China's Open-Door Policy and Trade with Latin America: 1978-1990
The Chinese economy has undergone a thorough reorganization since the death of Mao Zedong in 1976 and the rise of Deng Xiaoping in subsequent years. China has identified economic modernization as its highest priority. For the first time since 1949, Beijing has accepted the legitimacy of the international order and is seeking normal and stable relations with both superpowers. China has embarked on a sweeping set of policy reforms that have both dramatically accelerated the pace of China's domestic economic development and fundamentally transformed China's economic relations with the outside world. The autarkic policies of the Maoist era have been abandoned, and China has begun a vital transformation toward a pattern of economic growth and development that has led to increasing integration with the world economy. Meanwhile, Beijing is hoping to diversify and expand its exports from raw materials and processed goods to include exports of more refined and technologyintensive products. Here, developing countries are seen as having the best potential. With the advent of China's open-door policy, the 1980s witnessed the beginning of more extensive economic ties between Latin America and China. The new economic relations are characterized by technology transfer, direct investment, extension of credit, and increased trade in commodities. However, so far trade is the most important aspect of economic ties between China and Latin America. The background and implementation of new policy as well as trade relations since 1978 are the subject of this chapter. The opening to the outside world initiated in 1978 has greatly increased the significance of foreign trade within China's economy. In 1988, foreign trade accounted for 28 percent of GDP, whereas the figure was only 10 percent in 1978.1 China signed several
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Publication information: Book title: Sino-Latin American Economic Relations. Contributors: He Li - Author. Publisher: Praeger Publishers. Place of publication: New York. Publication year: 1991. Page number: 53.
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