 |
 |
|
Direction of Trade
China's distribution of foreign trade is focused primarily upon
the Capitalist countries. Obviously, this is because it is mainly
the Capitalist countries that have the funds and technology which
China needs for its industrialisation - the most notable examples
being Japan, the US and Hong Kong. Along the way to industrialisation,
the PRC has established trading contacts with most countries - regardless
of ideology. During the 1970s and most of the PRC's period of economic
reforms until the mid-1980s, Japan has remained the PRC's largest
trading partner. Since then, the PRC's major trading partner has
become Hong Kong - the major reason being that the PRC is Hong Kong's
major source of food. Hong Kong also represents the PRC's major
link for indirect exports, as well as the point of sale for goods
processed or assembled in the PRC - including textiles and light
industrial goods.
Graph 5
Proportion of the PRC
Exports to Various Destinations
Source: ADB, Key Indicators of Developing Asian
and Pacific Countries, 1990.
Graph 5 illustrates the immense change in the significance in Hong
Kong as a market for the PRC's exports. While purchasing an already
significant 24.0% of the PRC's total exports in 1976, Hong Kong
now purchases 41.8% of all PRC exports. Hong Kong has therefore
been transformed into a key centre for the PRC's trade with the
rest of the world, and as such is regarded as the 'gateway to China'.
Also becoming more important to the PRC as an export market has
been the US. Virtually insignificant in the early 1970s - constituting
only 2.9% of its export market - the US has today become the PRC's
third largest export market - purchasing 11.8% of its total exports.
The rise in importance of Hong Kong and the US has meant the decline
in importance of all other markets - including Japan - which has
decreased its standing from 36.5% in 1976 to 22.5% in 1989.
Graph 6
Proportion of the PRC's
Imports from Various Destinations
Source: ADB, Key Indicators o Developing Asian and
Pacific Countries, 1990.
Graph 6 illustrates once again the significance of Hong Kong to
the PRC's trade. Apart from being the PRC's major re-export centre,
Hong Kong also represents a gateway into the PRC for many of its
imports - especially Japanese, Taiwanese and South Korean produced
goods consisting mainly of televisions, home appliances, video recorders
and other high-end manufactures. Also, the PRC's establishment of
the Shenzhen Special Economic Zone (SEZ) just across the boarder
from Hong Kong has encouraged even more cross-boarder trade.
In summary, the PRC's foreign trade today is dominated largely
by Hong Kong, Japan and the US - together constituting 58.8% of
the PRC's total trade in 1989 after constituting 43.9% in 1976.
The major benefactors in the PRC's trade since the mid 1970s have
been Hong Kong and the US. While Japan still remains the PRC's second
largest trading partner overall, it is a much less significant partner
today -standing at 19.93% - than it was in 1976 - 27.54%.
Other losers in the PRC's market place include Western Europe -
falling from 24.0% in 1976 to 10.8% in 1989, Canada - falling from
2.77% in 1976 to 1.33% in 1989, and Australia - falling from almost
3.5% in 1976 to 1.7% in 1989. Rather than diversifying its markets
- as has Taiwan - the PRC has been concentrating its markets on
its three major trading partners.
|
|
|
