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    CHINA'S EXPORT PRODUCTION PROFILE

    Penelope B. Prime

    Center for International Research Bureau of the Census Washington, D.C . 20 2 3 3 CIR Staff Paper N o . 7 1 March 1994

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    CIR STAFF PAPERNo . 7 1

    CH INA'S EXPORT PRODUCTION PROFILE

    Penelope B. Prime

    Center for International Research Bureau of th e Census Washington, D.C. 2 0 2 3 3 March 1994

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    SUMMARYThis study investigates export production in China based on three criteria: typeof enterprise ownership, product categories, and provincial location. The studyidentifies and analyzes available disaggregated data on exports to better understand

    the conditions driving China's remarkable export growth.In terms of ownership, detailed export data are available for foreign investedfirms, and for town and township enterprises. Both of these types of enterprises haveincreased their contributions to exports while the share produced by state-ownedenterprises has fallen. Preliminary estimates presented suggest the state share couldbe 60 percent or lower.The product profile utilizes data on state-owned machine building, light industry,and town and township exports. A relationship between heavy industry and stateexports, and between light industry and collective exports, is suggested. With all ofthese products, however, a variety of enterprises are involved in exporting.Guangdong stands out inemanyof the variables that are used to investigatelocation patterns of export production. Even wi th the spread of export promotion toother parts of China, Guangdong continues to dominate many aspects of China'sexports. Beyond Guangdong, a handful of coastal areas are the key exporters. IfShanghai and Liaoning are put together with Guangdong, these three areas alonesupplied 40 percent of China's exports in 1991. Adding Jiangsu and Shandong bringsthe total to over 5 0 percent.A set of data for individual provinces is presented to check for consistency w ~ t hthe cross-provincial data sets and to gain further insight into their export productionpatterns by ownership and product categories. Less than half of the provinces report

    this type of information. With the ones available, however, the relative importanceof collective and light industrial exports in certain geographical areas is corroborated.Finally, the results of cross-provincial correlation analysis is presented. Thisanalysis providles a preliminary check on the impressions gained from thedisaggregated data sets. The analysis identifies key variables that are positlvelvrelated to past exports as a way to discuss what might affect China's future exportpotential. The data point to foreign investment and collectives as being pos~tlve lvrelated to exports. More general variables that proxy decentralization and opennessare also found l o be significantly related to provincial shares of exports and otherexport variables,To check the extent that Guangdong, as an outlier, influences these results, thecorrelations are performed a second time without Guangdong in the sample. Theresults do not change substantially. One exception is that the openness variablemeasured as the ratio of foreign investment to GDP, is no longer significantly relatedto exports.

    iii

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    PREFACEfor International Research conducts economic and demographicare issued as Staff Papers. A complete list of these papers

    this report. The use of data generated by the U.S. Bureauperforming the same statistical reviews the Bureau does onits own data.I would Ike to acknowledge Christina Harbaugh's meticulous work in combingsources in sea ch for disaggregated export data. Andrea Miles helped extensivelywith the table and report reproduction, and Loraine West and Barry Kostinskyprovided valua le comments.1

    and questions regarding this study should be addressed to MarcCenter for lnternational Research, Bureau of the Census,telephone (301) 763-4020.

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    CONTENTS ...SUMMARY .................................................................................................111

    PREFACE...................................................................................................v THE ORIGIN OF CHINA'S EXPORTS: ISSUES AN D SCOPE...............................1 DISAGGREGATED CHINESE EXPORT DA TA ....................................................3 Ownership Profiles.......................................................................................4 Foreign Companies and Join t Ventures ................................................4 To wn an d Towns hip Enterprises..........................................................6 State-owned Enterprises................................................................... 8 Summary ............................ ..............................................................-9 Product Profiles..........................................................................................-9

    State-owned Mac hine Building ..............................................................9Light Industry.............................. n 0 Exports from T ow n and Tow nship Enterprises by Product........................10 Summary ................................W 5 Location Profiles........................................................................................17 Provincial Exports..............................................................................17 Special Economic Areas ................................................................. -21 Individual Provinces and Major Cities ....................................................21 Summary .........................................................................................29FUTURE EXPORT POTEN TIAL......................................................................29Correlations of Key Variables .......................................................................29 EIements of Future Export Grow th ................................................................37

    .................................................................38CONCLUSION...........................................................................................-39 APPENDIX .............................................................................................41 BIBLIOGRAPHY........................................................................................ 65

    ..............................Summary

    vii

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    CONTENTS (continued)TABLES

    Table1. Gross Value of Industrial Output by Ownership and Province, 1991............... 2 2. lnternational Exports From Foreign Invested Enterprises,First Six Months, 1993.........................................................................5 3. lnternational Exports From Town and Township Enterprisesby Province, 1990.. ............................................................................- 7 4. Value of Light Industry Products Delivered For Export ByProvince and Major City, 1990.. ............................................................1 1 5. China's Light Industrial Exports by Product, 199 0.......................................12 6. Value of Exports From Town and Township Enterprises By Product Type, By Province and Major City, 1990.....................................13 7. Indicators of Town and Township Exports Over Time, 1986-1990................16 8. International Export Indicators By Province: 1985-1989..............................18

    ....................International Exports By Province, First Six Months, 19939. .. . .20 10. lnternational Exports From Special Economic Areas, FirstSix Months, 1993.................................................................... . . . . . . . . . . . 2 2 11. Individual Province and Major City Profiles...............................................2 3 12. Correlation Coefficients Between Export Variables............,.......................3 1 13. Correlation Coefficients Between Export VariablesWith Guangdong Excluded.................. ........................................ 3 5

    viii

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    CONTENTS (continued1 APPENDIX TABLES

    TableAl. International Exports From Town and Township EnterprisesBy Province, 1989.............................................................................-42A2. International Exports From Town and Township EnterprisesBy Province, 1987..............................................................................43 A3. Machinery and Electronic Exports by Product: 1990.................................44 A4. Value of Industrial Products Exported by Township Enterprises in China, 1989.................................................................................. 58 A5. Value of Industrial Products Exported by Township Enterprises in China, 1987...................................................................................60 A6. Provincial Exports, 1985-1992..............................................................-62 A7. Foreign Investment By Province, 1990 and 1991.................................. ..63 A8. Variables Relating to Export Performance: Names and Sources...................64

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    THE ORIGIN OF CHINA'S EXPORTS: ISSUES AND SCOPEChina's international exports have grown substantially since the leadershipdecided to advance economic development through an "open doorwstrategy. Lesswell understood by foreign observers is what types of enterprises and local conditionsare driving China's exports. The purpose of this report is first t o identify availabledisaggregated data on China's exports by type of enterprise, product groups, andlocation, and second to analyze these data for China's export production profile.Typically data incorporating all three aspects simultaneously are not available, butsome data exist that cover one or two aspects.Of the three aspects explored--enterprisetype, product, and location--enterprisetype is the most problematic. As China's economic system has developed and beenreformed, the distinguishing characteristics of these categories of enterprises havechanged and blurred. Typically the rules governing large and medium state-ownedenterprises have changed the least, causing managers who wanted more flexibil ity andoptions to seek joint ventures with foreign firms, or to set up collectives forcontracting parts or assembly operations. In 1992, the State Council issued morespecific guidelines to supplement the 1988 law that was supposed to allow stateenterprises more autonomy. This has led to a series of articles in the Chinese pressdiscussing how state-owned firms are no longer state run.'In addition, the categories of ownership types that China's institutions use tocollect data have changed. In late 1992, the State Statistical Bureau and the StateIndustrial and Commercial Administration published a new categorization of nineenterprise types. The old categories included state-owned, collectives (including townand township collectives), individual, and other, which included private businesses and

    various foreign and joint venture firms. The new categories are state, collective,private, individual, joint-operations, joint-stock, foreign investment, Hong Kong-Macao-Taiwan investment, and other (FBIS-CHI-93-007, 12 January 1993, pp.32-33).Along with the types of enterprises, the size of the non-state sector has grownrelative to the state sector since the early 1980s. Table 1 provides the percentdistribution of gross industrial output by ownership type of enterprise for eachprovince in 1991.2 From this table we can see that a wide variety of ownershipstructures exist across provinces. State enterprises contributed a high of 8 4 percentof industrial output in Tibet to a low of 30 percent in Zhejiang. Collective contributionto industrial output varied from a high of 61 percent in Zhejiang to a low of 9 percentin Hainan. The average state contribution to gross value of industrial output across

    provinces was 63 percent and the average collective contribution was 27 percent.

    1For example, Wu Naitao, "State-Owned Enterprises No Longer State Run," BeiiinqReview (16-22 November 1992), pp. 17-21.*Comparable figures for earlier years are not available.

    1

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    Tllble 1. Gro.8 Value of Industrial Output by Ownerahip and Province, 1991 (Percent)

    State Collective Individual Province owned owned owned Other

    Bei jing Tianjin Hebei Shanxi Inner Mongolia Liaoning Jilin Heilong jiang Shanghai Jiangeu Zhejiang Anhui Fu jian Jiangxi Shandong Henan Hube i Hunan Guangdong Guangxi Hainan Sichuan Guizhou Yunnan Tibet Shaanxi Ganeu Qinghai Ningxia Xinjiang -Source: China Statistical Yearbook, 1992, p.410.

