China's Export

Throughout time, many countries have needed to implement some sort of economic reform in order to strengthen their economy so that they can be more of a power on the world stage and to stabilize their country. The Chinese reforms were long in the making, an unfolding process that had spanned most of the 20th century and, unlike other countries such as Russia who were trying to do the same thing but whom eventually failed, China prospered, and increased its economy greatly. China has had the fastest growing economy in the world for the past two decades, with an annual growth rate of approximately 10 percent since the economic reforms in 1979, and now has the second largest GDP in the world, second only to the USA. Starting in 1979 they

With a gross domestic product (GDP) calculated at the equivalent of $11.06 trillion and an average growth rate of 1.84 percent, China has the potential to surpass the United States' economy by the year 2030 (citation 1). China's rapid GDP growth is caused mainly by state investment, high exportation, and successes with e-commerce (citation 2). However, China was not always a country eager to open its doors to economic opportunity. Instead, the government strove to maintain self-dependency and to limit influence from other countries. Through the decades of isolation, many countries attempted to gain trade relations with China. These attempts usually were unsuccessful. It wasn't until the late twentieth century until China began forming the economic

Economy: An expanding international commitment to free trade among countries has internationalized the market for goods; people have access to goods that were previously out of reach. Finally, in addition to the exchange of goods across borders, traders move billions of dollars daily with the click of a mouse. Some countries have been helped by the newly emerging economic order because they have the resources to expand production worldwide and to create goods that are in demand internationally. On the other hand, some countries and individuals have been hurt because they are not able to compete with the strongest producers internationally. The United States is one of the world's leading exporters and maintains a lead in many of the future's most promising industries, including biotechnology, space technology, and computer software. U.S. corporations have sought a competitive edge by taking advantage of cheap labor in Latin America and Asia.

Globalization is a process that refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Over the last 50 years, globalization has had a tremendous impact on the Chinese economy. The impacts brought forth by globalization can be both positive and negative and effect both economic performance, economic growth and the development of China’s economy. Globalization is the main factor responsible for China’s significant growth that has taken place over the last two decades. However, globalization itself is not entirely responsible. The Chinese economy has also implemented strategies which have been very effective in promoting economic growth and development. These strategies include the implantation of“Open door policy”, “Reformation” of China’s agricultural system and joining the World Trade Organisation.

In contrast, China’s merchandise exports to Australia are mainly labour intensive manufactures, with the major categories being textile, clothing and footwear products, as well as machinery and electronics. Together these items amounted to $4 billion in 2003, around 70 per cent of China’s exports to Australia. China’s gross domestic product has been growing annually at 7 per cent on average over the past five years, reaching $6.4 trillion (in purchasing power parity index) in 2003 ( Anderson K., 1995). China’s integration into the world economy through trade was one of the key drivers of this strong economic growth. China has adopted measures to transform its economy from a centrally planned system to a more market oriented one. These measures included the opening of China’s economy to world trade. Many of the Australian companies such as Black & Decker, makes many of its power tools and locks in a factory it owns in Suzhou, outside Shanghai, and a separate 50/50 joint venture plant in Shenzhen, southern China's manufacturing boomtown. Ford Motor also planned to buy up to $3 billion worth of auto parts from Chinese suppliers. Wal-Mart also spends more than $18 billion annually on products made in China (D. Uren, The Australian News, 2008).

