Impact of China's open-door policy on Pacific Rim trade and Investment
Adoption of an open-door policy and implementation of a series of reforms in its foreign trade system have transformed China into a new export competitor in Pacific Asia. China experienced a per capita income growth rate of 5.4% between 1965 and 1988 - truly a remarkable success for a country whose population accounts for 22% of the world's population, but whose arable land accounts for only 7% of the world's total. Moreover, China has emerged as a major exporter of labor-intensive manufacturers and has successfully penetrated the markets of industrialized countries, especially the US. Perhaps one of the most significant elements of China's reform movement has been the renunciation of the self-reliance mentality and the recognition of China's needs for foreign trade, investment, and technology in order to modernize. A pattern could develop in which China exports labor-intensive products to North America and Western Europe, and imports capital and intermediate goods from Japan and the Asian newly developed countries, creating a Pacific trade triangle.