Economic Reform & Implications in China

As the official policy of the government of the PRC from its inception was to trade with all countries, whether or not diplomatic relations had been established, business entities from most countries, other than the United States, developed trading arrangements with China in the 1950s and 1960s. During the 1950s, Chinese foreign trade was heavily oriented toward the Soviet Union. By 1959, 48 percent of China's foreign trade was with the Soviets. Political disagreements between the two countries, caused Soviet trade to drop to only 7.5 percent of China's total foreign trade by 1966 (Manatoo, 1990, pp. 63-79).

With the decline in the significance of the China-Soviet trade, there was a dramatic rise in the significance of China-Japan trade. By the end of the 1970s, Japan was China's leading trade partner; a position it has maintained. By 1988, the PRC's leading trading partners were Japan, Hong Kong, and the United States, in that order. Japan is an important trading partner with respect to both imports and exports, while Hong Kong is more important to China as an outlet for its exports, and the United States is more important as a source of

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blished by the market (Manatoo, 1990, pp. 63-79). The goal of the responsibility system is an increase in incentive for farm families, which, it is hoped, will be translated into an overall increase in agricultural productivity in the PRC. During the 17 years of the plan, it has been well received by farm families, and overall agricultural production has increased significantly. Unfortunately, significant prices increases also occurred in the open market, and this change was not widely welcomed in the urban areas. The responsibility system is the vehicle by which China hopes to become a major net food exporter, as opposed to a net food importer. The responsibility system, however, is but a component in a larger plan of decentralization. The responsibility system is the vehicle by which economic decentralization has being implemented in the Chinese economy. It is a system in which the state maintains some degree of central control through the assignment of minimum production quotas, and through the allocation of resources (Blejer & Gregory, 1990, pp. 32-35). In Chinese industry, not only were production quotas established, but the list of goods which would be produced was also dictated from a central planning autho
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Some common words found in the essay are:
Deng Xiaoping', Blejer Gregory, PRC Chinese, Y1373 Privately-owned, Eichen Ming, China Continued, Republic China, Xu Li, Red Guard, Reform Economic, 1990 pp, responsibility system, foreign trade, economic reform, industrial enterprises, special enterprise, 1995 pp, yenai 1990, 1990 pp 707-721, enterprise zones, special enterprise zones, production quotas, blejer gregory 1990, yenai 1990 pp, hunter 1995 pp,
Approximate Word count = 2654
Approximate Pages = 11 (250 words per page)

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