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Past Successes and New Challenges: China's Foreign Trade at a Turning Point
Author(s) -
Lemoine Françoise
Publication year - 2010
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2010.01193.x
Subject(s) - china , international trade , economics , diversification (marketing strategy) , trade barrier , offshoring , vulnerability (computing) , turning point , international economics , economic integration , business , political science , outsourcing , period (music) , law , physics , computer security , marketing , computer science , acoustics
Since 1979, China has recorded a remarkable trade performance, which has been driven by international processing and the offshoring strategies of foreign firms. The diversification of Chinese exports and their technological upgrading have been phenomenal. However, there is also inertia, illustrated by the persistent dualism of the trade sector, the unrelenting specialization in downmarket products and the deteriorating terms of trade. These weaknesses have helped its partners to adjust to the rise of this new trade power. In the past decade, China's economy has faced the adverse effects of an export‐led growth and the global crisis has revealed its vulnerability. China is now forced to rebalance its economy. This will imply major changes in foreign trade, in favor of ordinary trade and away from processing. In the foreseeable future, China is unlikely to become the driver of international demand but will remain the engine of Asian economic integration.