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The Impact on China’s Economic of United States Trade Protectionism

Author: LiXiaoZuo
Tutor: ZongJianLiang
School: Guizhou College of Finance and Economics
Course: International Trade
Keywords: Protectionism Sino-US trade Empirical Analysis
CLC: F124
Type: Master's thesis
Year: 2011
Downloads: 501
Quote: 1
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Abstract


Throughout the world economic development, since the beginning of the capitalist system development, either in the world or in some countries, and either in academia or in the actual, there has been two fundamental antagonisms international trade policy, free trade and protectionist. Free trade advocated that countries should be cancel the restrictions of import and export trade in goods and service trade, and also cancel the preferential policies of the local import and export trade in goods and services, to make the country’s products and services can be import, export and compete in domestic and foreign markets freely, formed the international unity markets of goods and services. And trade protectionism is believed that power should widely implement the tariff barriers and non-tariff barriers to restrict quantity, type and price of import and export commodities, and give policy support and export subsidies to encourage export, to protect domestic market goods from foreign competition. The two camps respectively show their own advantage, trying to persuade the government to accept and implement their own ideas. After years of competition and argument, the facts show that the world trade policy is always between the two absolute trade policies, and trade protectionism is often accompanied by the economic crisis. During the world recession period, trade protectionism will be on the political stage as a completely policy orientation.Since the financial crisis outbreak, the global economic was slump, and the new round trade protectionism was born in the world. They use trade remedy measures frequently to protect domestic industries from the crisis. No doubt it increased our trade frictions. In 1995, China’s export product’s anti-dumping initiations were 20 times, shared 12.74 percent of the total anti-dumping initiations, and the proportion is increased by 2009 for 36.84%. And the United States as the second major of the number of anti-dumping actions to China in the world, has implemented a number of anti-dumping investigations to our products. From 1996 to 2004, the United States had launched 36 times 377investigations to China, shared 13% of the total 377investigations. And in 2010, it was 19 times, and shared 33%. At present, the world economy has been an obviously recovery trend, but trade protectionism still is a factor holding back economic recovery. China has become the main object of the international trade protectionism and the world trade friction. In the current situation, the us-led trade protectionism and the free trade represented by China have developed a confrontation and is likely to continue for some time, because indications show that the momentum of trade protectionism in developed countries is not reduced, but more and more serious. So we need to make detailed analysis of China’s economic influence which suffered by trade protectionism, and think the profound reasons on the back of the impact, and put forward a proposal to respond trade protectionism. In addition to introduction, the study consists of six parts.The first part is theoretical analysis, defining and combed the development of trade protectionism, making game analysis of trade protectionism and free trade, reaching the importance of free trade in the global economic integration.The second part is the reason part, analyzed the reasons and characteristics of United States trade protectionism, compared with the European Union and Japan trade protectionism, and found out that China’s economy is the most serious affected by United States trade protectionism.The third part is the part of the development status, combed and analyzed the development of Sino-US economic using large amounts of data, found many thorny issues between United States and China, such as Sino-US trade imbalance, anti-dumping, FTR and the RMB exchange rate, and technical barriers will become the major bottlenecks of China’s exports.The fourth part is the empirical analysis, analyzed the effect on China’s economic growth by import and export trade using econometric models, and classified the products and found out that machinery and transport equipment is the most serious affected by the trade protectionism. Then used impulse response functions further analysis of the pass effect on China’s economic growth by machinery and transport equipment export decline.The fifth part is the measures, according to the current prevalence trade protectionism, put forward corresponding countermeasures. For the government, it should actively respond to trade protectionism, and actively participate in the drawing up of international rules. We also need to expand domestic demand, and to establish the appropriate early warning mechanism. For the enterprise, they should be familiar with the specific rules of WTO, and should further promote the upgrading and adjustment of industrial structure, reduce the dependence on foreign trade, and implement the strategy of integrating“going out”and“bringing in”.The sixth part is the conclusion, made a summary of the whole text.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development
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