High Dependence On Foreign Trade, China's Foreign Trade Growth Mode

Chinese foreign trade has developed rapidly along with the increasing immergence of Chinese national economy and world economy. Export growth and import growth are 24% and 23.7% respectively during "the tenth five-year project". Both of them are doubled compared with those in 2000. The average increase rate of export growth exceeds 30%. Furthermore, foreign-trade dependence (FTD) has grown rapidly, which was as high as 63 percent in 2005.Chinese foreign trade had remained extensive growth in a long-term, which means lack of trade structure and creation despite of large trade amount. There exists several inherent problems, such as exported merchandise limited in competitiveness, large proportion of the low added value trade involving the processing of supplied raw materials, imbalance in development of goods trade and service, import focusing on key technology and equipment as well as accessories, import growth on energy and strategic resources, concentration of foreign trade markets, frequent trade conflicts caused by extensive export. Innovation must be made in traditional trade growth mode in order to improve sustainable development and international competitiveness. Chinese foreign trade should shift from quantitative and extensive one to qualitative and structure optimized one. Efforts toward foreign trade changing from comparison advantage to competition advantage should be made on the basis of maintaining the comparison advantage of employment increase and poverty decrease in labor-intensive industry, including enhancement in creation ability in science and technology as well as the awareness in brand, growth in competitiveness of export, development in service trade, decrease of dependence on high-tech equipment and strategic resources and exploitation of new export markets.This paper consists of four sections:Section 1 analyzes high foreign-trade dependence in China. The form process, the reason and the influence on Chinese foreign-trade development of that are proposed. The focus is the negative influence on Chinese economy.