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What effect does foreign trade have on a country's economy?
The influence of international trade on a country's economy varies from country to country. For most countries, it can promote economic development, make the distribution of social resources more reasonable, and make some resources not only concentrated in a few countries. But at the same time, international trade has aggravated the fragility of the world economy, and the world economy has become more and more integrated, so that one is prosperous and the other is lost.

The trade surplus indicates an increase in foreign exchange reserves.

Some experts and scholars believe that China's huge trade surplus is not good for China's economic development. Although the increasing trade surplus has played a positive role in stimulating economic growth and increasing foreign exchange reserves, it will also trigger new trade frictions and bring uncertainty to economic growth; Excessive foreign exchange reserves brought by the surplus will also increase the pressure of RMB appreciation and financial risks. The huge trade surplus has a deeper impact, which will aggravate China's dependence on foreign trade and is not conducive to the transformation of foreign trade growth mode.

From the macro-economic point of view, the reduction of trade surplus in a certain period does not mean the negative impact on economic operation, and its advantages and disadvantages on China's economic development largely depend on the structure of imported products. However, if the import growth rate is too high and the balance of payments is seriously reversed, it will lead to a series of adverse effects on macroeconomic development, such as RMB exchange rate depreciation, capital flight and domestic inflation. Therefore, we should pay close attention to the development trend of import quantity, especially import structure, so that the development of import trade can better meet the objective needs of China's economic growth.