China Foreign Trade Strategy

The trade strategy refers to a complete set of trade policies which influence resource distribution and competitive efficiency by way of the choice of-international division. General speaking, there are four categories of trade strategies, which include Free Trade, Import Substitution, Export Promotion and Integrated strategies. China's current trade policy is belonging to integrated trade strategy which is relatively preferred to export promotion.Our current foreign trade strategy and its theoretical basis have many shortcomings, which result in a series of problems that include worse off terms of trade, less advanced industry structures and more and more trade friction. This situation makes the development of our country's foreign trade fall into"the trap of comparative advantage". Furthermore, after the entry to WTO, the dramatic changes of international economic and comparative situations make it inevitable to transform our current foreign trade strategy. Under such circumstance, according to the fundamentals for choosing a suitable foreign trade strategy, the author make a conclusion: We must keep up developing the comparative advantage vigorously and realize the stratified transformation from the comparative advantage to competitive advantage step by step. This strategy is based on the phrase of industrialization and international economic environments and makes the combination of comparative advantage and competitive advantage to realize the structure transformation of industrialization smoothly and achieve the significant and sustainable trade benefits.The article employs many methods such as qualitative and quantitative analysis and makes systematic research on trade strategy, which is expected to make some contribution to China's trade theory and practice to achieve the objective of being a trade great power in the world.