The Integration Of Trade And Investment With China's Opening Up New Ideas

Chinese policy of opening to the outside world has been trade-orientedfor a long period of time since its reform and opening to the outside world.Most of our measures for opening to the outside world are set down,centering on promoting trade development, and centering on promotingimport and export development further. Furthermore driven by foreigncapital, Chinese foreign trade is in an integrated form between trade andinvestment, in which improvement trade accounts for a good-sizedproportion. Therefore we are only a producing country of productsexported instead of an attributive country of all trade benefit although thetrade scale is large. After our joining in the WTO we are faced with greatchanges in international environment, and both division of labor within aproduct and professional division of work in different links onmultinational productive value chain are becoming main manifestation ofinternational division of work. In such environment of the division ofwork, China's benefit from present and future international division ofwork and exchange depends on at which level we participate ininternational division of work, with which elements and at which level ofelements we participate in international division of work, and how thecontrol capability over the whole value chain is instead of what importedor exported. Thus we should make Chinese opening strategy, startingfrom integrated trade and investment as well as element division of work,oriented by a new system of international division of work led by fullyblending into multinationals. At the same time in the environment ofelement division of work, starting from global integration of resources,multinationals put each link on their product value chain to a place whereit is the most favorable for competitive advantages so that trade betweenindustries and trade inside industries will gradually develop towards tradewithin corporations, normal and professional division of work and trade.Improvement trade will become a principal mode of international trade.Such transform of trade form is closely related to internationally directinvestment and internationally industrial capital transfer, and it is a resultof integrated trade and investment. The process of both multinationalglobal integration of resources and optimized configuration of division ofwork is a process of integrated trade and investment "managed" bymultinationals. Multinationals divide the work between nations accordingto different chain links, and global optimized configuration in each linkon a product value chain is realized through developing integrated tradeand investment.The article is just to generalize Chinese historical experience inopening to the outside world, study new situation with which we arefaced, change our mechanism timely, and discuss Chinese strategy foropening to the outside world under global trade integration. The articlefalls into four parts. At first, it generalizes the trend in global integrationbetween trade and investment and analyzes the manifestation ofintegrated trade and investment as well as international division of workand its new features under integration between trade and investment;secondly it discusses the result to develop integrated trade and investment,and points out that integration between trade and investment has changedthe foundation for international division of work, changed the pattern forinternational trade, given prominence to dynamic benefit position ininternational trade benefit, increased uncertainty of both trade protectionobjective and protecting effect, reduced discriminatory of regionaleconomic integrated organization and increased opening;secondly itlooks back Chinese historical stage of opening to the outside world, thengeneralizes Chinese features and successful experiences in the strategyfor opening to the outside world, and discusses new situation with whichChinese opening to the outside world is faced and new requirements forChinese opening to the outside world after our joining in the WTO incombination with practice;at last it mainly discusses new clew ofChinese opening to the outside world under integration between trade andinvestment, and points out that to transform the strategy for opening tothe outside world should meet the requirements of new trend indevelopment of integrated trade and investment. The role of comparativeadvantage should be brought into play right along, and the governmentalrole in competitive advantage be emphasized. It puts forward that weshould pay attention to technical innovation in the course of fosteringcomparative advantage at the same time we should carry out the strategyfor "introduction" and "opening" to push free trade and investment. Theconclusion is that Chinese enterprises should draw foreign experienceconstantly faced with global resources and markets to increase enterpriseand capital strength right along, master the WTO rules, constantly createnative brands and enhance international popularity in the belief thatChinese future will be full of vitality with gradual progress of the strategyfor Chinese opening to the outside world.