China's Foreign Trade: A “New Normal”

Abstract Since the global financial crisis of 2007/2008, China's foreign trade has continued to grow faster than international trade, but its drivers are now different from those prevailing before. The participation of the Chinese economy in the global production chains through processing activities is no longer the main driver of its trade performance. The new driving force of change is ordinary trade, based mainly on local inputs and domestic demand. China, which played a major role in the globalization process as an export base for multinational companies, is now shifting to having a “normal” foreign trade system, which is more closely integrated into the domestic economy.