China Trade Pattern Essay

1202 words - 5 pages

Introduction
International trade as results of globalization and trade liberalization had made a significant contribution to economic growth. The introduction of economy reforms and an open door policy by Deng Xiaoping in 1978 had resulted in a rapid expansion in China’s international trade together with dramatic economy growth which has made China emerged as a key player in global economy. China is the fastest growing economy in the world with its Gross Domestic Production (GDP) growing at nearly 10 per cent a year and turned it into the second largest economy after United State. (Agarwal & Wu, 2004)
China’s stable political system, vast natural resources and abundant skilled and ...view middle of the document...

Thus, making it as the world’s largest exporter which accounted for 10.4% of world’s export (shown in Figure 2) and the world’s second largest importer which accounted for 12.3% of world’s imports as in 2011 (shown in Figure 3).

Figure 2: Leading exporters in world merchandise trade, 2011

Figure 3: Leading importers in world merchandise trade, 2011
During 1980s, exports of goods and services rose from 10.65% to 13.90% of GDP while imports of goods and services rose from 11.01% to 15.34% of GDP. It’s mainly due to decollectivization of agriculture and the opening up of the country to foreign investment. China’s export structure shifted from primary products denominated to manufacture goods denominated in 1980s. (China.org.cn, 2011) As China committed to economy reforms, heavy purchase of capital goods, industrial supplies and foreign plant were imported to equip manufacturing industry resulted in import restraints in early 1980s. Along with open door policy, China experience trade surpluses of 2.37% and 1.12% as in GDP in 1982 and 1983 respectively. However, Imports surged due to the huge and uncontrollable consumer goods, decentralized management of foreign trade and expansion of foreign trade in 1985 lead to trade deficit where import exceed export by 4.08% of GDP. In order to reduce trade deficit, Chinese government introduced import and export licensing system, stricter controls on foreign exchange expenditures, and the devaluation of the renminbi.
In 1990s, China’s trade grew gradually where import rose from 13.09% to 17.52% and export rose from 16.07% to 20.17% as in GDP due to broader trade reforms, including significant reductions in tariff, trade barriers and regulations, and reformed the banking system. (Wikipedia, 2014) With the changes of export from mainly light industrial and textile products to mainly mechanical and electronic products in the early 1990s, China experienced trade surpluses and entered trade deficit of 2.68% in term of GDP in 1993 when Chinese government temporarily loosen the control on imports. Since the unification of dual-track exchange rate system in 1994, the exchange rate for renminbi depreciated and remain stable which granting a competitive edge to China’s export. This resulted in trade surpluses from 1994 to recent. However, the imports of fall from 19.95% in 1994 to 16.05% in 1998 due to the expensive imported goods. With the reduction of tariff in 1999, resulted in an increase in import by 1.47% in 1999. (XiaoJun, 2012)
From 2000 to 2006, the...

Other Papers Like China Trade Pattern

Intellectual Property Essay

334 words - 2 pages “the crime of the 21st century” as the criminal enterprises worldwide.” In technology needed to operate 1982, it was estimated that the trade in sophisticated counterfeit operations has illegitimate goods drained 5.5 billion become easily accessible. “Intellectual property crime is one of the fastest growing criminal enterprises worldwide” www.autoweb.net 3 Intellectual Property Theft and China F or decades, piracy and counterfeiting activities have followed predictable pattern, flourishing in

A Comparative Study on China English, Chinglish and Their Influences

1791 words - 8 pages and first culture are intertwined. And the thinking pattern predominance shadows its influence over whatever comes later in mind. In China nowadays, English is a foreign language. Social distance which concerns the extent to which individual learners become members of a target language group and therefore achieve contact with them is too significant to perform as part of psychological motivation. In addition, Chinglish occurs in different levels of

Equilibrium of Prices

3602 words - 15 pages States from China. Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor. One report in 2010 suggested that international trade was increased when a country hosted a network of immigrants, but the trade effect was weakened when the immigrants became assimilated into their new country.[2] International trade is also a branch of economics, which, together with international finance, forms the

Econ 401 Assignment 2

754 words - 4 pages ECON 401 Assignment 2, version E 1. (a) Explain the new trade theory. What is the role of economies of scale in this theory?  The new trade theory specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms. So a country’s pattern of trade may be a reflection of the

