Sino-US Trade Frictions and Diversification of China's Foreign Trade

The reason why Sino-US trade frictions have a significant negative impact on the development of China's foreign trade is that the market structure and product structure of China's foreign trade are not diversified enough, especially the excessive dependence on the US market. Trade frictions between China and the United States lead to the adjustment of commodity trade flow and the effect of production transfer by increasing trade cost and trade uncertainty, which greatly affects the development of China's foreign trade diversification. Although China and the United States have reached the first stage of economic and trade agreement, this does not mean that the Sino-US trade dispute has been truly resolved. In particular, against the background that China's demographic dividend is nearly exhausted, the marginal effect of preferential policies is decreasing, and the division of labor in the global value chain is close to the limit, there is basically no possibility for China to attract large-scale foreign direct investment, which makes it inevitable for China to profoundly adjust its foreign trade market structure and product structure. Therefore, we should actively promote the diversified development of foreign trade, which is an important driving force for China's current high-quality economic development; meanwhile, we should actively participate in regional economic integration organizations, grasp the important opportunities for the development of digital economy and information technology, reshape the domestic value chain and increase the support for technology research and development, which is the important focus of the diversified development of China's foreign trade.