As more and more countries open up to the global market, nations are increasingly interdependent for their economic development. Given this, it is important national economic security is not ignored; on the contrary, it should receive greater attention because it is of fundamental concern. To ensure national economic security, a country must effectively protect its economic stability and development, particularly against external risks, to ensure its survival and continued development. It is worthwhile discussing ways in which to guarantee China's economic security.

China has expanded its opening-up policies in the last 20 of development. In 2005, China's foreign trade volume was the third-largest in the world for the second consecutive year. It has ranked first in the world in terms of utilizing direct foreign investment for several years. The opening-up policy has obviously contributed positively to China's economic development. The increasingly efficient use of resources and the rapid rate of economic growth, while more risky and creating greater external friction, has facilitated the process of opening-up. Opening-up has changed the national economic structure fundamentally, and in doing so made the Chinese economy more vulnerable.

The risk from external markets is obvious. China is heavily dependent on foreign trade which raises two issues. One is the risk related to imports. With the manipulation of international capital by some monopolies, the price and supply of important natural resources that China needs, such as oil and iron ore, have become instable. The other risk relates to exports. China's trade in textiles and other products has received a hostile response from some developed countries, who have in some cases taken antidumping measures against Chinese exports. Some of the trade restrictions imposed by developed countries directly target Chinese exports. China's foreign trade has grown at an unprecedented rate in recent years, but it has had to take some risks for that to happen, and these may prove unsustainable.

Dependence on technology is also increasing. Opening-up has challenged domestic enterprises to produce independent innovations. In the early stages of opening-up, foreign high-tech products took over the Chinese market, minimizing opportunities for domestic enterprises. Multinational corporations operating in China are now directly competing with local enterprises for more talented human resources. Currently, international companies have a monopoly on technology and a firm hold in China. The impotence of China's own technology threatens, in a way, China's economic security.

National industries face heavy competition. When the policy of opening up was first implemented, domestic industries suffered great losses. Many famous brand names in China disappeared because their products were replaced with better and cheaper ones from foreign enterprises. The strong technical advantages of goods produced by multinational companies forced the local competition out of the market. Recently, it has become apparent that the bulk of Chinese shares are controlled by foreign capital. China is in danger of allowing foreign capital to control and monopolize the domestic market by purchasing or investing in major Chinese enterprises.

The speed of globalization is of increasing strategic significance in guaranteeing national economic security. Opening-up is a prerequisite for economic development, but alone it is not enough. If opening-up strategies are not properly implemented or monitored, they can pose challenges to economic development. Policy-makers should think very seriously about further changes to the process of opening-up. They should first resolve the security issues of the Chinese economy before looking to economic globalization. Only in such circumstances will the Chinese economy become stable enough to make positive contributions to the world's economic development. In the process of opening up, China must establish an effective security mechanism for its economy. To achieve this, China must further adjust its opening-up policies. It must re-adjust its foreign trade strategy to lower the risk from external markets; it must optimize its use of technology and improve domestic innovation; it must regulate foreign investment and so that competition is fair; and they must ensure a balance between foreign investment and expenditure to allow more space for economic growth.

Editor: Yan