Jing Linbo: Development of Trade in China: Achievements and Problems

Abstract: China’s trade has made great strides since reform and opening. China’s status as a power in trade has been gradually consolidated and the achievements are: trade volumes have been expanding with a significantly larger share of the international market; the trade structure continues to improve with more proper trading entities being the key players; import and export markets are becoming more complete and diversified; service trading is becoming more internationally competitive; and the trade surplus is better controlled and thus trade is more balanced. Meanwhile,Chinaalso faces many problems in trading. Major problems are: comparative advantages are becoming less obvious; products exported are still at the low end of global value chain; less resources are available; trading companies are small with limited scale-generated profits, which makes companies vulnerable to risks;China’s international trade, overall, is still imbalanced and tensions in trade are another risk factor.

Keywords: Trade structure, Trade model, Trade friction