving foreign funds which puts off many foreign irrigation canal which will water and the import of technology were business people. 50,000 hectares of farmland to the signed, and agreements for the south of Yinchuan. Currently this establishment of three Sino- Currently, there are three joint project is being evaluated. The foreign joint ventures were ventures in the region and they are Hessen State University of reached. not faring well. One h;is suspended Federal Germany plans to develop livestock breeding in co-operation The Yinchuan Transformer its contract; one is on the brink of with Ningxia, and negotiations are Plant is the only transformer disintegration; and the other is not now underway. producer in the autonomous doing too well. Although the region. In September 1984, The foreign parties involved are Ma says the region will further plant reached agreement with the partially responsible for the improve its investment environ• Georg Co. of Federal Germany to problem, poor transport facilities ment by improving its intern• import two production lines. and inefficiency are the acknow• ational communications and other Installation of the first production ledged problems with the Chinese services. • line was completed in September 1986 and it began production in November that year. The second Just Off the Press production line started up in The 13th Party Congress and China's Reforms seeks to help September 1987. readers understand the recent congress, the decisions it made and the Hong Xingyuan, deputy direc• current status of China's reforms. Written in question-and-answer tor of the plant, says the two format, the authoritative booklet deals with theoretical issues as well as production lines have helped raise practical questions about the political and economic reforms, and the factory's productivity con• strategics for economic development and Party building. Included in the siderably. In the first year of the appendix are short biographies of the top leaders of the Communist first line's working, the factory's Parts of China. Also included are 24 pages of photos. output rose five fold, output value, four fold, and profits. 6.67 fold. I'uhlisliccI hy: Beijing Review Today, the plant is the largest Disti-ihulcd hv: China International Book Trading Corporation transformer producer in north• ((JUO.II SHUDIAN) west China.

BEI.I1NG REVIEW. EEBRUARY 1-7. 1988 17 •i ARTICLES

1987: Basic Balance in Foreign Trade by Wang Pinqing, vice-minister of Foreign Economic Relations and Trade

ccording to initial statistics, Of all finished products ex• eqLiipment vital to the develop• A last year China's foreign trade ported, textiles, silk and clothing ment of industrial and agricultural was worth US$67,338 billion, headed the list, with a value of production increased further, US$7,241 billion more than the USSH.l billion, about 25 percent while imports of motor vehicles, 1986 figure, and a 130 percent ol'ihe countiy's total exports. The household electric appliances and increase over 1979 when the expansion in textile exports is an other high-grade consumer goods country first introduced the open importanl part of the growth of were still being restricted. policy. Exports equalled finished products exports. For — Efforts were made to pene• US$34,603 billion, 28.1 percent instance, at the Guangzhou trate the international market. more than in 1986; while imports Autumn Export Commodities Compared with 1986, exports to were worth US$32,735 billion, a fair last year, the business volume Japan increased last year, while slight decrease from 1986. in semi-finished yarn fell by 50 imports came down, resulting in a percent from the 1986 figure, and sharp reduction in the deficit tiie volume of grey cloth and other China has with Japan. Trade with Major Characteristics primary products sold also came the United States grew, exports down, while that of printed and more than imports, resulting in a Chma's foreign trade last year dyed cloth as well as woollen reduction also in the deficit with had four dislinct characteristics: textiles increased 50 percent. In the United Stales. Trade with — A basic balance was achieved addition, clothmg and knitwear Hong Kong and Macao has also between imports and exports — also showed a marked increase at increased, exports being worth representing a great improvement the fair. At present, ready-made US$10.13 billion, breaking the over the horrendous trade deficits clothes account for 40 percent of US$10 billion ceiling for the first of previous years (see table) - China's total textile exports. time. Exports to the EC expanded. w hich increased the slate's foreign Exports of machinery and China's trade with the developing exchange reserves. electronics products increased countries as well as the Soviet Union and other East European countries steadily increased. Unit, billion US dollars — Last year's expansion of exports was unprecedented. This expansion and the marked Vokimc of Volume of Year Balance improvement in China's balance Export hnport of international payment can be 1984 24.416 25.356 -0.94 attributed to the following factors: (1) Policies and measures have 1985 25.915 34.331 -8.416 been adopted to encourage 19X6 27.014 33.083 -6.069 exports. (2) Reforms have been conduc• 1987 .M.603 32.735 4-1.868 ted in foreign trade to delegate managerial powers to the trade companies and producing enter• — The mix of commodities was greatly, as did quality consumer prises, introduce more export better. goods. The export of technology opportunities and methods, and In exports, the proportion of made a good start, and primary extend the contract responsibility finished products kept increasing. products have been gradually system to exports. In 1987. the export value of light, replaced by processed products in (3) Efforts have been made to textile, machinery and electronics the export of agricultural and establish networks for export products increased 33.5 percent sideline goods, with a slight production. So far, networks for over 1986. Their proportion in the decrease in the exports of grains, producing machinery, electronics, total volume of exports increased edible oil and pork. Coal exports agricultural and sideline products from 39 percent in 1986 to 40.6 grew considerably, and oil exports and light and textile goods for percent in 1987, while the came down somewhat. export have taken shape. This has proportion of primary products In imports, the proportion of ensured a plentiful supply of these came down. raw materials, technology and key popular commodities. Rural en-

IS BEIJING REVIEW. FEBRUARY 1-7. 1988 lerprises in coastal areas have are priced in US dollars. This will ous regions, municipalities and become an indispensable, force in be conducive to China's exports. cities, which have been allowed to China's expanding exports. Their With the development of draw up their own economic exports account for over 16 China's commodity economy and development plans, as well as percent of the nation's total. the readjustment of the industrial nationaf foreign trade companies (4) Taking advantage of the setup, the mix of commodities and foreign trade companies favourable international situation exported will be further improved, under the various ministries and to open up more export channels. with the proportion of finished commissions, will introduce a World economic development products further increased, and responsibility system. They will slowed down somewhat last year, that of primary products (includ• undertake to hand over to the but demand remained fairly high. ing oil) decreased. Obviously, the state a basic amount of foreign The devaluation of the US dollar efforts to bring about the exchange earned from exports and and the revaluation of the commercialization and moderniz• be allowed to retain a proportion Japanese yen and other currencies ation of China's industrial pro• of any extra earnings. These helped strengthen the competitive• duction are paying off. measures will certainly promote ness of Chinese goods. In Exports of grain, vegetable oil the development of China's trade addition, the prices of most and meat in 1988 cannot be with other countries and enable finished products went up due to a expected to increase because of overseas agents to expand their rise in the price of oil and other shortages in domestic supplies. business scope with Chinese primary products. But, there will be room for growth foreign trade companies. (5) Strengthening control over in the exports of other agricultural It is expectecf tJiat 1988 will see foreign trade. In early 1987. the products and processed food. further increases in China's Ministry of Foreign Economic This year will be a year for exports. Imports will also expand Relations and Trade readjusted major progress in the reform of appropriately in line with the the limits of the control of export China's foreign trade structure. needs of the country's economic licences. Apart from commodities The various provinces, autonom• construction. • which have a vital bearing on the national economy and the liveli• hood of the people and can only be exported with licences, the export of other commodities can be conducted freely. At the same time, the state adopted measures to strengthen co-ordination be• tween the customs houses, banks ANNOUNCEMENT and foreign exchange control departments. Ail these measures Beijing Review will hold celebrations on March 4 this are sure to provide a fillip to the year to mark the 30th anniversary of its founding. healthy development of exports. During these 30 years, Beijing Review has aimed at However, some problems still promoting understanding and friendship between the remain and they include panic people of the world. It provides information on China's buying of goods for export at political, economic and cultural developments, the domestic higher prices and dumping of and external policies of the Chinese Communist Party and goods at reduced prices and government and their perspectives or important world unsatisfactory economic returns. events. Prospects We will continue in future to make every effort to strengthen friendship and co-operation between the This year economic growth in Chinese and the people of the world. the West is expected to slow down To commemorate our 30th anniversary we are planning further; the world money markets to publish special articles m Beijing Review in March. We look set to remain in confusion; welcome your letters and contributions and the slump in the stock Editorial Dept. exchanges is bound to produce some negative impact. Even with Beijing Review these unstable factors on the international commodity markets, the devaluation of the US dollar will be good for commodities that

