China'S Foreign Trade Is Entering The Door Of Qualitative Change.

Throughout the history of mankind, Suzhou's prosperity has always been closely related to trade, because trade can break the constraints of a country's factor endowments and the boundaries of its domestic market, thus creating favorable conditions for the vigorous development of the economy.

After China's accession to the World Trade Organization (WTO) in 2001, China's economy has seen rapid growth. The key reason behind it is that we have opened up our country to foreign capital, and have successfully embedded into the global value chain by giving full play to our country's factor endowments advantage (labor advantage), and have rapidly become a big country in processing trade.

However, with the increasingly fierce competition in the global market, all countries are trying to improve their competitiveness in the industry. The position of a country in the global value chain can not be static. If China wants to win in the fierce market competition, China must constantly strive to upgrade to the high end of the whole value chain.

On the other hand, after the outbreak of the financial crisis in 2008, some structural problems accumulated in the process of rapid economic growth began to appear. The demographic dividend disappeared, labor costs increased, investment was excessive, and industrial competitiveness was insufficient. These problems affected each other and formed a vicious cycle. China's economy has entered the critical shift period and the new normal.

Under the influence of the above international and domestic factors, the new pattern of China's foreign trade and economy has begun to emerge quietly.

First of all, from the perspective of trade mode, China's general trade is replacing processing trade as the main trade mode.

In the early twenty-first Century, processing trade was the main mode of trade in China. From 2000 to 2006, China's export processing trade accounted for more than 50% of total exports. After 2007, the annual growth rate of general trade began to exceed that of processing trade. From 2008, export processing trade accounted for less than 50%, and 2012 dropped to 38.5%.

At the same time, the proportion of import processing trade in imports decreased year by year. The import processing trade accounted for 41.7% in 2005, and this figure has dropped to 26.5% in 2012.

From the general situation of import and export, in 2013, the growth rate of import and export of processing trade increased by only 1%, while that of general trade increased by 9.3%, and the proportion of processing trade dropped to 32.6%, while general trade rose to 52.8%, indicating that China's trade mode has changed from a dominant mode of processing trade to a general trade oriented one.

According to the statistics of Chinese customs, China's general trade imports and exports totaled 2 trillion and 310 billion US dollars in 2014, an increase of 5.3%, accounting for 53.8% of the total import and export volume of the country, representing a 1 percentage point increase over 2013, and the proportion has increased for two consecutive years.

The pformation of China's trade pattern is mainly influenced by the change of factor endowment, that is, the change of labor supply.

The rise of processing trade is mainly dependent on the widely available cheap labor force. In recent years, the price of labor in China has risen rapidly, and the processing trade enterprises are facing a severe survival crisis.

According to the blue book on human resources published by the Social Sciences Academic Press, China's human resource development report, the proportion of working age population aged 15 to 64 years in China declined in 2013 for the first time since 2002.

According to the statistics of the development research center of the State Council, the number of processing trade workers in China's export processing zones began to grow slowly after 2008, reaching a peak value before and after 2010, and then began to decline.

The decline in labor supply has led to an increase in prices. At the same time, the rising Renminbi exchange rate has accelerated the rising trend of China's labor force parity.

In the future, with the disappearance of China's demographic dividend, the decline of processing trade will be inevitable.

Will gradually withdraw from the stage of history.

Foreign investment continues to grow and look at the situation reflected in capital flows at home and abroad.

By the end of 2012,

There are 2.2 enterprises in overseas investment, and the coverage rate exceeds 75%. The total non-financial direct investment has reached 77 billion 220 million US dollars, up 28.6% over the same period last year.

Between January 2014 and November, investors in China made direct investments in 5402 overseas enterprises in 153 countries and regions in the world, totaling an investment of US $89 billion 800 million, an increase of 11.9% over the same period last year, and maintained an increase for thirteenth consecutive years.

According to the information released by the Ministry of Commerce, in 2014, China realized total foreign investment of 116 billion US dollars. If we add third places to finance and reinvest, the scale of foreign investment will be around us $140 billion.

This data is about 20 billion US dollars higher than China's foreign capital utilization.

This means that China's actual external investment has exceeded the scale of foreign capital utilization in 2014, and China has become a net exporter of capital.

China's pition from a net capital inflow to a net capital outflow is the inevitable result of China's economic development. Whether it is based on Denning's investment development cycle theory or the actual development experience of developed countries such as the United States and Japan, with the increase of the total economic volume, the optimization of the economic structure and the enhancement of industrial competitiveness, the scale of foreign direct investment will continue to increase.

Foreign investment is of great strategic importance to our country, because it enables our enterprises to search for the highest profit and lowest cost, the best resources and the most advanced technology worldwide.

What's more,

It will be the key to international pfer of Chinese industries and the formation of a global value chain with China as the core.

In the past, our country mainly obtained technological spillover effect by attracting foreign direct investment, but this method was slightly passive.

Now our enterprises can take the initiative to go abroad and directly acquire advanced foreign technology and management resources through overseas mergers and acquisitions, which makes the subjective initiative of enterprises fully released.

As China's foreign investment is still in its initial stage, there is still a big gap between the investment stock and the developed countries. Therefore, in the foreseeable future, China's foreign investment will continue to maintain a rapid growth momentum.