부산대학교 도서관

There is a growing consensus in development economics suggesting that successful economic policies feature a combination or succession of inward- and outward-oriented strategies. The failure of Latin America stemming from one-side import substitution policy and regional disharmony and the success of Four Tigers using the import substitution policy as a basis for technological learning and international business, combine to prove the necessity of pursuing such a mixed approach, which seeks to both harness opportunities from increased trade and investment and, simultaneously, promote the development of domestic industries as well as import substitution.China, whose economy has rapidly developed at an unprecedented speed during the recent decade, has recognized the importance of this mixed approach after the great reform and openness in 1978. In order to upgrade industry structure and enhance international competitiveness, China has introduced ‘Reinvigorating trade by science and technology’, ‘Strategic emerging industries’ and ‘Made in China 2025’ programs in succession. In addition, China central government encourages local government to absorb foreign investment, through the guidance of related decrees and policies and the decentralization so as to increase autonomy of local government, in order to create a competitive environment and transfer advanced techniques and equipment. In past Five-Year plans, the most goals of domestication in targeting sectors were reached through various efficient and effective policy measures. As the global balance is shifting towards Asia’s emerging economies, China, who has a huge market capacity, influences the global economy to a larger extent. The increasing argument from exporters about how to maintain the trade balance with China deserves close attention.The article adopts descriptive analysis, indices analysis and sector analysis, to evaluate China’s import substitution industrialization (ISI). The results of evaluation based on the intra-industry trade theory and the dynamic comparative advantages theory demonstrate that China has an upward of complementary linking with the world economy particularly in general manufacturing, transportation, petroleum processing, chemical and electrical equipment, and China also has an apparent shifts of comparative advantages to difficult imitable research oriented goods and increase exports of raw materials based on the abundant natural resources as well during 1991-2015.Against the background, it is critical for exporters to hold an optimistic attitude and long-term perspective to adapt the restructure of China manufacturing. Increasing investment and enhancing cooperation with China government and companies is a good way to achieve more benefits and win-win situations. At the same time, foreign exporters should maintain or reinforce the technological gap with Chinese local producers, otherwise their market shares in China and global market will be gradually eroded by the Chinese firms.