ASEAN-China Economic Relations: Developments in ASEAN and China 9789814377119

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The Institute of World Economics and Politics is a non-profit research organization of the Chinese Academy of Social Sciences. Established in 1964 as the Institute of World Economics, it was combined with the Institute of World Politics in 1981 to form the present Institute. It is concerned with theoretical and practical issues of world economics and politics, and provides consultative advice and policy recommendations to the government on major issues of China's foreign relations. The Institute of Southeast Asian Studies was established as an autonomous organization in May 1968. It is a regional research centre for scholars and other specialists concerned with modern Southeast Asia, particularly the multi-faceted problems of stability and security, economic development, and political and social change. The Institute is governed by a twenty-two-member Board of Trustees comprising nominees from the Singapore Government, the National University of Singapore, the various Chambers of Commerce, and professional and civic organizations. A ten-man Executive Committee oversees day-to-day operations; it is chaired by the Director, the Institute's chief academic and administrative officer. The ASEAN Economic Research Unit is an integral part of the Institute, coming under the overall supervision of the Director who is also the Chairman of its Management Committee. The Unit was formed in 1979 in response to the need to deepen understanding of economic change and political developments in ASEAN. The day-to-day operations of the Unit are the responsibility of the Co-ordinator. A Regional Advisory Committee, consisting of a senior economist from each of the ASEAN countries, guides the work of the Unit.

ASEAN-CHIN A ECONOMIC RELATIONS Developmen ts in ASEAN and China

Contributors China

Cheng Bifan Associate Professor Institute of World Economics and Politics Chinese Academy of Social Sciences, Beijing Fu Zhengluo Senior Researcher International Trade Research Institute, Beijing Gao Ticscn Deputy Head Policy Research Department State Price Bureau, Beijing Guo Peixing Senior Researcher International Trade Research Institute, Beijing Gu Yuanyang Associate Professor Institute of World Economics and Politics Chinese Academy of Social Sciences, Beijing Li Yong Researcher International Trade Research Institute, Beijing Lin Bi Researcher International 'H·ade Research Institute, Beijing Luo Shaohong Deputy Director Institute of World Economics and Politics Chinese Academy of Social Sciences, Beijing Ma Yuanhe Researcher International Trade Research Institute, Beijing Pang Rongqian Deputy Head Department of Asian and African Studies International Trade Research Institute, Beijing Shao Zuze Senior Researcher International Trade Research Institute, Beijing Shen Huasong Associate Research Fellow Institute of World Economics and Politics Chinese Academy of Social Sciences, Beijing Wang Yaoyuan Assistant Researcher Institute of World Economics and Politics Chinese Academy of Social Sciences, Beijing

Wei Yanshen Associate Professor Institute of World Economics and Politics Chinese Academy of Social Sciences, Beijing Xu Xianquan Deputy Head International Trade Research Institute, Beijing Yu Yunding Associate Research Fellow Institute of World Economics and Politics Chinese Academy of Social Sciences, Beijing Yang Deming Associate Professor Institute of World Economics and Politics Chinese Academy of Social Sciences, Beijing Zhang Jianfen Researcher International Trade Research Institute, Beijing Indonesia

Hadi Soesastro Deputy Director for International and Security Studies Program Centre for Strategic and International Studies, Jakarta

Malaysia Mohamed Ariff Professor Faculty of Economics and Administration University of Malaya, Kuala Lumpur Paul Chan Professor Faculty of Economics and Administration University of Malaya, Kuala Lumpur

Philippines Emmanuel T. Velasco Principal SGV and Co., Manila Singapore

Chew Soon Beng Senior Lecturer Department of Economics and Statistics National University of Singapore 'lhaiiond

Juanjai Ajanant Associate Professor Faculty of Economics Chulalongkorn University, Bangkok

ASEAN -CHINA ECONOMIC RELATIONS Develo pments in ASEAN and China

Edited by Chia Siow Yue National University of Singapore

Cheng Bifan Institute of World Economics and Politics

Institute of World Economics and Politics and

ASEAN Economic Research Unit Institute of Southeast Asian Studies

Published by Institute of Southeast Asian Studies Heng Mui Keng Terrace Pasir Panjang Singapore 0511 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Institute of Southeast Asian Studies. ©

1989 Institute of Southeast Asian Studies

The responsibility for facts and opinions expressed in this publication rests exclusively with the authon· and their interpretations do not necessarily reflect the views or the policy of the Institute or its supporters.