BEIJING REVIEW, FEBRUARY 1-7, 1988 19 China Opens Securities IVIarliet by Our Correspondent Yue Haitao

stablishing a market where ilies markets to be set up. are more often than not issued E individuals and enterprises The People's Bank of China, publicly and regularly. Their can buy bonds and other securities China's central bank, recently annual interest rate is 9-10 is one way of raising capital for declared that in the next five years percent, higher than that for both economic construction. The pro• it would authorize various spec• one-year savings deposits (7.2 cess began with the introduction ialized state banks to issue 10 percent) and state treasury bonds of financial reforms in 1981 and it billion yuan in capital construc• (8 percent for individuals and 4 looks promising. tion securities for key enterprises. percent for corporate holders). On the one hand, the introduc• The enterprise debentures come in tion of the production responsi• more diverse forms. Their interest bility system has increased the Issues and Exchange rates are lower than those of bank income of enterprises and 'ndi- savings deposits, but the holders viduals. creating a marked growth are usually accorded priority in The trial reform began in the in idle money on the economy. On obtaining goods which are in short more developed cities. On August the other hand, there is a persistent supply on the market. 5. 1985 China's first stock market shortage of funds for investment came into being in Shenyang, an Most enterprises issue deben• which cannot be remedied simply important industrial centre in tures to their staff and corporate by borrowing from the banks. So northeast China. Following that, investors. Only a small number long-term financial markets have similar markets opened in Shang• may be put on the market, opened up. hai, Wuhan, Guangzhou and attracting buyers with colour TV The proposition was put Chongqing. sets and famous-brand bicycles, or forward by a group of young All these markets are operated offering them with priority in economists at a national meeting by state banks. The securities obtaining housing and cooking of the China Financial Associ• issued are usually in two forms — gas. This exerts a considerable pull ation in May 1984 and it aroused financial bonds and enterprise on prospective buyers. widespread interest. In the debentures. The financial bonds The debentures have different following two years, bonds and other securities were issued in China's 12 provinces and municip• alities. In the latter half of 1986, securities markets opened in Shenyang and Shanghai. From the beginning, this reform has been under state guidance and control to ensure that the positive purpose of creating investment is served without becoming a hotbed for speculation out of which a '"profiteering"' class could arise. The government stipulated that indirect financing (bank loans) must predominate and direct financing should only be auxiliary. First to come were short-term money markets for borrowing and bill discounting services between banks, and foreign exchange lending between enterprises, and only later were long-term secur-

20 BEIJING REVIEW. FEBRUARY 1-7, 1988 5

face values and their terms range the market. In the opinion of Qian important questions concerning from one year to eight years. Kuangshi, a responsible member issues and transfers of bonds and Unregistered and carrying no of the Wuhan Financial Market, debentures. compensation when lost, they can permitting transactions in Masanori Ito, former deputy be freely transferred. treasury bonds would vitalize the general manager of Japan's In Shenyang, six companies long-term finance market. Nomura Securities Co. and now issued ten kinds of debentures, economic advisor to the Chinese bearing interest 20 percent higher government, says inefficient book• than bank deposits. Of this extra keeping and an inadequate legal amount about one-tenth was system, insufficient specialized distributed as payments to the organizations, a serious shortage holders and the rest used to buy Eii stablishing a market of trained personnel and the lack the prizes. According to Luo of enterprise autonomy all are Zhenghong, deputy general man• where individuals and obstacles in the way of China ager of the Shenyang Trust and enterprises can buy bonds and expanding its direct financing. investment Corporation, which is other securities is one of the Shi Lei and Ao Huicheng, two the sole agency in charge of issuing ways to raise capital for experts at the Planning Depart• bonds and securities, most people economic construction. The ment of the People's Bank of buy debentures in the hope of process began with the China, believe there is not enough winning the prizes. In general, idle money in society to fuel an about 26 out of 100 holders will introduction of financial expansion of the long-term win a prize, the first prize can be as reforms in 1981 and it looks financial markets. According to high as 8,000 yuan (about promising. statistics they collected, bank US$2,150). deposits total 400 billion yuan. The ceremony to pick the prize This breaks down into the winners is usually held several following: Enterprise deposits. weeks after the bonds are issued. 160 billion yuan; treasury deposits In Wuhan, 23-year-old Qiu In fact, street pedlars in Wuhan by governments at various levels, Chengfan bought four 100-yuan and other cities speculated in the 520 million yuan; deposits made bonds, one of which had a winning exchange of plasfic goods and by Party and state departments, number. She won a certificate chinaware for treasury bonds to people's organizations, army units allowing her to buy state-priced their own advantage. As a result, and rural credit co-operatives, 100 liquefied cooking gas. She said this the treasury bonds suffered a fall billion yuan; and personal de• had greatly improved her standing in value ranging from 25 to 50 posits, 100 billion yuan. The first with her fiance as well as her future percent. Now, the government has three categories are needed parents-in-law. "I intend to buy a been in principle agreed to lift the working funds and cannot be put few more. They may help me get a ban on market circulation of state into circulation in the financial new fiat, who can tell," she said. treasury bond, as a result of markets. As for personal savings, To stop speculation, the price at appeals from departments in most of them will be spent on which securities change hands is charge of securities market iti consumption and only one-third usually lower than the initial Shenyang, Wuhan, Shanghai and can possibly be used to buy purchasing price. For instance, the elsewhere. securities. Shenyang Real Estate Company Apart from these deposits, there issued two-year debentures in is an esfimated total of 140 billion 1985. With a face value of 50 yuan No Boom in Sight yuan of extra-budget funds, the each, their purchasing price was 45 profits retained by enterprises yuan and selling price, 46 yuan. Even the most optimistic are since the introduction of flexible cautious of predicting a boom in economic policies. Most of these, The Shenyang Stock Market the securities market. however, will be used by the has been busy. Since its establish• Liu Hongru, vice-president of enterprises to cover costs for ment, total transactions at the the People's Bank of China, says updating their equipment, wel• market exceeded 18 million yuan, China lacks a well-developed fare, bonuses, etc. Not much accounting for 4.55 percent of the credit system and actually prac• would be left for the financial 400 million yuan worth of tises the mandatory policy of market. securities issued in the city. cutting down investment in fixed Therefore, the two experts The Chinese government stipu• assets. The public is not accus• conclude, a major development in lated that the state treasury bonds tomed to buying and selling China's securities market is out of could not be bought and sold. But securities; and the government the question in the next few years. in Wuhan they have been put on needs time to study a series of

