store manager at Guiyou said that well-known names in international fashion such as Mixuer were aimed mainly at professional women.

At present other financial groups from Hongkong and overseas are trying to break into China's consumer market. Yaohan from Japan is now constructing a large department store in the Pudong area of Shanghai Hongkong's trade Development Bureau has organized local businesspeople to develop new markets on the mainland. Hongkong's best shops are already visible in many large cities, including Beijing, Shanghai, Guanzhou and Wuhan. As a result, part of Hongkong's retail and catering industries have a firm toehold in China's consumer markets.

It is expected that in the future the market for imported commodities will still be active, but that depends a great deal on the growth of disposable incomes. Improved living standards also have an effect on prices, fashions and the overall choice of consumer goods. People with higher incomes and private businessmen are the most active consumers, and represent a different market for fashions and interests than ordinary people, having a much more visible impact on trends in consumption. Wealthy consumers have also become a vital force in the market for imported goods. With the development of China's market economy, these buyers will have a stronger and stronger role in the purchase of imported goods.

In the future, the whole consumer market will be very active in China's special economic development zones and more affluent cities. People will spend more money for the best clothes and fashions, and this will be the main focus of promotions for foreign businessmen in China. Many large cities are the largest markets for imported consumer goods, and because of this foreign merchandisers find themselves doing business mainly the large and medium sized cities of China, especially in those areas with more ready access to the outside world. This is the general shape for the market in imported commodities.

In 1993 China's foreign trade increased by a large margin. Statistics from Chinese customs show that the gross import and export value reached US $195.72 billion, 18.2 percent more than in 1992. Imports are US $ 103.95 billion, an increase of 29 percent and the highest figure since 1986.

In order to follow changes in taste and the new demand for imports, the Chinese government has speeded up structural reforms for imports.

Zhou Jie, spokesperson for the Ministry of Foreign Economic Relations and Trade pointed out this problem, noting that in 1992 China cancelled her import regulation taxes and twice reduced other import taxes, first for 225 imported goods and then for another 3,371, representing a total slash in tariffs of 7.3 percent. The country's import licence system is applicable to only 53 kinds of goods and has been gradually reduced since 1992. A series of reforms has improved the major means of regulation step by step, using tariffs as an economic lever to revamp the macroeconomic system of management and administration. Management is being brought in line with common international controls, creating a better environment for foreign goods to compete in the Chinese market.

The Ministry of Foreign Economic Relations and Trade recently decided that China, according to specifications of international trade, would protect a small number of young enterprises and domestic products and therefore gradually remove the above-mentioned 53 import licences by 1996. Eight import licences, including those for steel, coffee, civilian aircraft and black-and-white kinescopes, were already abolished by the end of 1993, while 15 imported goods, including tobacco products, petroleum, clothing made of chemical fibers, washing machines, computers and refrigerators, would be free of restrictions by the end of 1995. 

At the same time China adopted a series of new policies to encourage foreign investors. On the basis of further developing China's coastal areas through foreign trade, the capitals of all provinces, municipalities and autonomous regions, plus five cities along the Yangtze River and 13 border cities and ports, were all listed for preferential policies to encourage foreign investment on the same level as other economic development zones. New investment is to be encouraged for "third industries," finance, commercial real estate and tourism on an experimental basis. Special category-B RMB shares have been issued overseas and a Sino-foreign joint-venture stock corporation has been established. Approval for new investments now sits with local governments, and the formalities have been simplified and restrictions on enterprises' imports and exports have been relaxed.

The improvement of consumer standard and growth of the domestic market has brought about renewed prosperity in China.

The country has also accelerated the construction of the means of production and research in science and technology, aiming to double national output value in the year 2000 and realize modernization by the middle of the next century, while at the same time putting an end to the history of a closed economy. On the basis of reciprocal and referential treatment China seeks to expand her economic cooperation and exchange with the outside world and introduce the new means of production, advanced equipment, advanced technology and foreign capital in developing the national economy. Production inputs sold on the open market will provide an attractive foundation for future cooperation, especially after China rejoins GATT and integrates her markets more closely into the world economy. With this in mind the Chinese government is determined to increase the pace of reform and modrnization. All of these facts are something for foreign businessmen and investors to keep in mind.