In the past 30 years, China has made great achievements in opening to the outside world. However, with the development of domestic economy and the change of international economic environment, it is necessary to make appropriate adjustments to China's opening-up strategy, which is characterized by the trade strategy of rewarding and restricting entry, the capital strategy of rewarding and restricting entry, and the pursuit of foreign exchange reserve preference. Its adjustment direction is to take the balance of international payments as the strategic goal of future opening up and foreign direct investment as the strategic focus of future opening up. key word

Since the late 1970s, China has chosen the correct road of opening up. For 30 years. China has made great achievements in opening to the outside world. Foreign trade has become an important pillar of China's economic development; The scale of attracting foreign direct investment continues to expand; Foreign direct investment has developed. However, with the development of domestic economy and the change of international economic environment, China's opening-up strategy needs ten major adjustments, which are mainly manifested in the trade strategy of limited people with prizes, the capital strategy of limited people with prizes and the pursuit of foreign exchange reserve preference. On the basis of reviewing the course and present situation of China's opening to the outside world, this paper emphatically analyzes the challenges faced by China's opening-up strategy, so as to explore the adjustment direction of China's opening-up strategy. I. Historical Choice of China's Strategic Road to Opening to the Outside World (I) Theory of Developing Countries' Strategic Road to Opening to the Outside World The main ways of international economic ties are international trade and international direct investment. Therefore, the opening-up strategy of developing countries is also a strategic choice in these two aspects. 1. Foreign trade strategy of import substitution and export promotion Foreign trade is the engine of economic growth. This road expounded by classical economics and confirmed by the historical experience of developed countries is still applicable to the economic development of developing countries. This is not only because foreign trade can expand the total output and export of developing countries, but also because foreign trade can exchange capital goods and intermediate products needed for economic development, which provides necessary conditions for developing countries to implement industrialization, change traditional economic structure, improve output and income levels and realize economic development. The foreign trade strategies of developing countries mainly include import substitution strategy and export promotion strategy. Theoretically, the import substitution strategy can reduce imports and reduce economic dependence on foreign countries; Saving foreign exchange and balancing international payments; Develop domestic infant industries and realize industrialization; Develop the production and export of finished products; Increase employment in industrial sectors, change the dual economic structure, and so on. It can be seen that the foothold of this strategy is to eliminate the obstacles for developing countries to develop their own economy on the one hand, and to eliminate the influence of unfavorable terms of trade on developing countries on the other hand, so as to create favorable conditions for industrialization and economic development. Theoretically, the export promotion strategy can take advantage of superior natural conditions or cheap labor to develop labor-intensive and technologically advanced products and promote the overall economic growth by expanding exports; The expansion of exports will help to increase employment opportunities, increase per capita income, and promote the strengthening of industrial base and industrialization process; The expansion of exports will help to improve the domestic technical level and labor productivity and promote the upgrading of industrial structure; Because of the export promotion industry and the manufactured goods industry, expanding exports is conducive to improving the terms of trade and achieving the balance of payments. As far as the goal is concerned, the implementation of export promotion strategy is to achieve comprehensive industrialization and rapid economic growth and overcome a series of problems brought about by imported substitute industries. 2. International capital flow strategy of introducing foreign capital and foreign investment Developing countries are short of domestic resources, and their economic development depends heavily on external resources. Therefore, it is necessary to obtain resources from outside by introducing foreign capital and using foreign aid. The inflow of foreign resources can solve the problems of insufficient savings, shortage of foreign exchange and scarcity of capital goods in a country, and introduce advanced technology and management methods, thus promoting economic development. The main advantages of introducing foreign capital are: it may help developing countries fill the savings gap and solve the balance of payments deficit; Obtain special goods and services urgently needed by domestic production from abroad; Obtain technologies and new production methods that can improve domestic labor productivity from abroad, so as to enhance domestic ability to improve output level; Make up for the shortage of domestic technology, management and enterprise talents, and so on. After developing to a certain stage, developing countries should carry out foreign direct investment in a timely manner, because: through foreign direct investment, they can further explore domestic and foreign markets and promote domestic