BEIJING REVIEW, FEBRUARY 1-7, 1988 21 •i ARTICLES

Famous Lessee on Leasing System

Guan Guangmei won national fame as a private lessee. For her accomplishments and contribution to society, she was elected a deputy to the 13th National Party Congress, held last October, and there too she made her mark. How did Guan embark on the course of management under lease? What is the key to her success? And how does she feel about the leasing policies? "Outlook Weekly" examined these questions in an article we repi*oduce here in translation. by Wang Yongfu

uan Guangmei is a neatly many administrative personnel, management. "It has its advan• Gdressed woman showing the holding each other bafk. Some tages," she says, "but contract first signs of middle-aged spread. people have the power but take no management can only bring Her name became a household responsibility for the actual limited decision-making power to word first in Benxi City, Liaoning performance of an enterprise. Ail the manager, and leaves some Province, and then throughout the these produce absurd situations problems that cannot be solved. country for her bold management where individuals eat fiom t e Although management under of eight grocery shops under lease. "big pot" of the enterprise while lease presents more risks than Now, the "Guan Guangmei the enterprise eats from, the "big contract management, it also gives model" has become a synonym of pot" of the state. more power in decision making management under lease, a Guan first tried contract and enables one to make more controversial issue m China.

'Guan Guangmei Model'

"Management under lease did not start with me," says Guan. "But the fact people are now debating over the 'Guan Guang• mei model' shows that I am bolder than others." Straightfor• ward talk from a daring reformer. Guan was born a farmer's daughter and became a sales clerk in 1971 when she was 20. Her work won her promotion to deputy manager of a grocery store. But Guan was not satisfied with the "iron rice bowl," and she took the lead in calling for contract management and management under lease to improve the shop's performance. Guan says, "I had done all the jobs in the grocery and was aware of all the drawbacks of the old system." In her opinion, the most serious drawback was the way managers shoulder heavy re• sponsibility, but are given little room to manage. Within an enterprise, there are usually too

22 BEIJING REVIEW, FEBRUARY 1-7. 1988 drastic changes. That is why I chose it." Indeed, the path Guan has taken is one beset with difficulties, but she is determined to show the way of overcoming them. From April 1985 to January 1987, she won four bids which resulted in her taking over eight groceries. Later she organized them itito the Dongming Commercial Group with over 1,000 employees.

Key to Success

Guan Guangmei has accom• plished much. For instance, the lease agreement she signed for the first grocery set the shop's annual profits at 200,000 yuan; it in fact made 250,000 yuan in profits. The second shop she took over had been in the red for a number of years, but began turning a profit in Guan Guangmei at tlie 13th Nationai Congress of the Chinese Communist Party. eight months under Guan. The third made 360,000 yuan profits within five months; more than its ent ones remain and the useless are improved service, increased busi• previous annual figure. The other removed. She also introduces ness and better equipment. The five shops she took over are small, strict rules of reward and customers like to buy things in our and produced a total profit of punishment. shops because they are conven• 140,000 yuan in the first half of Guan says, "The national ient. The employees get rewarded 1987. At present, the business debate over the 'Guan Guang• for their hard work, and they turnover of Guan's eight groceries mei model' focuses on one thing — receive special benefits on their accounts for one-third of the total the method of distribution. Some birthdays, for late marriage, business volume of Benxi's 36 people criticized me for exploiting childbirth and hospitalization grocery stores, and the profits other people's labour and extort• apart from wages and bonuses. account for 50 percent. The ing unearned income. One former We have built a reading room, a economic returns of the leased shop leader even said, 'We have recreation centre and a nursery. A shops have more than quadrupled worked hard all our lives but not bathroom is under construction. since their leasing. earned as much as the lessee.' I All these are 'material benefits brought about by leased manage• Guan says the way it works is by cannot agree with these views. ment. Whether there is exploit• forcing the most competent Leasing aims only at solving the ation or not should be judged by managers to emerge through problem of separafing ownership the employees—the so-called competition. Leasing not only from management and makes no 'exploited.' yet the workers say, produces the pressure but also change in the nature of ownership. 'We will follow Guan Guangmei provides the opportunities and The eight shops I have taken over no matter how many years she conditions for changes within still remain socialist in nature. runs the shops under lease.' It is enterprises. In her opinion, the What I get through leasing is only obvious that they have not felt economic returns of an enterprise the power of management, exploited." and the success of its management through which the individual's depend on its internal reforms. interests are linked to the gains When asked about her income, and losses of the enterprise. The When Guan takes over a shop, Guan says, "I should have got rules of the shops were drafted by she institutes reforms in the over 40,000 yuan in the last two me and the workers. Before them, management, accounUng and years. Of this sum, I returned every one, including me, are equal. distribution. For workers, the 16,000 yuan for mortgage against As the manager I have to take the principles of "more work, more management risks and gave out lead in observing them. pay; and no work, no pay" is over 20,000 yuan as bonuses for outstanding workers and for my implemented. For cadres, compet- "The big profits come from

BEIJING REVIEW, FEBRUARY 1-7, 1988 23 guarantors. This left me with only introduced in the country's small Guangmei has more than enough some 7,000 yuan, which was 2.5 enterprises, some problems re• money, who not fine her?'" times of the workers' average main. "I now find I devote 30 Guan stresses that reform must income. Forme, this is enough. If I percent of my energy to the be pursued, to stop half way would want to make money for myself, management of these shops and ruin what has already been one shop will do. By taking over the rest is spent on combating achieved. In her opinion, reform several shops, my intention is to rumours," she says. "I welcome should not stop at the enterprises show society that leased manage• public debate and criticism but do but should be carried into the ment can make business boom, not care for baseless rumours. departments which are in charge gives the workers more income Fines have frequently been or which serve the enterprises. and increases state revenues." imposed on my shops. Some of the When the external environment is fines are justifiable. Others are not improved, managers of enterprises because the responsibility is will be able to devote all their No Stop to Reform clearly not with us. In the first half energy to improving the enterpr• Guan Guangmei is ambitious of 1987 alone, my shops were fined ises' performances. for future reform. Although the more than 30,000 yuan. The (Outlook Weeklv, leasing system has been widely attitude sbems to be 'Guan No. 46. 1987)

Attitude Survey of City Dwellers

On September 6 and 16,1987, "Zhongguo Wenhua Bao" (China's Cultural Newspaper) gave a full page coverage to a series of reports from a survey of attitudes and opinions of residents in 324 cities in China. The survey was sponsored by the Research Centre for the Promotion and Development of China's Science and Technology and fhe Institute for Investigations into Chinese Society. Following are slightly abridged translations offive articles selected from the newspaper.