Cataloguing in Publication Data ASEAN-China economic relations: developments in ASEAN and China I edited by Chia Siow Yue and Cheng Bifan. Papers presented at the Workshop on China-ASEAN Economic Relations: Developments in China and ASEAN and Their Implications for China-ASEAN Economic Relations, 27-29 Oct. 1987, Beijing. 1. ASEAN countries- Foreign economic relations- China- Congresses. 2. China- Foreign economic relations- ASEAN countries- Congresses. 3. China-Economic policy-Congresses. 4 ASEAN countries - Industries - Congresses. 5 China - Industries - Congresses. 6. Countertrade- ASEAN countries- Congresses. 7. Countertrade- China- Congresses. I. Chia, Siow Yue. II. Cheng, Bifan. III. Institute of Southeast Asian Studies (Singapore). ASEAN Economic Research Unit. IV. Institute of World Economics and Politics. V. Workshop on China-ASEAN Economic Relations : Developments in China and ASEAN and Their Implications for China-ASEAN Economic Relations (1987 : Beijing). HF1592.5 C5A812 1989 sls89-58295 ISBN 981-3035-31-5 1ypeset by Avante Garde Typesetting and Publishing Services Printed in Singapore by South Wind Production Singapore Pte Ltd

Contents

List of Tables List of Figures Foreword

Vll

X

XI

1.

Economic Reforms in China and Their Impact on China-ASEAN Economic Relations Yang Deming, Yu Yunding, and Shen Huasong

2.

China's Changing Industrial Structure: Its Impact on Economic Relations with ASEAN Countries Luo Shaohong, Cheng Bifan, and Gao Tiesen

23

3.

Policies, Mechanisms, and Institutions Affecting ASEAN-China Economic Relations Paul Chan

52

4.

Development of the ASEAN Petroleum Industry and Implications for ASEAN-China Economic Relations Hadi Soesastro

82

5.

Development of China's Petroleum Industry and Its Effect on China-ASEAN Economic Relations Shao Zuze, Guo Peixing, and Li Yong

112

6.

Development of the ASEAN Textile and Garment Industry and Implications for ASEAN-China Economic Relations Emmanuel T Velasco

141

7.

Development of the Textile and Garment Industry in China and Implications for China-ASEAN Economic Relations Lin Bi, Xu Xianquan, and Zhang Jianfen

167

8.

Trade in Services between ASEAN and China Chew Soon Beng

191

9.

ASEAN-China Trade: Prospects for Counter-Trade juanjai Ajanant

222

Contents

VI

10.

Counter-Trade in the Framework of China-ASEAN Trade

243

Pang Rongqian, Fu Zhengluo, and Ma Yuanhe

11.

Export Processing Zones: The ASEAN Experience

272

Mohamed A riff

12.

China's Experience with Special Economic Zones

Jtei Yanshen, Wang Yaoyuan, and Gu Yuanyang

302

List of Tables

2.1 2.2 2.3 2.4 A3.1 A3.2 A3.3

Increase in National Income per RMB100 Accumulation Changing Composition of Light and Heavy Industries, 1978-86 Composition of Gross Output Value of Industry and Agriculture Forward Coefficient of Basic Industries, 1981-85 Estimates of Market Share of Chinese and ASEAN Products in the EEC Market, 1985 Estimates of Market Share of Chinese and ASEAN Products in the Japanese Market, 1985 Estimates of Market Share of Chinese and ASEAN Products in the U.S. Market, 1985

27 28 29 31

78 79 81

4.3 4.4 4.5 4.6

Oil and Gas Reserves in the ASEAN and Pacific Regions Oil and Gas Reserve-to-Production Ratios in the ASEAN and Pacific Regions Oil Production in Brunei, Indonesia, Malaysia, and China Refining Capacity in the ASEAN and Pacific Regions Malaysia's Crude Oil Exports 1975, 1980-86 Singapore's Petroleum Refineries, 1987

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9

Petroleum Production, Consumption, and Import-Export Trade China's Petroleum Output, 1986 Petroleum Output of Ma,jor Chinese Oilfields, 1986 China's Imports and Exports of Crude Petroleum, 1950-8 6 Importers of Chinese Crude Petroleum, 1986 Exports of China's Oil Products, 1950-86 Importers of Chinese Oil Products, 1986 Petroleum Output of ASEAN Countries, 1950-85 Petroleum Trade of ASEAN Countries, 1970-85