exports; Using the global factor price difference to enhance the competitiveness of domestic economy; Promote the upgrading and optimization of domestic economic structure. (II) The Realistic Choice of China's Opening-up Strategy under the Condition of Traditional Socialist Economy Before the reform and opening-up, China's foreign economy was basically closed. At the beginning of reform and opening up, China's economy had three obvious characteristics: first, there was a shortage of funds and foreign exchange, and economic development was restricted by a serious shortage of funds; Second, the employment pressure is great, the per capita national income is very low, and the economic development is restricted by the lack of domestic market; Third, domestic resources are relatively cheap, such as labor resources and land resources. These three characteristics of China's economy at that time determined that the basic strategic choice of China's foreign economy at that time was: in terms of trade, implementing export promotion strategy; In the direction of capital flow, the strategy of introducing foreign capital is implemented. Although 1978, the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China put forward reform and opening up, before the reform and opening up 10, China's foreign economy actually developed slowly. It was not until 1992 that Comrade Xiaoping made a speech on his southern tour, especially after the 14th National Congress of the Communist Party of China, that China's foreign economy began to develop rapidly, and the international trade and international capital flow in the balance of payments began to improve on a large scale. This strategy of opening to the outside world began to be popularized on a large scale in 1992 and reached its climax in 1997. Because during the period of 1997, China's economy encountered two challenges, one was the Asian financial crisis, which first manifested itself in international speculation on foreign exchange. It seems that only countries with rich foreign exchange reserves can prevent this crisis, so the opening-up strategy and the winner-take-all capital strategy, which are conducive to the increase of foreign exchange reserves, are more respected. The other is that for the first time since the reform and opening-up, China's macroeconomic demand is insufficient, resulting in weak economic growth and a large increase in the number of unemployed people. Although we tried to stimulate consumption demand and investment demand at that time, that is, we tried to stimulate it through active fiscal policy and expansionary monetary policy, for various reasons at that time, except for government investment promoted by active fiscal policy, other measures seemed to be slow to take effect, so we later increased the intensity of international policy to start demand. That is, by expanding imports and actively introducing foreign capital, domestic demand has been started. Later, it was precisely because of these measures to expand exports and actively introduce foreign capital that by developing and occupying the international market, the pressure of serious shortage of domestic demand was released, which made up for the shortage of domestic market demand and effectively promoted economic growth, thus achieving great results in starting the economy. 200 1, China's accession to the World Trade Organization marks a new stage of China's opening up. On the one hand, other WTO members joined the WTO through China, promising that China will enjoy the basic rights of WTO members. At the same time, this commitment is more about China's commitment to all WTO members. Generally speaking, at this stage, our opening up has taken a big step. Two. The main achievements of China's opening-up strategy (I) Foreign trade has become an important engine of China's economic growth. Since 1978 implemented the strategy of opening to the outside world, China's foreign trade has made great achievements. 1978, China's total import and export of goods was only $20.6 billion, and in 2007, the total import and export was $2173.7 billion, which was 3 times higher than 1978, with an average annual growth of 17.4%. Among them, export growth 18. 1%, import growth 16.7%. The total volume of China's import and export trade rose from 29th in the world at 1978 to 3rd in 2007, and its proportion in the total world trade also rose from 0.8% to 7.7%. At the same time, the international competitiveness of China's foreign trade has been significantly enhanced. The proportion of manufactured goods exports to total exports increased from 49.7% in 1980 to 94.9% in 2007. The proportion of primary products, mainly food and agricultural and sideline products, in total exports decreased from 50.3% in 1980 to 5. 1% in 2007. At the same time, the import of mechanical and electrical products and high-tech products increased rapidly, while the import of primary products declined. The dependence on foreign trade is constantly increasing. The proportion of total import and export trade in GDP increased from 9.7% in 1978 to 66.8% in 2007, an increase of 57. 