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An understanding of the dynamics underlying China's commercial trade flows provides insight into the economic transformation underway in China today. China has emerged as a trade giant for imports and exports, and the two are closely interconnected. On the export side, China has long claimed success as the world's factory for light industrial goods for export, such as textiles and toys, and continues to enjoy success in this area. At the same time, we are witnessing the transformation of China's production focus to high value-added exports, such as capital goods.
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