China's External Economic Policy in Shifting Development Pattern

The Chinese economy, which continued to grow rapidly after the adoption of reforms and its opening-up initiatives, started to shift to a path of stable growth around the beginning of the 2010s. As a result of sustained high growth, the Chinese economy has been confronted with excessive savings, the deterioration of economic efficiency, a rise in factor prices, and the materialization of internal and external imbalances. For these reasons it must shift its development pattern from one that is growth driven by investment and export to one that is growth driven by consumption and domestic demand. As part of the change in its development pattern, China is shifting its external economic policy from export promotion and foreign capital utilization-on which emphasis has consistently been placed since the adoption of reforms and its opening-up policy-to import promotion and outward investment. China, which continues to develop as a great economic power, is rapidly increasing its presence in the international economic system. In particular, at a time when countries and regions around the world are trying to conclude free trade agreements (FTAs) amid the stalemate of the multilateral international trade system, China is establishing its position as an important player. Moreover, changes occurring as a result of the implementation of its external economic policies are working to promote the comprehensive deepening of China's economic reforms.