China needs to change trade strategy
June 1, 2012
Siva Yam & Paul Nash
Country cannot rely old pillars to prop up economy
For several decades, China has built its economic strategy on four pillars: exports, foreign direct investment, fixed-asset investments and domestic consumption. Of these exports have played a vital role- they have drawn in FDI, underpinned investment in fixed assets and fueled domestic consumption.
Since the global financial crisis, China's export to its two largest customers - Europe and the United - have slowed down significantly, giving a new sense of urgency to the government's current plan to lift the nation's manufacturing base up the value chain.