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The China's Rise as an International Trading Power

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Author Info
Christopher Edmonds () (East-West Center and Department of Economics at the University of Hawaii at Manoa)
Sumner J. La Croix () (Department of Economics, University of Hawaii at Manoa)
Yao Li () (East-West Center)

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Abstract

This paper undertakes a detailed review of the policies that have shaped China's explosion of a global supply of exports, and examines long trend statistics on the evolution of China's trading partners and the goods it trades in the post-reform period. This review notes common characteristics in China's trade experience with those of earlier successful export-based economies of East Asia, such as South Korea and Japan. The survey finds that China's pattern of trade and trading partners are similar to those of more market-based Asian economies, but that the Chinese economy's orientation toward foreign trade is considerably greater than expected for an economy of its size and level of development. The authors argue that China still has a long way to go in terms of its export boom, especially if compared to the experiences of South Korea, Japan, and Taiwan. This suggests that China is on track to become one of the world's most formidable trading powers and its export policies and export performance will exert increasing influence on how the global trade regime evolves in the future.

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Paper provided by East-West Center, Economics Study Area in its series Economics Study Area Working Papers with number 88.

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Length: pages 41
Date of creation: Feb 2006
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Handle: RePEc:ewc:wpaper:wp88

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