Impact of the Open-Door Policy on Foreign Trade Of China

Abstract

Foreign trade plays an important role in the economic development of a country. Through foreign trade, the reserves of foreign exchange are enlarged. There is no country in the world at present, which produces all the commodities. Therefore, every country tries to produce those commodities in which the said country has comparative advantage. China inherited an under developed economy in 1949. The policy makers framed the various plans for the development of the country with the passage of time. This research paper describes the open-door policy of China to promote foreign trade and investment during 1980's in the context of three regions viz. Eastern coastal, Central region and Western region.