| Abstract | In late 1995, China announced a series of market-oriented initiatives which include the reduction in import tariffs, the phasing out of privileges enjoyed by foreign investors, improved market access and subjecting the Renminbi to current account convertibility. These measures are likely to cause some short-term disruptions to trade and investment flows in the country. The increase in foreign competition would however facilitate the transfer of technology and business expertise, and help to raise the efficiency of domestic enterprises. In acceleratng the reform process, these initiatives would contribute towards the country's integration with the international economic community. |
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