China's International Trade: Growth, Exports, and Currency

Introduction: China's Rise in International Trade

Chinese international trade has experienced rapid expansion alongside the country's dramatic economic growth, making the world its marketplace. This expansion has continued to demonstrate powerful momentum within the international economic arena (Sun & Heshmati, 2010, p. 1). After China reopened to trading with the West in 1978, it quickly became one of the world's biggest producers and exporters of a wide range of goods. China has grown enormously as nations like the United States became its most significant trading partners. In response, China has fueled further growth through the management of its currency and heavy investment in the U.S. dollar, both of which ensure a more competitive position for its exports.

Historical Background: From Isolation to Reform

For generations, China had closed itself off from trading and interacting with many Western nations. Tension between the Communist state and more democratic Western governments continued to grow, isolating China economically and diplomatically from the international community. However, China found itself in a rapidly declining economic condition — the same variety of Communism that had left the Soviet Union in ruins. Reform began to look like a promising opportunity to strengthen China's own economic structure and improve its economic health.

Export Dominance Since 1978

As such, increasing CCP support for Deng Xiaoping's reformist agenda culminated in its basic acceptance by the 11th Central Committee of the CCP, with economic reforms beginning shortly after that monumental decision (Tisdell, 2009, p. 274). China reopened itself to economic trade with international markets. This was one of the biggest factors in its subsequent success, as it found great power within the structure of international trade.

Since China opened itself up to international trade in the late twentieth century, Chinese exports have achieved a commanding presence in international markets. According to the research, "The China export marketplace has now monopolized many products to a number of nations because of their opportunity to produce outstanding quantity, less expensive items" (Manzay, 2010). Its economic circumstances were ripe for exploitation through cheap manufacturing at high volumes. With the ability to produce more for less, China began dominating the export market, supplying inexpensive consumer goods to buyers across the world.

The research further notes that "since 1978, when the country announced its opening up and reform policy and began experimenting with capitalism and market forces, the country's economy has boomed" (Barboza, 2012). With such strong growth, international trade became a central element of China's domestic economic structure. Its exports helped drive a positive trajectory toward greater economic strength and reinvestment in infrastructure. As the research observes, "while growth has begun to slow sharply in 2008, after growing close to 12 percent in 2007, China is a rising global economic power" (Barboza, 2012). China maintained a top position even as many other nations fell into serious difficulty during the international financial crisis.

Conclusion: China's Competitive Position in Global Trade

Overall, it is clear that China occupies a powerful position within the international trading marketplace. The country has taken great pains to move to the top and remain there. It builds competitive advantage through the deliberate management of its own and foreign currencies in its own interest, ensuring continued growth and expansion well into the future. China has secured a place at the very top of the international market, surpassing many established players in terms of manufacturing capacity and bargaining power in international trade.