The Research On The Strategic Solution To The Immiserizing Increase In China's Foreign Trade

Ever since its reform and opening up, China has been taking the export-oriented policy in foreign trade under the guidance of mercantilism. As China attaches the importance to the export growth, it has become the persistent goal for the government and enterprises to increase the export and earn foreign currency. Under this circumstance, China has witnessed the fast growth in foreign trade in the past 30 years and made great achievements, which have accelerated the growth of the economy.After entering the 21st century, China's economy is remarkably strengthened. China has undoubtedly become a major international trade player and its international economic status has been dramatically improved. However, despite the quick growth in export, China suffers an increase in trade friction. There is a conspicuous contradiction between the fast development of foreign trade and the effective use of resource and energy, the increase of people's welfare. Economic situation both at home and abroad is undergoing a dramatic change. Foreign currency earning is no longer the only contributor to the growth of foreign trade. The existing strategy in foreign trade is facing challenges.This paper first reviews the achievement already made in foreign trade. Then it elaborates some related theories such as Comparative Advantage Theory and Immiserizing Growth Theory, etc., and applies the Immiserizing Growth Theory to conduct a case study on China reality. And finally, it comes to the conclusion that China is under the threat of immiserizing. On this basis, the author puts forward suggestions on solving this problem and transforming the strategy in export to enhance China's strength in foreign trade.