The Trade Interests And The Adjustment Of China's Export-oriented Development Strategy

The export-oriented development strategy is a specific application form of the theory of economic growth promoted by trade in developing countries, Developing countries to adopt export-oriented development strategy is to play the country's comparative advantage and the advantage of backwardness, As much as possible to obtain a variety of trade interests, especially the dynamic trade interests in order to promote the rapid development of the national economy.The main trade interests from export-oriented development strategies are to accelerate capital accumulation, economies of scale, promote technological progress and upgrading the industrial structure and system innovation, But, how much trade interests will be produced also depend on their specific circumstances. Such as economic conditions in developing countries, institutional, the level of human capital, technical capacity.The rapid economic development has been achievement in the past three decades. Expansion of china's employment and capital accumulation are achived by export-oriented development strategy, and economies of scale from trade has been not important to china, One part of china's technological progress by the trade is brought about in the middle of the investment, the other part is in the middle of total factor productivity. For china, the former is mainly in the form of technical progress. Rise of the incremental capital-output ratio and declining of the proportion of equipment occupied in imports of goods can be seen as the decrease of the performance of technological progress from trade in the investment, That total factor productivity promoted from trade has not been improved can be seen a slowdown in the growth rate of the trade intrests by export-oriented strategy.The price terms of trade in china has been deteriorating, this indicates a large number of trade interests is transferrde to trading partners, also that the huge foreign exchange reserves held by the huge costs and the revenue is relatively small in china loss enormous benefits.In summary, the china's export-oriented development strategy is not optimistic. China is a developing country,30 years of rapid economic growth, china's domestic market demand has great potential.To maintain china's trade interests in china's current stage of economy development, china's export-oriented development strategy need shift to neutral balanced trade strategy. To this end, on-one hand, it continues to expand production and export through technological innovation in areas with a clear comparative advantage in china, on the other hand, the level of domestic income need to upgrade on the base of productivity improvement in order to change huge potential market demand into reality needs. So our economy will be sustainable development.