Nature of the Chinese People Pencenlage

Diligent 55.6 Thrifty 48.5 or one hundred years, the with but are conducive to the Practical 39.6 F nature of the Chinese people modernization; and the third Conservative 36.5 has been a subject of much category includes "efficient" and Obedient 34.5 28.4 discussion by scholars, and many "adventurous," which fall in line Humane Self-conscious 28 views have sprung up from the with the demands of a modern ElTicienl 18.6 debate. Recently surveyed city society. Tolerant 6.5 residents were asked to select Advanturous 2.7 (from a list of ten) three words which they felt best described the Results nature of the Chinese people. The ten words provided fall into three Question: Which words do you High percentages were regis• categories. The first contains thinl< most fully describe the tered for the first five words, words, such as "conservative," nature of the Chinese people? indicating that city dwellers see "obedient," "self-conscious," Please choose three words from these characteristics as typical of traits considered inappropriate to the words provided. (The results Chinese people. the modernization drive in China; are shown in the table. The figures A considerable number of the second includes the character• represent the percentage of respondents (28 percent) selected istics of "diligence," "thrift," respondents to select each term. the words "humane" and "self- "practicality," "humaneness" and The same applies for subsequent conscious". However, a much "tolerance." which do not confiict tables.) smaller number chose "efficient."

24 BEIJING REVIEW, FEBRUARY i-7. 1988 The lowest rating (2.7 percent) of the modernization drive will development of a new national was for "adventurous." play a major role in the character.

Sense of Criticism

Characteristics such as conser• Moral Concepts of Urban Residents vatism, obedience, and self- consciousness, which are chosen here to indicate some aspects of the traditional nature of the he section of the survey on From the table, we can see that Chinese, have something of a Tattitudes to moral concepts the most favoured concepts are sense of criticism in contemporary listed eight moral concepts from "honesty," "respecting parents," China. The 28 to 37 percent of which subjects could choose and "patriotism" and "integrity." respondents selecting these traits also provided one open entry. Despite the ten years of turbulence may therefore be seen as Some of the concepts listed, such during the "cultural revolution," possessing a critical self- as "respecting parents," "hon• and the recent influence of foreign awareness. esty," "modesty," "returning culture, a common set of values favours" are highly traditional. still exists. Compared to people in other Some such as "keeping promises" professions, more teachers, people and "integrity" fall into the The underdeveloped economic with technical training, and category of modern moral con• setting required only a limited students select the word "conser• cepts. "Politeness" could be level of social contact within the vative" to describe the Chinese considered common to both boundaries of the family and personality. Teachers and the traditional and modern society. technically trained favoured the neighbourhood. Trust and hon• term "obedient," but students Moral concepts are a reflection esty were therefore highly valued chose "self-conscious." Age of society. At present, China's moral concepts. However, in a seemed to be a factor here as a high economy and social life are commodity economy, the range of percentage of young respondents undergoing a process of moderniz• social contacts is greatly ex• selected these terms. ation. Generally speaking, ide• panded, and an emphasis is placed on contract relationships. In this The results appear to indicate ological change often lags behind situation keeping promises is seen that young people, students, changes in economic conditions. as an important character trait, teachers, and the technically Moral concepts stressed by the but the percentage of respondents trained have a critical view of the Chinese people are therefore selecting reliability was low. It Chinese personality. traditional in nature or in a transitional phase between tra• seems that Chinese city dwellers ditional and modern. are still unfamiliar with this moral Conclusion Question: In your opinion, wliat concept. Concepts appropriate to are tlie most important funda• a socialist commodity economy Some observations may be mental moral concepts? thus need to be established and made from the survey results. The Following are the results of the developed. Chinese people are still for the survey: most part passive, self-deprecating and unassertive — that is tradi• tional. However, some traditional Attitudes Towards Chinese character traits could Moral Concepts Percentage Raising Children have an influence in the changing face of China. Diligence, thrift, Honesty 56.1 and practicality, for instance, Rcspccling parents 34.4 ccording to a Chinese maxim could be well directed for Modesty 5.7 A "there arc three manifestions achieving the capital accumu• of disrespect for one's parents; the lation in the early stages of Patriotism 35.4 worst is not having children." industrialization. They should be Integrity 28 Traditional Chinese life places a maintained and developed. great deal of importance on There seems to be a critical Returning favours 2.5 raising children and this is still the attitude amongst certain groups Keeping promises 18.32 care in China today. towards the national character. Question I: Which statement Politeness 14.2 These groups represent the forces about raising children most of change. The level and quality of Others 0.6 closely matches your Ideas: ongoing reform and the progress The results are shown below:

