chapter  5
25 Pages

“Recentralization” and global market-building

Starting in the late 1970s, while taking the fi rst steps in launching its market-oriented economic reform domestically, the Chinese government also began its experiment in “getting China on the international track” ( yu guoji jiegui ). As a result of China’s “opening-up” ( kaifang ) policies, China has grown by about 10 per cent per year for almost three decades; today China has become the biggest manufacturer and one of the biggest trade countries and recipients of FDI. China has almost the world’s largest surplus; since 2006, its foreign exchange reserves have reached USD 1 trillion, far more than any other nation (Bergsten et al . 2006 ). China’s share of global trade has grown tenfold during the past three decades. Today it is the largest exporter and second largest importer of goods in the world.