[Marxism] China's growth accelerates in Q2

[S. Artesian]

FDI and foreign trade

One direct outcome of China.s economic reform is the expansion of China.s 
trade with the rest of the world. External trade has become a very important 
element of China.s economy. During the past 20 years, China.s total trade 
increased from US$ 38 billion in 1980 to more than US$ 474 billion in 2000 
(Table 11). In 1980, China.s export and import account for 0.9% and 1% of 
world total in 1980. The importance of China.s as a large trading nations 
had been growing steadily. In 2000, the figures are 3.9% and 3.5% of world 
trade, respectively. China is the world number 7 largest exporter in 2000, 
up from number 26 in 1980. At the same time, trade also becomes increasing 
important as a percentage of China.s GDP. In 1980, the ratios of export and 
import in GDP are 6.0% and 6.6% respectively. In 2000, they increased to 
23.1% and 20.8%.

China.s expansion in trade is accompanied by the increase of FDI and growing 
trade by foreign invested enterprises (Figure 4). The data presented in 
Table 12 indicate that the contribution of foreign invested enterprises 
(FIEs) has been increasing rapidly since the early 1980s, especially in the 
1990s. Between 1980 and 1985, trade by FIEs accounted for less than 0.6% of 
total export and 2.1% of total import. The shares increased to 7.3% and 
12.8%, respectively, in the second half of 1980s. In the 1990s, trade by 
FIEs accelerated and their share in China.s total trade enlarged to 26% and 
41% for the years between 1991 and 1995, and further to 44% and 53% for the 
years 1996 and 2000.

The rise in FIEs. share in total trade reflects the growing contribution of 
FIEs in the increase of China.s trade



From:  Foreign Direct Investment in China: Policy, Trend and Impact

K.C. Fung University of California, Santa Cruz

Hitomi Iizaka University of California, Santa Cruz

Sarah Tong University of Hong Kong



June 2002

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In 2008, trade accounted for 37.5% of the GDP, with China either 1 or 2 in 
world exports just ahead or behind Germany, I forget.    Textiles and 
telecommunications production absorbed much of FDI in China, obviously for 
export, in anticipation and actualization of China's entry into the WTO and 
removal of the caps on its textile exports.

Later stats confirm more investment in infrastructure, raw material 
extraction, and elements for domestic industry and domestic markets--  
except... except overal FDI flows peaked in 2007.  So exactly how much is 
going into domestic industry and domestic markets,  other than real 
estate/property speculation, requires some more research.

----- Original Message ----- 
From: "Lüko Willms" <lueko.willms at t-online.de>
To: <sartesian at earthlink.net>
Sent: Thursday, July 16, 2009 4:59 PM
Subject: Re: [Marxism] China's growth accelerates in Q2