The Study On Impacts Of Sub-prime Mortgage Loan Crisis To China's Export Trade And The Countermeasures

In 2007, the U.S. subprime mortgage market crisis took place and its rapid spread has not only led the U.S. economic recession, the global economy also involved in a chain reaction of depression. With the continuous development of the sub-prime crisis, reduced demands of foreign markets, lower purchasing power of consumers, together with a number of countries adopt trade protectionist measures to restrict imports, China's export trade continued to decline, which broke China's reliance on export-led growing economy. Export trade in China's economic development plays an important and significant role as a pillar in China's economic development. How to make Chinese exports break away from the plight of sub-prime mortgage crisis is, not only for government, but also for export enterprises, a severe test. In this background, this paper studies sub-prime crisis' influence on China's export trade and tries to find China's coping strategies.In order to get an in-depth analysis of sub-prime crisis on China's export trade impacts and to find coping strategies, this paper outlines the sub-prime crisis, analyses its impacts on China's export trade, and results in some coping strategies. Firstly this paper introduces the sub-prime crisis and its influences on the world economy, through the analysis of Europe and the United States economy Development Status, indicating its negative impacts on world economic development.Secondly,by the means of data comparison, logical reasoning and case research methods, through comparing the changes happened in China's export trade before and after the crisis, indicates the impacts on China's exports. Besides, econometric methods are used in this paper to ascertain the serious impacts of sub-prime crisis to China's export trade. On this basis, the paper raises coping strategies from the angles of government and enterprises that the Government should offer great help to export enterprises in the aspects of guiding policies, exchange rate stability, monetary policy support, incentives, etc. On the other hand, Export enterprises have to go through brand building, new markets development, product innovation, "going out" strategy, risk aversion, etc. to deal with sub-prime crisis. This paper finally concludes that the sub-prime crisis on China's exports is not only a threat, but also an opportunity. In order to get more trade access, export enterprises should seize the developing opportunities, improve competitiveness of themselves.