In the current international trade situation, how can China give full play to its comparative advant

China's comparative advantage lies in Chinese's low labor costs, low resources**, low transportation costs (good infrastructure), especially labor costs, which have long been regarded as major comparative advantages. However, at present, this advantage is decreasing, so we need to continue to innovate and improve the economic development model in order to achieve sustainable development. In foreign affairs, China's labor cost advantage and complete industrial chain are the biggest advantages, which leads to our foreign trade competitive advantage.

Extended Information:1For a long time, the international theory has been based on the principle of comparative advantage. According to the comparative cost theory, there are differences in labor productivity or cost differences in the production of different products in different countries, and each country should produce products in which each country has a comparative advantage.

In this way, the output of products engaged in specialized production in the division of labor between countries will increase, and through international development, both sides can obtain the greatest benefits and obtain comparative benefits. The theory of comparative advantage still has a certain reference significance for the development of China's foreign countries, but the degree and scope of application of this theory to developing countries are limited. Because, it is mainly from a static point of view to analyze and explain the international division of labor and international excellence, and from a dynamic point of view, with the development of the economy, science and technology, the progress of education, the comparative advantages of countries are changing, and the industrial structure and structure are also constantly changing.

As far as developing countries are concerned, blindly determining their own international structure solely on the basis of their own comparative advantages in costs and resources will inevitably fall into the "trap of comparative interests".

2.The reasons for this are: first, the conditions for the exchange of primary products and manufactured goods are deteriorating more and more for developing countries; Second, developing countries have become more dependent on developed countries.

At the same time, in the international market of labor-intensive products and capital- or technology-intensive products, developing countries that mainly export labor-intensive products are always in a disadvantageous position, leading to the deterioration of their own conditions and the strengthening of their dependence on developed countries.

3.Developing countries should build on their existing comparative advantages to form their own competitive advantages. In order to truly obtain greater comparative benefits in foreign countries, we must devote ourselves to adjusting and optimizing the industrial structure, increasing the proportion of technology-intensive industries, and expanding the export scale of technology-intensive products.

To this end, it is necessary to focus on solving the following problems: First, expand the investment of human capital and technology in labor-intensive industries and improve their knowledge and technology intensity; Second, in terms of market selection, the state should focus on cultivating a number of industrial sectors with high technological content and good export prospects through technology introduction and high-tech investment, so as to enhance their international competitiveness. Third, it is necessary to gradually raise the barriers to the entry of foreign capital into China and encourage high-tech industries to enter China.

China's advantage in foreign trade is first of all compared with developed countries in Europe and the United States, and our low labor cost is the biggest advantage. The industrial chain of the product covers a wide range, which is also very convenient for foreign trade enterprises to purchase and stock up raw materials. Compared with the Southeast Asian market, the comprehensive quality of our labor force is high, and the quality and delivery time of production are very guaranteed.

The export products are rich in layers and meet the tastes of people from all over the world.

China's development with foreign countries has not only promoted China's economic modernization and the enhancement of its comprehensive national strength, and improved the living standards of more than 1.3 billion Chinese, but has also made China's economy a part of the world economy and promoted the development of economic globalization in a direction conducive to the common prosperity of all countries and regions in the world.

There are still unbalanced, uncoordinated and unsustainable problems in the development of China's foreign trade, which are prominently manifested in: export growth mainly depends on the input and consumption of resources, energy, land, labor and environment, insufficient investment in science and technology, management innovation, and the contradiction between foreign trade development and resource and energy supply and environmental carrying capacity is becoming increasingly prominent; The competitiveness of enterprises in R&D, design, marketing and service is not strong, and the proportion of self-owned intellectual property rights and self-brand export products is not large; The contribution of foreign trade development to the three major industries is uneven; The scale and level of foreign trade in the central and western regions are still relatively backward; The quality and efficiency of foreign trade growth need to be further improved. China is soberly aware of these problems and has taken positive measures to accelerate the transformation of foreign trade development mode and achieve sustainable development of foreign trade.