BEIJING REVIEW, FEBRUARY 1-7, 1988 25 •1 ARTICLES

Possible View Percentage fact that individual labourers do riarchal clan system in which not enjoy the benefits of a social children are seen as the link to 1. One should have insurance system. continuing the family bloodline. children 86.5 The second response could be put To sum up, the Chinese down to a social situation which 2. Il isn't important to generally tend to hold with the provides no social security and so have children 11.5 traditional view of the importance children are seen as an investment of raising children, but more and 3. It's better not to have in manpower. This reflects an more young people and in• children 1.9 extremely materialistic and tellectuals are turning away from pragmatic view of life. this viewpoint. Question il: What do you The first four responses in the The results seem to indicate that consider Is the correct motiv• table see people merely as tools for the majority of respondents see ation for raising children? the realization of familial, raising children as important and Different people have different economic and social functions. necessary. Only 11.5 percent did reasons for raising children and Only the fifth view that "without not see it as important and 1.9 these reasons often reflect their children, one's life is not percent were definitely against outlook and attitude to life. The satisfying," embodies a modern having children. survey asked subjects to choose view of raising children to bring Differences. Although most re• from five possible reasons. happiness to one's life. spondents were positively in The table shows that 11.7 favour of raising children, there percent of the people surveyed were some notable differences of chose the first two responses. This opinion among different sex and Possible Views Percentage corresponds greatly with improv• age groups and in various cultural 1. Children continue the ed social conditions. Living levels and professions. family line. 4.7 ^ conditions in modern cities differ More men selected the state• markedly from the traditional ment "one should have children," 2 Children are a support rural situation; in cities, large whereas more women opted for for their parents in patriarchal families are hard to the second or third responses. The later life. 7.0 find and most city dwellers have a difference seems to be related to 3 Other people have secure, comfortable lifestyle. The women's rising economic and children, I should too. 3.6 conditions which perpetuated the social status, and to a basic need to first two views no longer exist. achieve success in their careers and 4 It is one's duty to bring up children Most respondents chose the retain their individuality. 47.6 fourth or fifth viewpoints: 47.6 There is also marked divergence 5 Without children, percent saw raising children as of opinion among different age one's life is not satisfy• their duty and 32.8 percent chose groups. Of the respondents to ing. 32.8 the fifth response. The views of select the statement "one should 6 Others 4.3 Chinese people thus seem to be have children," the percentage changed, although the modern aged less than 30 is much lower standpoint on the issue of raising than for other age groups. The first motivation for having children does not seem to have the Respondents aged less than 30 children stems from the pat- strength of the traditional view. tended to select the second and third responses, indicating a changing attitude to child raising among the younger generation. Attitudes Towards Divorce Respondents with a higher level of education were also less likely to select the first response. This topic's views on divorce can The survey results indicate that may indicate that intellectuals Pmirror their thoughts on most people are not totally with a relatively higher level of marriage. One question in the opposed to divorce; 44.8 percent ambition regard success in their survey presented different atti• of respondents chose item three career as the most important tudes to divorce from which and 52.5 percent items three and consideration. subjects were asked to select the four. Modern attitudes to divorce A higher percentage of indiv• one which most fit in with their arc slowly gaining the upper hand. idual labourers and retired people viewpoint. However, a high percentage of chose the first response, but more Question: Here are some views people still chose item one. About students selected the other two on divorce. Which do you agree 42.6 percent of the respondents options. This may be related to the with? selected either item one or two.

26 BEIJING REVIEW, FEBRUARY 1-7, 1988 towards a modern viewpoint ing item two falls into the low- Possible views Percentage which considers the independence education level group. Items three of the person concerned. A point and four were more likely to be 1 No niatlcr what the worth noting is that people in their selected by subjects with a tertiary circumstances, divorce 30s and early 40s seemed to pay level of education which seems to is a bad thing. .31.2 more attention to the impact of indicate that people with a fairly Whcllier or not the divorce on children. Of the high educational level stress couple have children respondents selecting item two, independence and tend towards a should be considered. 11.4 the highest percentage falls in the modern attitude to divorce. age group between 31 and 45, and However this attitude does not ir both sides agree lo the percentages aged between 18 seem to affect their concern and apply for divorce, it is and 30 and between 46 and 60 are love for their children. acceptable. 44.8 more or less the same. The lowest Cadres, teachers, technicians 4 It is acceptable if one percentage corresponds to the and students tended towards a party agrees. 7.7 older age group. modern view and individual labourers, retired people and s. Others 4.9 Educational level also seems to those in commercial and service inlluence attitudes to divorce. trades were more inclined to hold Respondents with a low level of a traditional viewpoint. education tend to select the first Conclusion. The survey results Although not significant, the response. The figures indicate a seem to indicate that only a figure still represents a sizable 31.6 percent difference between minority of Chinese are totally proportion of the surveyed this group and respondents with a opposed to divorce and most subjects, indicating that many college education. The highest people have an open, modern people are opposed to divorce. percentage of respondents select- attitude to divorce. Differences in attitude were noted between \arious social groups. A slightly higher percen• tage of women chose items one and two and slightly more men 'Gift-Giving Tendency' Today chose items three and four. The difference was remarkably small. The traditional division of labour n obvious way of assessing the yuan and promises to return it to placed women in a position of A level of modernity relates to you the following day, but he dependence on their families, but the way people handle economic later forgets. What will you do? today women living in China's and financial situations. Tra• cities have full eniployment and ditional economic interaction relied on a strong "gift-giving participate in social activities. Possible Responses Percentage Recent research reports on tendency," whereas the modern divorce cases point out that one of approach is more business like. 1. Not ask for the the salient features is that more Traditionally, Chinese were not money 23.9 preoccupied with personal gains women are applying for divorces. -> and losses, but were very Mention it to him in The results of this survey seem to a delicate way 60.2 support this finding* concerned about leaving others Considering different age with a good impression. They were 3. Directly ask him lo groups, the survey results showed more likely to sacrifice material return the money 6.4 interests in favour of a good that more young people selected 4. Others 9.5 items three and four over item one. reputation. Relations between The table shows that 45.9 percent people regulated economic activ• of respondents aged above 60 ities which would be approached in a roundabout manner. chose item one and only 27.6 According to the survey, A survey on how the Chinese percent of respondents aged under subjects choosing responses one approach financial matters was 30 chose item one. an 1R.."? percent and two display a "gift-sending conducted recently. The results difference. On the other hand, tendency" to varying degrees, and indicate that the Chinese have a only 1.8 percent of subjects in the those selecting item three have marked "gift-giving tendency" older age group chose item four, more of a "business like which was evident in all the age compared to 9.6 percent in the approach." The results show that groups surveyed. younger age grotip. This may over 80 percent of respondents indicate that young people's views Question 1: One of your selected items one and two. Item on divorce strongly incline neiglibours asks to borrow ten one was chosen by 23.9 percent of

BEIJING REVIEW, FEBRUARY 1-7, 1988 27 "declining to talk about material respondents, and item three by 6.4 Percentage percent. Possible Responses gains." Friends are unwilling to Question 2: There is a chance 1 I would hope to be openly discuss economic issues for promotion in a certain unit. promoted 21.6 and behave at ail times in a polite Both Xiao Zhang and his good and courteous manner. If they friend Xiao Wang meet the 2. Although I would dine out, they will vie with each hope to be promoted, I position's requirements, but only other for the bill or for buying would not express my one of them can be promoted, if tickets on the bus. even to the wish. 42.4 • you were one of them, what point of becoming ostentatious wouid you do? 3. I would allow my and extravagant. This form of Item one indicates a business friend to take the behaviour helps maintain social like approach and items two and promotion 27.1 stability and reduce conflicts in three the "gift-giving tendency." social exchanges. However, if About 70 percent of respondents extended to the economic and chose the second and third items pohtical settings, these principles compared to a small percentage The "gift-sending tendency" would be detrimental to the opting for the first response. This finds expression in other aspects of growth of the commodity seems to indicate a marked "gift- social behaviour such as "valuing economy and the construction of sending tendency" in the Chinese. justice above material gain" and democracy and legal systems. •

