Journal of International Trade, 2010, Issue 10

Authors: YUAN Tao, LV Yue

Abstract: Faced with the global economic crisis and the impact of China’s blocked foreign trade, adhering to boosting domestic demand is the right choice. But this does not mean that China can do well without export. The contribution of exports to Chinese economic development cannot be ignored. Now China is still in the critical stage of industrialization, so reality-based economic foundation means that the economic development of our country should take manufacturing rapid progress as the sign, and the output of the manufacturing industry which supplies the products in domestic market must be exported at the same time. Also keeping the high growth of domestic demand is very difficult, and stimulating domestic demand of deep reform cannot be accomplished overnight. There is no uniform standard of export as a percentage of GDP, and the proportion of German is also very high; With the rising average of world dependence on foreign trade, the high proportion of Chinese export meets the basic trend of world economic development; As the “world factory”, Chinese products should not only supply the domestic market. China’s expanding domestic demand should not squeeze exports.

Keywords: Export; Domestic demand; Economic crisis; Economic development