Extended information: 1. At present, the deep-seated impact of the international financial crisis is still emerging, the long-term, arduous and complex nature of the world economic recovery is more prominent, and the global economic structure and pattern are facing profound adjustments. China's foreign trade will also undergo new adjustments, and strive to achieve the transformation from scale expansion to quality and efficiency, from mainly relying on low-cost advantages to enhancing comprehensive competitive advantages, and from a strong country to a strong country.

2. The development of China's foreign trade is still restricted by many uncertain factors and will face new difficulties and pressures. During the 12th Five-Year Plan period, China will further open up to the outside world, promote reform, development and innovation through opening-up, strive to give full play to its own advantages, strengthen all-round international cooperation, and integrate into the world. The economy is larger, wider and higher.

China is willing to work with its partners to jointly address various challenges facing the world's economic and trade development, promote a more balanced, coordinated and sustainable development of foreign trade, share prosperity with its partners, and achieve mutual benefit and win-win results.

The comparative advantage of China's foreign trade is that it has the largest manufacturing capacity, which makes the cost low and the quality stable. And our country is big and stable, and there is little risk of uncertain and unstable factors in doing business with us.

Participating in global competition is a new test for Chinese enterprises, and enterprises are facing new opportunities and challenges. In order to give full play to their own advantages and make up for their own shortcomings, it is necessary to understand the comparative advantages of Chinese enterprises in international competition as soon as possible, so as to make use of their strengths and avoid weaknesses, pursue advantages and avoid disadvantages, and continuously improve their competitive strength.

1. Labor advantage.

Enterprise competition is the competition of products, of which the competition of products is an important aspect. In the first composition of the product, labor cost occupies a considerable component. In terms of labor costs, China's enterprises have a strong competitive advantage, China's labor resources are abundant, the labor force is relatively low, and it has the advantage of low labor costs.

According to relevant data, China's mainland's labor costs account for only one-eighth of those in the United States and Hong Kong.

2. Market advantage.

Another important aspect in which China has a comparative advantage is its market advantage. With a population of 1.3 billion, China is the world's largest consumer market. China's domestic market has broad prospects and huge development potential.

3. International competitiveness.

Some large enterprises or enterprise groups, especially some competitive industries and enterprises that China opened up earlier, have accumulated considerable advantages in technology, talent, and capital in the process of long-term market competition, and some enterprises already have considerable advantages.

4. Advantages of the industry.

Generally speaking, China's labor-intensive industries and products, such as textiles and garments, cultural, educational and sporting goods, fur and down products, and most textile and light industries, as well as some building materials products, some household appliances, some mechanical and electrical products, some chemical products and some steel products also have strong competitiveness and relative comparative advantages. After joining the WTO, labor-intensive and resource-based enterprises have a relatively strong comparative advantage in the short term, and they can take advantage of the elimination of quotas and other non-tariff barriers in foreign markets to enable enterprises producing these products to gain greater room for development, and most of these products are already not produced or rarely produced by developed countries. The scale and strong R&D capabilities, master the key manufacturing technology of related products, the brand has a considerable reputation.

China's position is becoming increasingly awkward, and it needs to exert its own initiative.

There are pros and cons to developing one's own economy according to the theory of comparative advantage. Pros: 1. The use of domestic technology, resources and even labor advantages to develop industries can effectively improve labor productivity; 2. Effectively reduce the labor time of commodities, so as to reduce the price level in the world; 3. Increase in export foreign exchange earnings

1. It is easy to cause extravagance and waste of resources; 2. Excessive development of industries with comparative advantages is easy to shake basic industries, such as agriculture and basic manufacturing; 3. Excessive development of industries with comparative advantages is easy to cause a single industry, a biased structural structure, and a weakened ability to resist economic risks. Developing countries can easily achieve rapid GDP growth by using the theory of comparative advantage; However, weak and excessive development may lead to active or passive adjustment of the industrial structure, and it is easy to repeat the old path of Britain and Japan.