Strategic Shift in Chinese Foreign Policy and Development of Coastal Areas Dr.

Ram Dev Bharadwaj Professor & Head Department of political Science, Rani Durgavati University, Jabalpur (M.P.) INDIA Foreign policy of a country is nothing but reflection of desire of a nation and an effective weapons by which national interest be protected and objectives of national development may achieved. Therefore ,foreign policy and the process of national development are integrated with each others. Todays China is following need based foreign policy . As . China a is the most populous developing country in the world. After over two decades of reform and opening up the Chinese economy and Chinas over all national strength have grown substantially with an ever-expanding market. In recent years substantially with an ever-expanding market. In recent years ,China has redoubled its efforts to expand domestic demand and imports ,and it has managed to maintain the momentum of a sustained ,rapid and sound economic development. Todays China has entered a new stage of development in which it is building a well-to-do society across the country and speeding up the socialist modernization drive .The time had gone of Maos policy of isolation and extreme selfreliance, when China found herself 20 years behind the developed countries in science-technology and industry, 40 or 50 years behind them in agriculture. But the introduction of Chinas opening up and reform policy over the past two decades has brought high-speed development of its economy and a significant improvement in different sectors of society. Todays liberalized China is a major international producer of certain key industrial commodities: she ranks first in coal, cloth, cotton, meat, rapeseed, cement, steel and TV sets second in electricity, chemical fertilizer, foreign exchange reserves and absorbed foreign capital ;fifth in crude oil ;eight in international tourism ,tenth in foreign trade & exports and twelfth in imports . How for all these drastic changes and dynamism of Chinese personality been taking place become a deep concern and meter of discussion ,analysis and research among the political and academic leadership of the world. The present article is indented to discussed about significance of strategic situation of China and the strategic shifts in development & modernization policy of Chinese leadership which led to opening and liberalizing to Coastal areas of China .An attempt has also been made to review the impact Chinas open door policy and liberalization on Coastal cities of China. At

the historic stage of creating new situation in all fields of liberalization and development strategies the coastal cities have opened their door to attract more and more foreign capital ,technology and establish Chinas most important trade bases.

Tenet of Foreign Policy & Diplomatic Relations :

The ancient nation of China can look back on more than 5,000 years of its civilization, claming with pride a legacy of great contribution to all of mankind. But beginning in the days of The Opium War (1840-42) its strength vitiated by the feeble ruling hand of the decadent Qing Dynasty court internally and assailed by the encroachments of imperialist powers externally, the nation lapsed into a semi feudal and semi colonial state; this was the period of humiliation in Chinas foreign relations. The Chinese people led by their own Communist Party through long and arduous struggle eradicated this imperialist presence along with the twin evils of feudalism and bureaucrat- capitalism and founded the Peoples Republic of China on October 1, 1949. Since that day China has completely buried the humiliation characteristics of old Chinas foreign relations ,successfully developing a new foreign policy that bases opposition of hegemonies and works to safeguard world peace on national independence and self initiative and national development. As early as September 1949,The First Plenary Session of the Chinese Peoples Consultative Conference(CPPCC) adopted a common Programme to serve as the countrys provisional constitution which clearly stated Chinas ideals: The principle of the foreign policy of Peoples Republic of China( PRC) are the protection Chinas independence, freedom, integrity of territory of territory and sovereignty of country ,upholding the lasting international peace and friendly cooperation between the peoples of all countries and opposition to the imperialist policy of aggression and war .(1) The Constitution of PRC enacted in 1954 stated in its preamble, In international affairs our firm and consistent policy is to strive for the noble cause of world peace and the process of humanity. In order to strengthen and develop new diplomatic relations, Chinas Premier Zhou Enlai visited India in June 1954 and after diplomatic discussion with Indian Premier Jawaharlal Nehru both countries officially proposed that the five Principles of Peaceful Coexistence be taken as the norms guiding relations between nations in the world. These Principles are: mutual respect for sovereignty and territorial integrity, mutual non-aggression, on-interference in each others internal affairs, equality and mutual benefit, and peaceful coexistence. The main outlines and basic principles of Chinas independent foreign policy are as follows;(i) Proceeding as it does from the fundamental long-term interest of its own people and the people of the world, PRC takes as the basic objectives of its foreign policy opposition to hegemonies, maintenance of world peace, development of friendly cooperation with other countries and the promotion of common economic prosperity.(ii) China holds that all countries, big or small, rich or poor, strong or weak, should be treated as equals. It is firmly opposed to the big bullying the small, the rich oppressing the poor and the strong lording it over the weak. The affairs (domestic as well as foreign) of a country should be managed by its own people, and the affairs of the should be managed by all countries in consultation, and not by one or two superpower having the final say. PRC will never seek hegemony and it resolutely opposes hegimonism, no matter who practices it and no matter what form it takes.(iii)At all time and under all circumstances China will act independently, determining its own attitudes and foreign policy on all world issues on the merits of each case. The criterion by China judges whether an act is right or wrong whether it helps to maintain world peace, develop friendly cooperation among nations and promote world economic prosperity.(iv)China will never attach itself to any super power, or enter into alliance or strategic relations with either of them. China continues to seek the steady Sino-US relations on the basis of strict adherence to the principles established in the Sino-US joint communiqus and a true improvement in Sino-Soviet relations by removing the three obstacles with concrete action.(v) China stand by the Five Principles of mutual respect for sovereignty and territorial integrity, mutual nonaggression, noninterference in each others internal affairs, equality and mutual benefit, and peaceful coexistence. On the bases of Five Principles, China strives to establish, resume or expand normal relations with all countries in the world and to live in harmony and engage in friendly cooperation with them. PRC does not determine its closeness with or estrangement from other countries on the basis of their social system

and ideologies. China firmly opposes any countrys using similarity or difference of social system and ideology as an excuse to occupy the territory of others and to interfere in their internal affairs. China firmly opposes terrorist activities of all types and believes that this problem can only be solved once and for all by eliminating the social and political root causes of terrorism.(vi)China belongs to the Third World. A basic principle of its foreign policy is to strengthen its solidarity and cooperation with the Third World. PRC steadfastly opposes imperialism, colonialism and racism and supports the Third World countries in just struggle to achieve and defend national independence. It supports them in their efforts to develop their national economies, improve North-South cooperation. China earnestly hopes that Third world countries will strengthen their unity and settle their disputes peacefully through friendly consultation, so as to prevent the interference of outside forces.(vii)China opposes the arms race and its extension to outer space. At the same time of its first nuclear test, China proposed the complete prohibition and through destruction of nuclear weapons and declared that at no time and under no circumstances would China be first to use such weapons. Today, it is of capital importance that the superpowers should take the lead by drastically cutting back their nuclear arsenals, thus creating favorable conditions for nuclear disarmament by all nuclear countries. PRC is also in favors of the complete prohibition and through destruction of chemical weapons, and the substantial reduction of conventional arms along with nuclear disarmament. (viii) China persists in a long-term policy opening to the outside world and will continue to expand its economic, trade and technological contacts and cooperation with other countries on the basis of equality and mutual benefit. China pursues a policy of opening to all countries, capitalist or socialist, developed or developing. (ix)In keeping with the purposes and principles set forth in the United Nations Charter, China supports the work undertaken by the UN in the spirit of the Charter and participates in the activities for world peace and development sponsored by the organization and its specialized agencies. PRC has joined a wide range of international organizations, actively engages in multilateral diplomacy and strives to promote international cooperation in all fields. (x) China attaches great importance to contact among people of different countries. To further mutual understanding and friendship among the people of the world, nongovernmental associations and people from all walks of the life to have contacts with those of other countries, and supports cooperation between them in economic, cultural, educational, scientific and technological fields and in matters relating to the press, public health and sports . (2) These are the basic principles of Chinas foreign policy. Its domestic and foreign policies are an organic whole. Development and peace, reform and opening to the outside world, defending the dignity of the Chinese nation and adhering to the principle of equality of large nations and small in the international affairs-these principles are unified and inseparable. China is a developing socialist country with a population of over on billion. China is therefore working hard to establish coordination with the requirement of the nation, process of development of China with the foreign policy and foreign relation. China is an example which can illustrate as a model that how the foreign policy and economic requirement of a nation built a country strong, and move towards the march of development. It is Chinas foreign policy and economic liberalization attitude of PRC which has change the face of China Let us discuss with the Chinas open door policy and modernization process with the strategic shift in China understands of outside world. Maos Isolation & Close Door Policy:---

The goal of Chinese Government is to make China an efficient modern economy .The The love of Science is the national virtue of China, and struggle to achieve rapid and sustained economic growth and sustained economic growth is the president struggle of China. Modernization of Science and technology has to play a critical role to achieve the goal of China .(3) However this is fundamental strategy .Chairman Mao Zedong and Premier Zhou Enlai wanted to achieve the goal through the policy of isolation and extreme self-reliance, which brought China some twenty years behind the developed capitalist countries in Science, technology, & industries, and some forty or fifty years behind them in agriculture .(4) Starting in 1958,Chinaa foreign policy of economic development came under the spell of Maos vision and policy of the Great Leap Forward , learning heavily on mass mobilization to speed up industrial development. However ,the then much-celebrated slogan during the Leap was We ought to catch up with and surpass United Kingdom in output of iron, steel and other major industrials production within 15 years. (5) The return from the Great Leap course appears to have begun only a few months after the communes were launched. But the Sixth Plenum of the Central Committee held in December 1958 took steps to review the policy of the Great Leap Forward. In 1970,during the Cultural Revolution diplomatic and economic contact with foreign countries was narrow and limited in scale for about three decades. China was probably one of the least monetized countries in the world (6) . The Tenth CPC National Congress in 1973 also skipped over the pressing over the pressing problems Chinas social, economic and cultural development and foreign relations. The activities Gang of Four and struggle against Confucianism seriously effected Chinas foreign policy. . After 10 years of diplomatic and economic stagnations caused by the turbulent cultural revolution Prior to 1978 the policy of maintaining independence and keeping the initiative in own hand and relying on own efforts in building China was set at loggerheads with the effort to open the nations doors to the outside world. The introduction of advanced technology was regarded as a slavish comprador philosophy; the utilizing of foreign funds was opposed the freedom from domestic and foreign debt was regarded as an expressions of the superiority of socialism; the study of scientific managerial experience from the West was repudiated; the dispatch of personnel to study in the West was opposed; and no international economic and technological exchanges were conducted. This strategic and guiding ideology of merely using domestic funds, resources, technology and markets for economic construction and development of the nation was, quite evidently, a policy which closed the China to foreign /international intercourse. After the death of Mao in 1976,Hua Guafeng emerged from the showdown with the Gang of Four with impressive official posts, placing him atop each of the three chief institutions that govern contemporary China .(7) Hua announced a New Leap Forward indented to transform China into a great, powerful and modern socialist country. Huas 10 year development Programme strategy assumed that higher rates of growth could be stimulated by political stability, higher investment, and greater incentives, without any basic reforms .(8) Hua and his advisers did not suggest modest structural changes in economies and foreign relations, which retained some aspect of Maoist legacy while rejecting others was meant to build and expand a political coalition that would be strong enough to keep him power .By launching a new leap forward policy with continued emphasis on investment in heavy industry, Hua sought to maintain the support of those institutions, particularly the military, the planning apparatus and the machine building industry, which had been the bulwarks of such policies during the Maos period. Unfortunately for Hua, his policy met with

increasing difficulties throughout 1977-1978.Huas policies did not yield relatively high rates of growth nearly 11 per cent in 1977 and ore than 12per cent in 1978. The rapid growth of imports-85per cent in the two years 1977-78 was not fully matched by the concurrent increase in exports and export policies in 1978,during this period China ran its largest foreign trade since the First-Five year Plan .(9) These inflationary pressures were exacerbated in increasing wages faster than expanding the production of consumer goods. Accordingly,Huas10-year plan was shelved in early 1979,only a year after it has been announced Above all , in Deng Xiaoping, Hua Guofeng forced a powerful political rival waiting in the wing of the party, with enormous personal prestige and alternative Programme for Chinas foreign policy ,economic developing and overall international understanding with Chinese requirement. Strategic Shift Towards Reform & Open Door Policy
th

