China & World Economy / 23–49, Vol. 26, No. 2, 2018

China’s Opening up after 40 Years: Standing at a Historic Turning Point

Jiandong Ju, Xinding Yu*

Abstract

This paper comprehensively reviews China’s openness since 1978 from three aspects: trade, foreign investment and global production sharing. We point out that the economic development of China is now standing at a historic turning point. Specifically, economic changes in China are discussed from four dimensions: (i) from China being a world assembly line to a world manufacturing powerhouse; (ii) from China being a world capital receiver to a world investor; (iii) from China being a world factory to a world market; and (iv) from the situation of “made in China” to “innovated in China.” At the same time, the global economic system has also reached a turning point. A “North America–Europe–Asia” tri-polar system has formed, in which the USA, Germany and China, respectively, serve as the regional core economies.

Key words: foreign direct investment, global production sharing, reform and opening-up policy, trade, turning point
JEL codes: F10, F15, O10