In the 17th and 18th centuries, the demand for Chinese goods in the European market created a trade imbalance because the market for Western goods in China were non-existent; China was very self-sufficient with their produce and tools that they didn’t require imported goods.(Fitzgerald, 1992 The Europeans were not allowed access into China 's interior market, the Chinese people didn’t have a necessity of imported items. European silver flowed into China when the Canton System, established in the mid-18th century, confined the sea trade to Canton and to the Chinese merchants of the Thirteen Factories. (Hanes, 2003) The British East India Company had a monopoly of British trade. The British East India Company began to auction opium grown in India to independent foreign traders in exchange for silver. (Hughs, 1972) The opium was then transported to the Chinese coast and sold to local middlemen who retailed the drug inside China. The flow of silver was increasing in numbers as well as the amount of opium addicts that had alarmed Chinese officials. (Lim, 2011) The drug weakened a large percentage of the population, and silver began to flow out of the country to pay for the opium. Many of the economic problems China faced later were either directly or indirectly traced to the opium trade. (Keller, 2012)

Developing Country is a country which has a slow rate of industrialization and low per

Over the last two decades, China has been increasing its trade surplus. To run into a surplus mean that the amount of goods a country exports is far less than its imports. According to the World Bank (2010), China reported a surplus in the balance of trade equivalent to $US 1.7 Billion in April of 2010. Furthermore, before the financial crisis, the Chinese economy had a record from 2006 to 2008 with the fastest-rising Gross Domestic Product (GDP) in 11 years.

This paper is meant to determine whether or not the theory of comparative advantage applies to China with respect to the industrialized world. We will also touch on how the theory of factor endowment applies to China. There are some countries which operate in autarky, which will be discussed as well. Finally, we will examine how the distribution of gains from free trade causes much political debate regarding trade with China.

Before the 1760s, everyone made goods and products by hand. The Industrial Revolution was from the eighteenth to the nineteenth century. During the Industrial Revolution there were machines that were making the goods and products faster than doing it by hand. There was little importing because mainly everything was made in the United States. In the 19th century, after a long period of isolationism, China and Japan came under pressure from the West to open to foreign trade and relations. During the Industrial Revolution every country was changing and making railroad tracks, factories, trains except China and Japan. So the Western nations forced an unequal treaty on Japan and China so they have to open their ports and cities to foreign merchants. China welcomed foreign trade but western merchants had no privileges there and were confined to Canton where they could only deal with the Co-Hong. China refused to yield to Western powers while Japan did not. China maintained isolationist tendencies with limited commerce with the West. In the end, China signed the Treaty of Nanking however they signed the treaty after heavy military losses and under much more unfavorable terms. Treaty of Nanking was the end of the First Opium War between China and the British. The U.S. mainly used their own resources to make products such as getting cotton from the South. In the past America used to make their own goods/ products and then it changes to nearly

China has established itself as an economic power on a global scale. A national transition in industry, finance and technology has placed china at the top of the list as an appealing global trade partner. Chinese Manufacturing has led the way to a boom in exports and recognition for the Chinese workforce as a world leader in cost effective manufacturing. A shift in work force has provided inexpensive labor, paired with a strong economy China has also positioned itself among the top world leaders for global exports. China went from an under-developed country to emerge as a leading world economy among economic powerhouses like the United States and the European Union.

The Chinese are an emerging economy that has taken over the world's production in recent years. In fact China is now considered to be the world's factory, as all the major players in the world outsource all or some of their manufacturing activities to the country. All this would not have been possible without the help of technology and with the state of globalization being such, that logistics and distances are becoming shorter and shorter.

A global trend toward liberalization of free trade is both strictly current and strictly relevant to Chinese economic growth.

"Napoleon said of China "Let China sleep, for when she wakes, she will shake the world." This assumption turned out to be true, particularly these two last decades. As a matter of fact, China has undergone two restructuring processes: the industrialization and the transition from a centrally planned to a market economy since the early 1980 's. Thus, Chinese government has been implementing an economic reform to reinforce its rapid growth. China is now awake and is already a major actor of the world economy, widely open to the world. It has reduced its trade barriers and has managed to attract huge foreign direct investments thanks to which China could improve its

Updated April 6, 2016, The Wall Street Journal reported that there has been a heated controversy on China’s excessive export of steal to the global market. A government official from China’s steal industry, Xinchuang Li claimed that they will hit back at the increasing tariffs imposed by other countries.