ABSTRACT

China's economic ties to the world community grew rapidly after 1976. There were new links with international organizations, bilateral ties with foreign governments, an increasing variety of arrangements with foreign corporations, the appearance of new and revived Chinese institutions oriented toward the international economy, and increased contact between Chinese and foreign government officials and private citizens. Despite periodic expressions of concern about a possible surfeit of foreign influence, China's relaxation of controls on domestic travel by foreign tourists indicates that the expansion of international contact at the individual level can be expected to continue. Together with promoting China's diplomatic objectives, the major purpose of the "Open Door" policy is to stimulate the growth and development of China's domestic economy. The size and continental character of the Chinese domestic economy suggest that foreign trade will never become a major component of the economy, though it may play an increasingly important strategic role as a source of innovation.