Economic growth and trade dependency in China

Abstract

This paper examines the extent of China's inter-relationship with the world economy and the level of dependency on world trade. It examines four main sectors: grains, fibres, iron and steel, and energy. It argues that China's level of trade interaction is not as high as the surface figures suggest. The main argument is that China's relationship with the world is an interdependent one in which China relies on access to markets for its exports of manufactures and primary product exporters need a stable relationship with China if world markets are to avoid instability and large fluctuations.

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