A Rearch On Boosting China’s Foreign Trade Competitiveness On The Basis Of Balanced Development Of Domestic And Foreign Demands

Since reform and opening-up, China has established the external development strategy. After30years’unremitting efforts, China has made remarkable achievements in foreign trade development with a rapid growth of exports, becoming the world’s top exporter and trading nation of goods with totally4.16trillion dollars import and export volume of goods in2013, which surpasses the USA for the first time. The global financial crisis in2008also had a severe impact on China’s export. At the same time of actively organizing forces to deal with the crisis, China began to introspect two problems. One is concerned with the choice of the economic development model. At present, China is facing the problem of unbalanced development between domestic and external demands, which is reflected in that the proportion of the resident consumption-represented domestic demands in aggregate demands shows a declining trend while the proportion of the export-represented external demands is rising continuously. As a result, the development of national economy depends too much on external markets in which there is a systematic risk, but comparatively, the domestic demands can not be met which further inhibits economic growth. Therefore, taking the road of scientific development and coordinating the relationship between domestic and external demands is not only a significant theoretical issue to adjust the operation mechanism of national economy under the opening-up environment, but also an important realistic problem related to the government’s macro-control, the development strategy of foreign trade and the promotion of trade and economic development. The other problem is about the foreign trade competitiveness. China, indeed, has gained tremendous benefits and incontrovertibly become one of the largest trading nations relying long on traditional comparative advantages in the international division. However, China, so far, has not been a trade power, which is embodied in aspects such as the weakness of industrial supporting capacity to trade, the lack of trade efficiency and governmental support, the unscientific developmental patterns, the insufficiency of innovation, the poor growing quality, the unreasonable trade structure and so on. In addition, the developed countries and some developing countries frequently take trade protection measures on China, which greatly restricts China’s further development in foreign trade. Under such an environment, it is worth of in-depth researches into issues that how should our country make best use of the advantages and bypass the disadvantages to change the development model and enhance the trade competitiveness. The two problems mentioned above are closely related in that an appropriate economic developmental model may guarantee the national economy in a sustained, coordinated and stable manner, which will promote our country’s foreign trade competitiveness, while the boost of foreign trade competitiveness may act on the development of the national economy in return to push forward the effective balanced development of domestic and foreign demands.This paper takes the Marxist economics theory as a guide, uses western economics theories for references, and builds a research framework concerning how to upgrade China’s foreign trade competitiveness in the background of implementing the open strategy. The paper is divided into three parts:the theoretical system, the evaluation system and the countermeasures system. In the first part, the dialectical relationship between domestic and external demands is studied. The problems resulting from the structural imbalance of domestic and external demands and its causes are analyzed. Countermeasures are also proposed from a theoretical view to properly handle the relationship between expanding domestic demands and promoting foreign trade in the new model of economic development, on the basis of which the paper gives a new understanding of the foreign trade competitiveness and teases out the positive and negative factors affecting it. In the second part, the thesis establishes a scientific, rational, dynamic evaluation index system which also meets the requirements of developing the open economy, then makes a quantitative research on China’s foreign trade competitiveness and gives a horizontal comparison according to time series and a vertical comparison with the G20countries by cross-sectional data to objectively judge the strengths and weaknesses of China’s foreign trade development, and specify our country’s position in the international division and the world trading system. In the last part, based on our country’s situation and the development trend of world economy, drawing on the experience of major trading countries, the thesis puts forward the overall principles, the strategic positioning, the developmental goals and specific countermeasures for China to transform the foreign trade developmental mode, accelerate the upgrading of foreign trade competitiveness and achieve the transition from one of the largest foreign trade countries to a foreign trade power.