meanings are “window for technology,” “window for knowledge,” “window for management” and “window for foreign policy.” $ ^{59} $ China has tried to accelerate its economic growth and get more foreign currency through this opening policy. Through opening trial experiments like the Special Economic Zones, China absorbs foreign investment and technologies into its system.

In China’s SEZ system, China could drop its command system if only it could keep the “four fundamental principles” $ ^{60} $ and sovereignty. Besides its economic function, the Special Economic Zones worked as show-windows to HongKong, Taiwan and overseas Chinese. As the result of economic development in the Special Economic Zones, the mainland economy amalgamated into the HongKong and Taiwan much stronger than before. China decided to open more, in addition to rapidly enhancing the already opened areas.

Based on those experiences, China decided to accelerate its open policy and integration into the world economy at the 13th Party Congress in October 1987. In this congress, China announced a four-stage development strategy composed of “Special Economic Zones/Coastal Open Cities/Coastal Economic Open Areas/Inland” steps. In January 1988, the “Coastal Area Economic Development Strategy” was published in the Party’s newspaper. This clearly showed that China itself strongly feels the necessity of integrating its economy to the world.

The “Coastal Area Economic Development Strategy” illustrated the following ideas.

(1) Utilizing the advantages of cheap labor power, good conditions for transportation and comparably higher technologies, develop labor-intensive industries in the coastal areas and earn foreign currency by export.

(2) To soften the effects of the bottlenecks and shortages of raw materials in the domestic market, materials should be imported, assembled, and then exported to the international market.

(3) Attract foreign investment into China and innovate technologies.

(4) Absorb new technologies and transfer them to the entire country.

(5) Study the management system of foreign enterprises and develop human resources.

In the “Coastal Area Economic Development Strategy,” many criticisms and newer circumstances emerged. Since then, even when this strategy was dormant from 1989 to 1991, it was restored, and continues to be the main idea in the opening policy. $ ^{61} $

The opening policy was not always a sure thing. For example, there were some discussions $ ^{62} $ on the character of the SEZ. As the open policies were carried out, there happened many contradictions emerged like fighting for raw materials between enterprises, shortages of agricultural products for industrial production and export, and so on.

At present, the main issue in the opening policy is participation in GATT. $ ^{63} $ China deals in policies in many issues like agriculture, state owned enterprises, prices and currencies, always focusing on the affiliation to GATT. $ ^{64} $ GATT is the key point for current economic policy in China.

## 2 -3 Urban Reform (SOEs Reform)

China calls most reforms done outside of rural areas as “urban reform.” Many fields are included in this concept. This report deals with reform of the state owned enterprise