Foreign Trade of China
Foreign trade is a key area in Chinas economic development, and many successful policies and strategies have been implemented to push the growth of foreign trade in the past couple of decades. Chinas foreign trade has achieved remarkable growth since the founding of the People’s Republic of China, and in the late 1990s, China rose to become one of the world’s largest trading nations. Trade between China and other countries has been under a policy of reform since 1978, and since then, it has become steadily stronger.
According to official statistics, Chinas total foreign trade in 2019 increased by 8.4 percent to reach 27.97 trillion yuan, surpassing the United States to become the worlds largest commodity trading nation. Export of goods amounted to 14.02 trillion yuan, import of goods amounted to 13.95 trillion yuan and the overall balance of foreign trade surplus was 68.37 billion yuan. Despite the difficult times caused by the novel coronavirus pandemic, Chinas foreign trade showed off resilience. The reliance on foreign trade has built China into the world’s number one exporter.
Since joining the WTO in 2001, China has gradually opened its markets to the global community and embraced free trade. The WTO accession also enabled China to open its market and keep pace with international standards on industrial and product quality. The gradual opening-up has increased the export of higher value-added products and attracted more foreign companies to expand business in the country.
In addition, with advances in technology, Chinas companies have used the internet more and more to conduct business, including buying, selling, and delivering goods across international borders. This new form of e-commerce has allowed companies to reach customers abroad and expand their business by offering new and innovative products.
The government has also taken measures to encourage and improve foreign trade. It has eased restrictions on foreign investment and improved trading processes. Through negotiations and trade agreements with other countries, it has lowered tariffs and improved trading conditions. In addition, China has developed a number of export-oriented zones and expanded the use of renminbi as a trading payment currency. All of these measures have enabled China to become a powerhouse in international trade.
The world continues to rely heavily on Chinese goods, with Chinese exports making up many of the worlds products. This reliance has reshaped Chinese foreign trade, as it has become closely intertwined with the global economy. The Chinese government continues to develop new strategies and policies to ensure that their economy remains strong and foreign trade remains healthy.
In the future, China’s foreign trade will continue to develop and expand as the country looks for new markets and new products to meet the changing needs of the global economy. China is well positioned to become a major player in the global trade arena in the upcoming years, and its performance and success in foreign trade is a source of pride for the nation.