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    The fourth column of table 1 presents "other" forms of ownership. Thiscategory is largely foreign invested enterprises, including joint ventures and wholly-owned foreign firms. The southern coastal provinces stand out in the importance ofthese firms. In Guangdong, 24 percent of gross value of industrial output originatedin these other ownership forms. In Fujian, the contribution from these firms was 22percent, and in Hainan it was 1 6 percent. The only other area tha t came close tothese percentages was Shanghai, wi th 14 percent. Beijing was next wi th 9 percentand then Tianjin with 7 percent. All the rest were well below 7 percent. While thesefew geographical areas dominate, it is signif icant that all provinces, except Tibet,reported some industrial output produced by these new enterprise forms.

    This study deals with export production, not sales by different types of tradingcompanies. The introduction of local trading companies to compete wi th companiesrun by central government agencies has played a role in China's export ~u c c e s s . ~However, this facet of China's export promotion story is beyond the scope of thisstudy.This study focuses on the late 1980s and early 1990s. For some of the dataseries reported, the latest year is 1990. Since consistent information across variablesis rarely available for any one year, however, this study draws from several closeyears to construct a plausible picture of China's export production profile at one pointin time. In a few cases compatible data over time were available and have beenreported as welt.The data search for this study was extensive. All types of printed materialsfrom China were searched, including individual provincial yearbooks, nationalyearbooks, specialized sector publications, journals, and a wide variety o f mainland,Hong Kong, and Taiwan newspapers. In 1993, China's custom administration beganpublishing detailed information on exports from foreign invested firms. Over time thlssource will provide a clearer picture of foreign capital's contribution to China'sexports. The data profile presented in the next section represents the information thatwas available as of December 1993.

    DISAGGREGATED CHINESE EXPORT DA TAThis section presents disaggregated export data. In some cases thedisaggregation falls into more than one category. For analytical purposes, each da t aset is discussed as part of one of three categories: ownership, product, or locatlon

    %ee Lardy (1990, pp.39-41) for a discussion of the decentralization of China strading companies. Also, the first foreign-owned trading company was allowed yooperate with in China in 1992. The company is a subsidiary of C. ltoh & Co. Ltd o fJapan set up in Pudong in Shanghai [Beiiina Review (30 March-5 April 19921, P P 29301. It is currently restricted to operations within the special zone.

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    Ownership ProfilesThe Chinese press often discusses production and exports of enterprises by

    different ownership types, but most of this information is anecdotal. While someproduction data by ownership are released by China's official statistical agencies, theydo not usually indicate export production.

    Foreign Companies and Joint VenturesAs of 1993, the export data availability situation changed for companies with. . ,beganforeign investment. The monthly bulletin, China's Customs S m M o m

    to publish the value of exports from firms with foreign investment by province. Thetypes of foreign enterprises included in this reporting are Sino-foreign contractual jointventures, Sino-foreign equity joint ventures, and foreign-owned enterprises. Sino-foreign contractual joint ventures are what other Chinese sources refer to as sanlai

    enterprises.' As these operations are primarily processing and assembly, theyare less likely to have direct foreign investment, whereas Sino-foreign equity jointventures and foreign-owned enterprises are more typical forms of direct foreigninvestment.Export data for the first 6 months of 1993 are given in table 2. Two key pointsemerge. First, exports from foreign invested enterprises make up a substantial portionof China's exports. Twenty-five percent of China's exports originated fromenterprises wi th foreign investment. (This figure is 21 percent if contractual joint

    ventures are excluded.). Since these figures have just begun to be published it is notpossible to know how they compare with earlier years, or whether the first half of1993 is representative of what is likely to occur throughout the year. However, 25percent is comparable with previous estimates built on export earnings andinformation on the value of processing and assembly (Lardy 1990, p. 143 and note29).

    With the disaggregated data published by the customs administration, we canalso calculate the percentage of exports originating from enterprises that are fullyowned by foreigners. For the first 6 months of 1993, this figure was 7 percent(China's Customs Statistics Monthly, no.6, 1993, pp. 18-20). Whereas the otherforms of foreign investment represent joint ventures, often with state-ownedenterprises, these enterprises are fully private.

    The second key point gained from table 2 is that while firms with foreigninvestment that are exporting to world markets are located all over China, exportsfrom these firms are concentrated in a handful of coastal provinces. Time will tell the

    'Sanlai vibu enterprises refer to three types of processing and assembly, and onetype of compensation trade. The processing types are Jailiaoi- and laivanqw.The type of assembly operation is laiiian zhuana ~d.The compensation tradeis referred to as ~h an ab umaovi chukou.

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    Table 2. Intemtiorul Exports From Foraim InvestedEnterprises, f i r s t Six Months, 1993Anovlt Provincialexported share of exports

    from foreim Provincial f r a foreignAnant invested share of investedexported enterprises , exports from enterprises ,from forei gn excluding foreign excludinginvested contractual invested contracturalenterprises jo in t ventures enterprises jo in t venturesProvince (m il li on USS) (m il li on US ) (percent) (percent)Beijing 112.33Tianjin 200.62Hebei 51.99S h m i 20.31Inner Mongolia 4.81L i m i n g 375.2J i l i n 16.74Heilongjiang 27.35Shmghai 577.85Jiangsu 524.21Zhejiang 318.78Anhui 20.09Fujian 935.32Jiangxi 16.12Shudong 276.73Henan 16.98H L k i 48.26H w n 16.59GuaWdOW 5,611.92Gmngxi 42.45H a i ~ n 33.52Sichuan 34.44Gui zhw 5.49Y m n 12.26Tibet .34Shaanxi 10.34Gansu 2.2Qinghai Y /AYingxia .65Xinjiang 6.51Total 9,320.40Percent of China's TotalExports That CUE F r a ForeignInvested EnterprisesExcluding contractual joint venturesMote: China's curtans p&lishes exports from for eig n invested enter prisesby three types: sino- forei gn contractual joi nt ventures, sin o-for eignecpity joint ventures, and foreign-om4 enterprises.Source: China1$ Cwtorr, Stat is t i cs Monthly, 170.6 (1993), pp.3,18-20.

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    extent that the first half of 1993 was representative, but it is likely that theimportance of exports from foreign firms in Guangdong and Fujian will continue forthe foreseeable future.Town and Township EnterprisesData on exports from town and township enterprises by province have been

    published for the last several years. These data for 1990 are given in table 3.'These enterprises are officially deemed collective ownership, rather than private orstate, but many analysts believe that they tend to make decisions quite similar tothose of private enterprises in a market system.' Some of them have foreigninvestment and are ~an la iviby enterprises.

    Data on exports from town and township enterprises are often separated intodirect (zhiiie chuko~)and indirect exports (Uniie c h u k o ~ ) . ~This separation isreflected in table 3. Direct exports are delivered to Chinese trading companies, whichare responsible for exporting them. lndirect exports are sold abroad through otherchannels, such as foreign buyers. Indirect exports also include goods that areprocessed or assembled by town and township enterprises for other enterprises, butthe parent enterprise then exports the goods. When these enterprises process goodsthat are then exported by another enterprise, they earn a processing fee.'

    Column 5 of table 3 gives the percentage of provincial exports (the sum ofdirect and indirect) originating in town and township enterprises. For some provinces,these percentages are very high. Jiangsu had the highest at 76 percent followed byZhejiang with 61 percent.

    'Data similar to those in table 3 also exist for 1987 and 1989. See tables A1 andA2 in the appendix.'See Zweig (1992) and Lardy (1992, p.129). Lardy even goes so far as to refer

    to these enterprises as entrepreneurial. In contrast, Victor Nee (1992) argues thatbecause collectives are run by government agencies, albeit local agencies, they arelike state-owned enterprises in that they suffer from inefficiencies resulting from softbudget constraints.

    7Notethat the Chinese definition for direct and indirect exports is counter-intuitivein terms of English. We might expect that direct exports do not involve a nintermediary. However, the Chinese usage, at least in this case, is the opposite.

    'When a processing fee is earned by one of the "~anlaivibun town and townshipenterprises,it is reported wi th the value of exports in Chinese sources, but in aseparate column.

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    Table 3. l n t e r n a t i w l E xp ort s Fr ca T a n nd T o n r h i p E n t e r p r i s e s by Pr w in c e , 1 9 9 0( Cu rr an t C h i m e Y w )I: Expor ts f r a Town ud l o w h i p En t e r p r i s e sII

    T o m L townshipe x p o r t s ( d i r e c t 6 i n d i r e c tPercent PercenD i r e c t I n d i r e c t o f p r o v i n c i a l o f C h i n ' sProvince ' e x p o r t s j e x p o r t s e x p o r t s e x p o r t s t o t a l e x p o rt s(11 ( 2 ) I (3 ) ( 41 (5) (6)

