| Abstract | “Internal reform” is the background of “External Openness”; the factor market distortion induced by China’s internal reform is a specific constrain of China’s openness. Based on this logic and the perspective of factor price distortion, we re-evaluate export behavior of China’s firms, using the micro-level data of China’s manufacturing firms. We arrived at the following conclusions: there is serious and increasing negative factor price distortion of China’s manufacturing firms ; the eastern region、the foreigner-owned firms and the private firms has the most serious price distortion; the negative price distortion promote export in general. This means, China’s export success is owned to the negative price distortion; China subside the foreign consumer by Chinese production factors’ surplus through the low-price export; we should focus on trade welfare instead of trade volumes and trade structure. |