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28 BEIJING REVIEW, FEBRUARY 1-7. 1988 Hi FROM THE CHINESE PRESS

improve the quality of deputies, Democratic Election System Discussed expand their right to participate in government and political af• fairs and increase their ability to discuss political issues. Moreover, "LILUN XINXI BAO" Most voters in China's many electoral districts have never seen deputies to the people's (Theoretical Information) their candidates for deputies to the congress should not only sym• people's congress because the pathetically serve the people, but he Research Department of the interchange between candidates they should also have some TStanding Committee of the and voters has not been systemati• political experience, professional National People's Congress, the cally developed. This situation knowledge, a developed cultural Standing Committee of the should be changed, the partici• background and good health. Shandong Provincial People's pants said. With these qualifications they will Congress and the Shandong Most participants did not see be able to keep in contact with Academy of Social Sciences the campaigning of candidates voters, understand their needs and jointly sponsored a theoretical conducted in capitalist countries promptly report their demands. symposium not long ago in the as a peculiarly capitalistic feature. Some participants suggested provincial capital Jinan on the On the contrary, they felt it that deputies to the people's construction of the people's deserves recommendation in congress should be social activists congress system. Discussions socialist countries, because it helps in their electoral district or trade. focussed on such questions as people select their own represanta- They should be allowed release ballots comprising a larger tives and enhance their democratic from their regular work to ^gage number of candidates than the consciousness. in political activities, for, in a deputies elected, nomination and Direct Election. Chinas current sense, the participation of deputies introduction of candidates, prere• electoral system basically com• in government and political affairs quisites for candidacy and the prises two elements. One is direct is a direct representation of the growing trend towards democratic election at county and township election. working people's dominion over levels, and the other is indirect the country and mirrors socialist Nomination of Candidates. In election at the provincial level and democracy. view of the large numbers of above. Every three years the Growing Trend Towards Election. candidates for deputy to the people exercise their say in the Participants at the symposium see people's congress nominated by I slate through the direct election of China as gradually perfecting a political parties and other organi• deputies to the people's congress democratic system of election. The zations, participants at the at county and township levels. people's right to vote is broaden• symposium generally agreed that Participants said direct election ing; the number of links in the the nominations by each party or should be seen as a chance for the election chain are progressively organization should be limited. At wide majority of people to being reduced: electoral procedure the same time,^'voters should be participate in and discuss govern• is becoming more simplified, encouraged to nominate candi• ment and political affairs, and efficient and realistic. dates. These steps would be efforts should be made to mobilize In order to guarantee that conducive to a better understand• and guide the people to this end, as deputies to the people's congress ing of the will of the people and this could promote open regional at all levels are responsible to the would help bring into play the politics and democratization. people at all times, some initiative of the masses for participants suggested that voters democratic election. Some people Activities of Deputies to tfie suggested that candidates should should not only have the right lo People's Congress. In the vote, but should also have the real be chosen according to trade and organization of the people's power to supervise and recall profession, as well as their congress at all levels, women, the deputies. constituencies. young and intellectuals occupy (December 7, 19H7) Recommending Candidates. only a small proportion of the Participants at the symposium deputies. Party members, govern• recommended that nominators ment officials and model workers, make objective, comprehensive however, form an overwhelming and realistic introductions of their majority. The participants said candidates. Before the election, this present situation limits the candidates should also introduce capacity of the people's congress themselves and .outline their to timely obtain real indications of intentions in order to give voters a views and demands from every sound basis on which to make area in a comprehensive way. their selection. Therefore, it is very important to

BEIJING REVIEW, FEBRUARY, 1-7,, 1988 29 m BUSINESSARAPE ———

of foreign exchange and foreign China to Readjust Car Imports loans, the State Administration for Foreign Exchange Control will join the banks and customs houses in instituting new rules on the hina is readjusting its policy industry. The corporation intends examination of export foreign Cfor the development of its also to invest in a casting factory, exchange earnings, perfecting automobile industry — from in production of starter motors foreign exchange accounting and primarily importing parts to and alternators and later in improving the collection of importing technology, according building a large repair factory. foreign loan statistics. to Chen Zutao, chairman of the Mr. Brown said that when all board of the Chinese Federation these projects are off the groimd, of Automobile Industry. his will be the biggest foreign Over the last few years, China corporation involved in the has established several joint Chinese automobile industry. Mainland-Taiwan ventures in the car industry with Chinese state leaders speak Trade Increased firms from the United States, highly of the co-operation China Federal Germany and France and has received from the US lthough the Taiwan authorities produced tens of thousands of corporation and see it as setting a coaches and jeeps. Owing to the good example for other foreign Ahave persisted in opposing slow development of spare parts automobile businesses. trade with the mainland, the trade between the mainland and Taiwan production, China has had to by Yao Jianguo impoft many spare parts at great via Hong Kong has been cost in foreign exchange. The increasing steadily. Incomplete agreement with General Motors is statistics show that the trade for co-operation in the production Foreign Currency volume in 1986 amounted to of component parts which GM US$959 million. 12,4 times the then buys back, thus helping iyiarl