    Be i j ingT i a n j i nH e k iShanxil m r MongoliaL iaon ingJ i l i nHei long j iangShanghaiJ iangsuZhej iangAnhuiF u j i a nJ iangx iShandongHenanH u k iH w nGwngdoogGwngx iHa inanS i c h w nGui zhouYv n e nT i k tShaanxiGansuPinghaiN ingx iaX in j i a n g

    iTota l :Percent of China's ex por tsCa lcu la ted I ( u s i n g c a l c u l a t e d t o t a l )Reported !Percen t o f Ch in r1s expor ts( u s i n g r e p o r t e d t o t a l )Notes: T h e p r o v i n c i a l t o t a l nd t a n / t w n r h i p e n t er p ri s e t r ad e fi g u r e s a r e a l l c a r p i l e d by MOFERT, th e M i n i s t ry ofF o r e i g n Re la t i o m and T r r b . The MOFERT f i g u r e s a r e t h e s m o f s t a t i s t i c s r e p o r t e d by var ious en te rp r ises . To ta l expor ts byp r o v in c e u e r e r e p o r t e d t n US do l la rs ; w h a v e c o n v e r t e d t h e s e t o t a l s i n t o yuan w i n g t he 1990 o f f i c i a l e xch ang e r a t e o fUSSl= 4.71532 ywn. T W t o n r h i p m t e r p r i s e ex po rt s were r e po rt ed in yun. *D i rec tY expor ts a re purchased by state-ownedi r rp o r t- e x po r t ca n pr n ie s f o r u l e on t he i n t e r n s t i w l market. * lndi rutYe x p o r t s a r e s o l d abroad by ot he r means, such asthrough arrHlgemmts mdn by j o i n t m t u r e s o r h o l l y - o m a d f o r e i g n v en t ur e s u i t h f o r e i g n bu ye rs . MOFERT t r ad e f i g u r e s a r en ot as h ig h as C u s t o n fi gu r es . The c u t o r f i w r e f o r C h i n ' s t o t a l e x p or ts w s us ed t o c a lc u l a t e th e pe rc en ta ge s i n th el a s t c ol um . T hi s f i w r e w s S62.091 b i l l i o n . I t w s c o n ve rt ed t o yuan w i n g 4.7832 ywn p e r d o l l a r .Sources: Chen Yaobng. h x i h i n ia n' i n l W l [ A l m ~ cof China's T o m and toun ship Enterpr ises , 19911B e i i i w : No r we o hb an sh e , ~o n t h l y , n o.3 ( 1 W3) , p.5.lW[cs

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    The values for town and township exports may be inflated. There are reportsthat some companies set up shadow town or township enterprises. These shadowenterprises allow joir.: venture or state-owned enterprises to take advantage of themore flexible rules governing the collectives and to obtain export loans earmarked fortown or township enterprises (Zweig 1991, pp.736-37). Counting exports of theseshadow operations in town and township totals overstates their real share in trade.It is probably not the case, however, that the same exports are being counted as fromthe main enterprise in addition to the shadow town or township enterprise. On theother hand, some double counting may occur where contracts for processing orassembly are involved (Lardy 1992, p. 170, note 29).The last column of table 3 gives exports from to wn and township enterprisesas a percent of China's total exports in 1990. According to these figures, 16 percentof China's tota l exports came from these enterprises. Nearly 4 percent of totalexports came from town and township enterprises in Jiangsu alone. This figure isnearly 8 percent for the Jiangsu-Shanghai-Zhejiang triangle. Guangdong's share wasless than 2 percent.Comparing table 2 with table 3 suggests a ypothesis concerning non-stateenterprises. It may be that some provinces with less access to foreign investmenthave relied more on collective firms for flexibilitv. In Jiangsu and Zhejiang, forexample, exports originating in foreign invested firms were small while over half oftheir exports were produced in collectives. Joint ventures operate under differentrules and preferences compared wi th Chinese state-owned enterprises. Collectivescan also receive preferential treatment. More importantly, they tend to be smaller andby necessity operate outside the traditional planned networks. This appears to beespecially true for town and township enterprises.State-owned EnterprisesAlthough data do not exist for exports from state-owned enterprises, stateexports can be roughly estimated indirectly. By looking at figures for the twoavailable categories of non-state enterprises--foreign invested, and town andtownship, enterprises--it is possible to obtain an outer bound estimate.Export data for the first half of 1993 indicate that exports from wholly-ownedforeign firms and equity joint ventures accounted for 21 percent of China's totalexports.' Town and township enterprises reportedly produced 1 6 percent of China'stotal exports in 1990, the most recent year these data are available. Assuming thatthis share was the same in 1993 as 1990, then approximately 37 percent of China'sexports originated in the non-state sector. This implies that 63 percent of exportswould have been produced in Chinese-owned state enterprises with no foreigninvestment. This 63 percent estimate does not take into account the exports f rom

    'In these calculations exports from Sino-foreign contractual joint ventures d r eexcluded because some of these are town or township enterprises.

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    other types of non-state enterprises, including collectives, joint ventures betweendomestic firms of different ownership forms, and domestic private firms. Takingthese exports into account could put the state sector's share at 60 percent or less.It should be reemphasized that since we only have figures for the first half of1993, these estimates are subject to a wide margin of error.'' We do not knowwhether the first half is representative of 1993, let alone 1990. Presumably this newdata series wi ll be continued, however, allowing estimates with more confidence inthe near future.SummaryForeign firms are clearly important to China's exports. This is especially trueIn Guangdong and Fujian. Town and township enterprises are also big players inproducing for international markets. Zhejiang and Jiangsu stand ou t i n the importanceof these enterprises in their exports. In contrast, the share of exports produced in

    state-owned enterprises has fallen to approximately 60 percent from near 100 percentbefore reforms began in the late 1970s.Product Profiles

    Two available data sets give detailed figures for exports of machinery and lightindustry, and one gives exports by product groups by province for tow n and townshipenterprises. These are discussed in turn.State-owned Machine BuildingIn 1990, machinery and transport equipment represented 9 percent of China's

    total exports (State Statistical Bureau, 1992, p.618). Machine building capacity isbelieved to be dominated by state-owned enterprises, al though exact figures are notavailable. A listing, however, of machinery exports in 1990 by central ministries andcentral corporations is available and reproduced in table A3 in the appendix. Theproducts for export by these entities would originate primarily in the enterprises undertheir supervision, and therefore would be predominately state-owned.The total amount of exports reported in table A3 is $3.772 billion. China'stotal exports in the machinery category was $5.588 billion in 1990. Therefore, theexports arranged by these central agencies represent over 67 percent of themachinery and transport equipment exports in 1990. They also represent 6 percentof China's tota l exports in that year.

    'The 60 percent estimate is in line with one given by Jan Prybyla (1993, p.10) .He states that in 1991 non-state exports represented half of China's total exports,and over half of China's exports of manufactures. He does not, however, say howhe arrived at this figure or give a reference.

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    Light IndustryIn con: 3st to machinery, light industrial production is not thought t o be statedominated, but figures on the ownership of enterprises where these exports originate

    are not available. Light industrial exports by province, however, are available andreported in table 4.Guangdong was by far the greatest exporter of light industrial products in1990. Guangdong exported nearly 9 billion yuan ($2billion) representing 24 percentof the total amount of light industrial goods delivered for export in that year. TheJiangsu-Shanghai-Zhejiang area and Shandong also exported high shares of thesegoods.Table 5 gives China's light industrial exports by product group for 1990. Artsand crafts; food and beverages; and leather, fur, and other products were the threelargest groups in terms of percent of total light industrial exports. These threetogether comprised 40 percent of China's light industrial exports. The miscellaneousgroup "other" was the largest of any individual group at 17 percent. Compared with1989, daily use machines (rivona iixie) and lighting appliances (~haominaaiiy) grewthe most in percentage terms. What we cannot tell from tables 4 and 5 is how theseexport groups are distributed across provinces or in what types of enterprises they areproduced.Exports from Town and Township Enterprises By ProductFor town and township enterprises, however, we have detailed, disaggregatedexport data. Exports by product categories, and by province and major city, areavailable for these types of enterprises for 1990, 1989, and 1987. The 1990 figuresare given in table 6, while those for 1987 and 1989 are given in tables A4 and A 5 inthe appendix.The rich export data in table 6 show that there is a difference in the types o fproducts these enterprises export across provinces. For example, calculations usingthe figures in this table show that Guangdong is the largest exporter of light industrialproducts at 24 percent.'' In other words, Guangdong supplied 24 percent of the

    11Note that the product categories appear to be different in table 6 compared withtable 5. In table 5 some of the categories included in table 6 were considered part o flight industry rather than separate categories.

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    Table 4. Value of Li@ht I-t ry Pr&ts Del iver ed For Export By provin ce nd Major Cit y, 1990

    Deliverad Percent of to ta lexports delivere d exportsm i l l i o n c ur re nt o f l i g h t i d s t r i a l Major DeliveredProvince YWO products c i t ies exportsBei jin gTian j inHebeiShanxiI m r MongoliaLiaoningJ i l i nHeilongjiangShanghaiJiangsuZhej iangAnhuiFujianJiangxiShudonpH MH & e iHinanG ~ ~ g d o n qGuengx iHainenS ichuanGui zhwY mTibetShaanx iGansuPinghaiNingxiaXinjiangTotal

    Source: China Liah t Ind us tr y Yearbook. 1991, p.104.

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    Table 5. China's Light Industrial Exports By Product, 1990

    Value delivered PercentProduct for exportmillion yuan Percentof total changeover 1989

    PaperDaily use machinesDaily use silicateLight bulbsDaily use chemical productsManufactured saltFood & beveragesLeather, fur C other productsWood, bamboo, etc. productsFurnitureCulture, education &Arts & crafts sportsSilk productsMetal productsHousehold appliancesLighting appliancesWeighing apparatusDaily use sundry goodsMachine buildingOtherTotal ioo. o

    -- -- - -- --- --Source: China Liaht Industry Yearbook. 1993, p.104.

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    light industrial exports from town and township enterprises.'' Chemicals andmachinery exports from town and township enterprises are much more important inJiangsu, Shandong, and Zhejiang than in Guangdong. Food exports are larger inLiaoning and Shandong than in the other areas. Textiles and silk exports are moreimportant to Jiangsu and Zhejiang, while garment exports are important t o manyareas. In terms of total exports by these enterprises, textiles represented 17 percent,followed by garments, light industry, and arts and crafts, which representedapproximately 13 percent each.

    Table 7 summarizes changes in the export situation of these enterprises overthe second half of the 1980s. According to this source, by 1990 there were over57,000 town and township enterprises that exported 50 percent or more of theiroutput. These enterprises delivered over 48 bill ion yuan ($10 billion) of goods forexport representing 24 percent of China's total value of goods purchased forexport.13 These enterprises earned 8 billion yuan ($1.7 billion) in processing feesfrom foreign firms or joint ventures, and nearly 7,000 of these enterprises have sometype of foreign investment or foreign cooperation.

