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The Influence of China’s Import and Export Trade on the Domestic Inflation
Chapter1 Introduction
Context
With the rapid development of economy, the whole world’s trade had a rapid development. Under the good situation of the reform and opening to the outside world, the rapid development of foreign economy and trade has resulted in enhancing the inspection work of import and export conditions in China.
Chinas import and export value continued to maintain a rapid growth. Especially from 2005, according to customs statistics the growth of export is faster than import conspicuously, and the favorable balance of trade increased rapidly. Because of the steady economy development of those developed countries, such as USA and Europe, the demand of international market flourished. With the rapid increase of export in China, the whole year exports 7620 billion US dollars, increased 28.4% compare to the same period last year (裴长洪,盛狄,20071.2 Significance of the Study
Under the situation of the world’s economics remain reduce, china’s economy are Outshining others。Naturally, people will relate the economy on the domestic to foreign trade. The thought of the constant increasing of unfavorable trade will drive the growth of domestic economy and stop the reduction of inflation as well. Some other people with harboring ulterior motives and politics promoted the view of “Output deflation”, they due the economic reduction of those advanced economy great nation like American and Japan to the great trade inflation of China.
On the one hand, the “appreciation of RMB” initiated the hostility of some developed countries to China’s export trade. What’s more, they even violates the WTO free trade principle and sets the barrier to China trade export which made the foreign trade environment of China become more and more bad (陈作功?程蹊, 2004). On the other hand, the Inflation level of China domestic starts to re graduate. Those two aspects strengthen the view of inflation was caused by unfavorable balance of trade includes the new one round of overheated economy wor
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