In December 1978, the Third Plenary Session of the 11 Party Central Committee of Chinese Communist Party commenced in Beijing. This meeting adopted a Marxist political and ideological line for the whole party and pointed out new direction for the development of the Chinas economy and foreign relations. It marked by Deng Xiaoping a great turning point in Chinas history in the development of Chinas economy through open door policy. (10). It was announced that the focus of Chinas policy would shift from the ideological emphasis on class struggle that had characterized the preceding decade, and instead, focus on the goal of economic growth and socialist modernization. It was decided then that in the light of historical conditions and practical experience, a number major new economic measures must be taken to thoroughly transform the system and methods of economic management .(11) The session pointed out that a series of new and scientific measures needed to be taken to readjust the imbalanced proportion of the national economy, seriously reform the system of economic management, promote economic cooperation / relations with foreign countries and make use of the worlds advanced technology and equipment. In April 1979, CPC Central Committee put forward the policy of readjusting, restructuring, consolidating and improving the national economy, with readjustment as the principal focus. Putting readjustment into effect means accomplishing the five following concrete goals: (i) To achieve a relative correspondence between the growth of agriculture production on the hand and the increase in population and development of industry on the other.(ii) To achieve a growth rate for the textile and other light industries equal to, or slightly greater than, that of heavy industry, keeping the increase in major textiles and other light industrial products basically in correspondence with the rise of domestic purchasing power and at the same greatly increasing foreign relation and exports.(iii) To alleviate the difficult situation in the fuel and power industries, as well as the transport and communication services, by increasing production and practicing

economy. To put more emphasis on better quality and greater variety ,while increasing production in metallurgical ,machine-building and chemical industries and in heavy industries n general.(iv) To effectively narrow the scope of capital construction, improve its quality, reduce coast and shorten construction period. (v) To bring about further increases in the average income of all peasants from the collective economy, and to raise the average wage of all non-agricultural workers and staff, all of which will come about through increasing production .(12) China has made a point of stressing self-reliance to be the basis of socialist modernization, it is hoped , by a peaceful international environment. It regards its opening to the outside world and broadening the scope of economic and technological exchanges with foreign countries as conditions essential to the modernization undertaken. Chinese policy makers are very clear in development strategy of China and correlation with foreign policy in implication. The have realized that fact that in the world today, production, commodity, circulation and science and technology are so highly developed that no single country has all resources and know-how needed for expanding its economy. All countries, including socialist ones, seek to take advantage of the growth and progress in other countries and promote their own economic growth by exchanging what they have for what they lack and soaking up the best they can find others As we know that China pursued a policy of opening to the outside world only after correcting the Leftist error, particularly during the cultural revolution. Since 1978, Chinas volume of foreign trade increase, foreign governments and international financial organizations have promised for signed agreements to extend loans to China and established joint ventures. Economic cooperation and, and technological exchanges increased and China has obtained additional sophisticated equipment and technology from abroad. It is to put all branches of the economy on an advanced technological basis that China embarks upon the Programme to modernize its science and technology. China has shifted from a stress on serving newly built enterprises to the technical transformation of existing enterprises. These imported techniques included designing, technological processes, manufacturing and management, some sample machinery, testing meters and instruments, key equipment and production line.Since1979, Chinas economic mechanism and social structure also have undergone a profound transformation. As ownership structure has been established that takes the public sector, as it main body ,supplemented by the private sector, which includes individually owned and foreign owned enterprises a structure with divers sectors of the economy developing side by side has been established. The states mechanism for macro-regulation of the national economy has been constantly improving while planning concepts and methods are being renovated and improved, in order to step by step from a socialist market economy. As an examination of Chinas open door policy would clearly contribute to an understanding of the liberalization process, The Central Committees landmark Decision on Reform which was passed at the Third Plenary Session of the CPC

Twelfth Central Committee in October 1984 ,was widely described by blueprint for China reform process and open door policy. The CPC made this clear that we would promote (the ) individual economy particularly in those economic fields mainly based on labour services and where decentralization operation is suitableand cooperate management and economic association among the state, collective and individual sectors of the economy. (13) Speaking at the Third Plenary Session of the Central Advisory Commission of the CPC on October 22,1984 Comrade Deng Xiaoping said, that the world community is quite concerned about the Decision on Reform and liberalization of Chinas economic structure, and we say our current policy is working, because our country is thriving, the peoples living standers are genuinely rising and Chinas international prestige is growing. These are the essential facts. Our policy succeeded first in the countryside it will not change there. .As Central Committee has mapped out a plan to help the poor areas to prosper. Now that most parts of the country have become better off, the state can spare more resources to help develop the rest. (14) Comrade Deng Xiaoping further made it clear Isolation prevents any countrys development. We(China) has suffered from this and so did our forefathersWe must open ourselves to outside world. Decision on Reform of the economic structure and opening foreign affairs is a very good document, for it explains what socialism is in terms never used by the founder of Marxism-Leninism. (15) As it is clear that since 1979 Chinas foreign policy and economic relations are based on the principle of Open Door to promote foreign trade and investment. Chinas foreign policy of economic reform and liberalization is both an interesting and an important in which one can explore the interaction of ideology, policy and practice in the process of policy formulation and implementation. The present research paper will focus on the very important aspect of Chinas policy of economic reform, and related policies implementation on Coastal areas of China, as a part of Chinas open door policy in its drive to modernization. Impact of Reform & Open Door Policy on Coastal areas China is situated in the eastern part of Asia, on the west coast of the Pacific Ocean. It has a total land area of 9.6 million square kilometers. Out of which China's land border is 22,800 and its coast of the mainland covers 18,000 km. long area. China has vast territorial seas and numerous islands. Curving in a crescent around the eastern shore of the mainland, the ocean nearest to China is divided into four seas, from north to south the Bohai, Huanghai (Yellow Sea), and the East China to South China seas. Sheltered by the Liaodong and Shandong peninsulas, the Bohai is almost an island sea. The Huanghai runs from the Liaodong Peninsula to the mouth of the Changjiang (Yangtze) River. The East China sea, east of the mainland, runs from the mouth of the Changjiang River. The South China Sea begins at the southern tip of the Taiwan Strait. The coast of the mainland runs (18,000 km.) from the mouth of the Yalu River on the Chinese-Korean border in the north to the mouth of Beilum River on the Chinese-Vietnamese border in

the south (16). From north to south, the most famous coastal harbors and ports and cities include (1) Dalian, (2) Qinhuangdao, (3) Tianjin, (4) Yantai, (5) Qingdao, (6) Lianyungang, (7) Nantong, (8) Shanghai, (9) Ningbo, (10) Wenzhou, (11) Fuzhou, (12) Guangzhou, (13) Zhanjiang, (14) and Beihai. The coastal water are rich in natural resources. More than 1,500 species of fish, prawns, shellfish, allege, and kelp live in the Bohai, Huanghai, and the East China and South China seas; the continental shelf also contains vast reserves of petroleum and natural gas as well as geothermal energy resources. In 1979, the Chinese Government decided to establish the Special Economic Zones. The opening of fourteen coastal cities followed this to the outside world in 1984. Each of the 14 cities is a unique gateway to China's vast interior and has its own special advantages. Although they all share the qualities of good ports and enthusiastic, progressive leadership, they also differ greatly each with its own set of assets and liabilities, personalities and flavour. Some of the cities, such as Shanghai and Tianjin, are well-known metropolises. Other, like Beihai and Lianyungang, are now taking their first steps on the march to modernity. Still others are cultural and historical centers; some are more industrial and commercial; and a few are known as resorts that attract tourist from around the world. As China strives to export its beautiful products and import and assimilate the world's technology, 14 of these coastal cities have opened their doors to the four corners of the earth. Talking with Prime Minister Robert Mugabe of Zimbabwe, Comrade Deng Xiaoping said that "if China is develop, it must continue opening to the outside world and proceed with its liberalization and reform. These should also include reform of the political structure, which is in the realm of the superstructure. The policy of opening to the outside world is correct, and China has benefited greatly from it. If anything, we (China) should open our doors even wider. And that's we are going to do (17). The policy of opening China's doors to the outside world has produced the results we hoped for. We (China) have implemented that policy in various ways, including setting up SEZs and opening 14 coastal cities. Wherever the open policy has been implemented there have been notable results (18). Our (Chinese) achievements in the last few years have proved the correctness of our policies of reform and opening to the outside world. Although there are still problems in various fields. Comrade Deng Xiaoping added that, I do not think they'll be too hard to solve, if we go at it systematically. Therefore, we must not abandon these policies or even slow them down. One of the topics we have been discussing recently is whether we should speed up reform or slow it down. That's because reform and the open policy involve risks. Of course we have to be cautions, but that does not mean we should do nothing. Indeed, on the basis of our experience to date, the Central Committee has been considering to accelerate the reform and our opening to the outside world (19). In order to maximize the advantages of its coastal zones and actively develop its export-oriented economy, the Chinese Government determined, in March

1988, to appropriately expanded the three free deltas, and named the Liaodong and Jiaodong peninsulas, the Bohai valleys, Shenyang, Nanjing, and Hangzhon as the zones opening up to the outside world. Now, the eastern coastal free zone includes 288 cities and countries, embracing a population of 160 million and covering an area of 320,000 sq.m. Thus in East China, a multi-layered economic free area with key cities, consisting of SEZs, coastal cities open to outside world, coastal economic free zones and interior regions, has been formed. The formation of these zones is of great significance to the further opening of China to the outside world and to the economic development of the coastal areas. Between 1990 and 1992, the Central Government initiated the Yangpu Development zone in Hainan Province and the Pudong New Zone in Shanghai; the opening of 28 cities and 8 regions along the Yangtze River was approved, their economic activity to be funneled into the "dragon head", Shanghai's Pudong New Zone. In addition, a number of border cities were opened to foreign investment and 13 free trade areas were established in Shanghai, Tianjin, Dalian, Shenzhen, Guangzhou, Haikou, Fuzhou and other ports. Thus China has formed a multi-level, directorial mechanism for opening the country to the outside world extending from SEZs, open coastal cities and open coastal economic zones to island and border areas (20). The establishment of free trade areas is another important measure adopted by the Chinese government to expanded its opening to the outside world and attract foreign investment. In China, a free trade area is a small special district with closed access facilities, analogous to free ports or free trade district in other countries. It is a customs service supervised area combining export processing and foreign trade, implementing special traffic policies and employing special managerial methods. From 1990 to 1992, the Chinese government approved the establishment of 13 free trade areas : (1) The 3.28 sq.km. Waigaoqiao Free Trade Area in Shanghai, located at the southern mouth of the Yangtze River, is currently China's most open free trade zone. (2) The 5 sq.km. Tianjian Port Free Trade Area, located on land adjoining Tianjin's harbour, is the largest zone of its kind in north China. (3) The 1.25 sq.km. Dalian Economic and Technological Development Zone, is an important window on north-east China's opening to the outside world. (4) The 0.2 sq.km. Shatoujiao Free Trade Area is located in Shatoujiao Town in Shenzhen. (5) The 1.35 sq.km. Fution Free Trade Area is located in Huanggang Port in south-central Shenzhen adjoining Hong Kong. (6) The 1.4 sq.km. Guangzhou Free Trade Area is located in the north-east section of the Guangzhou Economic and Technological Development Zone. (7) The Zhangjiangang Free Trade Area, located on the east side of Zhangjiagang Harbour in the lower reaches of the Yantze River, is currently China's only free trade area in an island river port; initially occupying 2 sq.km., it is projected to eventually expand to 4.1 sq.km. (8) the 1.93 sq.km. Haikou Free Trade Area is located in the Jinpan Processing Zone in Haikou. (9) The Qingdao Free Trade Area, located on the west coast of jiaozhou Bay near Qingdao, is planned to occupy 2.5 sq.kms. (10) The 2.3 sq.km. Ningbo Free Trade Area is located to the north of Belium Harbour in Ningbo. (11) The 1.8 sq.km. Fuzhou Free Trade Area is

