China’s changing role in world trade

The rapid growth of foreign trade during the past quarter century has fundamentally changed China's position in world trade. China is now a large, developing, and at the same time transitional, economy excelling in international economic activities through domestic reform and trade liberalisation. Relatively high export growth has been accompanied by a sustained process of GOP growth and rising per capita income at home. The combination of the size of the economy, sustained low production costs, and continued strong inflows of foreign direct investment means that China has had profound effects on regional and world production and consumption. China's changing role in world trade after its accession to the WTO in 2001 is much more than the increase in its share of world trade; its significance lies in the commensurate role it now has in promoting the multilateral trading system. A multilateral system provides the most appropriate framework for China to balance its domestic and international interests, and together with its trading partners, meet new challenges in globalisation