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China＇s Developing Open Economy： Myths and Realities
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China＇s Developing Open Economy： Myths and Realities
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Journal Article
China＇s Developing Open Economy： Myths and Realities
2012
Overview
Both academia and actual economic sectors have certain misunderstandings regarding the development of China＇s open economy. Since its accession to the WTO, China has in fact had an open economy and not an ＂export-oriented＂ economy. China＇s trade imbalance in the global economy is merely a result of economic disparities between the world＇s more- and less- developed regions combined with the rational optimization of resources. The current situation, wherein China appears to be heavily export-oriented, stems naturally from the real economy moving towards a dynamic equilibrium against a backdrop of economic globalization and deepening international specialization. We have concluded that domestic consumption and external demand reinforce each other, and the development of an open economy in China is therefore not at odds with expanding domestic consumption.
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