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Multinationals and Trade Linkages

In: China and the World Economy

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  • Deborah L. Swenson

Abstract

Between 2000 and 2006 Chinese exports grew at an average rate of 25% per year, which positioned China just behind Germany and the US as the third largest exporter, and on a trajectory to become the world’s largest exporter by 2008.1 Nonetheless, while the exceptional growth of Chinese exports has captured international attention, Chinese trade is remarkable for another reason — the unusually high degree of multinational firm involvement in the architecture of Chinese trade. For this reason, a better understanding of the repercussions of China’s trade integration with the world economy needs to recognize the direct role of multinational firms in China’s trade expansion. In addition, to fully appreciate the influence of multinational firms on Chinese trade, it is also important to consider the long-term effects of multinational firms on the nature and quality of trade by domestic firms in China.

Suggested Citation

  • Deborah L. Swenson, 2010. "Multinationals and Trade Linkages," Palgrave Macmillan Books, in: David Greenaway & Chris Milner & Shujie Yao (ed.), China and the World Economy, chapter 8, pages 165-183, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-05986-4_8
    DOI: 10.1057/9781137059864_8
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