Permalink : http://hdl.handle.net/2115/5404

KEYWORDS : Trade, International Economics, World Trade, FDI

Chinese foreign trade has increased explosively in the recent decade. Although based primarily on China's own radical trade opening policy, such trade would be impossible without organic relationships with other countries. Increasing FDI flows, a bilateral upsurge of trade with Japan and Korea in close technological relationships, and relatively unilateral relationships with the U.S. and EU as absorbers of Chinese goods were especially important in this concern. A second aspect that deserves notice is the reciprocal excitement relationships among those elements that have developed spirally. Such dynamics of spiral development in reciprocal excitement relationships with an emergent result cannot be explained adequately either by ordinary international economics or linkage theory. "Biological self-organization theory" may be useful in explaining such dynamics. The paper first depicts the emergence of the new international trade order, and then attempts an experimental analysis to explain its dynamics using "biological self-organization" theory. (JEL Classifi-cation: F02, F14)