This study, first published in 1992, explores the relationship between China's foreign trade reforms and the domestic economic reforms that underlie China's policy of openness. It provided the first comprehensive analysis of how China emerged, since reform began in 1978, as one of the most dynamic trading nations in the world. It examines both the external policy changes, such as the decentralisation of trading authority and the devaluation of the domestic currency, and internal economic reforms such as the increased use of markets and prices. The volume concludes with an analysis of the sources of China's export growth and outlines further domestic economic reforms that the author believes will be required to sustain China's integration into the world economy.

‘Lardy’s book is the most up to date and best academic analysis of the trade reform available. The author has wide experience in the economic analysis of China and has brought to this study an unrivalled combination of attention to detail and analytical precision.’

Christopher Howe Source: The Times Higher Education Supplement

‘Foreign Trade and Economic Reform is to be welcomed, not primarily as an analysis of the extent and causes of China’s trading success, but more as a detailed and comprehensive account of the evolution of China’s trade policies up to 1990.’

Source: Economics of Planning

‘all those rushing to invest in China would do well to read Lardy’s sobering book.’

Source: Economic Affairs