An Analysis of China’s Foreign Trade After WTO Accession
This chapter analyzes China's trade patterns after its World Trade Organization (WTO) accession. It focuses on the structure of trade growth and its trading partners. The chapter discusses the nature of Chinese trade as well as some of the reasons behind China's dramatic growth in trade. Open policies for foreign funds has attracted a large amount of foreign direct investment into China and more and more multinational enterprises intend to move their manufacturing facilities into China, thereby providing impetus to the import and export growth of the processing and assembling trade. The export value of machine tools and electronics was US$157.1 billion, constituting 48.2 percent of the total export volume. China's trade growth mainly benefited from its microeconomic environment and favorable policies. Two factors combined to promote export growth: the world economy began to recover and the US dollar depreciated. The government in China also supports overseas expansion and encourages trade development by its enterprises.