ABSTRACT

Formal trade barriers, like tariffs, quotas, and import licenses, are the most visible impediment to free economic interchange with China. In practical terms, it is almost impossible to disentangle the problems caused by trade barriers from those related to the sweeping powers of the totalitarian government or the limitations on foreign currency exchange. The limitations on trading rights, for example, which were discussed in the context of the totalitarian government system in China, are also formal trade barriers. Similarly, the administered import demand procedures are implemented through formal trade barriers.