Hello everyone, welcome back to my blog. Today we will list 3 points about the development trends of international trade in China.
- The pattern of trade centered on developed countries has remained unchanged.
- China has become a new force in the growth of international trade.
China’s share of total global trade and its ranking are rising. In 2004, China’s foreign trade volume reached US $1,154.8 billion, surpassing Japan and to be the third-largest trading country after the United States and Germany.
- The three major economies of the US, Europe, and Japan still dominate international trade.
2. The structure of international trade has advanced, The trade in services and technology are rising.
- Overall situation: With the optimization and upgrading of the industrial structure of various countries, the global trade in services has developed rapidly. Over the past two decades, international trade in services has grown from $360 billion in 1980 to $2.1 trillion today, accounting for 19% of global trade.
- Structure of international trade in services: Trade in services is increasingly skewed toward emerging services such as finance, insurance, telecommunications, information, and consulting, and the share of traditional transportation and tourism continues to decline.
3. The trend of trade and investment integration is obvious.
- Multinational corporations are playing an increasingly dominant role in global trade. The multinational corporations have promoted the increasing integration of trade and investment by establishing production and marketing networks on a global scale.
- Multinational corporations have become the core force of resource allocation in the global scope. There are currently 620,000 multinational corporations in the world that control 13% of global production, 23% of global international trade, and 90% of foreign direct investment.
- International trade pattern from inter-industry trade to intra-industry trade and intra-company trade. The proportion of trade in intermediate products and parts and components in international trade increased. The more enterprises a country has with international competitive advantages, the more resources it can integrate into the international division of labor.
I hope this article could bring you a new perspective to understand the general trend of international trade development and feel free to leave your question and opinion of this topic in the comment below.
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Take care and all the best!
(Special thanks to wangye from Zhihu)