licated in the Economic and Technological Development Zone in fuzhou. (12) The Xiangyu Free Trade Area, located in the Xiamen Special Economic Zone, will initially occupy 0.6 sq.km. (13) The 2.3 sq.km. Shantou Free Trade Area is located in the Shantou SEZ. The first steps in establishing free trade areas in China are proceeding smoothly. A number of such areas, including Tianjin Port Free Trade Area, Shanghai's Waigaoqiao Bonded Area, and the Dalian and Zhangjiangang free trade areas, have already been sealed off and are soliciting business. To date, nearly 1,000 enterprises have entered these free trade areas, with a total investment in excess of US $ 2 billion, half of which is foreign capital (21). DALIAN COASTAL CITY : LOOKING FORWARDS Dalian is one of China's key ports for international trade. Dalian covers 12,000 square kilometers and population is about 471,000. Dalian is located on the southern most tip of the Liaodong Peninsula. In 1976, Dalian built China's largest deepwater wharf at Nianya Bay. Dalian Harbour can now handle more than 35 million tons of cargo a year. Dalian Harbour is also the ocean gateway to the north-eastern provinces of Heilongjiang, Jilin and Liaoning, and the eastern part of inner Mangolia. Since Central Government decided to open outside the world, Dalian has opened for foreign business, the funds and advanced technology imported will spark the economic development of the whole area .(22) Dalian specializes in machine building, petrochemical, textiles and other light industrial products. About 80 percent of its products are shipped to other parts of the country. It leads the country in producing ships, internal combustion engines, combination machine-tools, high-speed tool steel, soda ash and synthetic cloth. More than 1,900 industrial enterprises are staffed by 580,000 people. Of these business, 59 are fairly large or key enterprises, producing more than 70 percent of the city's total value. The state policy is for this open city to absorb outside investment and import advanced technology to revamp the old enterprises rather than build new ones. The reason is clear; these enterprises have ready workshops and skilled workers and technicians. Importing some key equipment, raw and semi-finished material and advanced management methods can greatly increase their productivity and enhance the quality of their products and can even enable some factories to produce new items. Renovating old enterprises requires less money and yields quicker benefits for both the Chinese and foreign partners. Dalian municipal government has devised a pacific programmes to turn it into an important hub of international communications, an advanced industrial base and one of the trade, finance, tourism and information centers in Northeast Asia within 20 years Dalian is quickening its development pace to promote opening to the outside world. Following the establishment of the Dalian Economic and Technological Development Zone, Dalian has set up a high-teach district, a bonded district and the Jinshitan National Tourism Holiday District with the approval of the State, plus a small economic development area along the

Shenyang-Dalian Express way and the coastline of the Yellow Sea (23) Foreign investors also enjoy preferential treatment in these zones. A development zone, through a part of a city, is somewhat independent of it. However, its prosperity adds to the prosperity of the entire municipality. Dalian plans to expand its harbours by opening up an area in suburban Jinzian Country, which will provide about 100 berths for ocean-going vessels. Backward local post and telecommunications facilities are being updated. A 160-channel microwave communications system linking Dalian to Shenyang and a 300 channel coaxial telephone cable project put into operation in 1984 (24) About 500 foreign funded enterprises have been setup in the Dalian Economic and Technological Development Zone. The five important items on the agenda all rank number one out of all development zones nationwide. They include area occupancy, total investment volume of foreign owned, joint venture and cooperative enterprises, negotiated foreign worth, actual implementation of foreign exchange earnings for exports. In 1992 alone, Dalian used foreign funds to set up 200 projects in finance, real estate, merchandising, entertainment and information services, obtaining US $ 355 million of contracted foreign funds (25). . In the near future Dalian will open international air routes to Osaka and Sendai in Japan and Seoul in the Republic of Korea. The completion of the Dalian-Shenyang Electrified Railway will speed up the formation of this international communication hub .(26) The largest heavy oil catalyst facility being built which will have an annual production capacity of 3.5 million tons in Dalian,Liaonting Province .(27) During January-June 2001the trading volume of soybean futures at the Dalian Commodities exchange was 4.3 times of that at the Tokyo grain exchange and 23.5 percent of that at the Chicago futures Exchange QINHUANGDAO COASTAL CITY : TOWARDS KEY WORLD PORT Qinhuangdao is a quickly growing port on the Bohai Bay in north China. The central government has invested heavily in Qinhuangdao because of its superb natural harbour and its importance to China's modernization programmes. The city also has sizable deposits of granite and marble, as well as mining potential for coal, iron, lead, zinc, gold, silver and graphite (28). Qinhuangdao was a small fishing village. In 1898 the Manchu government opened it as a commercial port to foreign traders. Later it became a coal port for the Kailuan Coal Mine owned by a British firm in Tangshan. After 1949 the government improved and expanded the dock. Several deep-water berths were built and the port channel was dredged to make way for ships of more than 10,000 tons. With a 124.4 km. long coast, Qinhuangdao is a major agriculture base for north China. Special products include prawns, sea cucumbers and jellyfish. According to Mayor of Qinhuangdao City, Wang Daming, Primary, secondary and territory industry sectors are all developing rapidly in the city. The strongest industries are those engaged in glass, machinery, construction materials, aluminum goods, textiles and food production and ship rearing (29). In 1992, Qinhuangdao was listed one of the top 40 cities with the best investment environment in China. Qinhuangdao's modern international harbour remains ice-free

the year round, and is equipped with state-of-the art facilities catering to every shipping need. As the Qinhuangdao Economic and Technological Development Zone, established in 1984 with the approval of the State Council, is only 1.5 km. from the harbor, the railway station and the city proper. This Zone was an immediate hit among investors. Among the zone's 304 enterprises, 84 are foreign funded ones involving a total foreign investment of US $ 372 million. Qinhuangdao has set up a 'Foreign Information Service Center' (30). Continuous efforts are being made to turn Qinhuangdao into a modern international city with advanced harbor facilities, high-tech industries, efficient agricultural production and development tourism. Qinhuangdao is rated by the state as a top-level tourist city. There are more than 300 tourist attractions in the mountains and forest, and along the sea, rivers, lakes and springs. Sites worth visiting include places, temples, caves and the Shanhaiguan Pass. The 'Great Wall' begins its long journey to the west from Shanhaiguan Pass (17 kilometers northeast of Qinhuangdao harbour). It goes first to north and then to the west along the mountain ridges. There are about 20 cooperative projects stated for Qinhuangdao in various specification in various areas. (31). Some of them are as follows: (1) To introduce magnetic controlled spray-coating equipment and technology to produce 400,000 to 600,000 square meters of coated glass per year. It has total investment of US $ 3 million, including US $ 750,000 of overseas investment. It is joint venture type project. (2) To set up a production line making 1,000 tons of clinker cement per day. It has total investment of US $ 27 million, including US $ 12 million of overseas investment, its nature is joint venture, compensatory trade and foreign loans. The Qinhauangdao Wushan Cement Factory is a Chinese partner. (3) To introduce equipment and technology to produce, 3,000 tons of spun bounds geography non-woven fabrics per year with US $ 9.6 million, including US $ 4 million of foreign investment. Its type of partnership is joint venture. (4) To introduce an assembly line with an annual production capacity of 1.5 million read only and erasable optical disks. It has 300 million yuan, including US $ 36 million of overseas investment with joint venture nature. Its Chinese partner is Qinhaungdao Electronic Glass Factory, Haigang District of Qinhaungdao.(5) To set up a production line capable of producting 2 million nickel-hydrogen rechargeable batteries annually. With a joint venture nature of partnership it has 14 million yuan, including US $ 1.6 million of overseas investment.(6) To construct the four lane Qinhaungdao-beijing Expressway Five year duration. Total investment of US $ 509.6 million (equivalent to 2.96 billion yuan). A foreign loan, exclusive foreign investment in nature and Qinhaungdao Communications Administration is Chinese partner. (7) To produce super-contortion liquid crystal displays (STN-LCD), with US $ 4 million, including US $ 2 million of foreign investment of joint venture project is to established. (8) To set up facilities to produce 1 mw-solar energy batteries project is to be established with a joint venture in nature in Qinhaungdao.(9) To set up facilities producing 15,000 model PK ratchet-action electric blocks annually, a project with a joint

venture in nature has to established in Shanhaiguan with US $ 1.7 million, including US $ 700,000 of foreign investment.(10) To set up facilities to produce 5,000 low-speed, high-torque motors per year, a project is proposed by the Qinhaungdao Hydraulic pressure Equipment Factory, with 15 million yuan, including US $ 2 million of foreign investment.(11) To install ampicillin processing facilities which can produce 200 tons of ampicillin and 150 tons of cephaloridine per year, a project with US $ 4.55 million, including US $ 2 million of foreign investment is proposed by the Funing Country Amylum Glucose Factory, Qinhuangdao.(12) To contract the Qinhuangdao Shopping Centre, the largest multi-function business and commercial center in Qinhuangdao is proposed with US $ 25 million, including US $ 6.5 million of foreign investment, it has joint venture type of partnership.(13) To set up a 200,000 ton dock (342m x 58m 12.6m). Total investment of this project is US $ 80 million including US $ 50 million of foreign investment. Chinese partner of this project is the Shanhaiguan Shipyard.(14) To produce 10 million instruments and meters annually, project proposed by the Beidaihe Instrument and Meter Factory, Beidaihe District, Qinhuangdao. Nature of project is joint venture.

TIANJIN : ECONOMIC CENTRE OF NORTH CHINA Tianjin is an old-line seaboard industrial and commercial city in north China. It is a leading port, industrial base and economic and trade centre. Mayor of Tianjin said that, the Tianjin government has decided to place strategic focus on development of its 2,000 square.km. seashore to foreign economic growth. The area encompasses Tianjin Harbor plus economic development and free foreign trade zone and the lower Haihe River Industrial Zone (32). During the "93 Tianjin Investment Environment Symposium" held in Tianjin, Mayor Zhang Lichang said that "Tianjin aims is to attract US $ 1.2 billion of foreign capital in the coming five years and transform itself into an international economic, financial, commercial and trade center". This symposium was attended by 35 managers from Tianjin's foreign funded enterprises (33). Introduction of foreign capital constituted the most important activity. More than 2,200 foreign traders from over 50 countries and regions including Hong Kong Japan, the United States, Taiwan, held wide-ranging negotiation with more than 300 enterprises or company representatives from 24 of China's provinces, autonomous regions and municipalities. They signed 98 contracts and agreements for the use of foreign capital Tianjin Pipe Corporation- TPC -is Tianjin's largest industrial project (it is a major state run iron and steel enterprises), with a total investment of US $ 980 million. It's the biggest seamless pipe producing base with advanced equipment to make up for the oil pipe shortage in China (34). Italy's Zanussi Elettromeccanica (ZEM) signed an agreement to transfer ozone friendly compressor technology to its joint venture operation in Tianjin. The Tianjin Steel Tube Co. is another significant Co., which has completed in 1993. The company is designed to have an annual capacity of 500,000 tons of steel tubes. Its oil casing and boiler pipes will meet 30 percent of the domestic need.. The

