The Fundamental Adjustment of China’s Economic Geo.pdf

The Fundamental Adjustment of China’s Economic Geography: The Coming Economic Development Strategy of China David Daokui Li Abstract: With China’s rapid economic growth, the structure of its economic sectors have changed massively, but its economic geography has changed very slowly. Since the main driving force of China’s rapid economic growth has been high-intensity opening up to the international economy, this slow shift in economic geography has created fundamental problems for the continued success of the Chinese economy. This paper proposes that the making of conscious efforts to promote fundamental adjustments and the restructuring of China’s economic geography by allowing and inducing the natural forces of marketization to play roles will be key components of China’s future economic development The Chinese economy has been developing very rapidly for the past quarter-century. Benefits have flowed from China’s reform and “opening up” policy, of which a major component has been promoting intense adaptation to the world economy. About 20 years ago, Chinese economists advocated a policy promoting increased imports and exports as a strategy of economic development. As of today, China’s import-export level relative to GDP is unprecedented by the standard of a large economy. China is also attracting the largest amount of Foreign Direct Investment among developing countries. In fact, even among developed countries, China is also leading in this regard. As a result China is facing increasingly serious constraints, such as foreign trade disputes, technology dependence, and natural resource dependencies. Together with the rest of the world, the excha