Trade Protection

Economic globalization has been the inevitable trend of world-economy-development today. Economic globalization requires production internationalization, trade liberalization and financial globalization. However, the course of economic globalization is progressing gradually under the perfect market economy system. During the course, a country must considers domestic politics, economy, culture and some other factors when she makes economic and trade policies since the essence of a country's foreign trade policies are the outcome of the nation.China has been the member of WTO. China's entry to WTO predicates that she has to open her domestic market to the outside, and reduce the tariff and non-tariff barriers so as to bring her domestic market into the world-economy system. However, the trade barriers among the countries are still increasing though WTO and all countries in the world have been made great efforts for trade liberalization. At the same time, trade conflicts between China and her trading opponents and trading partners are increasing. Moreover, with the rapid economy-development in some newly industrializing countries and regions, some developed countries and regions such as U.S.A. and EU started a new protectionism-trend by taking non-tariff barriers as the main measures since 1970s. We may say that the existence of trade protection policy is the result of instability and imbalance of world economy and politics.China is a developing country and the level of industrialization is in the initial stages. The overall situation is that there is a gap between China and the advanced countries in production technology and production efficiency. Therefore, China must implement temperate trade-protection policies on some certain industries and enterprises. Furthermore, in fact, WTO admits and accepts trade protection. And this embodies not only in the basic principles but also in the dispute settlement system and its practices. Under the conditions of variable trade barriers and drastic trade conflicts in world, it is a realistic issue for China to deal with the relation between free trade and trade protection well in order to enjoy more benefit shares in WTO.Combining with Chinese realities, from the economic effect of trade protection policies, by using modem economic analytical tools, and using the experiences of implementing trade protection policies of other advanced countries for reference, the author studies some trade protection measures admitted by WTO-tariff and non-tariff trade protection policies according with international conventions, and probes into the arrangements of tariff and non-tariff in China and Chinese infant industries protection, and then puts forward the countermeasures of trade protection policies in China under the multilateral trade system.Starting from the theory review, the author traces to the history of trade protection theory and draw a clear outline that in history most of the countries have implemented trade protection policies being with very few free trade policies. There are three parts of the main body in this paper.The first part is the second chapter-Analysis of economic benefit of trade protection policies. Author analyzes economic benefit of tariff policy, non-tariff quantitative restrictions policy, exchange-rate policy and export subsidy policy. And all views and conclusions resulted from these analysis are the theoretic bases for the coming analysis in other chapters. In this chapter, author puts forward the view that Chinese government should interfere economy and foster economies of scale through imperfect competition terms so as to cultivate international competitive advantages and favored structure of international division of labor. Therefore, author thinks there are several main aspects of the strategic structure of trade protection policies for China after her entry to WTO, which based on tariff protection, non-tariff barriers and export subsidy policy, and exchange-rate policy.The second part, including the third chapter and the fourth...