firm, with a total investment of 2.7 billion yuan, ships in its main equipment from Germany, Italy and the United States (35). The Tianjin Economic and Technological Development Zone (TETDZ) is another reform measure. TETDZ is a modern industrial urban complex on the once saline infested soil near Bohai Bay, has become one of the best among China's 30 plus development zones.In 1993, foreign business people from 46 countries and regions has come to establish businesses in the zone. A foreign financed firm ratified has totalled 1,709. Contracted investment volume reached US $ 2.53 billion and US $ 1.66 billion of foreign capital has been employed (36). The United Planning Co. of America spent US $ 467,000 on conducting detailed assessment of the Tianjin zone. It signed a letter of intent with the Tianjin zone to put in US $ 140 million in investment. A manager from the Motorola (China) Electronics Ltd.. said during the' 93 Tianjin Investment Environment Symposium, that the Tianjin Motorola Co has been dramatic progress. It now appears that the original US $ 120 million investment plan will be greatly expanded. the company is set to add another US $ 150 million. Tainjin De Pu (DPC) Biotechnological and Medical Producer Inc. is a high-tech Sino-US joint venture set up in 1992. Business turnover that year was more than 8 million yuan and reached 15 million yaun in 1993. High efficiency has led the investment to add US $ 600,000 to its original US $ 870,000 (37). The Tianjin Harbor Commercial Co.Ltd.(CBW) is China's first such warehouse jointly run by the Tianjin Post Office and the Royal Nedlloyed Group N.V. Covering 150,000 square meters with total investment of US $ 30 million, its first phase construction coast US $ 9 million (38). Apart from all these development, the free trade zone still confronts some problems. First, any foreign financial body intending to enter the zone needs state approval and so far none exist there. Second, the zone lacks experienced professionals. Third, the Zone's development direction should be handled with dexterity. Currently, the free trade zone is treated as a special economic zone and therefore, rules and regulations should be drawn up early to help it evolve toward becoming a free port (39). T he Tianjin municipal Government has planned to create a better investment environment for foreign enterprises .First, the collection of administrative fees is regulated. A collection license and identity papers issued by the pricing department must be produced and collection standards must be strictly, adhered to when collecting fees from foreign enterprises. Second, preferential policies on investment in infrastructure projects have been formulated. Foreign investors are encouraged to invest in infrastructure projects, including roads, bridges, railways, airports, rail transit ,electric power and heating .Various measures have been adopted to guarantee reasonable investment returns, Third, a service center to promote foreign trade has been established to provide policy consultation, import and export information, marketing and logistic services for foreign investors. An investment and start-up center for small-and medium-sized enterprises from foreign countries and Hong Kong, Macao and Taiwan has been established to minimize their investment risk. (40) YANTAI: A FAIRYLAND CITY

Yantai is a small city it is connected with the rest of the country through the Lanzhou-Lianyuangang Railway.Yantai is well known for its aquatic products, particularly its prawns. Other area resources include gold, copper, iron, lead and coal. Known in legend as 'a fairyland' city, Yantai has a pictures landscape fascinated many including Qin Shi Huang, the first emperor or the Qin Dynasty (41). Since the founding of New China in 1949, Yantai had lad Shandong Province in industry, agriculture and fishing. Its industrial output value ranks second only to Qingdao. After opening to outside world Yantai beats Qingdao in resources, and a combination of its own strength and foreign investment and technology will certainly speed development. Till August 1993, more than 10 Sino-foreign joint ventures have begun working in the zone and 18 joint venture contracts have been signed. Offshore funds, totaling US $ 21 million, mainly emanate from the United States, Japan, the Republic of Korea, Germany, Hong Kong and Taiwan (42). The zone has been divided into three functional districts to handle finance and trade, processing and storage respectively (43). Quiet changes have taken place in the trend of foreign investment pouring into the Yantai. Instead of schemes with limited funds, small risks and a short reoccupying period, more foreign capital is now being invested in infrastructure projects with substantial investment greater hazards and a long pay back period, such as those involving energy, transport and telecommunications. Reports cite the amount of foreign capital invested in the city's infrastructure projects as already exceeding US $ 160 million. . The power industry has attracted the most foreign capital, totaling US $ 97.4 million. Second, forms of investment have become more diversified, including joint ventures, outright monetary grants, and foreign bank and government loans. Third, the amount of foreign investment in each project is great. Around 66 percent of foreign funded endeavors have individual foreign investment exceeding Us $ 10 million. Among them are the third stage of the Longkou Power Plant with an installed capacity of 400,000 kw. and the construction of six 10,000 ton berths for second stage of the western port are of contracted foreign investment in each of the above two projects has soared above US $ 40 million (44). The Yantai was among the first 14 opened coastal cities in China.In 1993,it was listed among Chinas top 50 cities in terms of comprehensive economic strength and among 40 Chinese cities with with the best investment environment. The city also took the lead in China in settling up an economic and technological development zone, high-tech development zone and bonded zone .(45) The Yantai is a favorite investment destination of members of Asia-Pacific Economic Cooperation-APEC- countries Up to now,all 20 APEC members outside Chias mainland have established trade links with Yantai and 18 of them have investments there.So far,Yantai has carried out economic cooperation with more than 50 countries and regions in the world in a variety of internationally concentional practices. The city has approved 5,826 foreign investment projects of which 1,900 have gone into operation. The combined contracted foreign capital of 215

overseas-funded projects, each with an investment of more than US$10 million, amounts to US$3.47 billion, accounting for 45.25 percent of the citys total .(46) QINGDAO : CENTRE FOR OCEANOGRAPHY The city of Qingdao is located in the south-east corner of the Shandong Peninsula, one of the China's most affluent area It can handle more than 22 million tons of cargo annually. Qingdao's rubber, chemical, electronics, and building material industries have been expending rapidly. Its beer, white wine and marble products are among its most popular products. The thick, leafy trees which covered mountain slopes dropping gently to the sea on three sides give this city the name it deserves-Qingdao or "Green Isle". In an interview Zang Kun, the Mayor of Qingdao said, we are going to undertake 440 technological projects. Ocean to foreign investment in other areas which will promote Qingdao's technological advance. By the end of the century we plan to build in Huangdao an industrial area of 15 square Kilometers ,100,000 people and more than 300 enterprises (47). On August 1, 1992 the Qingdao High-Tech Industrial Park has been established, and it made notable efforts to attract foreign investment and the results have been remarkable. According to Jiang Huashan, deputy director of the park's management committee, recently announced there are 273 enterprises registered in the zone, 66 of which are foreign invested. Total investment stands at 3 billion yuan, including US $ 150 million of overseas investment (48). High-Tech Industrial Park is expected that foreignfunded projects involved in high-tech area as marine science and technology, bioengineering, new materials, fine chemical, optical mechatronics, micro-electronics and computers to move into the park. A number of large projects have already entered the park, including one which produces wireless security telecommunications with senses International Ltd., based in the United States Silicon Valley, as a partner, and a programmes controlled telephone exchange manufacturer set up in cooperation with AT & T (49). The Republic of Korea's firms and investors are finding an excellent environment in China, particular in Qiangdao. In Qingdao Republic of Korea (ROK) funded Enterprises Society. Qingdao has 131 ROK funded enterprises, and most of them are exclusively ROK funded. There are estimated to be over 1,000 ROK nationals working in the city. In the late 1980s, the ROK government formulated the West Coast Development Programmes and founded a promotion committee. At a total cost of US $ 25 billion, the programmes aims to form a Yellow Sea Economic Zone which encompasses the Shandgong Peninsula and China's east coast open cities. Qingdao, because of her strategic situation acutely sensed an opportunity. In late 1989 encouraged by the sincere cooperative spirit esixting between Qingdao and ROK firms.Since second half of 1989, Qingdao and the ROK have established 52 joint ventures. This has resulted in total foreign investment of US $ 73.62 million, the development of 7,800 workers and the collection of US $ 3.1 million in rent and US $ 1.1 million in administrative expenses (50).

LIANYUNGANG : PROMISING PORT , Lianyungang city covers 6.262 square with the population of 2.93 million of whom 430,000 live in the city proper. Lianyungang is perhaps one of the least developed. Over the past 35 years it has been built into a port city based on light and chemical industries. It now has great potential for economic development. Some of the nation's best fishing waters are off the coast of Lianyungang. Lianyungang's ice-free harbour is one of the nation's most promising. Located midway between Shanghai to the south and Qingdao to the north, transport distances from much of the heartland are shorter to Lianyungang. After the 1911 Revolution, President Sun Yat-Sen planned to build a harbour at Lianyungang, but the project was never carried out. The strategy of opening doors both inside and outside China has no doubt, contributed to the development of previously underdeveloped Lianyugang. In 1979, Liantuangang imported equipment and received lones worth US $ 500,00 from Japan to expand its prawn production. He Renhua, Mayor of Lianyungang, has been busy implementing the open policy. In November 1984, he led a negotiation team to Hong Kong to attend a foreign investment seminar sponsored by the 14 coastal open citiesLianyungang has many historical sites and scenic spots, though tourist facilities are largely underdeveloped. Among them most interesting attraction are: Primitive Rock Carvings which is found on the slope of a hill about 9 km. from the city proper. Archaeologists have suggested that these carings were does to the farming gods worshipped by tribes 3,000-4,000 years age. There are more than 100 Buddhist statues carved into the cliffs to the south of the city. Accordingly to China's classic novel 'Journey to the West' the Monkey King, a hero of the novel, was born at Huaguo (Flower and Fruit) Mountain. Located between the city proper and the port, the mountain is a scenic spot covered in streams, flowers, shrubs and trees. A top a nearby peak there is an old Buddhist monastery, which dates from Tang Dynasty (618-907). Lianyungang is an ancient city with a rich cultural heritage (51). NANTONG: ROTTERDAM OF NETHERLANDS The Nantong city earned its name, which means "a readily accessible southern town", because it is ideal for navigation. Nantong is one of China's largest grain producers; it is also rich in cotton, silkworm cocoons and marine products. With favorable geographical conditions, well-developed regions surround Nantong. Being the last port along the lower reaches of the Changjiang River. Nantong is only 460 nautical miles from Nagasaki in Japan (52). In terms of geography, Nantong can be compared with Rotterdam in the Netherlands and New Orleans in the United States. Nantong harbour has a smooth, deepwater shipping frontage along 26 km. strength of the Changjiang River, which runs 8-16 km. wide and 11-20 meters deep. Ice and salt-free and protected from the burned of typhoons, the harbour operates year round. Nantong

harbour received 50 ships from 22 countries and regions, including Panama, Greece, Japan, Britain, the United States, Indonesia, ex-Soviet Union, Cuba, Yugoslavia and Thailand. It has also established shipping links with 36 overseas parts (53). . The city has now 48,000 cotton thread shindles, 26,000 weavers, 28,000 woolen textile spindles and can print and dye 200 million meters of fabric a year. Eight industry and textile constitute the mainstay of Nantong's comprehensive industrial setup. The machine building, electronic, chemical, pharmaceutical, building materials and foodstuff industries are also well developed (54) Nantong has marked off a 4.62 sq.km. economic and technological development area at Fumin port, about 10 km. to the south-east of the city proper. Skirted by revers and linked to the city by a bridge, Fumin is an ideal location for setting up joint ventures and whooly owned foreign enterprises. The Mayor of Nantong is confident that so as the city's people work with one mind to implement the state's policy of opening to the world and enlivening the domestic economy, Nantong will surely become an important trade and transportation hub on the Changjiang, a modern textile and light industrial base and major export commodities producer were foreign capital and expertise will be put to good use (55). Nantong has developed trade links with over 90 countries and regions in the world. Since 1980 the total volume of export has been doubled. Foreign funds to the tune of $ 60,000,000 have been utilized to import more than 90 items of advanced technology and equipment from Japan, Britain, Italy, Holland, the Federal Republic of Germany, Switzerland, Hong Kong, Belgium, the United States, New Zealand and Macao (56). Nantongs social security system also began to take shape in 1980s.Old-age insurance system reforms made progress in 1990sIn 1992,Nantong put forward to have the system cover all labores, guaranteeing pensions to be given in full and on time to retirees of bankrupt and less incurring enterprises. Their 10-year effort has made the goal become trueIn 2002 there are 600,00 enterprise employees, including those of private firm, have taken part in old-age insurance. The subsistence allowance system is the base of the Nantong social security system .By the end of 2002,10,703 residents in 4.558 households received the subsidy . (57) SHANGHAI : LARGEST INDUSTRIAL & COMMERCIAL CITY Metropolitan Shanghai is located half way up China's Pacific coastline with the highly developed Changjiang (Yangtze) River Delta at its back. Shanghai covers 6,186 sq.km. Today it has become a comprehensive industrial base with solid economic, technical and professional resources. Its industrial output value makes up about oneninth of the nations total, and its financial income one-sixty. Both its import and export volume accounts for one-fifth of the country's total. It occupies first place in the whole country in terms of the economic results of industry (58). A cradle of China's modern industry, Shanghai has become one of the nation's key industrial bases. It processes comprehensive industrial system encompassing 15 industrial departments.. A number of

