New Features of the International Industrial Division and It's Impact on China's Economy

摘要

This article studies the new features of international industrial structural adjustment and transfer, which are driven by the economic globalization and scientific and technological advancement sincethe 1990s. It mainly analyzes the major impacts on China's economy by international industry's accelerated transfer and Intra-Product Specialization under the globalization. Based on the theory of Modern Dynamic Comparative Advantage and Vertical Specialization Theory, it uses models and empirical tests and proves that China's large trade surplus is mainly the result of China's international division status and the structural factors of processing and manufacturing links in the international industrial chain.And in combination with other factors they lead to the high foreign exchange reserves and high liquidity. Regression analysis shows thatChina's exports are mainly pulled by external demands (75%), the Exchange rate has a contribution rate of 20% to trade surplus and that RMB exchange rate adjustment can not change the trade surplus pattern.When facing with the accelerating international industrial transfer, the deepening international intra-products division and the sustained global trade and economic imbalance etc, in order to play for China's dynamic comparative advantages, and avoid falling into the trap of comparative advantage, in the short term, the expansion of domestic demands are required as an effective way to control the trade surplus, lower the foreign exchange reserve pressure and reduce the liquidity. China should increase imports and overseas investment. In the long term, from the national strategic view, China needs to speed up the implementation of the new type of internationalization strategy, implement a package of foreign economic and structural policy reforms, improve the status of the international industrial division, and gradually open its capital account with the support of exchange rate policy adjustments, so as to form a new international competitive advantage.