Which entity controls foreign trade in China?

• A. Hong Kong (Entrepôt)
• B. Foreign Trade Corporations (FTCs)
• C. Renminbi (RMB)
• D. Letter of Credit (L/C)

Answer: (B)

In China, foreign trade is directed through state-owned bodies that handle the whole flow of import and export activities. Foreign Trade Corporations are the official channels the government uses to license, allocate quotas, coordinate with banks for payment, and ensure that trade activities align with national plans and policies. Because they sit at the center of how trade is approved and executed, they are the primary entity that controls foreign trade in the country.

The other options don’t act as the controlling body: Hong Kong functions as an international hub with its own trade regime, not as the controller of China’s trade. Renminbi is just the currency used to settle transactions, not a governing authority. A Letter of Credit is a financial instrument that guarantees payment between buyer and seller, not a supervising body for trade.