key enterprises, including the Shanghai Baoshan Iron and Steel Complex, the Shanghai Petrochemicals Factory, the Shanghai No. 3 Iron and steel Plant, the Shanghai Volkswagen Automobile Co., the Shanghai Yaohua Pilkington Glass Co. Ltd., the Shanghai Bell Telephone Equipment Manufacturing Co. Ltd., the Yongxin Colour Picture Tube Plant Factory, were set up in succession. They have brought more verve and vigour to China's old industrial base. The Shanghai Shipbuilding industry is capable of building all sorts of vessels to meet the shipping classification standards of all countries. The MD83 large passenger aircraft of Shanghai have own praise and fame for quality and been sold to United States where their design originated. Nuclear Power units produced by Shanghai have entered international market. In addition, heavy load capacity rocket carriers and man-made satellites developed by Shanghai have been sent into the sky (59). The open door policy has fostered new friendships between Shanghai's intellectuals and their overseas counterparts and brought many old acquaintances back together. Deputy Mayor of Shanghai, Yuan Chongwu, focussed on the development strategy of Shanghai in future. He said "Using foreign capital, importing advanced technology and strengthening international cooperation constitute Shanghai's long-term policy for economic and social development (60). In the immediate future Shanghai will, acting on its needs for economic and social development, emphasize the following endeavors: (1) Speeding up the technological transformation of old enterprises, especially those in meters, building materials, light industry, textile and food processing, so that by 1990 the city's industry, transportation, communications and construction will reach the level of the developed countries in the 1980s. (2) Development of new technology, while seeking a break through in microelectronics, Shanghai will gradually launch new industries such as in new materials, optical fibers, lasers, biological engineering, marine engineering and robotics. (3) Developing the Minhang and Hongqiao Development Areas, which will become Shanghai's investment centres for overseas industrialists and entrepreneurs. (4) Developing tourism, trade centres and other service industries. More tourist hotels, offices buildings, apartment buildings and recreational centers will be built. (5) Speeding up urban development. That means developing the infrastructure, including energy supply, transportation and public utilities. Shanghai will also transform and build new harbours, railway stations, airports, tunnels, highways, and subways and telecommunications facilities so as to improve the investment climate. (6) Developing sideline production in sub-urban areas, with the emphasis on milk, fresh water fish, poultry, fodder and opening up Chongming Isle. (7) To provide a good investment environment for overseas business representatives, in the near future Shanghai will build an express trolleybus line between Baoshan and Jinshan, a new sub-way and a bridge across the Huangpur River. The city's construction plans also include two tunnels under the Harangue River, railway overpasses and highways. Shanghai Harbour's cargo handling capacities will be expanded, and preparations are underway for the establishment of a Shanghai based airline.

In the 1980s, Shanghai set up three economic and technological development zones in Minhang, Hongqiao and Caohejing. In 1990s development of the Pudong New Area has been in full swings. The Minhang Development zone devoted to the processing industry has attracte many foreign firms. The Hongqiao Development Zone, focusing on finance and foreign trade, has led the nation in implementing compensated transfer of land-use rights. Caohejing Development Zone is Shanghai's base for high-tech development, testing, production, operation, training and service. Many big names in the high-tech world such as the 3M Co. of the United States, the Bell Telephone Equipment Manufacturing Co. Ltd. of Belgium, and the Daikei Data Processing Co. Ltd. of Japan have all set up there. The Pudong New Area differentiates itself from others with its large, territory sector and high-tech projects. It has been the establishment of 700 foreign enterprises and over 1,400 domestics enterprises, attracting a total US $ 1.56 million and 9.26 billion yuan (61). For more than a century, Shanghai has been a wellknown commercial hub with various undertaking and a beacon for legions of traders. In 1992, the city experienced consumer commodities retail sales equivalent to 47.94 billion yuan, putting it in the nation's top rank By the end of May 1992, it had 629 commodity markets on various scales such as large specialized wholesale markets, trade centers, wholesale and transaction markets, a future market, trade warehouses, small commodity wholesale markets and collectively run trading markets (62).. Shanghai has established links with over 30,000 traders in more than 170 countries and region. Hong Kong, Japan, The United States and Western Europe are its four biggest trade partners. In the past few years, trade ties with Russian, South Korea and Southeast Asian countries also developed with great momentum. Shanghai is restoring its image as an Oriental foreign trade center that lures countless businessmen (63). The construction of the 7,658, meter-long Yangpu Bridge, the world's largest cable-styled bridge that spans 602 meters, was completed on September 15, 1993. The magnificent bridge, with its twin towers that rise some 208 meters in height, is shaped like an inverted 'Y'. Some 256 colorful cables support the massive structure. The bridge has the capacity to handle 50,000 vehicles per day, and its height, which rises some 48 meters above water level, provides easy and navigation for 50,000 ton ships. The 1.33 billion yuan Yangpu Bridge was completed in 29 months (64). Shanghai has now over 1,600 real estate companies the nearest developments to the down town area are in Hongqiao and Pudong. Villas generally cover 250 sq.m., with the largest covering 400 sq.m. They often have gardens each with an area of 200 sq.m. Currently, villas range in price between US $ 1,000-2,000 per square meter. However, those in the distant suburbs normally sell for less than 1,000 US $ 1 million (65). Foreign-funded projects and investment have greatly increased during last few years. An agreements signed in Beijing on March 16,1993 saw foreign funds that are being used by four projects (66) in Shanghai. (1) The first is the Shanghai (ford) Motor Vehicle Spare parts and Components Co. Ltd. jointly established by the Ford Motor Automobile Co. of the United States and Shanghai Yanfeng Accessories Factory under

the Shanghai Auto Industrial Corp (2) The second is the co-establishment of the Shanghai Siemens Mobile Co. Ltd. by the Shanghai Changing Communication Equipment (Group) Co, The Post and Telecommunications Administration and the Xinda Communication Technique Co. of Shanghai, as well as Siemens of Germany.. (3) The third is the co-founding of the Tomson Waigaqiao Development Co. Ltd. by the Units Development Co. of the Shanghai Wagaoqiao Bonded Zone and a firm attached to Tomson of Hong Kong. (4) The fourth is the joint setting up of Shanghai Jinqiao Fujita United Development Co. Ltd. By the Shanghai Jianqiao Export-processing Zone Development Co. and the Fujita Co. of Japan., The Shanghai Yuejin Electrical Machinery Plant has engaged in over a decade of cooperation with the ABB Co., a well known transnational Britain and four other firms. Since 1992consortium and flourishing concern in Europe (67). Shanghai has clearly promoted not only expansion of numbers but also improvement of quality of Sino-foreign joint ventures in the fields of machinery and electronics industry. Efforts will be made to accelerate the pace of joint investment and cooperation with famous global firms and transnational three forms in the establishments of joint ventures with foreign business: (a) Establishment of new joint ventures; (b) Increase in investment; and (c) Participation in Sino-foreign joint ventures with substantial investment. For instance, a US firm and the Shanghai Engineering Machinery Factory will set up a new joint venture with a total investment of US $ 14 million (68). As Hightech industry in Shanghai began in 1987 since than it has obtained 67.05 million yuan of government funds for high-tech industries and set more than 200 key projects. The seven high-tech industries in Shanghai can be divided into three categories in terms of period of development, degree of difficulty, technical and material conditions and market factors: (i) The first category involves the large-scale microelectronics, computerizied switch boards and optical fiber telecommunications industries. In 1993 the output of integrated circuits reached total 20 million pieces in Shanghai, while total income from computer software was expected to reach 5 million yuan and total output is about 300 million yuan (ii) The second category covers modern biotechnology, laser and new materials that have initially taken shape. (iii) The third category refers to industrial robots, a field in the formative stage (69). The city of Shanghai is foreign ahead toward the goal of establishing a socialist market economy and becoming a modern international metropolis. There are 121large terms-national companies in Shanghai alone and over a third of those are from United States. The US is second in capital investment in Shanghai, a total of 2,012 foreigninvested projects were approved in 1992, 4.5 times the number in 1991. The amount of foreign investment in 1992 was US $ 3.357 billion, 6.5 times the amount in 1991. And that was just in the 1992. All together, there are 3,289 projects in Shanghai, adding up to a total of US $ 6.689 billion (70) Financial reform has also been taken place in Shanghai. Shanghai has established a financial system with the Central Bank (People's Bank of China) as its core and state specialized banks as the principal components. The setup also includes commercial,

overseas Chinese and foreign banks. The city has set up a comprehensive market system of bourses, foreign exchange transaction centers, ordinary and inter-bank loans and insurance. The Bund area, known as Shanghais Wall Street, holds numerous foreign financial institutions (71). By the end of 1992, financial institutions operting FOREX businesses in Shanghai had established business agents and account ties with some 5,300 central institutions and their subsidiaries in more than 150 countries and regions. This promoted the development of Shanghai and the whole country's foreign trade and international financial business, creating a favorable financial environment for domestic and foreign investment. One significant financial reform move in Shanghai is the cultivation and development of securities market (72). The total market value of stocks reached 55.8 billion yuan, an increase of 19 times over 1991. In 1992, the transaction volume of the Shanghai Stock Exchanges came to 76 billion yuan, 6 times the figure of the previous years. The Shanghai securities market is spreading far and fast across the country and is expected to become a national center (73). Shanghai has introduced market approaches by hosting a meeting of Asia-Pacific Economic Cooperation in 2001 In 2001,there were 28.000 enterprises from 91 countries and regions have invested in construction projects in Shanghai. Li Ka-shing invested 390 million yuan in a project to construct 150,000 square meters of apartments and official buildings. At present,144 domestic and foreign financial institutions have been established in Lujianzui finance and Trade District ,and 49 of the 88 banks are foreign . (74). Relation between Shanghai and other APEC members are very strong. In 2000, the total trade volume between Shanghai and APEC members increased 43.5 percent over the year 1999,accounting for 77 percent of Shanghais trade volume. Till 2000,17 pf 21 APEC members had invested in 19,000 projects in Shanghai, accounting for 85.2 percent of the total foreign investment there. Contracted investment reached US$31 billion or 68.4 percent of the total .(75) To established multilateral cooperation in extensive realms and extended activities in the international community as a formal international organization the Shangahi Cooperation Organization(SCO) is playing very significant role. The basic document defines the SCO as an international organization of openness paving a way for the participating of neighboring countries and cooperation with other international organization .On June 7,2002,president of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan gathered in St. Petersburg and discussed about the future development of Shanhai The SCO is significant in many ways as after the September 11 terrorist attacks, the US realized that regional economic underdevelopment and political instability can affect the world. N INGBO: MECHANIZED HARBOUR Ningbo is located in the southeast coastal province of Zhejiang, is the second largest city. Ningbo farmers grow large crops of rice, cotton and aquatic products. The area also has rich mineral resources such as flourite, lead, zinc, pyrophyllite and quartz.

