The rapid expansion of China’s trade surplus since the mid-eighties and picking up until the onset of 2008-09 global financial crisis has been a key development in the world economy. While growing trade surplus of China has been viewed with cynicism borne out of an undervalued Yuan and for having being a member of WTO since 2001, many others argue that China’s trade surplus reflect changes in China’s economic and trade structure and associated shifts in its role within regional and global production chains. We address this issue by analyzing: (i) China’s growing and changing trade structure as well as changing structure of trade surplus with the rest of the world, USA, Europe, Japan and rest of Asia, (ii) China’s revealed comparative advantage (RCA) with the rest of the world, and (iii) how China’s trade policies resulted into a shift in China’s trade structure. We find that, not only China has made significant inroads in the world trade since its admission to WTO, but also there has been a noticeable shift in China’s trade structure with specialization in high-end technology industries wherein China’s exports aided by a well calibrated FDI policy.

1. Introduction1
 2. China’s Exchange Rate Regime and TradeStructure
 3. Methodology, Data Structure and DataSource
  3.1. Technological Classification of Trade Industries
  3.2. Data Source & Data Structure
 4. Data Analysis and Findings
  4.1. Growth in China’s Trade with RoW
  4.2. High Technology Products in China’s Exportbasket
  4.3. Medium Technology Products in China’s ExportBasket
  4.4. Low Technology Products in China’s ExportBasket
 5. China’s Relative Comparative Advantage(RCA) with RoW
 6. China’s Trade with USA
  6.1. USA’s Trade Deficit with China
  6.2. The Changing Structure of China’s Exports toUSA
  6.3. Components of China’s Trade Account Surplus withUSA
  6.4. China-US Trade in High Technology Products
  6.5. China-US Trade in Medium-High TechnologyProducts
 7. China’s Trade with the European Union,Japan and Rest of Asia
 8. Interpretation of Empirical Findings:China’s Structural-cum-Trade Reforms andEmergence of Twin Surpluses
 Reference
 Internet Sources

• D. Tripati Rao(Professor of Economics Business Environment Area, Indian Institute of Management Lucknow Prabandh Nagar) Corresponding author
• Ravi Pathak(Associate Manager, CMK at Procter & Gamble, Singapore)