China should tighten imports of ordinarygoods and restrict or even forbid import of goods which can be
made domestically, Premier Zhao Ziyang said.
    He told the National People's Congress, China's parliament,
that the country's foreign exchange is limited and must be used
where it is most needed.
    "We should expand production of import substitutes and
increase their proportion," he said.
    On exports, China should increase its proportion of
manufactured goods, especially textiles, light industrial
goods, electronics and machinery, he said.
    Zhao said China should lower the cost of exports and
control the export of goods that incur too much loss. In 1986
China had a trade deficit of 11.9 billion dlrs, down from a
record 14 billion in 1985.
    Zhao said China should work to provide a more favourable
investment environment for foreign businessmen. It should use
foreign funds for production and construction, with stress on
firms making goods for export or import substitutes.
    China should also earn more foreign exchange from tourists
and contracted labour abroad, he added.
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