CHINA TO TIGHTEN IMPORT CONTROL, CUT EXPORT COSTS

  China should tighten imports of ordinary
  goods and restrict or even forbid import of goods which can be
  made domestically, Premier Zhao Ziyang said.
      He told the National People's Congress, China's parliament,
  that the country's foreign exchange is limited and must be used
  where it is most needed.
      "We should expand production of import substitutes and
  increase their proportion," he said.
      On exports, China should increase its proportion of
  manufactured goods, especially textiles, light industrial
  goods, electronics and machinery, he said.
      Zhao said China should lower the cost of exports and
  control the export of goods that incur too much loss. In 1986
  China had a trade deficit of 11.9 billion dlrs, down from a
  record 14 billion in 1985.
      Zhao said China should work to provide a more favourable
  investment environment for foreign businessmen. It should use
  foreign funds for production and construction, with stress on
  firms making goods for export or import substitutes.
      China should also earn more foreign exchange from tourists
  and contracted labour abroad, he added.
  

