Shine trader limited reports:
The US prints money and is made in China. Why do we exchange commodities for US dollars? Accelerating integration into the world, using developed countries to solve the problem of overcapacity, and completing capital accumulation are the result of the different international division of labor and the only way for China’s economy to move forward. China is the largest developing country. Its economic development has accelerated since the 1980s, and it has been more than 40 years since it is full. The huge demographic dividend and large-scale advantages have allowed China’s industry to burst out with strong production capacity. At that time, people’s wages were level. If it is not high, consumption cannot be achieved. It is unrealistic to rely on the domestic market to digest industrial production capacity.
Only by accelerating its integration into the world, introducing products into the world market, and allowing developed countries with strong purchasing power to solve our overcapacity problem while earning valuable foreign exchange surpluses. After arduous negotiations, China formally joined the WTO in 2001 and successfully opened up the international market. , The economy took off rapidly, and it only took 10 years. China’s industrial added value surpassed the United States to become the world’s largest. In 2020, it will account for nearly 30% of the world’s total, and it will rank as the world’s largest manufacturing country for 11 consecutive years. The world market digests excess production capacity, and the year-round trade surplus brings a large amount of foreign exchange reserves, and then introduces foreign technology through the domestic market and foreign exchange funds. In the initial stage, it digests and then imitates, reverses R&D and then innovates, then substitutes for imports, and finally exports to occupy the world market. This road is the key driving force for China’s continuous economic growth. For a long time in the past, our dependence on foreign trade has been around 60%. The economy is highly externalized and is greatly affected by the international environment and the rise and fall of the global economy.
The road of external circulation is getting wider and wider. China is already the world’s largest industrial country and the global manufacturing center. It is called the “world factory”. With the growth of comprehensive national strength and the improvement of living standards, we urgently need Chinese manufacturing “Intelligent manufacturing” transforms from a manufacturing center to a technology center. Technological breakthroughs have allowed us to gradually improve our position in the global industrial chain. At the same time, individual countries have felt threatened and started to provoke trade disputes against globalization. We have exerted efforts on core technologies and have begun to get rid of the situation of being constrained by others.
Reprint indicated source：Spark Global Limited information