A Look at Comparative Advantages

Acountry's comparative advantages are fundamental elements required for high-speed and high-quality economic development. The key question is how to develop comparative advantages and allow them to rise to their full potential?

Comparative advantages should be viewed in a scientific manner. It is far from enough to form one's own unique or featured advantages by making comparisons with external circumstances. It is also necessary to analyze one's own internal environment，namely，putting both comparative advantages and disadvantages together for a comprehensive assessment. For instance，China has an enormous domestic market. Far-sighted entrepreneurs will not sit by idly and ignore this market potential; neither will scientific and technological innovators who look to unleash this same potential. But the advantage of large market capacity is limited by purchasing power and levels of consumption.

One of China's premiers once noted that there were 600 million people with a  monthly income of only 1,000 yuan (about US$166 currently). That points to a serious lack of purchasing power. Moreover，the purchases of Chinese consumers are still focused on basic necessities even though China has already solved its subsistence issues. Only by rai