In conclusion, a flurry of changes will occur amongst the market players in China's foreign trade which represents one of the competitive sectors of the national economy. In compliance with the underlying principle of non-discrimination , SFTEs will be on an equal footing to compete with private firms and FIEs. Some SFTEs will be able to respond to the challenge through successful reorganization and restructuring. Some will rely on licences for the import and export of key commodities designated by the government. The rest of the SFTEs who are unable to achieve the necessary improvements in efficiency and productivity will be left behind.