An ancient city, Ningbo began to trade with Korea, Japan and the Southeast Asian countries during the Tang Dynesty (618-907). During the Northern Song Dynesty (9601127) it became one of the coutnry's major trading ports, comparable to Guangdong's Guangzhou and Fujian's Quanzhou. After the Opium War (1840-42), Ningbo was declared one of the five trading ports ( 76), open to the west. The founding of the People's Republic of China in 1949 boosted Ningbo's economic growth and it has gradually become a prospering port city with up-to-date facilities, a god industrial base and a diversified rural economy. In May 1984 the city was designated one of the 14 coastal cities to open international trade. Currently Ningbo is actively making use of foreign investment and improving advanced technology. Efforts are also being made to upgrade the city's existing enterprises, improve its telecommunications, air and sea transportations services, water and electricity supplies and expedite its infrastructural construction. Its international shipping routes lead to Korea, Japan and countries in Southeast Asia. It is also situated like a focal point in the centre of fan-shape inshore area. The distances are all nearly about 2,500 kilometers from Ningbo across the Pacific to North America and Oceania and across the Strait of Malacca of the Gulf area. Westward through the Suez Canal to Europe and southward around the Cape of Good Hope to South America are also about the same distance. This special geographical position provides an economical, rational centre for transportation of goods between continents. Since it opened its door wider to international trade in 1984, Ningbo had nested more than 800 business representatives from 22 countries and regions. City's officials have signed contracts with some of them, and are still holding talks on many other projects. More than 150 joint ventures, wholly foreign-funded and cooperative enterprises have signed up, with 80 in operation, Close to the east side in the 1.3 square km. Xiaoshan Industrial District. Being developed with exclusive funds from Hong Kong enterpreneurs, it is the first vast tract of land in Zhejing Province to be opened up solely by non-mainland investment (77). The Ningbo Economic and Technological Development zone, covering a total area of 29.6 sq.km, was one of the first development zones to be established in China. The government, Zhejiang Provience and Ningbo have successively invested some 6 billion yuan in many projects. There are a total of 30 major projects valued above US $ 10 million under construction, planning of negotiation, with a total investment of US $ 4 billion (78). In November 1992, the Ningbo Bonded Zone which covers area of 2.3 square km was established with state approval. Currently, the free trade zone is a free economic area opened to the widest extent in China. The free trade zone also institutes the enterprise registration system under which no examination and approval are required from competent authorities, and controls over the business scope and management power are lifted Ningbo Free Trade Zone was mainly funded by the Huaneng Group. To form the United Development Co., Huaneng took up 51 percent of total investment, the rest

coming from the Zhejiang Provincial government, Ningbo Government and Ningbo Port Office. The first phase of development involved 30 million yuan (79) According to a senior official of the development zone, the free trade zone can handle trade, finance, storage, transport and export processing. The Reward (Ningbo) Wool Industry Corp., a joint venture with nearly US $ 30 million of mainly Taiwanese capital, has set up a wool factory in the zone. Some of the foreign-funded enterprises, with total investment of US $ 1.92 billion are (1) The Petrochemical Project established by the Concord Group of the United States. (2) The China National Paper Industry Co. Ltd. set up by an Indonesian group company. (3) The Belium Steel Plant, with an initial production of 1.5 million ton annually, jointly erected by the Concord Group of the United States, the Baoshan Iron and Steel Complex and the Ningbo Development Zone. In 1993, the contract for the first phase was signed with total investment of US $ 1.96 billion. (4) The Dixie Island Project. The China International Trust and Investment Corp. (CITIC) plans to inject billions of yuan for development over 15 years. At the end of 2000,Zhejiang Province has registered 18,339 foreign funded companies with an investment of US$43.6 billion. It has established economic and trade cooperation with more than 200 countries and regions in the world. (80) Investment and cooperation in the following fields are very prominent ( i )Infrastructure projects: communications, energy, water supply, sewage treatment.(ii) Farming technology, livestock product processing breeding,(iii)Petrochemical, synthetic materials ,new building materials,(iv)Machinery, electronics, chemistry and pharmaceuticals,(v)Information, photo-electro-mechanical integration, bio-engineering, environmental protection, (vi)New technology and new equipment production projects (vii) Upgrading of the conventional service industry ,new trades and management, construction, tourism, new business operation, consulting service (81) The Ningbo has been selected to introduced the policy because it has Economic and Trade development Zone(NETDZ) established in 1984 and a Free Trade Zone (NFTZ) opened in 1992. The Ningbo has a solid foundation of comprehensive economic strength. Ningbo has become a foreign investors paradise;5,040 foreign enterprises have been approved till 2001 and 40 of them rank among the 500 top global firms The NETDZ and the NFTZ are the pillars of development and the locomotives of Zhejiang opening up to the outside world. Chinas development strategy is not confined to the economic or technological but it includes and boosts tourism also. In this regard the tourism and investment attraction department of Ningbo city has launched 72 project with a total investment of US$555.43 million to develop tourism and invite investment both home and abroad. (82) Intention agreement have been signed for five projects, with a combined investment of US$108 million of which foreign investment accounts for US$8.5 million. The other 67 projects are still under negotiation with various departments, business people and consortia, both China and abroad. Under the new vision of religion combine with tourism, the Baoguo Temple will be transformed into public park featuring pseudo- classic architecture and Buddhist Culture, thus attracting more vacationers, especially those interested in Buddhism, it will cost US$10 million .

(83) In addition, the Hong tang Sightseeing Agriculture Zone(HSSAZ),with an investment of US$12.06 million ,will include a fishing park, an orchard and a special animal breeding farm .The China Farm History Park(CFHP),located to the east of the ruins of Hemudu Culture ,a birthplace of civilization located into a major tourist attraction displaying Chinese agricultural relics. WENZHOU : CAPITAL OF ALUNITE Wenzhou, a city of Zhejian Province, is situated on the southeast coast. It has warm and mild weather with a mean annual temperature of about 18 C, hence the name Wenzhou, meaning "warm prefecture" in Chinese. Wenzhou is called the "capital of alunite". The fertile Wenzhou Plain in the east, criss-crossed by rivers and ditches, produces abundant cash crops such as grain, tangerines, and sugar cane. Wenzhou has always been a commercial and handicraft centre. Its cowbells milk, leather shoes, paper umbrellas, straw mats and fireworks have a high reputation. In 1983, it exported 19 million tons of dairy products, or half of the nation's total. Wenzhou has fairly well developed food, textile, fine chemical, computer, instrument and meter, shoe-making, ship building and ship-dismantling, and building material industries. During 1978-83, the value of industrial production increased 10.6 percent every year, reaching 1,800 million yuan in 1983. Wide and with deep water, Wenzhou Port is the cargo clearing house for south Zhejiang and north Fujian, with an nnual handling capacity of 3.07 million tons. Its has direct shipping routes to Ningbo, Shanghai and Dalian, and to Japan, Korea and Hong Kong. Since becoming an open city, Wenzhou has sought to accelerate its economic growth by attracting investment and cooperation from other countries. In November 1984, the city sent a delegation to Hong Kong, where it searched for capital and technology needed to carry out technological transformation in existing enterprises. An Australian businessman was attracted by the city's ideal conditions for animal husbandry, which will certainly bring in its cake flourishing meat and milk production, fodder processing and leather tanning industries. A Japanese entrepreneur is enchanted by Wenzhou's extensive coastal shallows, which offer lucrative opportunities for growing prawns, laver, kelp and sea urchins (84). The success achieved in Wenzhou's first round of investment negotiations has prompted city officials to map out plans for more ambitious endeavours. Some for example, have suggested that foreign investment be used to build a wharf for 10,000 ton ships. They noted that the city's 20 docks, capable of accommodating only vessels below 5,00 tons, can hardly serve as an adequate outlet for goods shipped to and from the Changjiang (yangtze) River middle and lower reaches. The open policy brought the city into frequent touch with visitors from abroad. Many residents have started learning foreign languages. As Wenzhou, also a famous tourist site, has the two state-class scenic spots of Yandang mountain and Nanxi River (85).

FUZHOU : THE LAND OF FLOWERS AND FRUIT Fuzhou, the capital of Fujian Province on the southeast coast, has mild weather and plentiful rain. Known as the land of flowers and fruit. Fuzhou has a long history as a port city. In the Eastern Han Dynasty (A.D. 25-220), it started trade relations with the Philippines and other countries in Southeast Asia. By the Song Dynasty (960-1279) it has become an important trade port in China's southeast coast (86). Horn combs, paper umbrellas and lacquer ware are traditionally known as the three treasures of Fuzhou. Fuzhou lacquer ware is among the most outstanding of the handicrafts. Since the end of the 19th century, Fuzhou lacquer ware has won special medals at an international fairs held in Britain, France, Japan, Panama, the United States and 11 other countries. There are many historical sites in Fuzhou. To the east is Gushan Hill, 925 meters above sea level, Half way up is the 1,00 year-old Yingquan Temple. The more than 100 Buddhist library has a collection of 29,000 volumes of ancient scriptures. China's first shipyard was build in 1866 in Mawei Port in Fuzhou. Noted translators Lin Shu (1852-1924) was also a native Fuzhou (87). Its opening to international trade and a flexible cosmetic economic policy have added new vigour to Fuzhou. Since 1979 the Fuzhou authorities have been busy improving the city's infrastructure, and special attention has been paid to updating the backward communications and transportations systems. After renovation, Fuzhou Airport can now accommodate Trident and other jumbo jets. Several railway lines which cross the city proper now extend to Mawei Port, 30 km. down the Minjiang river. The port has two berths for 10,000 ton ships, three for 5,000 ton ships and one for 3,000 ton ships. Imported 10,000 channel programmes controlled telephone equipment has already been installed (88) On its existing industrial base, Fuzhou has developed more than 1200 industrial enterprises, including metallurgy, light and textile industries, electronic elements, machinery, chemical, shipbuilding and food processing. IN recent years, Fuzhou has developed economic and trade relations with 53 countries and regions in the world. During 1979-1983, Fuzhou absorbed and made use of 25 million US dollars in investment (89). According to Hong Yongshi, Mayor of Fuzhou, the Mawei District will be an economic and technological development area, with the focus on industry. The investment will come mainly from business partners abroad who will run joint ventures or set up enterprises exclusively with their own capital. The equipment to be imported will be technologically advanced, as will new management techniques (90). The Fujian Hitachi Television Co. is the First Sino-Japanese joint venture in Fujian Province. In 1984 the company produced more than 337,000 TV sets, with a total output value of 450 million yuan. GUANGZHOU : TRADE PORT OPEN TO THE WORLD

Guangzhou was the first of the 14 coastal cities to be declared open to the outside world. Located in the north of the fertile Zhujiang Delta, horde red on the south by the South China Sea. It has a developed network of land, sea and air transportation. A hub of domestic and international communications, Guangzhou is the highway centre of Guangdong Province, the southern terminus of the Beijing-Guangzhou Railway-China's trunk line for north to south and has one of China's three major international airports. The establishment of the microwave communication line between Guangzhou and Hong Kong contact (91). Since 1979 Guangzhou has signed contracts with a dozen countries and regions. The central government has adopted special policies and flexible measures to help Guangzhou develop its foreign trade.. To help attract foreign investment Guangzhou offers reduced or exempted taxes on projects which bring advanced technology to China. According to Liu Nianzu, Vice-Mayor of Guangzhou, in last few year Guangzhou has taken three steps to help implement the open policy (92). (i) The city government drew up a seven year plan (it was for 1984-90) to encourage the technological transformation of its industrial enterprises. The aim was to quadruple the gross output value of industry by the 1990. Of 226 industrial concerns, 130 should be modernized to reach the world 1980 level by the end of the plan. The city planners hoped to boost advanced light industry and textile products from just 10 percent of the total output to 30 percent and quadruple the percentage of light technology products, which today accounted for only 5 percent of output. (ii) To help attract investment, the city has established Hungpu economic and technological development zone. (iii) Following the Party Central Committee's decision in October 1984 to reforms so that they can help develop the open policy. The reform includes: (a) giving enterprises more decision-making power. After the reform decision, all enterprises began paying taxes instead to deliver profits. The change has allowed enterprises to manage their affairs independently, a change welcomed by foreign investors. (b) Encouraging factories to establish direct trade relations with foreign enterprises. (c) Reforming the commercial system and consumer goods and a more open market to purchase the products made by joint ventures. (d) Publicizing the competitive system and attracting more foreign investment for capital construction. (e) Advertising for cadres and employing workers under contracts. Recently, the Guangzhou Economic and Technological Development Zone (GETDZ) established operational mechanism suitable for promotion of overseas economic interests. As GETDZ was established in December 1984, Up to March 1993, about 120 more than 170 enterprises in operation were foreign-funded ones. The industrial output value of the 170 totalled 9.03 billion yuan, with over 90 percent of this sum from foreign-funded entities. Their exports also accounted for about 50 percent of the zone's total export value. The zone is moving toward becoming a source of global products (93). The considerably improved investment environment in the zone has resulted in the zone has resulted in a continuous stream of overseas business people interested in investing in factories from more than 20 countries and regions such as the

