"After the founding of the People's Republic of China, our foreign trade basically walked on two legs. One is trade with the Soviet Union and new democratic countries, and the other is trade with capital. " Lv Jianxing, who worked in Guangdong Customs after the founding of the People's Republic of China, said, "The former mainly focuses on heavy industrial trade, exporting machinery and some heavy industrial materials, but the Soviet Union's heavy industry itself is very developed, and earning foreign exchange by this part is very limited. Therefore, in fact, in the background at that time, the latter was more important. Through Guangzhou Port, Hong Kong and Macao, the production of local products and food was an important channel to earn foreign exchange at that time. Although the value of these export products is not high, they are huge. Nearly half or more of China's foreign exchange income comes from Hong Kong and passes through Guangzhou. " Lu Jianxing was a Guangzhou customs official in the Kuomintang era. As the earliest customs system that introduced the western civil service system, China has a tradition of mobilizing customs officials every three years since the National Government period. 1949, Lu Jianxing, who just became a full member of Chongqing Customs, was transferred to Guangdong Customs, and a new era began. Before and after liberation, it was the private capital eager to escape from China that made full use of this channel. "A lot of bureaucratic capital and market hot money in Shanghai, Jiangsu and Zhejiang go south, passing through Guangzhou and Hong Kong." Lu Jianxing recalled, "At that time,' Shendian' became the most popular financial derivative. This kind of wire transfer from Shanghai to Guangzhou is actually to change domestic funds from the currency of the old government into Hong Kong dollars and then flow into Hong Kong, and then use Hong Kong's free financial market for spot speculation or transfer abroad. From 1948 to 1949, a complex triangular arbitrage relationship has been formed between banks in Guangzhou. " After liberation, the value of this passage was reused by the new regime. The day before Guangzhou's liberation into the city, Ma Shicheng's army was ordered to continue to set off from Guangzhou and recover Hong Kong and Macao. "We walked for three days and arrived at the Shenzhen River. Because of the hot weather, everyone went to the river to take a bath. " Ma Shicheng recalled, "At this time, the army signalman suddenly said that there were new orders on it and he was not allowed to move on." It was not until 1980s that Ma Shicheng learned the real reason for the unexpected stop of the parade from his superior Zhang Shijie. "After liberation, army veterans reunited. General Zhang told us that Pan Hannian and Liao Chengzhi suggested to the Central Committee that 1949 should not be stationed in Hong Kong. The reason is that the United States implemented Dulles blockade policy at that time, and the trade between Shanghai, Tianjin, Qingdao and other port cities and foreign countries was almost cut off. If Hong Kong is recovered, the only trade channel leading to the international community will be closed. For Hong Kong, it will also become a dead port. Therefore, retaining Hong Kong's status as a free port for a certain period of time and temporarily coming under British jurisdiction is equivalent to tearing a gap in the US blockade of China. "It turned out that Pan and Liao's estimation was very accurate. Lu Jianxing said: "As Hong Kong's entrepot trade has dropped sharply, the Hong Kong Government has adopted a two-sided policy towards the embargo. It has continuously promulgated decrees to expand the scope of the embargo; However, when the pressure in the United States was slightly relaxed, the' specific items' that businessmen applied for export were secretly approved for export. On the whole, the control on smuggling into the mainland of China is tight and loose. Because the United States sent people to monitor, the summer of 1952 was strictly controlled. However, at the end of the year, the Hong Kong government came up with a way to deal with the surveillance of the United States in a way that the export of prohibited goods could not be filed. ""This has created a valuable trade channel for the Mainland. In addition to Hong Kong and Macao Chinese businessmen such as Henry Fok, some capitalist countries and businessmen from these countries are also based in Hong Kong and Macao, conducting open or secret trade with the mainland of China. Even American trade with China has not been completely banned. According to US official 1952 statistics, the value of goods imported from Guangzhou Port to China by the United States this year is 27.7 million US dollars. " In this way, Guangzhou has become the most important frontier for China government to obtain embargoed materials and raise foreign exchange. To this end, the Ministry of Foreign Trade has set up a foreign trade bureau in Guangzhou to implement comprehensive management of import and export trade. Lv Jianxing recalled that before liberation, a large number of businessmen in Guangzhou were engaged in foreign trade agency, and the establishment of the Foreign Trade Bureau ended the free market era of private foreign trade businessmen through the "licensing system". "Only government companies have licenses, and private enterprises either withdraw from the market or entrust the import and export under state-owned enterprises." "By the mid-1950s, the foreign trade of Guangzhou Port had actually changed from a variety of economic components to an economy owned by the whole people. The professional import and export company under the Ministry of Foreign Trade of Guangzhou has been able to control all import and export goods, and the government can control foreign trade profits to the maximum extent. " The government has set up two important trade organizations in Hong Kong: China Resources Corporation and the Fifth Branch. China Resources mainly exports groceries, silk and some light industrial products, and the fifth branch is responsible for local products such as food and tea. Zhang Ping, who has been the general manager of China Resources for a long time, recalled: "China Resources Company is an organization engaged in economic and trade work in China." "China is China of China, representing China, and Runrun is Runrun of Mao Runzhi, representing our party, which means that this institution is a company run by our party." "In order to break the trade embargo, China Resources established a secret transportation company named Xinglong Xing at 195 1. Xinglong Bank has four employees. The task is to organize transportation companies and personnel in Hong Kong to secretly transport our materials to Macao Nanguang Company, and then Nanguang Company is responsible for transporting materials to the mainland through Gongbei and selling mainland products through the same channels. " The primary task of these state-owned enterprises is to create foreign exchange and exchange exports for imports. "The government can even allow enterprises to float losses within a certain range regardless of cost," said Lu Jianxing. "Every quarter, China Resources has to make a statement of revenue and expenditure. If there is too much overspending, the government will be responsible for balancing the accounts. In fact, due to this cost advantage and the reputation of monopolizing state-owned enterprises, even without the constraints of the' license system', it is difficult for trade time-honored brands in Guangzhou and Hong Kong to maintain their business under such a state of non-free competition. Their only choice is to cooperate with the government, and of course their profits are not as good as before. State-owned enterprises can take advantage of their long-term personal relationships in trade. " "There are also some businessmen who choose to quit. I have been to Hong Kong once, and a Hong Kong businessman complained to me,' I quit, I am totally working for China Resources'. " The smooth export is only one aspect of Guangdong's role as a trade channel. Its premise is that the rulers need to be able to organize the supply of goods and determine the price of cities with great efficiency. From this perspective, Guangzhou's "socialist transformation" of industry and commerce is of greater significance to the country than other cities.