Foreign direct investment flow, competitiveness and technological structure of foreign trade in China in the beginning of the 21st century. China's government introduced open market reforms in 1979, mediated by industrial policies improving the ability of attracting higher quality FDI (Foreign Direct Investment), which helped China's economy developing its technological capabilities. As a result, China's share in international trade rose impressively becoming third-largest trading nation in the world, by 2004, also its export structure is significantly more sophisticated. Facing the importance of understanding the determinants of developing word specialization patterns, this paper focuses on the competitiveness and technological structure of exports and imports by China for 1994-1998 and 2001-2005. [ABSTRACT FROM AUTHOR]