SPECIFICS OF THE IMPLEMENTATION OF THE IMPORT SUBSTITUTION STRATEGY WITHIN THE FRAMEWORK OF CHINA’S ECONOMIC SECURITY

The ongoing geopolitical events require many countries to find new ways to solve economic problems in the face of sanctions and restrictive duties. China will not stand aside, as the United States may continue the trade war with the introduction of new import duties. Therefore, an urgent task is to study the import substitution strategy, which makes it possible to adapt to market changes. The purpose of the article is to analyze and evaluate the implementation of the import substitution strategy in China from the point of view of ensuring the economic security of the country. In order to achieve this goal, it is important to solve the following tasks: to study the transformation processes in China’s industry; to identify the role of import substitution as a process affecting China’s industry; to assess China’s imports and exports with major trading partners; to formulate China’s development prospects within the framework of the import substitution strategy. The study used systematic and logical analysis, the method of comparative analysis and expert assessments, as well as analogy and synthesis. Based on the findings, the article reveals that the implemented strategy of China’s import substitution in a two-track economic system is the basis for building the development of high-tech industries under the influence of the United States. It revealed that China to provide some protection for the domestic industry at an early stage and promote its transformation by strengthening the mechanism of Chinese-foreign joint ventures. It proposed to adapt China’s current import substitution strategy to modern realities through a policy of openness, taking advantage of the national system, implementing an effective supply chain system capable of operating independently in emergencies, as well as strengthening international cooperation through the Belt and Road initiative. The import substitution strategy will achieve the desired results in solving problems in the domestic and foreign markets.

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