30 BEIJING REVIEW, FEBRUARY 1-7, 1988 in new factories on the mainland At present these counties and News in Brief through third parties. Some have districts contain over 450 export- • The China International Trust even invested directly. oriented enterprises, 70 of which and Investment Corp. (CITIC) Last October the Taiwan can make US$1 million worth of signed an agreement in London on authorities lifted the ban on visits goods annually each. Some 80 January 12 with 18 international to relatives on the mainland, and enterprises have signed contracts banks on issuing 15 billion involving foreign investment later relaxed -restriction on Japanese yen bonds (worth about valued at US$830 million. Of entrepot trade with the mainland. US$107 million) in Europe for the these, 29 are productive, eight are All this will help improve the first time. The bonds are for five service enterprises and the rest are economic and trade relations years with an annual interest rate hotels. Thirty-three have gone into between the mainland and the of 5.625-percent, and will be issued island. operation and most of them have achieved a favourable balance in on the Luxemburg stock their foreign exchange accounts. exchange. Since 1982 CITIC has conduc• by Zhang Zeyu ted 11 issues of bonds and raised US$1.39 billion for construction. Beijing's Outskirts • Last year China National Textiles Import and Export Corp. Seek Investment exported USFi.77 billion worth of IVIore Cereals and textiles, a 26.53 percent increase ie Beijing government recently Oils Exported over 1986. The exports of cotton Theld a news conference on and linen cloth, nylon and cotton encouraging foreign investment in knitwear, and raw cotton rose by he China National Cereals, Oils Beijing's rural counties. over 40 percent; finished gar• and Foodstuffs Import and T ments, wool fabrics and cotton At the conference, the Export Corp. (CNCOFIEC) es• yarn rose by over 20 percent. municipal government offered 146 timates that China exported US$4 Exports of woollen blankets and projects for foreign investment, 90 billion worth of cereals, oils and staple rayon yarn dropped. percent of them productive. The foodstuffs last year, a 5.2 percent majority involve technological increase over 1986. • Last year, China signed 1,231 updating of existing enterprises, Cereals, oils and foodstuffs are contracts for building projects and and imports of advanced flora and traditional Chinese exports, and providing labour services abroad fauna resources development all. bar cereals, increased last year. (valued at US$1,743 billion), and technology and equipment. The exports of fats and oils, completed work worth US$1,105 aquatic products, factory pro• billion, an increase of 28.5 percent Foreign-funded enterprises in cessed food, fruit and vegetables and 13.53 percent over 1986 crop cultivation and animal, rose by wide margins. Exports to respectively. At the end of last poultry and fish breeding, which Japan, the United States, the EC, year, there were 60,400 workers yield low profits, can have their the Soviet Union and other East working abroad. land-use fees reduced or waived. European countries as well as • A Sino-foreign videotape joint For foreign-funded enterprises Hong Kong and Macao all went venture went into operation in with an investment of US$1 up. Zhoukou city, Henan Province, at million, the local government will simplify the approval procedures. Established in 1952 the the end of last year. The Yusheng The power to approve enterprises CNCOFIEC had handled US$87 Video Tape Co. was jointly with an investment less than USSl billion worth of goods by the end established by a firm from Hong million will be delegated to the of 1987, or 15 percent of the Kong, the Zhoukou Radio district or county governments. nation's total international trade Factory and the North China in that time. Of the total, exports Electronics Co. of the Ministry of There are eight counties and six (totalling 2,200 varieties) amoun• Electronics Industry. The joint districts on Beijing's outskirts, ted to US$51 billion, and imports venture has a total investment of with an agricultural population of to US$36 billion. more than US$3 million, 45.45 3.84 million. These counties and The croporation has established percent from the Hong Kong firrri. districts cover a total area of trade relations with over 3,000 The joint venture started the 15- 16,300 square kilometres. They customers from 130 countries and year contract with the operation have many advantages in develop• regions and opened branches and of a production line of tape base. ing international economic co• offices in Japan, France, Britain, The line's annual production operation. They are blessed with a the United States, Federal Ger• capacity is 2.2 billion feet. This good climate for certain crops and many, the United Arab Emirates year the venture is expected to tre?s and are rich in mineral and Hong Kong. produce 300,000 video tapes resources. by Liu Ziqiang besides the base.

BEIJING REVIEW, FEBRUARY 1-7, 1988 31 • CULTURE/SCIENCE ^M—

Championships and eame runner- up at the World Youth Championships. Sports in China: 1387 Weiqi (Go). In the Second Sino- Japanese Competition, China defeated Japan, nine to eight.

n 1987. C'hma's athletes won 69 defeated the Japanese team in I world ciianipionships and two October last year and qualified for wonien's teams won first places in the Olympic Games. weight liflihg and judo events.. In In table tennis,.diving, gymnas• Women Outstanding addition;j they broke 44 world tics" arid shootingifv^^nts, Chinese Piayers records in 23 events. The number athletes continue to hold wQrid of Chinese world champions and records. record breakers in 1987 reached its Women accounted for 61 per• highest in the history of sports in cent of China's world champion• China. ship-winners last year, and one- Otiier Events third of China's world record breakers. They also made advance in swimming, breaking the Asian Olympic Games Events China has also achieved good record. In 16 women's events, the results in other events. top 10 world athletes last year Badminton. At the Fifth World Last year, China made breakth• were all Chinese. The 17-year-old Badminton Championships, the roughs in some Olympic Games swimmer Huang Xiaomin broke Chinese team won gold medals in^ events. the Asian record in the 200-metre all five events and also look two' Swimming. According to data butterfly stroke, only 0.38 seconds silver and four bronze medals. issued by the International behind the world record. China had four champions at the Swimming Federation, 13 Chinese Before early December last Seventh World Cup Badminton athletes were listed among the year, seven athletes in women's Championships. The head of the world's top 25 in their 13 events. track-and-field events were listed International Badminton Feder• Five of them were ranked in the in the lop 20. At the Sixth ation described China as "worthy world's top 10. National Games, Liu Huajin of the title of a badminton Weight Lifting. Weight lifters broke the Asian record in the 100- kingdom." broke six world records in four metre women's hurdles, which had men's events in two weight iVIodel Airplanes. Last year China been held by Taiwan athlete Ji categories. Another two took the won the world charnpionships in Zheng for 17 ySr%V AthteteSfin world championships in their two seven events. The 17 world records women's judo events won three events. Ten lifters broke 26 Asian broken in these championships gold medals at the Fifth World records in 14 events in seven accounted for 38.6 percent of all Championships, taking first place categories. Lifter He Zhuoqiang world records broken during the in the team event. Gao Fenglian from Guangdong Province broke year. alone won the two gold medals in the world record in the 52 kg Speed Skating. Li Jinyan broke two categories. China's women snatch and jerk five times in only the world record in two women's weight lifters won 22 gold medals seven months. skating events. at the First World Weight Lifting Archery. Ma Xiangjun became Artistic Gymnastics. Though Championships. women's champion in the ail- only new to the sport, the Chinese One official from the State round event at the 34th World team won a silver medal and two Physical Culture apd Sports Archery Championships. bronze medals in group callisth• Commission commented that Boat Race. The women's rowing enics at the 13th World China still lacks world-class four without coxswain won the Championships. athletes in most Olympic Games bronze medal in the 14th World Motorboat Racing. China took events. There is a shortage of Championships, marking the first second place in the OA level in the young talent in many events. medal for Asians in the World Championships. Generally speaking, China is far competition. Wushu (iVIarshal Arts). China from advanced world levels in Track-and-Field. Chinese track- had 13 champions in the 16 events swimming and track-and-field, and-field athletes ranked high in at the First Asian Championships which are the most highly five events in the Second World held in Japan. regarded sports events. These Championships. Softball. The Chinese women's shortcomings should be overcome Football. China's lootball team team won the first title in the Asian ;\ y to a certain degree in 1988. •

