Terms Of Trade Of Manufactured Goods In China And Its Influencing Factors

Foreign trade has been a main impetus of economic improvement, and therefore how to take more share of the interests in international trade or how to ameliorate trade terms has been concerned by most government and scholars.Most of domestical research focused on the changing price trade terms, which was taken equaling to trade terms, and concluded that China’s trade terms has been exasperated. However income trade term index has been neglected. Besides most countries are moving their industries from low-tech ones to high-tech ones. And therefore it will be of importance to value trade interestsThis paper will make a systematic research on industrial products considering both price trade term and income trade term. Related theory of trade terms will be reviewed firstly, and then relationship of the two trade terms and trade interests; after which data analysis of the two trade terms from1992to2007will show that the price trade term was exasperated with fluctuation while income trade term was ameliorated, and at the end of this paper income trade terms of China will be discussed, demonstrating that income trade term of China is significantly and positively infected by FDI, technical development and export instruction.This paper believes that the improvement of industrial product income trade condition and the enlargement of industrial product export scale make a positive contribution to china’s foreign trade and the whole national economy at large. It is insufficient to deduce that china’s industrial product suffers a big crash only due to the deterioration of industrial product price trade condition. At the background of a fiercer international trade competition, china should emphasize to optimize the price trade condition and drive to the fast-paced increase of the export industrial product quantity under the precondition of maintaining the status of income trade condition index.