Foreign Trade of China

Résumé du document

Nowadays, we can say that the Chinese economy is growing rapidly. It is probably one of the most dynamic economies in the world. This can be showed by the fact that over the last 20 years the Chinese GDP has grown by 9. 5 %. We can also classify China, according to its GDP. On the one hand, China is the second economy in Asia after Japan and on the other hand, China is the third economy in the world after United States and Japan. Furthermore, in 2009, with 19.6% of the world's population, China's GDP equaled to 8.5% of the GDP of the whole world and 27.5% of the GDP of the emerging and developing economies.

Our study deals with the Chinese exporting by playing this game with unusual rules. In order to get the conditions uses by China to export, we will first have a quick look at the Foreign Trade policy of China. Then, we will analyze the unusual rules that are used by China, in order to export. Finally, we will give an example through a product using these rules and will conclude.

Extraits

[...] Foreign Trade of China Summary Introduction Foreign Trade of China. II- China playing the game with unusual rules for exports. ( Dumping in International Trading ( Monetary Policy ( Corruption III- Example of a product using these rules. Conclusion Introduction Nowadays, we can say that China is expanding rapidly its economy. It is probably one of the most dynamic economies in the world. This can be showed by the fact that Over the last 20 years, rate of Chinese economic growth averaging growth in GDP, Gross Domestic Product per annum. [...]

[...] He also adds keeping its currency at an exchange rate under evaluates, China is disadvantaging foreign competitors”. US want to negotiate under threat but they are afraid because China is one of their most important creditor. It is nonetheless true that US also devaluate their money but they have an international currency used by all the countries. So when the countries are afraid they decide to sell their dollars policy and the rate of US money decreases. The difference between US and China is that US devaluate their currency in order to preserve their industry (i.e. [...]

[...] With the context of economic crisis and the power rise of China, we can ask if the decision of countries to protect their economies from China is a good idea and the fact to completely collaborate with China is may be more benefic for them. References China's Foreign Trade to recover in 2010 China Daily, by Hao YAN, 2009-12-08. http://www.chinadaily.com.cn/business/2009- 12/08/content_9142125.htm The Chinese Economy Economy Watch (Economy, Investment and Finance reports) http://www.economywatch.com/world_economy/china/ La Chine ravit la place de premier exportateur mondial à l'Allemagne. LePoint.fr, 2010-01-08. http://www.lepoint.fr/actualites-economie/2010-01-08/la-chine-ravit-la- place-de-premier-exportateur-mondial-a-l/916/0/411654 China's 2009 foreign trade falls , China View, 2010-01-10. http://news.xinhuanet.com/english/2010-01/10/content_12784996.htm Chine, Note sur l'Economie et le Commerce. [...]

[...] On this table we can see China's Foreign Trading from 2005 to 2009. With a drop of 13% in 2009 compared to 2008, the total Foreign Trading of China appears to be approximately the same in 2007 and 2009. This is partly due to the effects of the crisis. As we have seen on the amount of China total foreign trading which has decreased in 2009 compared to 2008, there has been some impacts of the previous crisis on China's economy. [...]

[...] Another example of anti-dumping is the US situation. Indeed they want to introduce a custom duty against Chinese dumping on steel pipes (used for oil and gas). US reproach to China to sell between 30% and 100% cheaper than the normal price. That's why US want to “collect cash deposit or payment equivalent to the margins of sales at loss”. But this is considered by China as a protectionist measure. The protectionist decisions of US will deteriorate commercial relations between China and US whereas these relations are becoming more important with the economic crisis. [...]