Development in China's Foreign Trade: 2003–2012

Abstract

AbstractChina's foreign trade has entered a new stage, marked by some profound changes since 2003. After 5 years' consecutive high growth, China's foreign trade experienced a significant slowdown in growth following the onset of the global financial crisis in 2008. The purpose of this article is to present a review of the development in China's foreign trade over the past 10 years, and to explore important changes that have taken place during this period of time. A major finding of the present paper is that the traditional forces driving the high export growth in China, that is, low‐cost labor, low‐cost resources and low‐cost money, have been disappearing. The policy implication is that over the next 10–15 years, the most important conditions for sustaining high export growth will be promoting the development and export of private enterprises in traditional heavy industries and high‐technology industries, and relying on technological progress and high productivity to propel export expansion.