1 percentage point. China has become a veritable foreign trade power. Judging from the dependence on trade, China has a very high degree of integration into the global economy. Since the reform and opening up, China's annual total import and export volume and foreign trade dependence are shown in figure 1. The rapid growth of foreign trade has brought about a substantial increase in China's trade surplus. China's annual trade surplus since the reform and opening up is shown in Figure 2. We can intuitively see that since the reform and opening up, China's foreign trade has been a trade surplus in most years, especially since 2005, China's annual trade surplus has exceeded 654.38+000 billion US dollars. In 2007, it reached a new high of $262.2 billion. The contribution of foreign trade to the economy is also increasing. The formula for calculating GDP by expenditure method is: GDP=C+I+G+(X-M), where C is consumption, I is investment, G is government purchase expenditure, X is export, M is import, and X-M is trade surplus. It can be seen that the trade surplus enters the GDP accounting together with consumption, investment and government purchase expenditure. With the growth of trade surplus since opening to the outside world, the proportion fluctuated between positive and negative during the period of 1982- 1994, and it was less than 1% when 1994, and reached 7,7% in 2007. (2) The scale of attracting foreign investment has been expanding and foreign investment has developed rapidly. Since 1978 implemented the opening-up strategy, China has also made great achievements in attracting foreign investment. Before 1983, China attracted little foreign investment and little foreign direct investment. From 65438 to 0983, China attracted only $636 million in foreign investment and $44 million in foreign direct investment. In 2007, China's foreign investment reached 74.8 billion US dollars, an increase of 1 17 times. In 2007, China actually used 760.2 billion US dollars of foreign direct investment, with an average annual investment of 26.2 billion US dollars. Since 2002, the utilization of foreign capital has been in the top three in the world. Foreign investment has developed rapidly from scratch. From 2003 to 2007, the foreign direct investment (non-financial part) was 2.9 billion US dollars, 5.5 billion US dollars, 654.38+0.23 billion US dollars, 654.38+0.76 billion US dollars and 654.38+0.87 billion US dollars respectively. Non-financial foreign direct investment 187 billion US dollars, an increase of 425 times. See Table 3 for the annual flow of foreign direct investment and foreign direct investment in China since the reform and opening up. We can intuitively see that since the reform and opening up, China's foreign direct investment has made a straight leap from 1992, and declined after reaching the height of $691950,000 in 200/kloc-0, but reached a record high in 2007. China's foreign direct investment was less than $ 1 billion before 1.992, and it reached $4.4 billion after 1.993, until 2003. Since 2005, foreign direct investment has greatly increased, with annual investment exceeding 1 billion USD. By introducing foreign capital, technology and management experience for digestion, absorption and re-innovation, China's productivity level has been greatly improved, and the gap with developed countries has narrowed. Since the reform and opening up, China has attracted far more foreign direct investment, so China has gained a surplus under the capital account year by year. From Figure 4, we can intuitively see that from 1993, the annual surplus of direct investment in capital projects began to exceed $20 billion, reaching $56 1 billion in 2007. (3) Accumulated huge foreign exchange reserves As mentioned above, since the reform and opening up, China has accumulated a large number of trade surpluses under trade projects and a large number of capital account surpluses. The double surplus of trade and capital account forms the main source of China's foreign exchange reserves, which makes China's foreign exchange reserves increase rapidly. Before 1.978, foreign exchange reserves never exceeded $654.38 billion. Until 1983, China's foreign exchange reserves were only $890 million, and reached 1.53 trillion by the end of 2007, an increase of about 1700 times in 25 years, as shown in Figure 5. The huge foreign exchange reserves have enhanced China's comprehensive national strength, international payment ability and anti-risk ability. (IV) A Brief Evaluation of China's Opening-up Strategy The main features of China's current opening-up strategy framework are that we have adopted a general policy of actively expanding exports and restricting imports under international trade, such as going abroad to implement an export tax rebate policy that is conducive to expanding exports, implementing a relatively strict import tariff policy on imports, and even not allowing imports; Under the capital account, we have implemented policies to attract foreign investment and limit capital outflow, such as various preferential policies including tax incentives and land incentives for foreign investment, but strictly control capital outflow. In line with this opening-up strategy, China's foreign exchange system implements an administrative system under strict state control. Not only is the flow of foreign exchange strictly controlled, for example, foreign exchange under capital account is never liberalized, but the price of foreign exchange is also controlled by the government, and the government pricing principle is implemented. Therefore, the flow and pricing of foreign exchange are not free and market-oriented. This opening strategy is characterized by the trade strategy of rewarding and restricting entry, the capital strategy of rewarding and restricting entry, and the pursuit of foreign exchange reserve preference. This strategy of opening to the outside world has created a trade surplus very quickly, and caused a large amount of foreign capital to flow into China, thus effectively increasing China's foreign exchange reserves, and at the same time creating more employment opportunities for China and increasing people's income. Of course, this strategy has also greatly promoted the reform in China, and formed the institutional change effect of opening-up driving reform. This strategic choice of China's foreign economy was correct at that time, which was in line with China's national conditions at that time, and we should not blame it. However, with the development of domestic economy and world economy, this strategy needs to be adjusted.