The Significance of Comparative Advantage Theory and Competitive Advantage Theory to the Development of China's Foreign Trade

For a long time, China's foreign trade has remained dominated by labor-intensive products.The international division of labor, which only takes comparative advantages, cannot fundamentally drive the country's economic development, but will cause China fall into the "trap of comparative advantage".Based on the study and analysis of the influence of comparative advantage theory and competitive advantage theory on China's foreign trade, this paper concludes that China must adjust its trade development strategy and change from comparative advantage strategy to competitive advantage strategy under the guidance of competitive advantage theory.