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China's trade system was a highly centralised and controlled planned system during the pre-reform period (1958-78). The main features of this type of trade system were 1 • foreign trade was conducted strictly according to central planning, which covered areas such as trade procurement, imports, exports and balance of foreign exchange-the State Planning Commission and Ministry of Foreign Trade were the key players in drawing up the plan for trade with an objective to fulfil the government's overall plan • a centralised accounting system was run through the Ministry of Foreign Trade and the Ministry of Finance-under this system, producers and trading companies (handling both imports and exports) were not responsible for profits or losses incurred in their production and trading activities

Trade reform and development