    Table 7 also summarizes the product composition of exports from town andtownship enterprises from 1988 to 1990. These types of enterprises havecontributed the most to China's garment exports--as high as 72 percent in 1990.These enterprises have also contributed 45 percent of China's arts and crafts exports,and over a quarter of China's chemical, silk, and light industrial exports.SummaryThe disaggregated information presented in this section suggests that machinebuilding is dominated by state enterprises while light industry is dominated by

    collectives. This is a question of degree, however. For example, the information intable A 3 suggests that 67 percent of China's machinery exports were arranged bycentral agencies in 1990. But according to table 7, another 22 percent of China'smachinery exports were produced in and township enterprises. If these categoriescould be decomposed further, it may be that the products being exported by the two

    12It is just coincidence that Guangdong also exports 24 percent of the totalamount of light industrial products delivered for export reported in table 4.13The 24 percent seems high. Note that in table 3 the percentage of exportsgenerated by town and township enterprises was reported as 16 percent if China'sreported custom's total is used, and 20 percent if the provincial sum is used. Thereason for this discrepancy is not clear. These two sets of data come from the sametown and township yearbook. The figure in table 7 is taken directly from the sourcewhile the ones in table 3 are the author's calculations. One source of discrepancymay be that these calculations involve conversion from $US to yuan and therefore aresensitive to the rate used.

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    T&le 7. Indicators of T o n md T on r hi p Exports Over Time, 1986-1990

    N u b c r of enterprisesExporting owr 50% of outputOver 80%TotalVaLue of ProbctsDelivered for export ( bi l l io n yun)Percent chng. f roll p r e v i o u ma rPercent of China's to ta l @oodmpurchased fo r d i roet export

    Payment r e c e i v d for processing bysenlai yihu enterprises( b i l l i o n yun)Percent change from previous year

    Enterpr ises wi th fore ign in w s t m tor cooperation nrdcrPercent ch-e from prev ious year

    Percent percent Percentof of ofB i l l i on China's B i l l i on China's B i l l i on China'syurn t o ta t ywn t o ta l ywn t o ta l

    GarmentsArts & craf tsChaicalsSilksLight irdmtt-yTextilesMachineryFoodotuf f sMiningLocal productsOther

    Sources: Chen Yaobne. J h a # ~ wxianzhen aive niani ien. 1991 WLIIDMC o f Chine'sTown ud to ne hi p Enterprises, 19911. Be ij in g: longye chLlburshe, 1992. p. 280-281.Note: These figures inc lul e only dire ct exports ond the processing fee for indirect exports,but not the v a t u of indirect exports.

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    enterprise groups are substantially different. Even so, if 67 percent of the exports arefrom state-owned enterprises, this stil l leaves33 percent originating from other typesof enterprises.A second observation developed in this section is that town and townshipenterprises are very important contributors to China's exports overall. They exportmore in certain categories, such as garments, but they export a wide variety ofproducts. The contribution of these enterprises to exports has also grownsubstantially over time.Finally, although to wn and township enterprises are more important to certainprovincial economies, they appear to generate export earnings all over China. Theyalso have close ties to foreign capital.

    Location ProfilesThis section deals wi th total exports by geographic location. The ownershipand product profiles have already revealed an importance o f the coastal areas in termsof l ight industrial exports and exports from foreign enterprises. This section providesa .broader picture of exports by area.Provincial ExportsConsistent export data by province over time are not readily available. Somefigures are reported by the former Ministry of Foreign Trade and Economic Relations(MOFERT), called the Ministry of Foreign Trade and Economic Cooperation (MOFTEC)as of 1993. Other figures are reported by China's customs administration. Additionaldata are reported by provincial offices. The problem wi th these numbers is that theyare not the same across reporting units due to differences in coverage, disaggregation,the monetary unit used, and timing. For example, MOFTEC figures are the sum ofexports reported by various enterprises, while customs figures are collected at theborders. As a result, MOFTEC trade figures are not as high as customs figures. Forthis reason some of the calculations in this study distinguish between a reported anda calculated total export figure. Using both the customs and MOFTEC figures, tableA6 provides our current best accounting of exports by province between 1985 and1992, all reported originally in U.S. dollars in the Chinese sources. The figuresbetween 1985 and 1989 are from a single MOFERT source. The figures for 1990-1992 were reported by individual provincial statistical offices and are believed to beconsistent with MOFERT1s reports. In 1993, customs began publishing their data byprovince (see table 9, column 2).Based on the data from table A6 and elsewhere, table 8 provides severalindicators of exports by province. To take account of the differences in data sources,several growth rates were calculated. The second column gives average annualgrowth in exports between 1985 and 1989 valued in current U.S. dollars. All

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    provinces had positive growth except Liaoning." Growth rates ranged from -3 inLiaoning to 30 percent in Hainan. The average across provinces was 9 percent.Columns 3 and4 give annual export growth rates between 1985 and 1991, and 1985and 1992. A number of areas experienced increases in exports above 20 percent:Fujian, Guangdong, Hainan, Guizhou, and Shaanxi.

    Although many provinces experienced rapid export growth, by 1991 three areasstill stood out as the major contributors to China's total exports. Guangdongcontributed 22 percent, followed by Shanghai and Liaoning, each at 9 percent (column6) . These three together accounted for 40 percent of China's exports. I f Shandongand Jiangsu are included, these five areas produced over 50 percent of the totalexports. Part of the importance of these areas is that they have major port cities.Raw materials or semi-finished products travel to these areas to be processed andthen exported.'' It is also interesting to note that provinces like Jiangsu andZhejiang, which had high percentages of exports from town and township enterprises,are also important t o China's overall export structure, but not on the same scale asthe areas with special economic zones.The last column in table 8 gives the value of exports as a percent of provincialgross domestic product (GDP) for 1991. Here, too, Guangdong stands out. In thatyear, exports were more important to Guangdong's economy than any other area.Guangdong's exports as a percent of GNP were 41 percent in 1991 compared with

    23 percent in 1989. In 1989 Shanghai's exports as a percent of GDP were thehighest.The most recent export data by province are given in Table 9 for the first 6months of 1993. Based on these data Guangdong's share of total provincial exportswas 42 percent, which implies that the province's importance to China's foreign tradehas continued to increase.

    ''117 1985, Liaoning's exports represented over 20 percent of China's exports.Petroleum exports were an important component of this export value. Changes inpetroleum prices and demand can probably explain a large part of this decrease.

    '=From the newly released export figures for 1993 it appears that it is not the casethat exports are high in areas with ports simply because exports from elsewhere arebeing attributed to those areas. Separate figures for exports from ports themselvesare also published. For example, exports from the port of Tianjin in the first half of1993 were 5213 million US$ while exports from the "province" of Tianjin were 1054million US$ (China's Customs Statistics Monthly, no, 6, June 1993, pp.16-17, 21 1.

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    Table 9. I n t e m t i m r l E xperts By Province, F ir s t Six Months, 1W 3

    Percent of eachPercent of provincels exports

    Provincel o t r 1p r w i n c i a lexport sm i l l i m $US

    Percento f t o t a lexports byp r w i n c eExpor ts f ronf o r r i g ninves tad f i rmm i l l i o n $US

    e xp o r ts th a to r i g i n t ei n f o re ig ninwrtd f i r m

    t h a t o r i g i n a t e i nfo re ig n in ve s te d firm,exc lud ing contrac tua ljo in t ven tures(1 ) (2 ) (3) (4) (5) (6)

    Be i j in gT i a n j i nHebeiShanxil m e r M q o l i aL i m i n gJ i l i nHe i long j iangShanghaiJiangsuZhejiangAnhuiF u j ia nJiangxiSh.ndongHcnrnH u k iHuunG u u w hGuangxiHainanS ich wnGuizhwY m nT i k tShaanxiGansuOinghaiNingxieX in j iangTotal 100.0

    Calculated 37,146.115Reported 37,148.82

    Source: China C u t - S ta ti st ic s Monthly, no.6 (19931, pp.16-17, a d Table 2.

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    Special Economic AreasAn aspect of the location profile is how important the economic areas withspecial export incentives are in terms of their contribution to exports. Table 10

    provides a summary of these exports for the first 6 months of 1993. Exports fromthese specially designated areas represented 18 percent of China's total exports.The special economic zones (SEZ) accounted for most of the exports from thespecial areas. This figure for the first 6 months of 1993 was approximately 85percent. The development and bonded areas are much smaller, usually newer, andless developed. Within the SEZs, an average of 42 percent of exports were producedby foreign invested firms. This ranged, however from a high of 66 percent in Zhuhaito 20 percent in Hainan. The importance of special areas varies greatly by provinceas well. In Guangdong, where three SEZ1s are located, only 27 percent of provincialexports originated in these special areas. This may be because some foreigninvestment is not restricted to the special areas, and because many domestic firms

    are involved in export. In contrast, 96 percent of Hainan's exports reportedlyoriginated in the special areas.'' In Fujian, with the Xiamen SEZ, 38 percent ofexports were produced in special areas.Individual Provinces and Major CitiesSome of China's provinces and cities publish disaggregated export data in theirannual yearbooks. Table 11 reports these data for 1990 or 1991. There is littleconsistency in how these areas report data, and the information is often different fromboth MOFTEC and customs information. The most common reported disaggregateddata were for industrial exports. These were often available by light and heavyindustry, and sometimes by type of enterprise ownership.Guangdong's yearbook is surprisingly lacking in export information. Only thestructure of industrial output was reported, wi th a figure of 32 percent as the shareof industrial output that is exported.Seven provinces reported industrial exports by type of enterprise. Of these, theshare of industrial exports produced by state enterprises ranged from a high of 67percent in Anhui to a low of 37 percent in Hainan. In addition to Anhui, state exportswere above 50 percent of the total in Beijing, Shanxi, Fujian, and Hubei. Inner

    "The Chinese press refers to all of Hainan as a special economic zone. Thecustoms data, however, distinguish between the zone and the province wi th slightlydifferent numbers. With the data on exports from foreign invested firms, however,the figure for the province is exactly the same as for the whole province. This couldimply that not all of the exports are accounted for in terms of location within theprovince, and hence does not add to the total, or that there are some exports fromnon-foreign invested firms that are considered to be from outside the zone.

