FDI inflows and foreign trade have played important roles in accelerating China’s economic growth and optimizing its industrial structure. In addition, analysis shows that US FDI into China and the trade between the two countries are complementary in the long run. Based on China’s experience, rebalancing trade should be defined as the transformation of the pattern and structure of national benefits, methods of competition, market expansion patterns and ways of utilizing resources. Thus, rebalancing trade should expand beyond a view of China as a final goods exporter; it should embrace the value added by the fragmentation of production.
China’s experience ...