115 116 116 118 119 119 120 124 125

6.1 6.2 6.3

Textile Industry: Value Added, Employment, and Exports, 1985 Number of Textile Establishments, 1975, 1980, and 1985 Average Employment, Fixed Assets, and Output per Establishment in the Textile Industry Textiles and Man-Made Fibre Production, 1981 Trends in Fibre Use by Mills, 1974-81

144 146

4.1

4.2

6.4 6.5

84 85 87 88 94 99

147 149 150

List of Tables

Vlll

6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13

6.14

7.1 7.2 7.3 7.4 7.5 7.6

7.7 7.8 7.9 7.10

7.11 7.12 7.13

7.14 7.15 7.16 7.17 7.18 7.19 7.20 8.1 8.2

Indonesia: Textile Production, Production Capacity, and Capacity Utilization, 1970-84 Thailand: Textile Production, Production Capacity, and Capacity Utilization, 1970-84 Philippines: Textile Production, 1965-84 ASEAN Share of World Cotton Yarn and Synthetic Fibre Production, 1970, 1975, and 1980 ASEAN: Textile and Garment Export-Import Ratios, 1970, and 1980-85 ASEAN: Distribution of Textile Exports by Country, 1970-85 Distribution of Textile Imports by Country, 1975, 1980, and 1985 Factor Productivity in the Textile and Garment Industries and Manufacturing Sector, 1980-85 Hourly Wages in Manufacturing and Textile Industries of Selected Countries, 1984 China's Textile Output by Type of Products, 1976-85 China's Textile Production Capacity, 1978-85 China's Textile and Garment Industry: Output, 1978-84 China's Textile and Garment Exports, 1980-86 China's Share of World 1rade in Textiles, 1975 and 1985 Product Structure of China's Textile Exports, 1975 and 1985 Destination of China's Textile Exports, 1980-84 China's Textile Imports, 1980-85 World Textile Exports, 1980-85 Share of Textiles in Total World Exports, 1981-85 China's Textile Exports to ASEAN, 1975 and 1985 Product Structure of China's Textile Exports to ASEAN, 1985 Share of Garments in Total Textile Imports of ASEAN, 1983 U.S. and EC Imports of Textiles and Garments, 1982-85 U.S. Imports of Textiles and Garments from China and ASEAN, 1983-85 ASEAN Cotton Consumption China's Cotton Exports to ASEAN, 1985 Share of Garments in ASEAN's Total Textile Exports Product Structure of China's Piece Goods Exports to ASEAN, 1983 Share of OECD in ASEAN Exports of Textiles and Garments Sectoral Composition of GDP and Labour Force in China and ASEAN, 1965, 1980, and 1985 Sectoral Performance in China and ASEAN, 1965-80 and 1980-85

151 152 153 153 154

155 156 157 158 169 170 171 17 5 175

176 176 177 178 179 180 182 182 184 184 185 186

187 188 189

194 196

List of Tables

8.3 8.4

ix

8.5

Percentage Share of Services in GOP in ASEAN, 1984-85 Balance of Merchandise and Services Trade in China and ASEAN, 1985 China-ASEAN Tourist Arrivals, 1983

199 20'2

9.1 9.2 9.3 9.4 9.5 A9.1 A9.2

China's Exports to the Asia-Pacific Countries, 1978-85 China's Imports from the Asia-Pacific Countries, 1978-85 China's Trade with ASEAN Countries, 1978-85 China's Balance of Trade with ASEAN Countries, 1978-85 China's Import and Export Trade through Hong Kong, 1981-85 Summary of Thailand's Counter-Trade Practices, 1981-85 Summary of Thailand's Counter-Trade Practices, 1986-87

224 225 226 227 228 237 239

AlO.l A10.2 A10.3 A10.4 Al0.5 A10.6 A10.7

China's Foreign Trade Statistics, 197 5-86 China-ASEAN Trade, 1975-86 China's Balance of Trade with ASEAN Countries, 1975-86 Growth Rates of China's Trade with ASEAN Countries, 1975-85 Major Chinese Exports to ASEAN Countries, 1985 Major Chinese Imports from ASEAN Countries, 1985 ASEAN Investments in China

265 266 266 267 268 269 270

11.1 11.2 11.3 11.4 11.5 11.6 11.7

EPZs in ASEAN: Location, Area, and Year in Operation Selected EPZs in ASEAN by Major Products Number of Firms Operating in Selected ASEAN EPZs, 1984 Major TNCs in Selected ASEAN EPZs Indonesia: Aggregate Economic Performance of the Jakarta EPZ Malaysia: Aggregate Economic Performance of the Penang EPZ Philippines: Aggregate Economic Performance of the Bataan EPZ

