Adjustment Of China's Export-Promotion Strategy

The foreign trade strategy will develop and change along with the times, different countries will adopt different foreign trade strategies at the same time, and the identical country will also adopt different strategies in different periods. Different foreign trade strategies have different influences to a country's economy growth. If it complied with the development tendency, it will do good to the economy growth and employment level, on the contrary, it will produce negative effects to the domestic economy.China starts to implement the export promotion strategy from 1970s, hereafter, China's foreign trade particularly the export trade has obtained rapid and continuous development under its impetus. However, this export promotion strategy gradually reveals its limitation with changes of domestic and foreign economic conditions. On the one hand, the rapid export trade growth contributes to the foreign exchange reserve thus increases the Renminbi revaluation pressure, it also improves our foreign trade dependency ratio and intensifies trade friction which in turn worsens the exportation environment. On the other hand, the benefit and quality of the export trade are not certainly high, it is an extensive growth way which lacks the international competition strength and is hard to sustain. It is extremely possible for china to step onto the pauperization growth path if we stick to this strategy chronically. This paper studies the export-promotion foreign trade strategy adjustment of our country.According to the systemic research method of introducing the problem, finding the problem, analyzing the problem, solving the problem, this article is mainly composed by five parts.Firstly, this paper makes the literature summary and comments them in view of the research subject. The summary of theory basis of developing foreign trade explains why to develop the foreign trade; the summary of"the relations between export trade and economy growth"demonstrates the export trade accelerates the economy growth, these two parts'summaries draw out the significance of export-promotion strategy research, which build a solid theory basis for following discussion. The summary of trade strategy making is to disclose the strategy related concepts, at the same time provides helpful enlightenment for the following innovation research.Secondly, this paper reviews the evolution of the export promotion strategy which aims at finding the problem. The evolution can be divided into four stages, that is, the extreme import substitution stage before the reform and open of our country; The second stage and the third stage take the 1994 exchange reform as the borderline, before that, our country implements the export promotion strategy based on the import substitution strategy, after that, our country enters into the stable export growth stage; the fourth stage is from China joining the WTO until now, although joining the WTO weakens the implementation foundation of export promotion strategy, China's export trade still maintains a high speed development in this time. Overall, the trade strategy has experienced the transformation from the import substitution to the export promotion, the export promotion strategy in some times has positive effects, for instance, during the reform and open period, but in some other times like the present, it possibly has the negative effect. Here draws out the necessity to research the actuation mechanism of current export promotion strategy.Thirdly, this paper analyzes the actuation mechanism of current export promotion strategy. This chapter is consisted of two parts. The first part analyzes the present situation of china's export trade from four aspects, that is, the commodity constitution, export main body, the trade way and export market. The conclusion is that the export commodity structure has been improved, and the industry finished products proportion has been higher than the primary products by far, but the technical content of these industry finished products are still lower; foreign capital enterprises and processing trade occupy the dominant position; export market is also centralized which is disadvantageous to disperse market risk. What's more important, the export growth does not improve the trade condition. The price of export commodity is worse which means the majority of our trade benefits are gained by other countries. The present export growth way is extensive, having high input but low return.The second part analyzes the four essential factors which support the export growth. The four factors are inexpensive labor force cost, the ultra national treatment to foreign capital enterprises, the high resources consumption and the high environment pollution and the underestimated standard currency. Thereafter, the actuation mechanism of current export promotion strategy is clear, that is, under the background of international division of labor and industrial shift, making use of the cheap labor force, China has implemented the export promotion strategy and carried out series of policies and measures to encourage the export trade. With the impetus of foreign capital enterprises and the coordinate underestimated Renminbi exchange rate, the export trade has been rapidly developed. This kind of actuation pattern brings the extensive growth way, although it has played the vital role under the specific time and the specific market condition, but it actually takes the resources and environment sacrifices as the price. So with the changes of market competition condition, this growth way is hard to continue.Fourthly, this paper analyzes the export growth limitation under current actuation pattern from four aspects. The writing goal of this chapter is to comprehensively and thoroughly analyze the problem. Because of the ascending cost and the substitution of other developing nations, the labor force superiority is not as big as before; the foreign capital enterprise's technical overflow effect is not obvious, and the ultra national treatment is disadvantageous to the domestic capital enterprise's development; the high consumption and low efficiency of resources and environment do bad to economy sustainable development; Renminbi exchange rate revaluation tendency is irreversible considering the double favorable balance, international floating capital impact and our own system factor influence. All these dependent factors are not sustainable, thus, the export growth based on these factors can not be continuous. Here draws out the necessity to adjust present export promotion strategy.The last part is to propose suggestions on the adjustment of present export promotion strategy. The goal lies in the solution of the problem. According to above analysis, this paper mainly provides five suggestions, they are to cultivate enterprise's core competitive ability, adjust the home industry structure, multiple the export market, strengthen the coordination among export enterprises and effectively utilize the international trade system and industry associations. The essence of these five suggestions is to pursue international trade dynamic benefit, lastingly and effectively using the foreign trade to promote national economy development.One key contribution of this paper is to unify the trade strategy change, the trade policy and the foreign trade organizational reform, and explains the export performance and effect in different periods along with the evolution of the export strategy, whose emphasis is the negative effect at present.Another key contribution of this paper is to collect massive data to further analyze current export trade situation and its dependent essential factors, and discusses how the export actuation mechanism forms under the export promotion strategy, here, the author attempts to construct an analysis frame suits China's national condition.Another key contribution is that this paper further points out the present export trade growth way is extensive, then explains this extensive growth way can not be insisted on for a long time because its dependent essential factors are not sustainable.At last, this paper attempts to provide some suggestions on how to realize the adjustment of present export promotion strategy.