Abstract
This paper will examine the foreign trade of the People's Republic of China: its trade partners, the volume of its trade, and (to a limited extent) the commodity composition of that trade. In the process of this examination, a dilemma inherent in China's foreign trade should become apparent: a major foreign policy goal of the People's Republic of China is for China to assume (or resume) its rightful place among world powers. Yet a principal means to this goal is industrialization, and the technology as well as the hardware to industrialize must come from other countries. The exchange to pay for this industrialization should logically come from surpluses in foreign trade. Thus, while China's foreign trade can be said to support China's foreign policy in the long run, in the short run it has fallen short of that aim. While economic independence is a long-term goal, economic dependence has been a short-term result. This study focuses on the period 1949 to 1965, the period from the establishment of the current regime to the inception of the Cultural Revolution. First, it is during this period that the dilemma is most apparent. Second, the disruptions caused by the Cultural Revolution make this a convenient place to stop. This subject was chosen because of my recent completion of the required course in international economics, and further curiosity about the subject, whetted by my ignorance of it, especially since U.S. trade with China has been resumed. The recent resurgent interest in China due to the deaths of Chou En-lai and Mao Tse-tung, and the expected struggle for power, is also a factor. Moreover, as Stahnke points out: The study of foreign trade policies and practices is especially important in the Chinese case. First of all, since trade is centrally controlled and managed, actions in this area are fairly indicative of the Chinese leadership's attitudes and wishes. Second, unlike the study of some other topics, a great deal of detailed and concrete data can be obtained from China's trading partners. These sources not only provide an independent check on data gotten from Chinese sources but also contribute a fresh point of view of persons who have had actual dealings with the Chinese.