| Protection to infant industries is either an ancient and new topic. The reason why it is said to be an old one is that it was advocated by Alexander Hamilton, the first Minister of Ministry of Finance of USA in early 18th century. Since then, the government adopted high-tax policy to protect domestic industries, extremely young at that time, which led to successful industrialization.The reason why it is said to be a new topic is that the updating pace for industries is speeding up in the knowledge-based economy era. With the fast development of free trade under the framework of WTO, we should have a new and global vision on the issue of infant industry protection. Actually, most industrialized countries have adopted protective policy during the process of industrialization, even until today, when the free trade notion is ruled by WTO, which has attracted comprehensive participants, the above-mentioned countries still, more or less, take the protective policy as an effective methods. A good example is USA, which is said to be the representative of free trade advocators, has not pushed its domestic industries comprehensively on the global competitive stage.The lessons from the experiencing countries, especially the developing countries in terms of infant industry protective policy carrying out are that most countries have adopted excessive protection over infant industries which led to loss rather than success.As a developing country, it is a critical, practical and unavoidable issue that how to protect the domestic industries in the process of economic globalization, how to integrated the out-oriented development with domestic industry protection for the purpose of speeding up the national industrialization and modernization.Openness has placed great impact positively on Chinese economy, on the other hand, it has also brought the issues such as economy security and industry security.How to avoid the crashing down of major industries under the circumstances of comprehensive opening, one critical point is to ensure certain infant industries to develop fast and stably to be internationally competitive.In this paper, the author advances a new theory of "open-style protection to infant industries" on the basis of "proper protection theory" put forward by other researchers.Main points:Under the condition of globalization, competition strategy should be employed in the process of infant industry protection. The new way of protection to infant industry6should be in open-style differing from traditional way of protection.Main issues discussed in this paper are the standards and methods selected to protect infant industries, especially how to foster the competitive environment for the growth of infant industries.The author probes into the theoretical problems in terms of infant industry protection, using the relevant principles of International Trade, Industrial Economy and Game Theory.There are 8 chapters in this paper: Chapter 1 IntroductionThe author elaborates the significance of the topic selected from the following points: the necessity of the protection to infant industries, the universality of the existence of trade protection, the difficulties to operate in the process protection, the severe phenomena of over-protection and new ways to protect infant industries under the condition of open environment. Chapter 2 The Core Thought of Theories of Infant Industry Protection.The author summaries the core thought of infant industry protection theories as follows: the protected targets are defined as young and competitive industries compared with similar foreign industries, whenever the industries enter mature stage, the protection can tend to be loose; the main method adopted are tariff and non-tariff measurements; the main purpose of protection is to protect productivity of industry development, i.e to strengthen the efficiency of productivity continuously This paper also gives comment on the individual theories of infant industry protection on various development stages. Chapter 3 New Challenge...
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