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Research on Diffetentiated Innovation Strategies about Coping with TBT in the Manufacuringg Corporations

Author: LiGuoPeng
Tutor: WangShaoZuo
School: Dongbei University of Finance
Course: International Trade
Keywords: TBT Equipment Manufacturing Industry Dynamic EvolutionaryGame Model Technical Innovation
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Type: Master's thesis
Year: 2013
Downloads: 3
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Abstract


In the development history of the international trade, developed countries, which are the wind vane of international trade policy, and developing countries, are always in unequal place. When coming to21century, the trade protectionism is becoming more and more active, flexible and covert under the background of global free trade. As a result, the technical trade barrier is becoming more and more threatening to the development of global trade.Technical trade barrier refers to a series of compulsory and non-compulsory technical measures including technical regulations, standards and conformity assessment procedures using protecting national security, human health, ecological environment, the quality of products and others as a pretext. In general, the main characters of TBT are covert, rational, flexible, dynamic, chain, differentiated and disputable. At first, TBT starts from the economical aim but the political aim becomes more and more obvious with the implementation and development of TBT. Correspondingly, the economical security and political security are not two independent areas and their intersection is becoming much bigger. To a large extent, the economical security is taking the place of the political security step by step and becoming to the main channel of containing developing countries by developed countries.The equipment manufacturing industry is the core of the manufacturing industry, national security and national economy. Also, it is the new area used by developed countries to contain developing countries. As main trade partners, European Union, America and Japan sets quite complex technical trade barriers so as to contain the trade development of developing countries including China. As big economic entities, either’s trade policy of China, European Union, America and Japan can cause quite important influences on mutual development and global economy so it is obvious to see the game among these four parties. In addition, the game between importing countries and exporting countries largely decides the implementation of TBT and mutual political game among leading powers. On that basis, the paper tries to analyze the TBT game among European Union, America, Japan and China in the equipment manufacturing industry by the model of dynamic evolutionary game. In the end, it will provide a series of recommendations for domestic companies so as to overcome these technical trade barriers.The structure of this paper is divided into five parts. The first part is introduction including background of the subject, research significance, literature review, structure arrangement, innovation ideas and shortcomings. During the process of literature review, it finds that domestic and foreign researchers mainly research from three perspectives including technical standards, technical trade barrier and technical innovation. It finds that each study is quite detailed but the mutual relationship among technical standards, technical trade barrier and technical innovation is not too complete.The second part is the dynamic evaluation game analysis between foreign TBT and domestic technical innovation. Seemingly, the improvement of technical standards contributes the forming of TBT, which will further push technical innovation. In fact, the relationship among technical standards, technical trade barrier and technical innovation is much more complex. This part makes good use of dynamic evaluation game model to analyze the relationship so as to find the steady state equilibrium of this game.The third part is the TBT analysis of the equipment manufacturing industry in China. From the perspective of general situation, it shows these TBT threats in mechanical and electronic industry and communication device industry in order to analyze its complexity, political nature and dynamic nature. From the perspective of empirical analysis, it mainly analyzes European Union, America and Japan with China and searches the game track and the steady state equilibrium by analyzing the relationship between foreign TBT and domestic technical innovation.The fourth part is to research on innovation strategy for the equipment manufacturing industry in China combining above analysis from the general and special perspective. From the general perspective, the government, industry guide and enterprise representative should strengthen cooperation to set up comprehensive coping mechanism, which can protect economical security and political security. From the special perspective, the equipment manufacturing industry in China should cope with European Union, America and Japan in a more pointed way and balance between technical innovation and shift of market according to the analysis of dynamic evaluation game in different target markets.The last part is conclusion of the paper and it tends to summarize the logic of the essay so as to form a conclusion.

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