United States, Japan and Hong Kong. The majority of them have achieved 10 million yuan in annual earnings, while one-third have surpassed 1 million yuan in annual profits. For instance, a vessel joint venture financed by the United States, Hong Kong and two other parties reached designed production capacity in only five months and recouped a total investment US $ 18 million in 22 months. It had been selected as one of the top 10 joint ventures in China for 1993 (94). In addition to all of this Guangzhou have 80 percent of Guangdong Province's scientists and technicians. It has 21 universities and colleges and more than 300 scientific research centres, altogether staffed with more than 12,500 specialists. Due to the reform and high-speed economic development, people in Guangzhou have more opportunities to find jobs today. Employers care about only for one thing when looking for new employees : they must have the ability to do the work, rather than be college graduates or not. Many people do their best to acquire more knowledge and skill so they can secure better occupations in an increasingly competitive market. Private schools have now emerged to meet their needs. Statistics show there were 125 private schools in Guangzhou by the end of 1992, graduating 60,000 students annually (95). Recently, new training courses in electronics, computer, and motorcycle repair were also established, bringing 10, 12 the number of courses offered, with 5,000 student graduating annually. According to one survey, over 180 specialties are now available in private schools including finance, foreign trade, law, foreign languages, sports and medicine. And the schools cater to students needs. Students may get time from their regular work to attend school, and can be either boarders of non-boarders, full or part-time (96). Reforms in schooling also lead in opening residents schools, such schools are free of change. There is no unified teaching programme, these schools have a common aim of lifting citizen standards. Analysts believe the phenomenon derives from changing concepts that pay more attention to the quality of personal life. West Nanhua Sub districts office has opened a school, offering 29 courses that have attended over 20,000 students. They lectured on family entices and a more attractive daily life usually has a full house (97). As Guangzhou is a city of fashion, and many fashion designers come from these prorate fashion schools, New Time Fashion School has over 40 classes covering everything from design to pattern cutting with an audio-visual education programmes. This school also has arrangements with garment factories and stores. At present, many of the schools 50,000 graduates have become well known designers and technicians in Sino-foreign fashions joint ventures (98) . In 2001,Magneto Encephalography (ME) ,the most advanced equipment ever used in the field of neuroscience has been developed in Guangzhou and has been clinically applied .Introduced from the US, magneto encephalography has been adapted from survey submarine technology ,and can precisely locate weak electromagnetic signals in the brain .(99). The most important use of ME technology is to pinpoint the abnormal area causing epilepsy ,making it possible for the disease to the cured. It can also precisely locate injured cerebral functions caused by cerebral trauma, thus enhancing the

therapeutic effect for injured optic ,acoustic and trigeminal nerves. In proving the mystery of brain activity, it can be applied in the study of the functional zones of psychology ,sentiment, cognition, learning, memory, calculation and influence, as well as the influence of noise and music on cerebral nerves and intelligence development. ZHANJIANG : A RISING PORT CITY Zhanjiang is located in the northeast part of the Leizhou Peninsula in Guangdong Province.There are 1,012 industrial enterprises in the city producing machinery, chemicals, electric power, ships, foodstuffs, sugar, textile, electronics and household electric appliances. Zhanjiang's main natural resources are erinaceous quartz, volcanic ash, silica and limonite. Zhanjiang is connected with the southwestern provinces through the Lizhan Railway (Litang to Zhanjiang). It has become an important gateway for imports nd exports in southwest China. Agriculture is an important part of the economy in Zhanjiang before 1979 much of the 310,000 cultivated hectors in Zhanjiang were sown to grain. In 1979 when policies changed, the natural advantage of sugarcane was exploited. By 1983, 56,000 hectors were sown to sugarcane; by 1984 this had been expanded to 70,000 hectares and in 1985, 90,000 hectares were covered with the purple, bamboo-like stalks. 112 Deputy director of the economic liaison department of the city's special development zone planning board, Lin Weiqiang, made it clear that Zhanjing will one day be an oil city like Houston or Aberdeen. It is already well on its way, with a satellite communications tower, a computer centre, special wharves, a heliport and modern residential quarter with homes, schools, shops, hotels and recreation facilities. French, American, Japanese and British oil companies have set up headquarters alongside China's Nanhai West Oil Co. Large oil and gas reserves are what attracted them. In the western part of the South China Sea, 32 exploration wells have been sunk, and a big oil field has been discovered beneath the Yingge Sea. In the Beibu Gulf, a joint venture with the French company. Total has begun to extract oil on a trial basis and has begun full-scale production. East of Hainan Island, two of the three well sunk in the Sino-American joint exploration area have stuck oil (100). Zhanjiang Port is naturally favored with abundant bays and deep, tranquil water. It has a 97 kilometer-long coastline and a handling capacity per year that reaches 12,000,00 tons. The harbour has 15 wharfs, including 9 berths capable of accommodating ships above the 10,000 ton class and oil wharf handling 50,000 to ships. Harbour operation are virtually mechanized. The harbour is China's closest to Europe, Africa and much of Southwest Asia and is a direct link with Hainan Island. During the First Five-Year Plan period (1953-57), building of Zhanjiang as a port was listed among the important development projects of the country (101). It was formally put to use in 1956 and at present is being enlarged. After the fulfilment of the Seventh Five-Year Plan (1986-90), 13 more berths are available. The development of Zhanjiang Port has spurred construction in Zhanjiang City and has stimulated the growth of industry (102). With the

continued opening to foreign trade, authorities had planned to establish their special development zone. Another industry anxious for foreign co-operation is fish farming. One of the most successful projects is an oyster farm covering about 600 hectors of shallow seabed. Since Zhanjiang was declared an open city, it has been given far more decision-making powers, which have been passed on to smaller managerial units, many foreign oil executives find their Chinese colleagues rather reluctant to make a decision. BEIHAI : A TREATY PORT Beihai, situated on the southern tip of the Guangxi Zhuang Autonomous Region with Beibu Bay in the South, is a seashore city in south China. It has an area of 275 square kilometers and population of 160,000. Beihai City consists of a mainland peninsula and two islands. With three side facing the sea, ridges and peaks on the western border of the peninsula provide a natural shelter for Beihai City. The climate is subtropical and the influence of the sea larks it green in all four seasons. Beihai first became an important port during the Qin dynasty (221-207 BC). By the time of the Song Dynasty (960-1279), the city was handling a steady flow of imports and exports. From Beihai's docks Chinese silks and satins, ceramics and pearls were shipped out in exchange for amber, agate, gold, essence, rhinoceros horns and ivory from Southeast Asia, Europe and Africa. Beihai became a "treaty port" in 1876, when the Qing (16441911) court was forced by the British to sigh the Agreement of Chefoo. Soon the city wore a colonial facade, studded with foreign consulates, factories, companies, hospitals, schools and churches (103). Since the founding of New China, industrial and agricultural production in Beihai has developed greatly. To attract the foreign investment needed for modernization, Beihai has, with State Council approval, adopted preferential policies for overseas investors and business partners. A reduced income tax on only 15 percent, for example, will be granted to all Chinese-foreign joint ventures, co-operative enterprises and wholly owned foreign enterprises in Beihai. The city government also granted these enterprises reductions or exemptions on the local income surtax. Overseas investors are exempted from taxes when remitting profits back home after paying the enterprises income tax. No matter where the investment originates, a 50 percent reduction in these taxes has also been introduced on a trial basis for imported consumer goods and other market goods within government-approved annual quotas, except commodity imports limited by state law. Favorable conditions will also be provided for those who cooperate in technologically revamping and expanding the city's 100-odd existing enterprises. All the equipment and materials needed in modernizing schemes and in infrastructure development are exempted firm customs duties, product taxes and taxes on increment. These flexible policies helped Beihai 11 enterprises, two contracts and 11 letters of intent with enterprises from abroad (104).
Notes and References :1 . Chinas Foreign Policy; New Star Publishers, Beijing, First Edition,1993,pp.1, 2.

2. Chinas Foreign policy; Foreign Languages Press, Beijing, 1988, pp.5, 8 3. Ram Dev Bharadwaj; Chinas Open Door policy and Modernization , Strategic Analysis, Journal of Institute for Defence Studies and Analysis, New Delhi, Vol.XVI, no.1, April,1993, pp.53,54.And also see, Sidney Gould (eds) ; Science in Communist china, Washington DC,1961. 4. Xue Muqao; Chinas Socialist Economy, Foreign Languages Press, Beijing,1981,p.235. 5. Roderic Mac Fraquhar; The Origins of The Cultural Revolution,Vol.II, The Great Leap

Forward -1958-1960, New York,1983, p.17. 6. Wang Yan; Financial Reform : Decentralization and Liberalization, in Thomas P. Lyons

and Wang Yan,eds, Planning and Finance in Chinas Economic Reform, Cornell University East Asia Papersno.46, p.28. 7. Dorothy Grouse Fontanai ; Background of the fall of Hua Guofeng, Asian

Survey, Vol.34,no.16, 1991, p.22. 8. Regarding Huas long-term development programme,see, Liu Guoguang and Wang Ruisum, Restructuring of the economy,in Yu Guang Yuan,ed.; Chinas Socialist

Modernization, Foreign Languages Press, Beijing, 1984,pp.71-145. and also see, Dorothy J. Salinger, Some speculations on the return of Quarterly, no. 75, September 1978, pp.623-38. 9. Peoples Republic of China, State Statistical Bureau, Statistical Yearbook of China-1984, the regions:Paralles with Past, China

Hong Kong Economic Information and Agency, Hong Kong, 1984, pp.26, and 395. 10. Deng Xiaoping; Uphold the Four Cardial Principles, A speech at a forum on the Ram Dev

principles for the Partys theoretical work, March 30, 1979, in Selected Works of Deng Xiaoping (1975-1982) , Foreign Languages Press, p. 167. and also refer to Bharadwaj; Chinas Economic Liberalization, Lancers Books, first published 1995, pp.68,69. 11. Communiqu of the Third Plenum of the Eleventh Central Committee of the Communist

Party of China adopted 22 December 1978, Foreign Broadcast Information Service Daily Report-China( FBIS) , December 26, 1978,pp. E-4, E-13. 12. Ram Dev Bharadwaj; Chinas Economic Liberalization, Lancers Books, first published

1995, pp.70-71.

13. 1984. 14.

Decision on Reform of Economic Structure, China Daily , Beijing, October

23,

Deng Xiaoping; Speech at the Third Plenary Session of the Central Advisory Deng Xiaopings Foreign

Commission of the Communist Party of China, October 22, 1984, in Languages Press, Beijing,1987,pp. 72. 15. 16. Ibid, p. 73.

