China opens trade doors to N.Z. and others

Press, 21 December 1978, Page 7

China opens trade doors to N.Z. and others

NZPA Hong Kong New Zealand companies involved in the China trade will soon be able to open offices in that country and enter into joint projects there. The Chinese Minister of Foreign Trade (Mr Li Chiang) revealed a “new” open-door trading policy under which these devel-

opments will be possible when he gave an hourlong news conference in Hong Kong.

Mr Li revealed also that China was now prepared to accept development loans from foreign governments, a radical departure from China’s post-1949 opposition to them and its recent relaxed policy of allowing the Bank of China to take loans from oveseas banks.

Mr Li said a problem facing companies wanting to establish representative offices in Peking was a lack of accommodation. “But we will try to speed up the (provision of) accommodation,” he

said. “We will have a positive attitude.”

Mr Li said that no policy had yet been determined on the amount of capital a foreign company could put into a joint venture. But he indicated that a questioner who had asked if the amount would be limited to 49 per cent was probably about right. Mr Li was questioned about China’s acceptance of developing-nation trade status granted by New Zealand and Australia. This makes Chinese exports subject to lower tariffs and puts them on a competitive level with developing nations such as Malaysia, Indonesia, the Philippines, and many African and Latin American countries.

“China is a developing country and regards itself as such,” said Mr Li. As far as the acceptance of such trade terms from the United States and the European Economic Community were concerned neither had put forward proposals to extend this treatment to China.