A Link To The System Of China's Foreign Trade - Economic Growth And Structural Conditions

Viewed from a world-wide perspective, China's record of economic development over the twentieth century could be regarded as rather unique. The country has survived well the three waves of catastrophes that beset the non-Western world during this period. These catastrophes, namely, are: first, the 'lost decades of development 'in most parts of the Third World since the early 1980s, second, the total crisis in countries of the former Soviet bloc since the mid-1980s, and, finally, the financial and economic disaster that engulfed most parts of East Asia in the closing years of the century. In this context, China's record is indeed unique, as well as paradoxical. One answer from the orthodox establishment is to emphasize China's fast export expansion during the 1980s and 1990s. It is posited that China has followed the path of labour-intensive, export-oriented industrialization on the basis of endowment-determined international comparative advantage, which is in turn posited to be manifestation of the 'natural development'. The problem with this view, however, is that it begs the question as to why such a presumably easy process has not occurred in the wider developing world. Nor-as well be documented in details-can China's export performance be easily explained by its 'given' comparative advantage.Assimilated by the practices of China's machinery and electronic export during the decades in the twentieth century, a detailed investigation and analysis indicated that structural alternation and institutions' transition have sustained China's industry-led economic growth, upon which a virtuous circle is based, and, in turn, based on the specific political economy. A scholarly debate over the performance of China's unique transition centered around the comparison to East Asia's export-oriented and highly capital-intensive industrial investment, meanwhile the former Soviet exploding reform. Hence the article tries to explain China's conjunction derived from trade and economic growth and suggest feasible policy measurements against the promising prospect in reform era.