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Before the reform and opening up, China's foreign trade was subject to mandatory plan management and the state was responsible for profits and losses. Since the reform and opening up, China's foreign trade system has experienced changes from mandatory plan management to giving full play to the basic role of market mechanism, from high monopoly of management power to full liberalization, and from enterprises eating the national "big pot" to independent operation and self responsibility for profits and losses. At the beginning of reform and opening up, China's foreign trade system reform was mainly to reform the single plan management system, delegate foreign trade management and management rights, implement the foreign exchange retention system and establish a foreign exchange adjustment market. The absorption of foreign direct investment has enabled foreign-invested enterprises to enter the field of foreign trade as a new business subject, breaking the monopoly of state-owned foreign trade enterprises. Since then, China has implemented the foreign trade contract system, gradually replacing the mandatory plan with the guiding plan. In accordance with the general rules of international trade, an export tax rebate system has been established. In October 1992, China clearly put forward the reform goal of establishing a socialist market economic system. In January 1994, the Chinese government abolished all financial subsidies for exports, and import and export enterprises became completely responsible for their own profits and losses.

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