281 282 283 284 289 290

China's Coastal Open Zones and Areas SEZs: Location, Year of Establishment, Size, and Development Mode SEZs: Basic Data on Progress SEZs: Investment by Sectors SEZs: Data on Foreign Investment SEZs: Cost Structure SEZs: Preferential Policies and Incentives

325

A12.1 Al2.2 A12.3 A12.4 A12.5 A12.6 Al2.7

197

291

326 327 328

330 331

333

List of Figures

11.1 11.2

Location of Free Trade Zones in Malaysia Location of Export Processing Zones in the Philippines

279 280

Foreword

ASEAN-China economic relations is an area of considerable significance. Indeed, if anything, this significance has been increasing in recent years. Yet this relationship remains poorly understood, particularly in terms of the overall issues involved and their implications for individual countries and the region as a whole. It was partly to correct this state of affairs and to put ASEAN-China economic relations in their proper perspective that a group of ASEAN and Chinese scholars came together in April 1985 to plan a three-year research project on ''ASEANChina Economic Relations". Three themes were identified: Phase I - ASEANChina Economic Relations: Trends and Patterns; Phase II - Developments in China and ASEAN and Their Implications for ASEAN-China Economic Relations; and Phase III - ASEAN -China Economic Relations in the Context of Pacific Economic Development and Co-operation. The Institute of Southeast Asian Studies, Singapore, and the Institute of World Economics and Politics, Beijing, are the co-ordinating institutions for ASEAN and China, respectively. Dr Chia Siow Yue is the Co-ordinator of the ASEAN aspects of the project and Mr Cheng Bifan, the Chinese aspects. Both Dr Chia Siow Yue and Mr Cheng Bifan are also the joint editors of the publications emanating from the project, with Dr Chia being responsible for the English edition and Mr Cheng Bifan, the Chinese edition. The papers of the first phase of the project were presented at a workshop in Singapore in June 1986, and published under the title ASEAN-China Economic Relations: Trends and Patterns in October 1987. The research findings of the second phase were presented at a workshop in Beijing in October 1987. It is hoped that this second volume, ASEAN-China Economic Relations: Developments in ASEAN and China will also be useful to scholars and policy-makers concerned with ASEAN -China economic relations. The project on ''ASEAN -China Economic Relations" has benefited immensely from the contributions of all participants, and from the financial support provided by the Ford Foundation .: ~

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27.4 3.9

15.3 16.0

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22.0

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21.4 22.6 61.3

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117.6

SOURCES: China's Economic Yearbook, 1986, vii, pp. 89, 136-40; and China's Statistics Yearbook, 1986, pp. 75-76.

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APPENDIX TABLE A12.5 SEZs: Data on Foreign Investment

Shenzhcn

Zhuhai

Shantou

Xiamen

National Total

Investment Agreements (number), 1986

1,299

371

218

245

9,189

Total Agreed Investment (US$100 million), 1986

38.65

14

2.34

4.9

199.91

Actual Investment (US$100 million)

17 (198 7)

3.15 (1986)

1.26 ( ")

1.69 (1985-86)

83.07 (1986)

Foreign-Invested Ventures

1,299 (1986)

345 (1987)

17 (1985)

280 (1987)

10,008 (1987)

405 operating (1987) Internal Union Ventures

255 (1987)

300 (1987)

38 (1986)

~ ~

183 operating

~ .!"

620 (1987)

~

SOURCES: China Prospect Publishing House, Almanac of China's Foreign Economic Relations and Trade, 1986 (Beijing: 1986); China's Statistics Yearbook, 1987, pp. 75-76, 603-4; People's Daily, various issues; Wc!rld Economic Herald (Shanghai), 8 June and 24 August 1987; Shenzhen SEZ Daily, various issues; SEZs and Hong Kong-Macao Economy (Guangdong, PRC), 2nd issue (1987), p. 43.