BUJtNG Ri;VIE\V., 1 T.BRU.\RYi 1-7, tyss National Minority Singing Contest

eji Cibai. a 22-year-old D Tibetan girl in a bright Tibetan costume, sings Lakeside Love Soiii^ in a clear and moving voice while dancing. The strong national tlavour of the piece and her skilful prcsenlation won her a gold medal at the Second National Minority Singing Contest. The other six gold medal winners hailed from Kazakh, Mongolian. Manchu, Zhuang, Yi and Yao nationalities. Nine Gold medalist Dalle LIhan of the Kazakh singers won sihcr medals and IS nationality in Xinjiang. PholOb by XU XIANGJUN others won av\ards for excellence Yang Xuejin, a Vi singer from the Shanghai Conservatory of Music, won a Taking part in the contest were gold medal for her performance. 81 singers from 28 ethnic groups. The youngest was only 21 years News in Brief old and the oldest 35. All singers brought into full play their artistic talents. The China National Educ• Tang Peizhu of the Zhuang ational Book Import & Export nationality combined national Corporation was set up recently in style with Western singing method an effort to serve the educational in an energetic song full of needs of our country and to emotion and power. develop international exchanges Two Korean contestants chose in the areas of education, science the same song Birds Beat Rings, a and culture. Korean folk song, but used Publishing houses dealing different styles of presentation. Jin mainly in textbooks and academic Yingshu from Heilongjiang Prov• works are now operating in 81 of Gold medalist Tang Peizhu of the Zhuang ince imitates the chirping of birds China's universities. The company nationality. and Zhao Yuheng evokes an is expected to deal with the high image of birds through her more quality productions offered by Song Zuying of the IVIiao nationality in personalized performance. these enterprises, as well as Hunan Province was awarded a gold noteworthy texts from some medal. Adjudicator Sailimai Anni from textbook presses. The the islingxia Song and Dance corporation's businesses also Ensemble commented. "This con• include audiovisual material, test showed the latest achieve• microfilms and samples. ments made towards combining The corporation's Vice- national style with artistry." President Ma Wenzhong ex• Chairman of the adjudicators" plained the aims of the company: committee Shi Lemeng believed "We will do our best to offer the standard reached in this overseas readers an insight into contest was much higher than in our nation's culture and its scien• the first one held in 1985. Most tific achievements. Meanwhile we folk songs were treated in a more intend to import advanced artistic and skilful manner. materials on technological and The adjudicators were well- scientific developments to forward known ethnic folk singers and our own services and to promote experts of national and minority international exchanges and co• folk vocal music. operation in the field of by Hong Lanxing education." •

BEIJING REVIEW, FEBRUARY 1-7, t988 33 IFORUMI

partment stores, restaurants, fac• The Way Forward for Macao tories and travel services. Macao can also co-operate with Brazil to establish trading companies, ship• by Wang Hai* ping companies. a high- technology research centre, a crop n accordance with the Joint favouring economic development. planting centre, a labour services I Declaration of the Govern• Macao has a certain foundation export organization and other ment of the People's Republic of and experience in industry and ventures in Macao and Brazil. China and the Government of the tourism. China and Hong Kong Schools in Macao may be opened Republic of Portugal on the have given it substantial support, to train various people who have a Question of Macao, the Chinese providing various essential com• good command of the Portuguese government will resume the modities, raw materials for language and knowledge of Brazil. exercise of sovereignty over industry, funds, equipment, tech• Thus having Macao as a bridge Macao effective from December nology and information. Macao is will promote exchanges between 20. 1999. In line with the principle a free port and most goods arc China and Brazil in many fields. of "one country, two systems" and imported tax-free. The general tax When I speak of tics with Latin the provisions of Article 31 of the rate on taxable goods is low and countries, I do not refer only to the Constitution, the Macao Special the political situation is stable. Latin American ones, such as Administrative Region will be The prices of land and houses are Brazil, Argentina and Mexico, but established; the current system low, as are wages. All these factors also F-'rancc. Italy, Spain. Portugal there will not change and will be are conducive to attracting foreign and the rest of the more than 30 maintained for 50 years. investment. Sharing a common nations which belong to the Latin The future of Macao is language with Brazil and tra• family. The French. Italian, undoubtedly bright. However, ditional economic ties with the Spanish and Portuguese languages there arc still outstanding ques• country may particularly help to are all derived from Latin. tions in the field of economic and strengthen the force of Macao's Furthermore, Latin countries social development. The first development, and promote pros• have many points in common in problem is the lack of a perity and stability in Macao as their history, culture, habits and moti\eating force for economic well as China's four moderniz• religion. development and the second is ations and opening up to the Because of Macao's language, it how to appropriately settle the outside world. can become a bridge to connect question of Portuguese descend• China with the Latin countries. ants. The best way to resolve these The Chinese government has For example. France has opened two difficult problems is to use the maintained a consistent attitude two banks and a financial Portuguese language and Macao's towards Macaain the hope that its corporation in Macao. It has traditional economic ties as a social development and stability taken part in the construction of bridge for exchanges between will continue both during the an eletric power station and China and Brazil and other Latin transitional p*iod before China conducted a feasibility study for a countries. regains sovereignty over Macao deep-water port. And it has Macao has an area of about 17 and afterwards. This also con• participated in exploiting the oil square kilometres and a popul• forms to the desires of Macao field in the South China Sea. as ation of more than 400,000. Its compatriots. well as other economic activities. economic foundation is very The Chinese government is Macao will play an important role weak. Since the 1970s. Macao's pursuing the policy of opening up in promoting exchanges between economy has developed rapidly. to the outside world, hoping that China and Latin countries. The economic structure has Macao, like Hong Kong, will changed greatly and has diversi• become a window and a bridge for Macao will also be a bridge fied to include manufactur• exchanges with foreign countries. between Brazil and other Latin ing.import-and-export trade, tou• If Macao is able to make use of its countries and the countries of East rism, construction, financial com• advantages and develop its ties Asia. The East Asian region has a panies and service trades. In the with Brazil and other countries, it rapidly developing economy and past 10 years Macao has ex• will become a link between China great potential, and thus merits perienced a high rate of growth. and Brazil. the attention of Brazil and other Macao has unique advantages Latin countries. Because Macao There are several factors in this regard. Brazil has already has close traditional ties with East set up a bank in Macao and, with Asia and Latin countries, and is a rhc aulhor is a researcher of the the development of Sino-Brazilian free port, it is in a unique position Economic Research Centre. Nanjing exchanges, there will be more to act as a link between Latin Municipal Government. Brazilian banks, companies, de• countries and East Asia. •

BEIJING REVIEW, FEBRUARY 1-7. 1988 Baiyangdian, Hebei Province.

Sketches by Zhao Guide

Zhao Guide, born in Beijing in 1939, now works at the Hebei Fine Arts Publishing House. Zhao, who has taught himself since childhood, specializes in caricatures, New Year pictures, cartoon stories and traditional Chinese paintings. These are his sketches from life.

Ancient warriors.

ART PAqE

Playing. CHINA'S EXPORTS

CHINA'S EXPORTS, a trade magazine sponsored by the Ministry of Foreign Economic Relations and Trade of the People's Republic of China and the China Council for the Promotion of International Trade, is edited by CHINA'S FOREIGN TRADE and co-published by CHINA'S FOREIGN TRADE, Beijing and Grossource Ltd. Hongkong. It is distributed through the circul• ation network of CHINA'S FOREIGN TRADE and at economic and trade exhibitions held abroad by the People's Republic CHINA'S EXPORTS of China. Each issue is distributed to importers and China's export rtmm nxmnuiti mm nneucTss upsnuus n amu commodity sales agents in more than 160 countries and regions, with a circulation of 45,000 copies. Published in four issues about China's commodities each year, CHINA'S EXPORTS conttains mainly colour pictures, supple• mented by simple descriptions. The descriptions are mainly in English, with the names of commodities in Chinese, French and Spanish.

Date

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