Collections of Talks and Speeches: Fundamental Issues in Present Day-China;

"Land and Natural Resources" (China-Facts & Figures), Edited and Published by New

Star Publishers, Beijing, 1992, pp. 2-3. 17. Deng Xiaoping, "promote Education in the Four Cardinal Principles and Adhere to the Policies of Reform and of Opening to the Outside World", Excerpt from a talk with Prime Minister Robert Mugabe of Zimbabwe, January 20, 1978, in Deng Xiaoping, Fundamental Issues in Present Day China, Foreign Languages Press, Beijing, China, 1987, pp. 171-173. 18. Deng Xiaoping, "We shall Speed Up Reform", Remarks to Stefan Korosec, member of the Presidium of the Central Committee of the League of Communists of Yugoslavia, June 12, 1987, in Deng Xiaoping's Fundamental Issues in Present day China, Beijing, Foreign Languages Press, 1987, p. 190. 19. . 20. 21. Qin Shi; China-1993 , New Star Publisher, Beijing, 1993, p. 81. Ibid ., pp. 86-87 see, Ram Dev Bharadwaj; Leadership, Liberalization and development in China in Ram dev Bharadwaj (eds) International Politics Contemporary trend Issues published by ASC, Rani durgavati University,Jabalpur,2004,pp325-380. 22. . 23. "Dalian Aims to Become An International City", Beijing Review , Vol. 36. No. 23, June 713, 1993, p. 32. 24. 25. . Dalian, NO. 22, p. 167. Dalian Aims to ....No. 11, p. 32 "Dalian: Northern most Gateway To China" in Su Wenming (ed.), Opening the Door: 14 Coastal Cities and Hainan, Beijing , 1986, pp. 157-160. Ibid ., p. 191. also see,,Ram Dev Bharadwaj , China :Open Door Policy and Modernization, Strategic Analysis ,Vol.Xvi,no.1,April,1993

26. . 27. . .28. . 29. . 30. Li

Ram

Dev

Bharadwaj,

Chinas

Economic

Liberalization ,

Lancers

Books,New

Delhi,1995 , pp155-156. . Tang Futures Sector Enters Orderly Development Stage, Beijing Review

,Vol.45,no.3,January 17,2002,pp.28-29 Qinhuangdao: China's Key Energy Port", in Su Wenming (ed.), Opening the Door: 14 Coastal Cities and Hainan, Beijing, 1986, pp. 175-177. Wang Daming, "Qinhuangdao: A Promising Investment Venue", Beijing Review , Vol. 36, No. 12, March 22-28, 1993, p. 18. Qinhuangdao has set up a foreign investment service centre. It offers consultations, examines and approves contracts, issues business licenses, and handles registration paperwork for tax payment, the lease of land, financing, accountants, lawyers and insurance. The average time required to approve a project in 1992 was two days. . 31.. "Cooperation Projects Slated for Qinhuangdao", Beijing Review , Vol. 36, No. 12, March 22-28, 1993, pp. 20-22. 32. Han Baocheng. "Tianjin Develops Its Seashore", Beijing Review , Vol. 36, No. 51, December 20-26, 1993 p. 33. 33.. Han Guojian, "Tianjin Solicits Foreign Opinion", Beijing Review , No. 44, November 1-7, 1993, p. 22. 34. "Italian-Funded Plant Established in Tianjin", Beijing Review , No. 48, November 29, December 5, 1993, p. 7. 35. Han Guojin, "Seamless Steel Tube Project in Tianjin", Beijing Review , No. 33, August 1622, 1993, p. 30. 36.. Li Rongxiz, "Tianjin Zone Lures Foreign Investors", Beijing Review , No. 10, Vol. 37, March 7-13, 1994, p. 11. ..37. Bharadwaj no.26, pp.166-167..

38. Li Rongxia, "Fledgling Free Trade Zone in Tianjin", Beijing Review , Vol. 36, No. 31, August 2-8, 1993, p. 21. 39. . Ibid

40. Tianjin Improves Foreign investment Environment ,No.30,July26,2001,p.29 . 41.. "Yantai: Where the Maritime 'Silk Road' Starts", in Su Wenming (ed.), Opening the Door: 14 Coastal Cities & Hainan, Beijing, 1986, pp. 93-94. 42.. Yantai Bonded Zone Operates Smoothly, Beijing Review , Vol. 36, No. 32. August 9-15, 1993, p. 28. 43.. Ibid. 44. "More Foreign Funds in Yantai Infrastructure", Wennui Bao (Wennui Daily ), May 18, 1993. 45. Xiao Ying ,Prosperous Yantai an Overseas Favorite, Beijing Review , no.28,July 12,2001,p.22 46. Ibid,p.23. 47. . 48. 49. 50. "Qingdao Invest Foreign Funds", Beijing Review , Vol. 36, No. 11, March 15-21, 1993, p. 24. Ibid. Han Guojian, "Qingdao: Paradise for ROK Firms", Beijing Review , No. 26, June 28 July 4, 1993, pp. 18-21 . 51 "Lianyungang", China's Fourteen Coastal Part Cities (II), China: Facts & Figures, Foreign Languages Press, Beijing, 1986. and also see "Lianyungang: Door to the Heartland", Su Wenming (ed.), The 14 Coastal Cities and Hainan , Beijing, 1986,pp. 129132. 52. "Nantong", China's Fourteen Coastal Part Cities(II), China: Facts & Figures , Foreign Languages Press, Beijing, 1986. 53. 54. . 55. Nantong, No. 53, pp. 151-152. . 56. Nantong, No.53. "Nantong: Smooth Sailing to Industrial Boom", Opening the door : The 14 Coastal Cities & Hainan island, Beijing, 1986, edited by Su Wenming, pp.146-147. The Nantong's 5,100 factories yielded a total industrial output value of 6 billion yuan in 1983 and an estimated 6.8 billion yuan in 1984. "Qingdao: Resort, Research Centre and Industrial Giant", in Su Wenming (ed.) Opening the Doors: 14 Coastal Cities & Hainan, Beijing, 1986, pp. 111-113.& 121

57 . 22 -23 58. . 59.

.Nantong:NewSocialSecuritySystem, BeijingReview , vol.45,no.32,August,2002pp

"Shanghai", China's Fourteen Coastal Port Cities (II), China: Facts & Figures , Foreign Languages Press, Beijing, 1986 Yunpu and Xu Tongfu, "Shanghai Replays Role as an Oriental Metropolis" Beijing Review , No. 18, May 3-9, 1993, p. 12.

60. 61.. 62.

"Shanghai: A Metropolis Opens Its Arms to the World", in Su Wenming's (ed.), The 14 Coastal Cities and Hainan Island , pp. 23-24. Yunpu & Tongfu, No. 59, p. 13. Shanghai is China's largest eastern gate to the outside world. During the Tang (618-907) and Song (960-1279) dynasties, Shanghai was a key foreign trade port and had mercantile ties with Japan, Korea and Southeast Asia. During the reigns of Qianlong and Jiaqing in the Qing Dynesty (1644-1911), Shanghai had turned into a navigation hub and metropolis in southeast China that attracted numerous merchants and countless ships to the Huangpu River. In the 1950's, Shanghai replaced Guangzhou to become the nation's foreign trade centre and has maintained this lead ever since

. 63. 64. Yunpu & Tongfu, No. 59, p. 14. Liao Ye, "Shanghai Boosts Urban Construction", Beijing Review , No. 45, November, 814, 1993, p. 13. 65. . 66. . 67. 68. . 69. "Seven High-Tech Industries in Shanghai ", Beijing Review , Vol. 36, No. 41, October 1117, 1993, p. 28. 70. Robert R. Lo, "American Businesses Doing Well in Shanghai", Beijing Review , No. 37, September 13-19, pp. 11-12. Li Rongxia, "New Foreign-Funded Projects in Shanghai", Beijing Review , No. 13, March 29 - April 4, 1993, p. 27. "Shanghai's Hot Spot For Foreign Investment", Beijing Review , No. 27, July 5-11, 1993, p. 23. "Shanghai's New Hot Hedge", in Jingji Ribao (Economic Daily) August 12, 1993. Liao Ye, "Shanghai Real Estate Industry Flourishes", Beijing Review , No. 35, August 30 September 5, 1993, p. 17.

71.

These include the Hong Kong and Shanghai Banking Corp; the Standard Chartered Bank, the Citibank and the Banque de I'Indochine of France, the Yokohama Shokin Bank, and the Sumitomo Bank of Japan. And Banks from the Netherlands, Belgium, Germany, Italy and Russia. Of the nations total 164 banks in 1935, 58 or 35 percent had their head office in Shanghai. In Shanghai's 1992 enhanced earning by the territory sector, it was fiscal business which took the lion's share of 33.3 percent.

. 72. Its predecessor was an integrated securities market that formed with the establishment of the Shanghai Husashang Stock Exchange in May 1935. At that time this body ranked top among securities exchanges in the Far East and enjoyed enomous popularity. 73. Yanpu & Tongfu. No. 59, p. 15. 74. , 75 76. . 77. You Fen, "Ningbo Economic and Technological Development Zone", Beijing Review, Vol. 36, No. 36, September 6-12, 1993, p. 13. 78 . Zhe Xin, "Zhejiang Opens Up to the Outside ", Beijing Review , No. 17, April 26 May 2, 1993, pp. 20-22. 79. You, No. 77, pp. 14-18. 80. Lisa Carducci East China:Ningbo, Beijing Review ,no.31,August 2, 2001,pp21-22. 81. .Ibid, p.23. 82. Ningbo Boosts Tourism, Beijing review ,no.37,September,13,2001,p27. 83. . 84.. "Wenzhou: A New Age for an Ambitious City", in Wu Wenmin's eds., The 14 Coastal Cities And Hainan Island , Beijing, 1986, pp. 48-52. 85. 86. Zhe Xin, No. 78, p. 20. "Fuzhou", China's Fourteen Coastal Cities (III) , China: Facts & Figures , Foreign Languages Press, Beijing, 1986. Ibid, .Trade minister Conference To Be Held in Shangahi, Beijing review ,no.28,june 7, The other four were Guangzhou, Fuzhou, Xiamen and Shanghai. 2001,p.30 Bharadwaj,no26 ,pp186-189.

87.

"Fuzhou: A Historical Famous Cultural City", Wu Wenming (ed.), Opening the Door: The 14 Coastal Cities And Hainan Island , Beijing, 1986, pp. 59-61.

88. 89. 90. 91 . 92. . 93 94 . 95. 96. 97.

Ibid., p. 64. See, Fuzhou, No. 86.. See, Fuzhou, No. 87, p. 66. "Guangzhou", China's Fourteen Coastal Port Cities (III) , China: Facts & Figures, Foreign Languages Press, Beijing, 1986. "Guangzhou: First 'Window' to the World", Su wenming (ed.), The 14 Coastal Cities And Hainan Island, Beijing, 1986, pp. 205-207 "Top Economy with Foreign-Funded Firms", Beijing Review , Vol. 36, No. 26, June 28 July 4, 1993, p. 28. Ibid. Jiang Zhimin, "Private School in Guangzhou", Beijing Review , No. 15, April 12-18, 1993, p. 28. Ibid. "Citizen-Run School in Guangzhou ", Renming Ribao, (People's Daily , Overseas Edition), January 19, 1994.

.98.

Jiang, No.95. Beijing Review, no.50,

99. First Magneto Encephalography Introduced in Guangzhou December 13,2001,p.31.

100. "Zhanjiang : Plnning for Prosperity", Su Wenmin (ed.), The 14 Coastal Cities And Hainan Island , Beijing, 1986, pp. 211-214. 101. Ibid., p. 215. 102. "Zhanjiang ", China's Fourteen Coastal Port Cities (III) , China: Facts & Figures , Foreign Languages Press, Beijing, 1986 . 103 "Beihai: Once Sleepy Port Ready to Take Off", in Sw Wenmin (ed.), Opening the Doors: The 14 Coastal Cities And Hainan Island , Beijing, 1986, pp. 229-231.

104. Ibid. p. 137-238, and also see, "Beihi", China's Fourteen Coastal Cities (III) , China: Facts & Figures, Foreign Languages Press, Beijing, 1986.