China at that time only exported surplus raw materials and simple manufactured goods which only covered payment for imported goods . They then decided to implement an import substitution policy intended to optimize the structure of Chinese exports by encouraging the growth of domestic industry during the first period. There was supposed to be a number of countries that would follow China's lead, but due to lack of competition this could not be achieved. China then continued trade liberalization in 1978. This helped it to be able to integrate into global trade.