China and India Case Study

2117 words - 9 pages China and India: The Pattern of Recent Growth and Governance in a Comparative Political Economy Perspective By Pranab Bardhan The two largest countries of the world with ancient agrarian civilizations, with many centuries of dominance in the world economy in the past and recently with impressive economic growth performance, draw obvious comparison. Over the last more than sixty years the two neighboring countries having adopted sharply

Protectionism

1649 words - 7 pages & Obstfeld, 2009). China is the successful example of country using FDI as a source of economic development because of its long term durability. China experienced the rapid growth of FDI since the economic reform of China’s communist system in 1978. In 2001, China enters World Trade Organization (WTO), promoting as an FDI top destination in the World Investment Report 2003. FDI into China surpassed 100billion USD for the first time in 2010. China is

Imperialism and China

2325 words - 10 pages brought harm or benefits to China in three aspects: effects on the economy, effects on politics, and the results of imperialism. Nathan focuses on the economic benefits foreign trade has brought, while undermining the arguments that his opponents made (in this case, mainly James Peck and Issac’s arguments.) Nathan explains that “it is difficult to establish a negative relationship between the foreign presence and the success of Chinese enterprise

Global Economy Final Exam

1882 words - 8 pages cost is for Food in terms of Cloth for Country B what the opportunity cost is for Cloth in terms of Food for Country B what the opportunity cost is for Food in terms of Cloth c) What is the production pattern when there is no trade, and there is an equal amount of labour allocated to the production of each good in each country? d) Now suppose each country COMPLETELY specializes in the production of the good for which it has a comparative

The Usage of Curriculum Guides for Seniors”

4358 words - 18 pages forces over there to contend with the mainland army. We supported Taiwan against Red China by providing weapons, funds, and ops. The United States of America is presently on thin ice with Red China. Basically, they threatened to revoke trade relations if we continue to help Taiwan. In 1998, the US military had the biggest naval showing since WWII. We pulled out the big guns, and they backed off. The USA is really stuck between a rock and a

Global Management

4096 words - 17 pages , however China was the weakest and poorest country in international affairs p.178 (Morton, 2005). China became part of the World Trade Organization (WTO) on December 11, 2001, after several years on negotiations with the United States and WTO members’ p.265 (Morton, 2005). This open doors for China in the global marketing system, now China is one of the largest countries in the world. China culture consisted of communication, religion, attitude

International Economics

1580 words - 7 pages harmful to neither country. E. trade is likely to have no effect on either country. Answer: D 7. Benefits of international trade are limited to A. tangible goods. B. intangible goods. C. all goods but not services. D. services. E. None of the above. Answer: E 8. Attempts to explain the pattern of international trade A. have been a major focus of international economists. B. have proven to be hopeless. C. have proven to be a trivial

Related Essays

Economic Relationship Between The U.S. And China

904 words - 4 pages distrust with the United States. The biggest problem deals with the piracy of intellectual rights. This problem placed China on the U.S. Trade Representatives Priority Watch List in 2012. The report states that China has continued in a pattern of high levels of counterfeiting and copyright piracy. The main reason that this breach of trust in intellectual property rights is a threat to the U.S. economy is because the U.S. Trade Representative has

What Motivates Customers To Buy Products

1539 words - 7 pages After attaining freedom in 1949 china followed the principles of independence and self reliance and then later started economic and trade exchanges with foreign countries. Initially foreign trade development was relatively slow because of international politics. Before 1978 china’s trade was conducted under system of state trading where approximately a dozen foreign trade corporations monopolised all foreign trade. under this central plan

International Trading Essay

1329 words - 6 pages eventually decrease the trade deficit. JOINING INTERNATIONAL TRADING ORGANISATION (TRADING BLOCS) Trading blocs have an essential role to regulate and control the pattern of international trade; they are designed to enhance and encourage regional or international trade by a set of agreements on tariffs and taxes, thus they maintain a favorable trade framework among the member countries. There are a many trading blocs which rose in the period of

The Global Economy Essay

1539 words - 7 pages Globalisation refers to the process of increasing integration among different countries throughout the world; this results in the establishment of a single world market. Globalisation encourages overseas trade and the reduction or removal of trade barriers hence allowing for economic growth and development. One economy that has been drastically affected by globalisation is China. The main areas that have been affected in this economy are