A Research For China’s Foreign Trade And Interests Redistribution

Since implementing the reform and opening up policy, especially after joining WTO, China’s foreign trade has made remarkable achievements in exports and imports. Accompanied by the increasing total economic growth and people’s living standards improved, the risk of the income gap in China have become increasingly prominent focus, which includes the regional income gap, the income gap between urban and rural areas and industries. The income gap problem is so serious that some scholars from abroad said that China’s future economic fast development is not a problem, and the real question is how to solve the income distribution. As the world’s largest developing country and due to various reasons, the diversified income gaps in China face even more complex situation to explore the causes of the widening income gap from the foreign trade point of view and it is of great significance to solve the problem in theory.The paper first reviews the basic situation of China’s foreign trade and the income gap and summarizes the characteristics of its development, and then conducted a preliminary introduction to the relationship between the two and significance. Furthermore, this paper summarize the theories about the field of foreign trade involves of income distribution and sort out its development stages and then it makes related literature review to lay the foundation for subsequent analysis. With the summary of the literature review, it designs five specific ways to introduce foreign trade involves of income gap and an empirical analysis are carried out which found that these effects exist in China, and the impact size varies with different perspectives. Combined with hot spot theory, it makes a more comprehensive analysis on the actual situation of China and found that China’s income gap is possible to get further expansion, so it is extremely necessary to take targeted measures. Finally, the paper briefly described the lack of this paper and the direction of future study.Theory about foreign trade influencing income gap is also expanding, and related researches are been conducted in-depth from the perspective of various variables, tools. However, the focus of these research methods are mainly reflected in elements such as labor and technology; and those researches are mainly focused on the impact of developed countries’the income gap. After integrating in the past literatures, we find that when the foreign trade takes an impact on income distribution, it needs some intermediate variables, which further makes the influence on income distribution a certain degree of complexity and uncertainty. It is possible to enlarge or reduce the impact of trade. In this paper, with the help of Gini coefficient and per capita income empirical data, different aspects of the income gap between the East, Mid and West are carried out a detailed analysis by the extent of the impact of foreign trade. What’s more, it analyses the position of Lewis turning point and Kuznets inverted "U" curve China locates now, in order to provide a reference for future decision-making.