CHINA TRADE DEFICIT FALLS SHARPLY, RESERVES RISE
China's trade deficit in the first
quarter fell to 1.05 billion dlrs from 3.04 billion in the same
1986 period, customs figures show.
    Zhang Zhongji, spokesman of the State Statistical Bureau,
quoted the figures as showing exports rose 27 pct to 7.28
billion dlrs and imports fell 5.1 pct to 8.33 billion.
    He said if imports of gifts, foreign aid items and
materials for joint ventures are excluded, the deficit was only
350 mln dlrs, and the surplus on invisibles was 700 mln. As a
result, foreign exchange reserves increased somewhat from their
level at end-1986, he said, but gave no figure.
    Official figures show the reserves at 10.514 billion dlrs
at end-1986, down from 11.9 billion at end-1985.
    Zhang said one reason for the rise in exports was improved
incentives to export firms, which are being allowed to retain
more foreign exchange from the goods they sell.
    He said first quarter exports to Hong Kong and Macao rose
35.5 pct to 2.48 billion dlrs and imports rose 55.3 pct to 1.46
billion. Exports to Japan fell 2.3 pct to 1.28 billion and
imports 24.4 pct to 2.14 billion.
    Exports to the U.S. Rose 23 pct to 640 mln dlrs and imports
fell 26.7 pct to 840 mln. Exports to the EEC rose 35.1 pct to
770 mln dlrs and imports fell 3.8 pct to 1.5 billion, he said.
 REUTER
