Strategic Research of China’s Foreign Trade Based on Balanced Development of Import and Export Trade

Abstract

Since the reform and opening up (1978), China's economic take-off, to a great extent, has benefited from the tremendous achievements of the development of foreign trade. China's import and export trade has experienced a leapfrog development in the past thirty-plus years since then: the total volume of foreign trade increased to 3642, 05 billions of dollars in 2011 from $20, 64 billion in 1978, the ratio of total trade volume in the world up to 20% from 0.78% in the corresponding period. The growth of China's foreign trade has not only made enormous contribution to its own economic and social development, but also immensely advanced its international standing and influence. The Evolution of China's Foreign Trade Strategy In the past thirty-plus years, China's foreign trade strategy has experienced evolution and development, with a historical achievements made in the process. Before reform and opening up, China adopted a typical import-substitution strategy under a closure condition. In the first ten years of reform and opening up, progressive opening up strategy in an exploratory way has been made by China. It's a transition period from closure to opening-up. Although, there was still a relatively high tariff and non-tariff barrier, advanced technology and investment was gradually brought in, and special economic zones and open cities etc. were set up. From 1979 to 1987, the rank of China's trade in the world increased 16 from 34, and its GDP doubled as well. Since 1988, export-oriented strategy has been the mainstream of China's foreign trade. During this period, China's accession to WTO in 2001 was an historical point, after which China has maintained a further lower tariff level, RMB exchange rate. China's associated industries and production capacity has been constantly strengthened, which promotes the release of its huge export potential, and an opening pattern in a all-round manner, multi-field, and multi-form was thus formed. Although the volume of import has been continuously extended, export-oriented strategy has been maintained due to the faster growth of export than import. China should be proud of its booming development of import and export trade, but not neglect the fact that many problems hiding in the high speed growth. The transformation of the pattern of its economic development is urgent more than ever since the international financial crisis in 2008. As a crucial component of economic development pattern, the strategy of foreign trade should be transformed according to domestic and foreign situation, which is an opportunity and challenge to the development and modification of China's open economy, and consolidation of its large trade country. The Status Analysis of China's Foreign Trade Strategy. Since the adoption of export-oriented foreign trade strategy, the total volume of China's foreign trade has achieved a leapfrog development. According to sheet 1, the total trade volume was US $ 102.8 billion in 1988, 509.65 billion in 2001, 2561.63 billion in 2009, and 3642.06 billion in 2011. In the past decades, the export-oriented foreign trade has pushed FORWARD China's rapid development, accelerated its industrialization and modernization, increased its revenue, expanded its foreign exchange reserve, International Conference on Education, Management and Computer Science (ICEMC 2016)