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Since 1979, China's foreign trade system has undergone remarkable changes. In 1988, foreign trade companies began to apply the contract management responsibility system. In 1991, export subsidies were abolished and companies were made responsible for their own profits and losses. In 1994, with the merging of the official rate and market rate of the renminbi (RMB) at its core, a single, managed RMB floating rate system based on supply and demand of the market was established. From 1996, the RMB became convertible for the current account. In 1994, mandatory plans on total import and export volumes, export earnings and import spending of foreign exchange, were relinquished and a system of guiding plans was introduced. A unified tax reimbursement system under central finance was gradually established. In accordance with the principles of efficiency, fairness and openness, favourable conditions were created for public bidding, auction and standardised allocation for the quotas on import and export commodities. Actions have been taken to deregulate export businesses gradually to increase competitiveness.

Liberalisation of the Chinese economy: APEC, WTO and tariff reductions