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    - - -- -- - -

    Table 10. International Exports From Special Economic Areas,First S ix Months, 1993

    Exports Type of Special Economic Area (million $US) Special economic zones (SEZ) Economic & technical development areasHigh & new technological & industrial development areasBonded areas Tota 1 Percent of exports originating in special economic zones that are from foreign invested firms

    Shenzhen Zhuha i Shantou Hainan Xiamen Average Percent of China's total exports originating in special areas Percent of provincial exports originating in special areas:

    Guangdong Fujian Ha inan

    -5,796.63

    949.72 26.14 60.30

    6,832.79

    Source: Ghina Customs Statistics Monthly, no.6 (1993), pp.16-21.

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    Table 11. Individual Province and Major City Profiles BE1 JING 1990MillionIndustrial exports Yuan PercentTotal

    State '(of which, central) (of which, local) Collective (of which, town) '(of which, township) Other Total Light industry Heavy industry

    I . .Note: Bei~inaStatistical Yearbook. 1992, pp.210-213. Figures reported in 1990 comparable prices. Total of state, collective and other does not sum to reported total. The reported total was used to calculate the percentages.

    TIANJIN 1990 Million Direct industrial exports Yuan Percent Total Light industry Heavy industry

    Note: In 1990 comparable prices; -in. . . StatisticalYearbook. 199&, p.348. Industrial production figuresavailable by ownership, but not exports.SHANXI 1990 Industrial products Million supplied for export yuan Percent Total State Collective Other

    Light industry Heavy industry Note: Shanxi Statistical Yearbook. 1991, p.525.

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    Table 11. Individual Province and Major City Profiles (continued)

    INNER MONGOLIA 1990Revenue earned from Millionindustrial exports Yuan PercentTotal State Collective Other

    Light industry Heavy industry Note: m e r Monaolia Statistical Yearbook. 1991, pp.368-369. Industrial production by ownership reported.

    SHANGHAI 1990 Industrial exports from Million "sanz it' enterprises Yuan Percent Total 1,811.68 State joint ventures 165.22 Collective joint ventures 507.11 Foreign owned 1,139.35 Total exports Billion US$

    Total 5.740 Light industry and textiles 3.451 Heavy industry 1.561 Agriculture and sidelines .728 Note: "Sanzin exports are from Shanqbai Statistical Yearbook. 19Q, p. 175. These figures are available between 1987 and 1990. Total exports are from aanahaj, Statistical Yearbook. 1992, p. 348. Total exports are reported for 1952-1991.

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    ------

    Table 11. Individual Province and Major City Profiles (continued) .................................................... JIANGSU 1990

    illi ion'Total exports US$ PercentTotal 2,949.95 Light industry 2,048.47 Heavy industry 684.33 Agriculture and sidelines 217.15

    Note: Jianasu Statistical Yearbook. 1992, p.265. Figures are reported for 1981-1991.

    ZHEJIANG 1990 Million Industrial exports Yuan Percent Total State Collective '(of which, township) Other

    Light industry Heavy industry Total exports Million US$ Percent Total Light industry Heavy industry Agriculture and sidelines

    Note: Industrial export figures are reported in comparable 1990 prices. Industrial exports are from Zheiiana Statistical Yearbook. 1992, p.152. These figures are reported for 1988-1991. Total exports are from p.296. These figures are reported for 1985-1991.

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    Table 11. Individual Province and Major City Profiles (continued)

    AN?luI 199 1MillionIndustrial exports Yuan Percent

    Total State (of which, central) (of which, local) Collective (of which, town) '(of which, township) Other Light industry Heavy industry

    . .Note: &h u i Statistical Yearb oa. 1992, p.159.Figures are reported in 1990 comparable prices. Figuresby ownership in more detail, and by product, are availablefor 1991.

    FUJIAN 1990 Million Industrial exports Yuan Percent Total State '(of which, central) 822.51 7.4 '(of which, local) 6,220.30 55.9 Collective 2,235.71 20.1 (of which, town) 262.94 2.4 (of which, township) 891.08 8.0 Other 1,848.01 16.6

    '(of which, nsanziw) 1,764.40 15.9Total exports Total Light industry Industry and mining Agricultural and sidelines

    . .Note: Fullan statistical Yearbook. 1991; industrial exports, p.156; total exports, p.310 (absolute figures not reported). Industrial exports were reported in current 1990 prices. Production by ownership and exports product also reported for 1990.

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    --Table 11. Individual Province and Major City Profiles (continued) - - b - -~ ~ = ~ = = ~ = = ~ = = e = ~ = = = = == = ~ = = - = = = = o = - =r e = = = = = = =

    JIANGXI 1991 Industrial exports of Million new products Yuan Percent Total State Collective

    Light industry Heavy industry Note: Jianaxi statistical Y e m o k . 1 9 u 1 p.512.Reported in current prices. Exports by product categoryalso reported.

    HUBEI 1990MillionIndustrial exports yuan PercentTotal State Collective Other

    Light industry Heavy industry

    Note: Hubei Statistical Yearbook. 199b, p.303. Exports by products, and for 1989 also reported.

    GUANGDONG 1991 Million W a n Percent Industrial exports 65,540 31.6

    Note: Guanadona Statistical Yearbook. 1992, p.185. Export data by ownership not reported. Figures for 1985 and 1990 (except exports) also reported.

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    Table 11. Individual Province and Major City Profiles (continued)

    HAINAN 1991MillionIndustrial exports Yuan Percent

    Total State Collective Other '(of which, @sanziw)

    Light industry Heavy industry Note: -an . . , p.263.Statlstlcal y s b o o k . 1 9 ~ Reported here in 1990 comparable prices. Reported also in current prices.

    1991 Exports from large and Million medium enterprises Yuan Percent Total Light industry Heavy industry

    Note: ~ichuanStatistical Yearbook. 1992, p.153. The calculated total was less than reported total; the calculated total was used here. Exports by product, and production~figures, also reported.

    NOTE: The yearbooks, and other sources, were checked for similar information on the other provinces, but none was found. The descriptions of data given in this table are as given in the individual yearbooks.

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    possibility that much of the growth in exports in recent years may have come fromnon-state enterprises. Further, it was suggested that in some areas where foreigninvestment has been low, collectives may be acting as a substitute for the flexibilitythat foreign investment affords an enterprise.These and related ideas are explored further with the correlations presented intable 12. A full causation model explaining China's exports is beyond the scope ofthis study. Using simple correlations, however, we can see i f there is any basis forthese hypothesized relationships.The first part of table 1 2 reports correlation coefficients between direct foreigninvestment (DF190) and five export variables. Foreign investment is correlated withChina's exports by all the measures included." These results show that provinceswith higher shares of foreign investment are also the provinceswith higher shares ofChina's total exports (PRTOEX89). Not surprisingly, foreign investment is alsocorrelated with the provincial share of exports from foreign invested firms(PRFOEX89), and wi th exports from foreign invested firms as a share of tota l exports(FOREX93). Foreign investment is also correlated with exports as a percent of GDP(EXGDP89). All of these results suggest that foreign investment has generatedexports. Finally, there is a significant, albeit weaker, correlation between foreigninvestment and the size of provincial economies (PRGDP89). Provinces wi th largereconomies, measured by their share in total GDP, tend t o have larger shares of to talforeign investment.The second group of correlations in table 12 deal wi th the possible connectionsbetween collective ownership and export^.'^ This part of the table first indicatesthat there is a large, negative relationship between provinces wi th state enterprises(STATE) and those with collectives (COLL), at least with respect to production ofgross industr ial output value. There was almost no correlation between collectives

    and either individual (INDIV) or other enterprises (OTHER). These results suggest thatprovinces where state industrial production is important, collective production isrelatively small, and vice versa.With respect to exports, the relative importance of collectives was positivelyrelated to the share of light industrial exports (LTEXP), but not t o exports generallv(PRTOEX89) or to the share of exports in GDP (PRGDP89). This supports thehypothesis that collectives tend to produce, and export, light industrial goods. Withrespect to the size of provincial economies, collective production was correlated withprovincial shares of China's GDP. In other words, collectives were relatively moreimportant in provinces wi th larger economies.

    a able 12 reports the results using 1990 direct foreign investment data, but th eresults were similar when the 1991 data were used as a check."Because comparable data on exports and production from to wn and townshtpenterprises were not complete, these enterprises could not be analyzed separatelvfrom collectives in the correlation analysis.

