The Analyses Of Impacts Of The Financial Crisis On Export Of China

In 2007, the sub-prime crisis broke out in the credit market in the USA, as a result, a large number of institutions involved in the sub-prime financial bankrupted. The crisis rapidly spread to various industries, from the Virtual Economy to the real economy in the USA, and the sub-prime crisis evolved into a financial crisis around the world, which caused tremendous impacts and damage to the global economy. In the process of the economic globalization, it was impossible for any country to be immune from the financial crisis, and China is no exception. As an open economic development model country, China also suffered from it's impacts, particularly in the export trade. Export trade, one of the troika, is promoting China's economic development, with investment and consumption, and especially exports make more contribution to economic growth than the latter two. China's export products are mainly for the European and American countries, which are facing to the quagmire of the crisis, the reduced value of domestic assets, currency devaluation, the reduced purchasing power, and the reduced import demand for commodities. In order to protect their own industries, these countries have taken various measures to set up a variety of tariff barriers to restrict China's merchandise exports. On the other hand, because of the increasing prices in global commodity, the decreasing prices in low value-added trade products, China's export enterprises are struggling to survive, such as the decline in orders, the high-cost, the low price of their products. The global financial crisis has brought unprecedented opportunities and challenges to China's export trade .Therefore, the analysis of the impact the financial crisis on China's export trade is of great significance.Most scholars at home and abroad aimed at the theoretical researches on the impact of the financial crisis on the economy from the economic development, import and export trade as a whole or to a specific export industry, but the number of researches on China's export trade affected by the financial crisis was relatively small. In general, the researches were most from the aspect of the loss in enterprises, ignoring opportunities from the financial crisis. The financial crisis is a double-edged sword for China's export trade, which will not only reduce the number of export products, make companies difficult to survive, but also provide an opportunity to adjust the industrial structure of China's export industries and improve the competitiveness of products and to find and widen the domestic and international markets .In addition to the introduction , this paper consists a total of five parts. The first part is the background and significance of this thesis, introducing the enormous impact on economic growth and export industry in China and that the study is not only of theoretical value, but also of strong practical significance. The second part introduces the literature review on China's foreign trade and the financial crisis on China's economy. Domestic and foreign researches on China's import and export trade are from 1970s, experience innovation models which is connected with the new characters of the crisis. Now scholars are more concerned about the cause, the process, and the result of affection of the crisis than before mainly from the negative aspects. Domestic and foreign research on China's import and export trade from China's reform and opening up began after the resumption of international trade, and joining in the WTO, this concern has a high degree of upgrading. For such a trading power of China, domestic and foreign scholars analyze China's export trade affected by the crisis from the following four aspects: restrictions of the trade protectionism on China's exports; to suppress the export profit space of an enterprise; greater losses in a larger proportion of labor -intensive industries; the situation in a particular area affected by the crisis ,and they put forward specific policies and proposals. The third section sets out an overview of China's export trade. First it introduces the reform and opening up of China's export trade in the post-recovery and development, and then describes the characteristics of China's export trade in detail. The fourth part analysis and discusses the impact of the current financial crisis on China's export trade in detail. First it introduces the impact of financial crisis on China's export trade in that context. It is from America's sub-prime mortgage crisis which spread to the world through the United States as a global financial crisis, which not only causes a falling dollar and the global economic recession, but also forces governments to face a huge budget deficit, the upcoming inflationary pressures at the same time, increases international trade barriers, trade friction, a large number of new forms of crisis, and the fallout of the crisis continue. The financial crisis under the economic globalization is bound to have the different characteristics and be deeper, and even more destructive, and to have different conduction. Then it uses factor analyzes on the factors affecting export contribution degree of measurement, to determine the impact of the major factors and the degree of the impact. And from the challenges and opportunities of the export trade , it points out the four challenges: the downsizing of export trade ; the increasing risk of the export trade; the loss of competitive advantages in export products; the surviving difficulties of the export enterprises. The opportunities include three aspects :converting the model of economic growth ;reducing external dependence; the industrial structure adjustment and upgrading of the export industry restructuring. The fifth part is a summary and outlook, which ,according to the above contents, puts forward the strategies to address the financial crisis, and to view China's future development prospects of the export tradeThis paper also uses the analytical methods, comparing the Chinese trading partners—Europe, the United States and Japan with China to explore the opportunity of the development of China's export trade. This article also uses qualitative and quantitative analysis of research methods, citing a large number of data and charts to illustrate the financial crisis on China's export trade and the impact on China's economic development and deal with the main factors in the classification and quantification processing, which can be very intuitive understanding of the plight of China's export trade, and the degree of influence. In addition, the paper also uses a combination of historical and practical research methods. It explained both the development of China's export trade in pre-crisis situation and the post-crisis data, pointing out that the challenge of the destructive power .The innovation of this paper is: First, it focus on the financial crisis on China's export trade, this influence is not only a challenge, but also an opportunity. Most of the existing literature studies of the financial crisis on the overall impact of China's import and export trade, and even if some studies are on China's export trade impacts, they are from a challenge perspective, and little mention of the opportunity exists. Secondly, through quantitative analysis and qualitative analysis ,the paper analyzes the impact of the financial crisis on China's export trade to find out the specific measure of impact. The literature existing has few researches in this area, and the data are relatively old, which can not account for reality. Third, according to the impact of financial crisis, the paper puts forward corresponding countermeasures and suggestions. These responses suggest a strong hierarchy and we can implement the full advantage of both opportunities and be brave enough to meet the challenges through them.