Paper Topic:

international trade - china

International Trade - China

Introduction

International trade plays a crucial impact on economic development of the country and its economic position on the international market . China is one of the fast growing developing countries which pays a particular attention to international relations and trade partners operating on its territory . Overall , world trade has continued to expand more rapidly than world gross national product , thus contributing further to the importance of international

markets . For this reason , China responds to political and economic changes in to compete on world 's market attracting foreign

br partners and FDI . International trade is becoming increasingly important as companies in all parts of the world step up their efforts to supply and service markets outside their national boundaries

The Chinese Economy Since 2001

The dramatic impact of globalization on the world 's economic interdependence is demonstrated in new figures on foreign direct investment . The global stock of FDI jumped more than tenfold between 1980 and 2002 to 7 ,100bn , as transnational companies spread their production and distribution systems around the world . The figures showed Chinese mainland rapidly catching up with the US as the world 's most popular location for foreign investment . The US tops the league table of overseas investment destinations with a stock of FDI of US 1 ,351 billion (China Daily , 2003 . In 2001 , Chinese economy has continued to progress in this way , and currently foreign countries with branches and interests in China . On December 11 2001 China entered into the World Trade Organization which opened new opportunities for international trade

The fact that the legislations and policies have changed means that in the Chinese economic system the first step in the change has taken place . Change is not made by just one step , it is a process . People who have grown up and lived with a certain way of doing things cannot simply make the change because they are told by their leaders that change is underway

Import and Export Policies

Traditionally , Chinese government protects its own producers by imposing double-digit import tariffs . When China entered WTO these policies were reduced in to meet international regulations and rules . Protective tariffs are relatively high since they are designed to protect domestic industry . The purpose of a protective tariff is to bring the price level of the imported goods up to that of domestic substitutes . In contrast , revenue tariffs are quite low since they are designed to generate maximum revenue for the government . The impact of tariffs upon individual business firms is usually direct . Costs and prices of competitive products are affected . Companies often do things that they otherwise would not do , particularly in response to a protective tariff . China followed WTO restrictions and reduced its tariffs from from 10 .4 percent in 2004 to 9 .9 percent in 2005 (China Daily , 2004 . China develops its tariff system and its classification according to the International Conventions including such tariffs as protective and revenue tariffs . On the other hand , the main problem for China is...

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