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    Table 12. Correlation Coefficients Between Export Variables (all variables measured in percentages) VARIABLE DP190 Provincial Share of Total Foreign investment (1990)

    CORRELATED WITH: PRTOEX89 Provincial share of total exports (1989) .-PRFOEX93 Share of total exports from foreign investedfirms (1993) .&33wrFOREXP93 Exports from foreign invested firms as a percentof total provincial exports (1993) .Q79BmEXGDP89 Exports as a percent of gross domestic product(GDP) (1989) .-**PRGDP89 Provincial share of total GDP (1989) .4956* CoLL Provincial Share of Grosa Value of Industrial Output

    (GVIO) Produced by Collective Enterprise. (1991) CORRELATED WITH:

    STATE Share of GVIO produced by stateenterprises (1991) -.9089**INDIV Share of GVIO produced by individualenterprises (1991) .2969OTHER Share of GVIO produced by otherenterprises ( 1991) .0226LTEXP Share of light industrial goods in totalexports (1990) .5684*PRTOEX89 Provincial share of total exports (1989) .3455EXGDP89 Exports as a share of provincial GDP (1989) .I139PRGDP89 Provincial share of China's GDP (1989) .7152**

    STATE Provincial Share of aVIO Produced by State-owned Entarpriras (1991) CORRELATED WITH:

    INDIV Share of GVIO produced by individualenterprises (1991)OTHER Share of GVIO produced by otherenterprises (199 1)LTEXP Share of total light industrialexports (1990) PRTOEX89 Provincial share of total exports (1989) EXGDP89 Exports as a share of GDP (1989) PRGDP89 Provincial share of GDP (1989)

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    Table 12. Correlation Coefficients Between Export Variables (all variables measured in percentages) (continued) V A R I U

    CORRELATED WITH: PRTOEX93 Provincial share of total exports (1993) .8572**OTHERPRGDP89

    Share of GVIO produced by otherenterprise (1991)Provincial share of GDP (1989) .6457**.7099**DECENTRL Share of GVIO produced by the non-statesector (1991) .5479*OPENDFI Foreign investment (1990) as a percentof provincial GDP (1989) .6160**

    NOTE: The significance tests were two-tailed; an asterick ( * )indicates significance at .O1 level; two astericks ( * * ) indicatesignificance at the .001 level. 1993 refers to first 6 months of1993. See table A8 for sources.

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    in contrast, provinces with relatively more industrial output produced by stateenterprises had significant negative correlations both wi th light industrial exports andtotal exports. Further, there was a significant, negative relationship between stateproduced output and the size of provincial economies. These results suggest thatstate enterprises have not been the engines of export growth.''

    The last section of table 12 reports five correlations with the share of totalexports. The first correlation is between total exports in 1989 (PRTOEX89) and in thefirst 6 months of 1993 by province (PRTOEX93). Because of data constraints, thisstudy uses data series from different years to make inferences about a single timeperiod. The highly significant correlation between exports in these two time periodslends credibility to this method. There was a significant, positive correlation betweenexports (PRTOEX89) and production from enterprises in the -gory of "other"(OTHER). This suggests that various types of foreign investad enterprises areimportant in this categoryn2' Exports were also positively correlated wi th the relativesize of provincial economies (PRGDP89).

    Finally, two variables were constructed to proxy the degree of autonomy fromhigher levels of government and the degree of openness. The idea behind thedecentralization measure (DECENTRL) is that areas with more autonomy have moreflexibility to make economic decisions, and that these decisions would favorexport^.^' The decentralization measure is the contribution of non-state enterprises(collective, individual, and other) to total gross value of industrial output. As reportedin table 12, this variable was positively correlated with total exports, and significant,lending support to the hypothesis that non-state production is compatible with exportpromotion.22

    The degree of openness (OPENDFI) is measured as the ratio of foreigninvestment to provincialGDP. The expectation is that the more provinces are exposed

    ''~hese results are consistent with conclusions drawn by Lardy (1992). Heestimated that foreign invested firms and town and township enterprises togethercontributed almost half of the growth in exports over the 1980s (Lardy 1992, p .143and note 30). He also emphasized the relatively poor performance of stateenterprises.

    '?here was also a positive, significant correlation between foreign investment and"other," which supports the same conclusion.*'Lardy makes a strong case for this (1992, pp.39-41, 145-1461.2 2 ~ o t e asthat this variable is simply the reverse of the variable labeled "state.'reflected in the fact that the correlation coefficient is the same only the opposite SlQn

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    - -

    to intetnational markets, the more important exports are likely to be. As reported intable 12, openness was significantly correlated with total exports.23Since Guangdong is so important to China's foreign investment and exports,the results presented in table 12 may be determined largely by this one province. Forexample, Guangdong received over 40 percent of China's direct foreign investment

    in 1990 and 1991 (Table A7) . To see i f the relationships hold beyond Guangdong,the correlations were performed leaving Guangdong out. These results are reportedin table 13. For the most part, the relationships that are significant in table 12 arealso significant in table 13.

    There are three interesting exceptions, however. First, without Guangdong,direct foreign investment (DF190) is no longer significantly correlated wi th provincialshare of total GDP (PRGDP89). In other words, there seems to be no relationshipbetween the size of a province's economy and whether or not it has received foreigninvestment, outside of Guangdong.Second, the provincial share of total exports (PRTOEX89) is no longer

    significantly correlated with the share of GVlO produced by other enterprises(OTHER). Since the category of "other" enterprises includes foreign invested firms,this result implies that the statistical connection between total exports and foreigninvestment was being determined primarily by Guangdong.

    The third difference between the results in tables 12 and 13 is similar to thesecond. The relationship between the provincial share of total exports (PRTOEX89)and foreign investment as a percent of provincial GDP (OPENDFI) is not statisticallysignificant if Guangdong is excluded. Again the implication here is that the presenceof foreign investment, scaled by the size of provincial economies, is not statisticallycorrelated with provincial shares in total exports. This implies that China's exportsfrom provinces other than Guangdong may not be explained well by the presence offoreign investment.

    Note, however, that in table 13 the provincial share of total exports(PRTOEX89) is still significantly correlated with the provincial share of total foreigninvestment (DF190), although the coefficient is lower than when Guangdong isincluded in table 12. This result seems inconsistent with the relationship betweenPRTOEX89 and OPENDFI. Since the OPENDFI variable takes the size of provincialeconomies into account and is a closer approximation the foreign capital stock ratherthan the flow variable of DF190, the fact that this correlation is insignificant isimportant to understandingthe sources of exports throughout China. This result doesnot, however, negate the fact that foreign investment has helped fuel exports inGuangdong.

    230pennesswas not significantly correlated with the decentralization measure,suggesting that these two variables may indeed be capturing different provincialcharacteristics.

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    Table 13. Correlation Coefficients Between Export Variables With Guangdong Excluded (all variables measured in percentages) VARIABLE DP19O Provinoial Share of Total Poraign investment.(1990)

    CORRELATED WITH: PRTOEX89 Provincial share of total exports (1989) .WPRFOEX93 Share of total exports from foreign investedfirms (1993) .7818**FOREXP93 Exports from foreign invested firms as a percentof total provincial exports (1993) .7804+*EXGDP89 Exports as a percent of gross domestic product(GDP) (1989) .8(Pt*PRGDP89 Provincial share of total GDP (1989) .3277

    COLL Provincial Share of Gross Value of Industrial Output (GVIO) Produced by collactiva Bntarprises (1991) CORRELATED WITH:

    STATE Share of GVIO produced by stateenterprises (1991) -.9329**INDIV Share of GVIO produced by individualenterprises (1991) .3016OTHER Share of GVIO produced by otherenterprises (1991) -.0250LTEXP Share of light industrial goods in totalexports (1990) .786ok,PRTOEX89 Provincial share of total exports (1989) .4259EXGDP89 Exports as a share of provincial GDP (1989) .0913PRGDP89 Provincial share of China's GDP (1989) ern

    STATE Provincial Share of OVIO Produced by State-owned Entarprisms (1991) CORRELATED WITH:

    INDIV Share of GVIO produced by individual enterprises (1991) OTHER Share of GVIO produced by other enterprises (1991) LTEXP Share of total light industrial exports (1990) PRTOEX89 Provincial share of total exports (1989) EXGDP89 Exports as a share of GDP (1989) PRGDP89 Provincial share of GDP (1989)

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    Table 13. Correlation Coefficients Between Export Variables, With Guangdong Excluded (all variables measured in percentages) (continued)

    PRTOEx89 provincial share of Total &p o r t s (1989)CORRELATED WITH:

    PRTOEX93 Provincial share of total exports (1993) .8601**OTHER Share of GVIO produced by otherenterprises (1991) .4003**PRGDP89 Provincial share of total GDP (1989) .6461**DECENTRL Share of GVIO produced by the non-statesector (1991) .5000*OPENDFI Foreign investment (1990) as a percentof provincial GDP (1989) .3474**

    NOTE: The significance tests were two-tailed; an asterick ( * )indicates significance at .O1 level; two astericks ( * * ) indicatesignificance at the .001 level. 1993 refers to first 6 months of1993. See table A8 for sources.

