Study On Sustainable Development Of China's Foreign Trade Under The Constraints Of Resources And Environment

Foreign trade in China has grown constantly and rapidly and become an important factor of promoting our country's economic growth. However, as economic globalization and trade liberalization, the contradiction and the confliction between trade and environment is becoming noticeable. Sustainable trade, one of the important constitutions of sustainable development, is necessary requirement to achieve the coordinating development of trade and environment. This article analyzes the relationship between trade and environment, and proceeds with a thorough review of theories on sustainability of international trade as well as the status quo of sustainability of China's international trade. Later, the paper strives to developa system of indicators for measuring sustainability of international trade. In view of the complexity of the factors governing thesustainability from economy, society and environment, it becomes necessary for the paper to build the system of indicators frommulti-aspects and multi-dimensions in order to ensure an objective andscientific outcome. Thus, following the existing system of indicators, this paper picks up 22 indicators of three categories, in line with principles of the determination of indicators of sustainable development. Using entropy method, this paper conducts an empirical analysis with 1995-2009 years data of China's international trade. The outcome andanalysis shows the sustainability of China's international trade is improving with indicators of economic growth, environment protection andsocial development heading on the right direction. But indicators of environment are too much volatile and follow declining trend among the three categories of indicators of economy, environment and social development. The overall social benefit changes little. All this reflectsthe undue treatment of environment while developing international trade, the social spillover effect is insignificant and ecological and social benefit remains to be enhanced. Therefore, this article concludes with corresponding countermeasures and suggestions to promote the sustainable development of foreign trade.