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APPENDIX TABLE A12.6

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SEZs: Cost Structure

Charge Items

Shenzhen

Zhuhai

Shantou

20-50 Readjusted every three years; the scope of reduction or increase is within 30 per cent. 1-16 12-21 5-9 0.3-0.7 0.2-0.3

20-50

20-50

3-9 30-65 15-30 0.5-5 0.3-3 2-10

5-20 30-140 15-40

1-12

70%

70% 25% 5%

70% 20% 10%

Xiamen

Land

Tenure (year) 2 Rental (RMB/metre /year)

Industry and stocking Commerce and tourism Building, lodging houses Outside stocking Agriculture and stock raising Provisional use Annual increase rate of wage labour cost

Composition: Wages Social insurance Welfare subsidies

2

60 Readjusted every five years; the scope of reduction or increase is within 20 per cent.

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APPENDIX TABLE A12.6 (Continued) Items Items

Shenzhen

Zhuhai

Shantou

Xiamen

Standard labour cost (RMB/person/month)

200-300

200

200

120-180

Average monthly wage per person

180-200

140

140

The lowest is 80-120; for manager personnel, 120-180.

Wtzter Charge 3

RMB/metre HK$/1000 gallon

0.18 2.7

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Ekctricity Charge (RMB/kWh)

Industry Household

0.085 0.2

SOURCES: Yearbook of China's SEZ, 1984; "Rental Adjustment and Rules of Rental Preference and Reduction in Shenzhen SEZ", ibid., pp. 97-98; "Provisional Regulations on Labour Wages for SEZs' Enterprises in Guangdong Province", in Laws and Regulations Regarding China's Foreign Economic Affairs, Book 1 (China: The Foreign Press, 1982); "Regulations on Labour Administration for Xiamen SEZ", and "Rental Regulations for Xiamen SEZ", fr. in Reference 6.

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APPENDIX TABLE A12.7 SEZs: Preferential Policies and Incentives Item Legal Incentives

Custom duty

Capital goods and raw materials are exempt from import tax. Consumer goods, except tobacco and wine, are exempt from import duty. Free export duty

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.g? Preferential Rate (Reduction or Exemption) (In percentage) 100 for both.

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100 Commerciiu and Industrial Consolidated Tax (CICT)

Free CICT for imported production means. Free CICT for exported products, except a few controlled ones.

CICT rate

3%

Corporation income tax rate

15%

Preferential treatment concerning corporation income tax

1. For the ventures engaged in industry, transport, agriculture, forestry, and livestock raising, with an operation period of more than 10 years, no tax is levied during a two-year period after the first profit-making year, and tax is reduced from the third to the fifth years.

2. For the ventures engaged in the services sector with investment of more than US$5 million and an operation period of more than 10 years, no tax is levied for the first year after making profit, and the tax is reduced from the second to the third years. 3. For the ventures established in the less developed remote regions and with business concerning agriculture and forestry, another 10 years of tax reduction follow.

100 100

100

50 100

50 15-30 w w w

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APPENDIX TABLE A12.7 (Continued) Item

Other preferential treatment concerning tax and cost

Special incentives and policies towards investment

Legal Incentives

No tax for remittance of profit. No charge for utilizing patented technology. No tax for loan interest. No local surtax and local income tax (at the discretion of local authorities). No local income tax in Xiamen. 5. If the profits are reinvested for another three to five years, the paid income tax of the reinvested profits could be returned. (The period in Xiamen is stipulated to be longer than three years, and in three other SEZs, longer than five years.)

1. 2. 3. 4.

1. Special preferences towards foreign investment a. For the export-oriented ventures with foreign exchange surplus; b. For advanced-technol ogy ventures, which provide advanced technology, develop new products, and upgrade the products to increase export or substitute the imported goods. According to the "22 Rules", the above-mentioned ventures of two kinds can enjoy special preferential treatment in taxes and loans.

Preferential Rate (Reduction or Exemption) (In percentage)

100 100

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100

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2. Special preferences are offered to Taiwan compatriots' investments according to the State Council's No. 57 Document issued on 5 April 1983. a. Corporation income tax is exempt from the first to the fourth years, and is reduced from the fifth to the ninth years. b. Thirty per cent of products can be sold on the domestic market. c. There is no land charge from its establishment to the first five years after being operated. Investment guarantee

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100 50

l. Foreign investors' legitimate rights are safeguarded by China, which puts a high value in fulfilling contracts and keeping credit. The divergences concerning contracts will be solved according to the principle of equality, mutual benefit, and friendly consultation. 2. Ventures have management independence and can freely choose investment form. 3. The income can be remitted freely after being taxed. 4. A venture's capital can be withdrawn and remitted freely. 5. For business efficiency, the procedure of coming or leaving China is being simplified, and approval ladders are being reduced.

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SOURCES: Yearbook of China's SEZs, 1984, Ref. 5; "The Rules of Encouraging Foreign Investment by the State Council", Ref. 10, p. 100; "The Provisional Regulations Promulgated by the State Council of the PRC on Reduction and Exemption of Enterprise Income Tax and Consolidated Industrial and Commercial Tax for Fourteen Coastal Port Cities as well as the Four SEZs", fr. in Ref. 9, pp. 90-93.