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    Elements of Future Export GrowthThe correlations identified some key factors related to China's past exportprofile. Although no attempt was made to establish causation, the correlation resultswere consistent with some common hypotheses concerning factors influencingexports.Possibly the most important factor related to future exports will be foreigninvestment. In 1992 and early 1993, foreign investment increased dramatically.Contracted investment in 1992 was almost 869 billion compared with 820 billion in1991, and utilized investment was $19 billion in 1992 compared with 8 12 billion in1991 (China Statistical Yearbook. 1 9 9 2 p.641, and FBIS-CHI-93-032, 19 February1993, p.21). While these numbers are probably inflated, there is lit tle doubt thatforeign investment is flowing into China (McGregor 1992, p.Al0; Goldstein 1992,pp.72-73). If Guangdong's experience is any indication, these increases can beexpected to contribute substantially to China's future exports.One factor that may dampen foreign investment's contribution to exports in thelong term is the size of China's domestic market. As incomes grow and governmentcontrol over domestic sales relaxes, exportable products are being diverted into thedomestic market. Many foreign companies have stressed exports in the past out ofnecessity to earn foreign exchange to pay for imported inputs, and because Beijingrequired them to export a certain amount. With the swap foreign exchange centers,and with Beijing allowing localities to make more of the decisions concerning termsof investment, these reasons are no longer as compelling as in the past. Also,compared wi th the past, more of the new foreign investment is for services, most ofwhich will not be exported. In the near term, however, the sheer size of new foreigninvestment, and the fact that previous investment will be coming on line, will fuelincreases in China's exports.In terms of location of foreign investment, a statistical accounting of wherenew capital is flowing is not yet available. Based on qualitative information i t appearsthat Guangdong, Hainan, and Fujian wil l continue to receive a large portion of the newinvestment. It is expected that exports from these areas will continue to increasesteadily. In addition, Shanghai and Jiangsu appear to be the new major winners inattracting foreign investment. The main reason for the increases in Shanghai isPudong. Although it is unclear whether Chinese leaders have chosen a product groupto promote through subsidies, it appears to have made a substantial regionalcommitment t o promote investment and exports in Pudong. Nearby Jiangsu has hadrelatively little foreign investment in the past. Provincial and local authorities havedecided to change this, and have been try ing to attract foreign capital. The

    investment in these areas is likely to increase their exports at rates higher than thenational average for some years to come. Jiangsu, in particular, is still not a majorcontributor to China's total exports, but this is likely to change. Fujian may receivea new inflow of investment from Taiwan, and from other countries via Taiwan.Taiwan is developing zones on its west coast for multinationals, positioning itself to

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    facilitate companies interested in doing business on the mainland (Jhe Economist,24July 1993, pp.69-70).The second major factor related to future exports that this study underscores

    1s the importance of the non-state sector. Foreign investment alone does not explainChina's impressive export growth, and the presence of state enterprises is negativelycorrelated with exports. In contrast, collective enterprises stand out as beingcorrelated wi th l ight industrial exports. Within collective enterprises, to wn andtownship enterprises appear to be especially tied t o international markets. Accordingto some analysts, exports from these type o f enterprises will continue to increase(Zweig 1992). It is also expected tha t the size of the non-state sector generally wil lcontinue to increase, and that its contribution to exports will increase as well.Behind the relationship between exports and the non-state sector is asuggestion that more decentralized decision-making allows growth inexports. In thecorrelations, this was proxied with the DECENTRL variable measured as the share ofgross value of industrial output produced by the non-state sector. This variable wassignificantly correlated with total exports by province. It is interesting to note thatthis variable seems to be capturing something different than decentralization due toforeign investment alone since the DECENTRL variable was not signif icantly correlatedwith foreign investment as a percent of GDP.A third major factor, and one not introduced in the study so far, is the value ofthe Chinese currency. With growing access to foreign exchange swap markets, anda new tendency on the part of Beijing to let the currency float beyond previous bands,China's former foreign exchange constraint has been lessened. In late 1993 theChinese leadership announced that China's currency would be allowed t o float withina year (Ren 1993). Further, the currency has devalued substantially, making China'sexports relatively inexpensive in the international market.

    SummaryAn analysis of China's export profile in the late 1980s and early 1990s reveals

    a few key factors to watch * ' - ughout the rest of the decade. Areas wi th growingforeign investment are expt . d to increase their exports more than the nationalaverage even though a grovt J share of production from foreign invested firms willfind domestic markets within China. Shanghai and Jiangsu are expected to joinGuangdong and Fujian as provinces where foreign investment will determine largeshares of their exports.Increases in exports from other areas in China will be largely determined bygrowth in the non-state sector generally. This conclusion is based on the fact that Inthe past light industrial exports have been related to the presence of collectiveenterprises, and that the presence of non-state industrial enterprises has been relatedto overall exports. In addition, the presence of state enterprises has been maat ivelyrelated to both light industrial exports and to export performance overall.

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    CONCLUSIONBoth the disaggregated data presented in the first pan of this study, and thecorrelations of variables believed to be related to exports in the second pan,substantiate the importance of foreign investment and collective enterprises,especially town and township collectives, to China's export production. Taken

    together, these enterprises represent most of the non-state sector. Information onexports from private and individual enterprises is lacking, but they are believed to beinsignificant at this time.Exports from state-owned enterprises are still important. However, exportgrowth from this sector has been weak, and the state share in total exports has fallenconsiderably over the decade of the 1980s. Preliminary estimates presented in thisstudy suggest exports from state-owned enterprises may represent60 percent or lessof China's exports by the early 1990s.It is important to note, however, that state enterprises are extremely importantin certain geographic areas, earning the majority of foreign exchange available to

    them. This is especially true for the poorer provinces of the west, and much of thenorth, including Inner Mongolia, Heilongjiang, and Jilin.The correlations presented showed a significant, negative relationship betweenprovincial exports and the relative importance of state-owned enterprises. Based onthis information, however, we cannot say what is behind this negative correlation.For example, it could be due to inefficiencies within enterprises making their productsnon-competitive; to these enterprises being stifled by government bureaucracy andrestrictive rules; to more state enterprises being in inaccessible locations; or to morestate enterprises being in areas with poor conditions for exports, such asinfrastructure, expertise, etc. The causality, and relative importance of differentfactors, requires further research.In terms of the product profile, light industrial exports were positively correlatedwith the relative importance of collective production. This evidence is indirect. Theavailable data on exports from town and township enterprises, however, was brokendown by location and by product. The importance of light industry--both narrowly andbroadly defined--was explicit in these types of collective enterprises.The significant contributions of certain provinces to China's exports werereflected in many of the variables examined. In most cases, Guangdong was first.In addition, Guangdong's importance has increased over time, despite export growththroughout China. Guangdong accounted for 61 percent of the exports from foreignfirms in early 1993. This is not surprising since it has been the largest recipient offoreign investment. The province's export success, however, goes beyond thepresence of foreign investment and special economic zones. Exports are producedby all types of enterprises throughout the province.

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    One of the hypotheses suggested by this study is that export production isrelated to the degree of flexibility managers have to make decisions concerningproducts, pricing, inputs, etc. The study attempts to capture this with two variablesthat proxy decentralizationand openness. These variables were highly correlated withthe export variables. Lardy (1992, p.127) argues that it has been these types offactors that explain Guangdong's success, rather than location and foreigninvestment. Again, formal measures of the relative importance of these factorsrequire further research. The results of this study suggest, however, that relativelymore export production is found in areas with foreign investment, special areas, townand township enterprises, and liberal policies. All of these factors can be tied todecentralization and openness.

    In the last quarter of 1992, and the first half of 1993, China experienced tradedeficits. These deficits are primarily due to rapid increases in imports, rather than tosluggish exports. In the next several years, China's exports are expected to continueto grow at healthy rates. The major reasons are increased foreign investment,~ncreasedimportance of the non-state sector generally, and devaluation of the Chinesecurrency.

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    APPENDIX

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    ' a b i c 4 2 . I n t e m t i o n r l E xports F r a T a n and Tomship En terp rises Ey Province, 1987(In current Chinese yun)

    Provrnce

    ee l I rng' r m j r n M U ~ I sh .N I I m r Mongolia ~ l a o n l n g JI I rn n e ~iong j iang Shanghei Jl .ngSu 2he j Isng~ n h u iFujranJlaogxl Shendong nenan Hube i nman GusnOdongGuangx i na inan S ichuanGuizhouY m a nT ibetShaanxiGensuPingheiNingxiaXinj iang

    i !i I 1i T o ta l I p r o v i n c i a l I expor ts I I

    3,284,232,lM I 5,6b6,11R1352 I 5,526,387,975 1 1,266,022,771 I 843,201,534 1 14,099,314,800 I 1,740,677,266 j 2,970,310,242 I 15,482,744,928 7,665,6611,WO I 5,100,319,168 I 1,946,509,416 1 3,161,291,193 I 1,4%,%6,178 1 11,076,299,622 1 2,435,518,914 1 3,554,419,395 2,305,654,845 I 20,263,745,157 1 2,022,254,151 I 429,716,445 2,718,249,630 1 346,006,416 976,157,946 NIA 909,40a1622 I 471,217,860 I.

    "1"234,M6'510 1 829,693,311 I!i Percent of Chine's exports I

    E xp or ts f ro m to n / to n s h i p e n te rp r ise sT o n ud t o msh ip e n te rp r i se sPercent of PercentD i r e c t I n d i r e c t p r o v i n c i a l of China'sexpor ts expor ts expor ts expor ts

    Notes: T h e p ro v in c ia l to ta l and t o u n / t a n sh i p e n t er p r is e t r a de f i g u r e s a r e e l l c o l p i l e d by MOFERT. theMin is t ry o f Fore ign Re la t ions and T r d e . The MOFERT fi gu re s ar e th e s u o f s t a t f a t i c s r e p o r t e d by var iousenterprises. Tota l expor ts by province were reported i n U.S. dolla rs; we have converted these to ta ls i nt o yuanUs ing the o f f ic ia l exchange ra t e o f US1 = 3.7221 yum. T o n / to v rs h ip e n te rp r i se e xp o r ts were re p o r te d i n yua n.llDirectl* exports are purchased by s t a t e - o m d i n po rt -e xp or t c a n p ~ l i wf o r s a l e on t h e i n t e r n a t i o n a l m r k e t .expor ts a re so ld .brood by other mans, su ch a s th ro u g h a r rn g rcn ts lrdc by j o in t ve n tu re s o r wh o l l y -Mncd for eis n ventures w ith for eig n buyers. MOFERT trade f igu res are not as high as Custarr, f igures.

