China’s Advantages and Disadvantages in International Trade

China's Advantages and Disadvantages in International Trade

China’s main export is the United States, the European Union, Japan and other countries with high levels of economic development, export products are mostly textile and other manufacturing industries. US Customs statistics, the United States since 2012, China’s textile and apparel imports share of 39.2%, the EU market from China’s products accounted for 40.3%, China’s textile trade in the global advantage is obvious. Other developed countries export products mainly high-tech, financial services and other products, from this point of view, China’s international trade in a clear comparative advantage in the classification of export commodities, and other developed economies can complement each other. General Administration of Customs released data in 2012 China’s foreign trade import and export volume of 386.76 billion US dollars, up 6.2%, exports, imports increased by 7.9% and 4.3%, the annual trade surplus of 231.1 billion US dollars.

China’s major disadvantages in international trade is mainly reflected in the following three aspects 1. Low self-innovation capability. China’s scientific and technological development level is far behind the developed countries, export commodities are mainly concentrated in the processing and manufacturing industry, but in international trade, the main profits concentrated in product design, transportation and marketing and other follow-up links, trade competition concentrated in the tertiary industry. In view of this, China’s export product composition needs to be further improved, the product of the scientific and technological content needs to be further improved.

2. The management philosophy and marketing methods behind. In the fierce competition in the global economy, technology, equipment, management of backward enterprises doomed can not go long. China’s traditional business management methods, ignoring the concept of the brand, do not attach importance to human resources investment, independent research and development ability is poor, only blindly imitation processing, these are the areas we need to improve. Only the advanced thinking to the global perspective to see the problem in order to gain a firm foothold in the global competition. With the improvement of China’s openness, the state in order to attract foreign investment and developed a series of preferential policies. A large number of foreign enterprises to enter, a great test of the marketing ability of Chinese enterprises, forcing our enterprises have to think about how the layers of foreign brands in the folder to occupy the market share.

3. The disadvantaged position in developing countries. Developed countries have world-class technology and human resources, they have a clear advantage in the globalization of competition, which makes the developing countries in the global competition in the squeeze, only low-cost low price to carry out trade, and this Low return model has caused a shortage of funds for high-tech projects, it is difficult to develop high-tech products, the development of space is limited.

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