China currently accounts for about 7-1/2 percent of world exports, up from 1-1/2 percent in 1985. About half of China's trade is so-called processing trade; that is, components and materials are imported (mostly from other Asian countries), processing or assembly is done in China, and the finished product is re-exported.
Much economic research has shown that openness to trade promotes  4  BIS Review 124/2006  growth. 14 Trade supports growth not only through the classical principle of comparative advantage, but also through the effects of trade on the intensity of market competition, transfers of technology and knowledge, and other factors.