ABSTRACT
After the reform and opening up, international trade has become one of the most important engines for economic development in China. Although the freetrade policy is dominant, in general, trade theorists and policy makers are inclined to encourage export and restrict import (Tan, 2012). China also pursues export-oriented trade policy. Import has played a relatively passive role in foreign trade for years (Wang, 2008). After the 2008 global financial crisis, which was triggered by the U.S. sub-prime mortgage crisis, international trade protectionism has spread over the world. The collapse in exports highlights the defect of China’s economic growth pattern which overly depends on export and investment.
