Foreign Trade Dependency of China’s Economy

Abstract

In response to declining external demand, China is reorienting the production of certain export goods toward the domestic market. The rising technological level of production reduces the need to import intermediate goods for the processing and assembly of finished industrial
products. The commodity structure of China’s foreign trade is dominated by high value-added industrial goods. The issue of dependency on raw material imports is being addressed through the diversification of supplier countries. The strong technological dependence of China’s economy
on imports is gradually diminishing as high technologies are mastered. Indicators of the ratio of exports and imports to GDP is consistent with that of large national markets with a balanced degree of openness and do not indicate excessive foreign trade dependency of China’s economy.