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Implications of the Recent Changes in China's Foreign Trade Policies

The recent increases in the level of international trade of China and the development of new trade and trade-related policies date back to a major debate that took place in China about 1970 and the start of the programme to import foreign plant and technology which began in December 1972. Foreign trade rose rapidly after 1972, stagnated in 1975 and 1976, and grew slowly until 1978, when it accelerated markedly. This rapid increase in foreign trade has been maintained until the time of writing.' The year 1979 was one of immense significance in China's economic history, owing to the nature and magnitude of changes in economic policy which occurred. It is no exaggeration to say that the changes are significant for the general history of socialist countries. This paper first identifies and examines the changes,2 then discusses the reasons for them, and finally considers some of the possible consequences for the future.