CHINA'S FOREIGN TRADE IN THE CONDITION OF FOREIGN ECONOMIC OPENNESS POLICY: FACTORS AND CONSEQUENCES

Abstract

The article examines the factors and consequences of China's foreign trade in terms of foreign economic openness. It is substantiated that the implementation of the policy of foreign economic openness involves the transfer of the center of gravity from trade in goods to trade in services, closer ties of foreign economic activity with scientific and technological innovations, improving the protection of intellectual property. At the same time, the process of transforming the model of economic growth in China means shifting the attention of government agencies to investment and exports, which previously occupied a leading position, to domestic consumption and innovation. The main factors that contributed to China's gradual rise to the position of "world factory" and its status as a world leader in foreign trade were cheap labor, providing broad benefits to foreign capital, gradually reducing tariff tariffs and easing non-tariff bars for goods from China on the world market after its accession to the WTO, the development of production and export of constantly updated and increasingly technically complex range of products, as well as the rapid increase in the number of foreign economic relations. It is concluded that, although the country faces the prospect of deteriorating external conditions for foreign economic activity, including the West's negative attitude to the "Made in China - 2025" program and the US-China trade confrontation, China is working on a strategy for further foreign economic development connections. The need to accelerate the transition to new factors in the development of foreign trade and improve its structure, create new comparative advantages in international competitiveness, the transition from rapid growth to quality growth is declared. To do this, the implementation of the course for "five improvements" or optimizations, which includes: the formation of a wider network of trading partners; improving the territorial distribution of foreign trade and investment activities in China itself; technical, institutional, managerial renewal of enterprises - subjects of foreign economic relations; optimization of the commodity structure of trade, development of products with high added value; improving existing and finding new ways of conducting trade, comprehensive development of trade in services and goods.