On The Relations Between The Foreign Trade & Economic Growth And China's Policies

Abstract Through the development from classic economic growth theory, new classic economic growth theory and new economic growth theory to system endogeny growth theory, modem economic growth theory has come to its perfect style day by day. But its function to foreign trade still stays at a stage that debates between the theory of Motor Engine and Pessimism. Therefore, to make a scientific and systematic analysis about their relationship has vital theoretical and real significance. Since the reform and opening of China, profound changes have taken place on foreign trade, which include total amount of foreign trade, structure of merchandise, fashion of trade and system of foreign trade. National economy is growing at high speed companying with the great development of foreign trade. Since the total amount scale of foreign trade has been very large, it is only too limited for further development of growth space and growth speed. The structural optimization of import and export merchandize and the transition of trading fashion, their comparison advantages have been fulfilled. The implementation of export oriented foreign trade development strategy resulted from shortage of internal supply has come to an end. In new century we need to conduct new foreign trade policy to realize high-speed development of our economy. The text keeps a foothold on the development of modern economic growth theory, and systematically analyses the relationship between foreign trade and economic growth, then makes positive analysis between them and finally put forward some foreign trade policy suggestion for the high-speed economic growth in new century.