Research Of Enhancing China’s Role In International Goods Trade

With the continuous deepening of reform and opening up, China’s role in international trade status has gradually improved along with Chinese economic development. Under the help of the coastal processing trade, China, known as "the world’s factory", became the world’s NO.1exporter and NO.2importer. However, the unfavorable international division of labor caused by extensive trade growth, lacking of high value-added products are problems which make the Chinese feel the distance between superior trading powers. In addition, the resource endowment and international market have changed which means China cannot continue to rely on the traditional development mode. Therefore, China should take advantage of existing resource, enhancing China’s role in international goods trade in order to make a sustainable development.This paper reviewed the static and dynamic comparative advantage theory, competitive advantage theory, value chain theory, product life cycle theory and green development theory for establishing theoretical base. It studied the current status of Chinese international goods trade in various aspects, including trade volume and commodity structure, factor intensity and social network analysis. The results showed China’s international goods trade position was moving towards the developed countries, although there is still a long way to go. Thus, China need to increase product added value, explore green trade and expend intra-industry trade. We may find opportunities such as the risen of new markets, industrial relocation conducted by Multi-National Corporation and government support. We may encounter threats, like trade friction, insufficient foreign investment, technology dependence, lacking of innovation and environmental protection problems. Considering all factors above, further policies should be made by government. Industrial upgrading and transfer, optimizing export commodity structure, promoting invisible trade, reducing the ratio of dependence on foreign trade and promoting domestic market, pushing forward regional economic integration and bilateral liberalization could be working measurements for government’s reference.