ABSTRACT
Since China opened up its economy to the external world three decades ago, products “made in China” have flooded into international markets. China's share of global exports grew from 2 percent in 1990 to 9 percent in 2007 1 . Although such rapid export growth is not unprecedented, the coupling of this fast growth with China's large size is widely believed to have changed the landscape of the world economy, with any impact on global manufacturing prices being one potentially important effect. It is asserted that China's rapid expansion of manufactured exports has been a primary factor explaining the fall in the aggregate price of traded manufactures recorded by the IMF after the mid-1990s (IMF, 2003).
