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(Archived document, may contain errors) No. 28 May 17, 1985 FOR THE U. S., RISKS AND REWARDS AS CHINA MODERNIZES INTRODUCTION The People's Republic of China (PRC) has been following what it calls an "open" policy toward the outside world in support of its modernization program since about 1978. Foreign trade, credits, and especially technology are welcomed to the limits of the PRC'B ability to finance and absorb them.