ABSTRACT
In the aftermath of Tiananmen, countertrade continues to present foreign firms with both problems and opportunities. This chapter identifies recent trends in Chinese countertrade activity both prior to and following the economic austerity period. First, China’s counter-trade policies and practices prior to Tiananmen are reviewed. Second post-Tiananmen developments are presented. Third, the need for objective information on Chinese countertrade practices is explained. Fourth, current data on Chinese countertrade activities are analyzed. 1 The data are compiled from Countertrade Outlook (weekly) and the Financial Times (daily), two major sources of information on global countertrade transactions. Throughout the chapter, cases involving countertrade activity between Chinese and foreign firms are used to illustrate the obstacles to PRC countertrade as well as the opportunities it provides.
