Economic Analysis Of China's Foreign Trade Flows

As for the relationship between the two, international division comes before international trade and its structure is decisive in international trade flow. The comparative advantage of each country is distributed in a climbing stair sequence. The major layer of the world industry and trade division are: developed countries, start-up industrialized countries, sub start-up industrialized countries and some other developing countries. Generally speaking, the countries in the same layer bear similarities in advantaged industry and international division. When we see in a long-term and dynamic point of view, the structure of international division is changing. Therefore, the country in the lower layer may move to the higher one so as to change the position in global division and optimize international trade flow which will make the sharing of benefit more reasonable and fair. As a developing country, china stands in the middle layer of international division. Its comparative advantage reflects in manufacturing industry with medium and low technology. The products being imported and exported are also manufactured goods containing medium and low technology. What makes it possible to be a part of mixed international division, which applies vertical division of labor in developed countries as the primary and the horizontal international division between developing countries as the secondary? Research needs to be done in solving the questions including how to optimize international trade flow of china; how to upgrade china's position in global division of labor and how to maximize profit as well.Research method includes the integration of proof and standard, echo of history and logic, combination of nature and amount. General theory has been avoided so as to put more emphasis on generalization of inherent logic and analysis of amounts.Conclusions: within the relationship between the two, international division serves as the cause and international trade flow as the effect. The three features and two patterns of international trade flow all symbolize the present global division of labor. The pattern of china's trade flow (centralized trade flow as priority) is determined by its middling position in global division of labor (to be a part of vertical pattern of international division). In order to maximize china's trade profit, measures have to be taken to upgrade the position in international division and optimize the international trade flow.