Volume 2(2013)

PAGE 5/15

In that sense, China already has as large share in the world trade as the U.S. or EU and its share will increase further more (refer to Fig.4). Also from this aspect, it can be said that “strong three era” of China, the U.S., and EU is coming in respect of the market size.

Fig.2 Trade share of world trade

Sources) Estirratcd from IMF,World Economic Outlook Database, April 2012 and WTO, World Trade Report 2012.

As explained above, in respect of the market size, the presence of China is comparable to the U.S. or EU now, and seems to be even surpassing them. Meanwhile, however, in respect of external economic vulnerability, we should recognize that China is rather weak compared to the U.S. or EU. Firstly, as for foreign trade dependence2, China is at a high level of about 50%, nearly double foreign trade dependence compared to the U.S., EU or Japan (refer to Table 3).

2. Foreign trade dependence means a ratio of the amount of foreign trade to GDP or the national income of a country. When this ratio is bigger, it means the dependence on export to foreign market or import from foreign supply center is bigger, which indicates that it is difficult that the all domestic industries keep going only in the domestic market self-sufficiently.