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388 70 Good Prospects for Shanghai’s Electrical Machinery Exports1 October 23, 1989 Shanghai’s way out and way forward lie in implementing the economic development strategy for coastal areas and building an externally oriented economy, in having “both ends abroad,”2 and in increasing exports. The Importance of Exports The final step in developing an externally oriented economy is exporting. For Shanghai, hopes rest on exports of electrical machinery rather than textiles, which have a problem with raw materials. Since their raw materials cannot be supplied domestically, the textile industry must rely on imports, but if imports rise, we will have less forex, which puts limits on how much the industry can grow. I’m not saying that we shouldn’t make a great effort to develop textiles —we still have to do that—but our best hopes lie with electrical machinery because its raw materials can basically be supplied domestically. Apart from a few very high-precision components that must be imported, its level of imports is much lower than that for textiles. However, the textile industries can also think of ways [to export]. For example , since it’s very expensive to import wool and therefore difficult to earn forex through exports, you might consider deep processing and manufactured apparel. That would fetch a better price and thus make it possible to consider importing wool and then exporting. But I’m afraid you can’t rely only on wool; you’ll also have to think about producing synthetic fibers yourself. By contrast, the prospects for exports of electrical machinery are very good. Although the export targets proposed by the city’s Office of Electrical Machinery Exports are acceptable, they’re also extremely hard to reach, so they shouldn’t be pushed any higher; you should just try your best to surpass them 1. This is part of a speech by Zhu Rongji at the 52nd mayor’s administrative meeting of Shanghai’s municipal government. 2. Translator’s note: the “two ends” refer to the sources of raw materials and the destinations of finished products. Zhu_Shanghai Years_1987-1991_hc_9780815731399_i-xii_1-620.indd 388 12/26/17 12:01 PM Good Prospects for Shanghai’s Electrical Machinery Exports 389 in the course of actual execution. The target now is US$810 million, or 16% of export forex earnings. By 1995 it will be US$1.7 billion, and by 2000 it will be over US$3 billion. That means it will double twice in a decade. In terms of the share of exports, these now account for one-sixth of the total; by 1995 they are to account for a quarter, and by 2000 it will be a third. If these targets can be reached, there will be great hope for Shanghai. If we can’t reach them, things will be very difficult. We must therefore use every means possible to try to reach or surpass these targets—of course this will entail very arduous work. To truly reach this goal, you must first decide what to export. You must have a very sound plan. On this issue, the city’s Office of Electrical Machinery Exports has identified 20 types of key products. This was done from a macro perspective, but just announcing this list isn’t enough; it must be made specific for individual enterprises. Which enterprises can export which products? How can the proportion of exports be increased in the next 10 to 12 years? There should be a plan for technical upgrading and technical progress, and this must be carried out in every single factory. Each factory should draw up its own plan for product exports. Yesterday, I heard that Second Light Industry Bureau recently held an exhibition featuring some new inventions, small innovations, and adjustments to the mix of new products. This is very important because it’s not the case that all products are slow to sell—it’s only the same old familiar products. Many small items are attractive, practical, and original, and people will want such products . If our enterprises are to escape their plight, they will have to adjust their product mix and develop new products. They should do likewise with exports: once they see what sells well in the world, they should learn about these things and also innovate—that’s the only way they can export. Therefore in order to export, they must first have a fairly practical concrete plan and then integrate this into other plans. If we don’t...

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Additional Information

ISBN
9780815731405
Related ISBN
9780815731399
MARC Record
OCLC
1013519277
Pages
400
Launched on MUSE
2018-02-13
Language
English
Open Access
No
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