Final answer:
China became an important factor in world trade due to the country's adoption of market-based economic policies, foreign multinational corporations setting up factories, China's large population and consumer base, its entry into the WTO, historical trade interactions, and advances in transportation and communication technology.
Step-by-step explanation:
The emergence of China as an important factor in world trade can be attributed to several factors. One key factor is the country's adoption of market-based economic policies in the 1970s, known as the 'Opening of China.' This allowed
China to attract foreign multinational corporations (MNCs) to set up factories in the country, particularly in coastal cities like Shanghai, Guangzhou, and Shenzhen. The MNCs provided employment opportunities for the Chinese population and facilitated the export of Chinese-made products globally.
Additionally, China's large population and consumer base, combined with its entry into the World Trade Organization (WTO) in 2001, further enhanced its significance in world trade. China became the world's second-largest economy in 2010, and it is projected to become the largest economy by 2030.
Furthermore, historical events such as the European exploration and trade in the 1500s introduced new goods and trade routes to China. The demand for Chinese goods by western countries boosted China's trade power. Finally, advances in transportation and communication technology, along with the reduction of trade barriers between countries, have contributed to the rise of global trade, in which China plays a vital role.