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336

Wei Yanshen, Wang

Ya~ryuan,

and Gu Yuanyang

NOTES 1. The total industrial output value of the Shenzhen SEZ in 1987 amounts to RMB5. 76 billion. Exports of industrial pmducts amounted to RMB3.57 billion, about over half of the total (People's Daily, 18 January 1988). 2. The total industrial output value of Zhuhai SEZ in 1987 amounts to RMB1.2 billion, three times more than that in 1986. The total export value amounts to US$2. 74 hundred million, three times more than that in 1986. And for the first time, the zone saw a favourable foreign exchange balance, ibid. 3. Shenzhen SEZ Daily, 28 February 1986, p. 1. 4. Shenzen SEZ Daily, 16 July 1987. 5. Shenzen SEZ Daily, 7 January 1987. 6. Some imported instruments such as the mechanical paint gun by Huaqiang-Sanyan Electronics Limited Company (Shenzhen) and the Sony colour TV production line by Huali Electronics Limited Company are of the 1980s international level. 7. The total industrial output value of the four SEZs in 1987 amounts to RMB10.372 billion. 8. Shenzhen SEZ Dazly, 19 May 1986, p. 4. 9. Shenzhen SE,"Z Daily, 13 February 1987, p. 1. 10. W. H. Diamond and Dorothy Diamond, Tax-Free Trade Zones of the World (1985). 11. Ibid.

REFERENCES Asian-Pacific Economic Committee and U.N. Transnational Corporation Committee. "An Appraisal of EPZs in Some Asian Countries". 8th issue. Reports in Series, Group B. China Prospect Publishing House. Almanac of China's Foreign Economic Relations and Trade. Beijing, 1986. China Statistics Press. China's Statistics Yearbook, various issues. Diamond, W. H. and Dorothy Diamond. Tax-Free Trade Zones of the World. 1985. Economic Management Press. China's Economic Yearbook, 1986. Beijing: 1986. Gu Mu. "Open to the Outside World: A Strategic Decision". People's Daily, 24 March 1987. Liu Guoguang. Strategic Studies in Shenzhen SEZ's Development. Hong Kong Economic Herald Agency and Shenzhen SEZ's Center of Economic Research, 1985. Li Ying, ed. The Establishment of Shenzhen SEZ and the Managerial Administration of Enterprises. Beijing: China Machinery Industry Press, October 1986. People's Daily, various issues. "Provisional Regulations on Labour Wages for SEZs' Enterprises in Guangdong Province". In Laws and Regulations Regarding China's Economic Affairs. Book 1. China: The Foreign Press, 1982. Shenzhen SEZ Daily, various issues. SEZs and Hong Kong-Macao Economy (Guangdong, PRC). 2nd issue. 1987. The Hong Kong Press. Yearbook of China's SEZs, 1984. 1985. The National Bureau of Statistics, ed. China's Statistics Yearbook, 1987. Beijing: China Statistics Press, 1987. "The Provisional Regulations Promulgated by the State Council ofthe PRC on Reduction and Exemption of Enterprise Income Tax and Consolidated Industrial and Commercial

China's .Special Economic Zones

337

Tax for Fourteen Coastal Port Cities as well as the Four SEZs". 15 November 1984. In China's Economic Yearbook, 1984. "The Rules of Encouraging Foreign Investment by the State Council;' 11 October 1986. In Almanac of China's Foreign Economic Relations and Trade, 1987. Beijing: China Prospect Publishing House, 1987. World Economy Herald (Shanghai), various issues.

THE EDITORS Cheng Bifan, a graduate of Beijing University, is Associate Researcher and a Member of the Academic Committee at the Institute of World Economics and Politics. He is also Associate Professor of International Relations at the Graduate School of the Chinese Academy of Social Sciences. He has written widely on issues of international politics, strategic studies, and economics.

Chia Siow Yue is Associate Professor in Economics at the National University of Singapore. Her main research interests are in the field of international economics and development economics. She has written and published extensively on regional economic co-operation, trade, industrialization, and foreign investment, with particular emphasis on Singapore, ASEAN, and the Pacific Basin. She has also served as economic and research consultant to various international and regional bodies such as the International Labour Organization, the United Nations Economic and Social Commission for Asia and the Pacific, and the Asian Development Bank.