    Sources: Gw ji a tmjiju. QuWuo sesha~.z izhia il . zh ix ia sh i l i s h i z i l i a o h u ib im . 1 94 9-19 89 [ C an p il at io n o f H i s t o r i a l D a ta on Each Province, Aut- Region a d l nd cp cn dc nt C k n i c i p l i t y i n C hina, 1949-19891. B ei ji ng : Zh- t-j i &&a mh e, August, 1990. Chen Yaoburg, 3honanw x i w z h e n a i m n ian i ian . 1978-1987 M l l w v c o f Ch ina's T a n ond t o u rsh ip E n te rp r ise s , 19 78-19 8T 1. B e i j i n g : N w e chubmnshe, D ec ar kr , 1989. 317-318, 616-623.

    11.03

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    ~ a b l eU. Machinery nd El r t ro n i c Expor ts by Probct : 1990

    farm Ministr y of TractorMachinery Machine-building Uolking tractorand ElectronicInduotry

    Dept. ofAgricultureP ReclamationMin is t ry o fAgriculture

    Internal ChinaCocnbust io n Pe tr ol tu nEngine and GasCorporationTropic Dept. ofPlant AgricultureMachinery & ReclamtionMinistry ofAgricultureAnimal Min is try of

    Rotocult ivotorB ld c fo r P low nd HarrowT i l l e rMt o r i z o d spr-rHand sprayerArg icu l tura l prp 1 machineI r r i g a t i m md drrirugc mchineryOther irri-tion nd d r r i n r w l w h in e r yThresherHarvesterFarm construct ion rc h i n eL n d l e a l i n g r c h i n eParts of agricul tural nchine

    Arg icu l tura l prnpCane kn i feParts of agricultural amchine

    3Wk W generator

    Ini t ial processing mchineryfo r r-rProcessing r rch iner y fo rsisal hcrp

    Husbandry Machine-building An im l hu rbu dr y vc hi ne ryMachinery udElectronic1nAs t ryDept. ofAgricultureL ReclmationMin is t ry o fAgriculture

    Forestry Min is t ry o fMachinery Forestry

    Feed processing machinerv~ i v e s t o c kand poultryfeeding machine

    Live farm mchineryof uhich:t i g r i d n i t ro- b io log i ca lstor- n u e lTotalForestry trac torother r i n f o res t ry rch ine ry

    Total h o w t of Export (1990)ExportExported pr ob ct s ll~nnt(1,000 U.S.Units Total &ll a rs )

    m itw i tm itp i w em itw i tm itm itm itm itm itm itm it

    m itm itm it

    m it

    m itm i t

    m itrnitm it

    setrnitm i tm it

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    Table AS. Machinery md El r t ro n i c Expor ts by Product: 1990 (~ 0f tt in Ud )

    Total h o w t of Export (1990)Export

    Exported products ##ntSector Dept. Wwc of product Units Total (1,000 U.S.dol lars)TinkrIndustry Min is t ry o fForestry TotalLog f e l l i n g & transporting mch. rnitrnitMachinery Winch rnitSpr ing Pn c lMuff le r rnitCylinder w i tYoad-working rc h i n e to ol rnitYoad-b.8.d p a d .quipent rnitEdges of forestry mchineryParts of tillbcr i n b t r y m chinery p ir eGasol ine m i n e rnit

    Minis t ry o fMachine-buildingwdElectronicI n b t r y Wood-uorking mchinery

    Metal Min istr y of Lathe rnitcut t ingmuchim Machine-building Dr i l l i ng rc hi neand Boring mchine rnitm ittools Electronic Grinder rnitIndust ry Gear processing w h i n e m itScrcu processing w h i n e m itMetalworking mchineryPlaning wchine m itS l o t ti n g r c h i n e m itEle ctr fc processor rnitNC lnrrchine tool m itMeter mechine m itOther mchineries m it

    Dcpt. ofAgriculture& ReclcumtionMin is t ry o fAgriculture Vert ical dr i l l i ng machine

    Forging Mi ni st ry of Mechanics1 press m itand Machine-building Forging nd pressing wiprrnt u n i tPressing wd A u t m t i c press m itmachinery Electr onic Forging h r m itI ndus try Shar ing m i n e m itShaping d i n e m itOther forging wd pressing cquipnent m itFandry Ministry ofmachinery Machine-buildingnresur ing andtools Electr onic Measuring to ols u n i tand Industry Cutting tool s m itcut t ingtools

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    r h l e A3. M ~ h i n e r ynd E l u t r o n i c E xp or ts by P ro b c t : 1990 (co n t in wd )

    To ta l AIDU?t o f Export (1990)

    Sector Dept. N m o f prabct Exported productsUnf t s TotalExportl ~ ~ ~ l t(1,000 U.S.do1 lars )

    Abrasives Mi n is t ry o f Oi ls tone p i u e 4,612,900 895end Mch ine-hu i Ld ing Gr ind ato n p i u e 1,963,400 881gr ind ing ond Abrasiw wheel p iece 10,818,OOO 1,410too ls E lec t ron ic Other g r ind ing too ls p i u e l , ~ , ~1,290l n d r r t r y G r in d in g t o o l s 27,767Chins~ u c l e a rIndustryCorporation

    A r t i f i c i a l d i dA r t i f i c i a l d i d d r i l l b i tA r t i f i c ia l r e r i n g b i t9r -piu ernit

    M i n i s t r y o fMach ine-kri ld ingandE le c t ro n icIndustry Abras ive h e e l f rune m it

    Generatmch in c ry M in is t r y o f T o ta lMachine-build ing 1-tr ia l prpa d High v r c u r p.pElec t ron ic Pressure tes t ing prapIndustry pRpOther prpcFw r oA i r canpressorSatall a i r canpressorAerorcprratorva 1vc sHigh L m d i u pressure valvesOther valvesFlange platePar ts fo r genera l r rch ineryOther generat wchinery

    u n i tm itrnitu n i tm itr n t tw itu n i tm itu n i trnitu n i tm it

    M i n i s t r y o fE n r wl n b s t r y V alve s, e l c c t r i c d r i ve u n i tM i n i s t r y o fMe ta l lu rg ica lIn du st ry Va 1vcs

    Generalcanpontntsfo rM i n i s t ry o f I n b r t r i a l c ha in sMachine-hui td in g Stnbrd f u t m rwd R b r sealsmch in e ry E le c t ro n icIndustry P a d c r r t r ll u rg i ca l p ro d uc tsE n g i m r i n g h yd re u l ic con po ncnts

    nd o t h e r a t t u h r n t sM i n i s t r y o fMetal lu rg ica lI d t r y T u k j o i n t ton 135,000 6J

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    Table A3. Machinery rd Elu t ro n i c Expor ts by P r h t : lPPO (continued)

    To ta l ~ l l a rn tof Export (1990)ExportExported pr ob ct s i l l ~ ~ l t

    Sec to r Dcpt. N a r of pr&t Units Total (1,000 U.S.dol lars)Dept. ofAgricultureL R e c l m t i o nMin i st ry o f s t ud r r d co rponn ts p iaceAgriculture chains a t e r

    Bearing Min istr y ofMachine-building Bearinga d M in ia tu re b r i n g setE lect roni c Pwdc r r t a l lurpical bearing se tIndustry Industr ia l steel bal ls eachDept. ofAgriculture8 ReclamtionMin is t ry o fAgriculture Bearing set 535,000 205

    C ranes Mi ni str y of Motor-driven double knandHandling Machine-buildingsnd overhead craneMotor-driven singl e kn m itEquiprent Ele ctro nic overhead crane m itl rd rst ry Electr ical ly-operated singler a i l c r w w i tHand-operated double k m crane m itHand-operated single r a i l h oist w i tly re crane m itAutolnobi le crane m itCaterpil lar crane m it

    T w c r crane m itPortal hois ting machine m itHoist ing achineElect r ica l ly -driven ho is t m itHand-operated h oi st m itJack m itOther h oi st in g machine m itLinked chains to nHand-operated transpor ting ca rts eachMin is t ryofTransportation Material rol l ing, casting platform carMovable parking lots eachbatch

    Min is t ry o fMeta l lurg ica l For k l i f t t ruck and fo rk l i f t for goods tonIndustr y Jack ton

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    ' b U Machinery nd E l u t r m i c Exports by Procbct: 1990 (continued)

    Total Amnmt of Export (1990)Export

    Exportmd produ cts mount(1,000 U.S.b u t o - Dtpt . Name of product Units Total dol lars)

    b c oglcal Min i st ry o f Geo log iu l p ro rpc t i ng d r i l l m it. - a o l c r ~ n g Geology Slurry pup m itt and D in e1 Engine m itMinerals Diesel -in w t e r prp rc h i ne set set Rock drill,h ~ d r i l lr p i r e J u k mit D r i l l . K h A r t i f i c i a l d i m and products pir e Natural d i m carat Lllboratorial ore-sapcrating cquipinmt m i t Others

    China National Mmferrous Metal Industry Corp. Art i f ic ial d i a # d and r e m r each Bureau of Elec t r ica l Machinery, Ministry of Energy Geological prospecting d r i l l m i tChina Petrolccn and Gas Corporation Seismic d r i l l m i t

    Mining Min istr y of Bulldozer m itend Machine-hitding Loading and t ransporting rc h i ne m itColtiery and Pncrnrtic tool s m itMachinery Elec t ron ic Parts fo