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Research Paper Undergraduate 1,911 words

China's International Trade, Exports, and Economic Issues

~10 min read 7 sections Economics · International Economics
Abstract

This paper examines China's role in international trade and finance, focusing on the People's Republic of China's export and import patterns, major trading partners, and evolving commodity composition. It traces the impact of the 1978 Open Door Policy on trade growth, analyzes the significant trade relationship between China and the United States, and surveys persistent economic challenges such as regional investment imbalances and balance-of-payments pressures. The paper also considers policy suggestions for improving trading practices, including China's management of rare earth exports. Data from sources including the IMF, World Bank, and academic journals inform the analysis.

Key Takeaways
  • Introduction to China's Economy and Trade Context: China's political structure and early trade overview
  • International Trade and Finance Overview: Role of international trade in China's modernization
  • China's Exports: Trends and Composition: Export growth, composition shifts, and GDP share
  • China's Imports: Structure and Challenges: Import composition, natural resources, and capital goods
  • China's Economic Issues with Trade: US-China trade relationship and mutual commitments
  • Suggestions for Improving Trading Practices: Rare earth export policy and foreign investment leverage
  • Conclusion: Import trends, agriculture, and long-term outlook
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What makes this paper effective

  • Incorporates concrete trade statistics — including dollar-value figures for specific import and export categories and year-over-year comparisons — grounding abstract economic claims in measurable data.
  • Maintains a clear thematic progression, moving from broad context (China's political and geographic profile) through trade mechanics to policy recommendations, keeping the argument coherent throughout.
  • Draws on a range of academic and institutional sources (IMF, World Bank, peer-reviewed journals) to support its claims, demonstrating research breadth appropriate for an undergraduate economics paper.

Key academic technique demonstrated

The paper demonstrates the use of comparative economic analysis — contrasting China's export and import shares of GDP with those of Taiwan, and comparing China's rare-earth export policies with responses from multinational corporations. This technique allows the student to situate China's trade behavior within a broader regional and global context rather than treating it in isolation.

Structure breakdown

The paper opens with a geographic and political overview of China before moving into a dedicated international trade and finance section. It then separates export and import analysis into distinct subsections, each supported by tabular data. A section on economic issues frames the US-China trade relationship, followed by a brief policy-suggestion section on rare earth exports. The paper closes with a conclusion that revisits import trends and agricultural sector forecasts.

Essay 1,911 words

Introduction to China's Economy and Trade Context

China, officially the People's Republic of China (PRC), is a sovereign state located in East Asia. It is the world's most populous country, with a population exceeding 1.35 billion. The PRC is a single-party state governed by the Communist Party, with its seat of government in the capital city of Beijing (Naughton, 2012). It administers 22 provinces, five autonomous regions, four directly governed municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two largely self-governing special administrative regions (Macau and Hong Kong) (Snyder, 2011). The PRC also claims Taiwan — which is governed by the Republic of China (ROC), a distinct political entity — as its 23rd province, a claim that remains controversial given the complex political status of Taiwan and the unresolved Chinese Civil War (Naughton, 2012).

China has a key international trade and finance issue rooted in the nation's past and current economic circumstances. One of its chief trade concerns involves its relationship with the United States. Both China and the United States share one of the most consequential trade and economic relationships in the world. For conditions to improve, some change in policy will be necessary — for instance, strengthening intellectual property rights enforcement in order to protect innovative industries and the jobs they create.

Before 2005, China's rate of domestic spending was extremely high. However, after 2003, investment misallocation created problems for the nation. A large share of spending in China originates from urban areas, while only about 30% comes from rural areas. This reflects uneven development in China, where growth derives mainly from manufacturing concentrated in the coastal south and east, while inland areas still depend heavily on agriculture and remain vulnerable to factors such as weather conditions (Shan-shan, 2012).

6 Sections Hidden · 1,410 words
International Trade and Finance Overview320 words
In China, international trade has been used to bring in new technologies and equipment to address shortages in the domestic economy and to modernize the country's economic base. Exports have long served as a means of generating foreign currency…
China's Exports: Trends and Composition350 words
After the People's Republic of China government adopted the Open Door Policy in 1978, its foreign trade grew rapidly as exports were expanded to support economic development and finance increased imports (Naughton, 2012). Among the outcomes of the Open Door Policy was a swift…
China's Imports: Structure and Challenges290 words
Research shows that in contrast to Taiwan, where imports form an average of 32.5% of GDP, imports constitute an average of only 11.8% of the PRC's GDP. The primary reason for this difference is that the PRC —…
China's Economic Issues with Trade150 words
China and the United States each share one of the most significant trade and financial relationships in the world. The United States exports $100 billion worth of goods and services…
Suggestions for Improving Trading Practices130 words
One relevant area where China has already taken action involves rare earth exports. Over recent years, China has progressively reduced its exports of rare…
Conclusion170 words
The People's Republic of China's government efforts to restart the economy after a period of inactivity led to an increase in the import of capital goods; however, the government's attempts to regulate imports were largely disregarded by the provinces and productive sectors. At present, over 40% of the PRC's imports are capital goods…
Key Concepts in This Paper
Open Door Policy Export Composition Import Structure US-China Trade Rare Earth Exports Capital Goods Balance of Trade Trade Partners GDP Share Coal Production
Cite This Paper
PaperDue. (2026). China's International Trade, Exports, and Economic Issues. PaperDue. https://www.paperdue.com/study-guide/china-international-trade-exports-economic-issues-123373

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