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Political Economic Analysis On China's Industry Security Viewing From Economic Globalization

Posted on:2006-04-14Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y Q JingFull Text:PDF
GTID:1116360155954615Subject:Political economy
Abstract/Summary:PDF Full Text Request
With the rapid development of economic globalization, we have to open domestic market. In the competition between China's enterprises with transnational corporations, China shouldn't abandon industry protection in order to safeguard the industry security. If transnational corporations controlled the important industries in China, or import commodities dumped on the market, China' industry security would be threatened. In late years, more and more scholars have joined the study on national economic security, industry security is the material base of economic security, so it is important to study how to protect industry security, especially to a development country. Development countries have to accept the international regulations while the developed countries make these rules and regulations. In international competition, the developed countries have all sorts of advantages, so it is not fair for developing countries to take part in this kind of free competition.Many economists have set forth the ideology of protecting national industries. Mercantilists advocated protective tariff to protect the domestic industry. The economists of historical school proposed to protect infant industry. Some famous scholars of development economics initiated to build independent industrial system in developing countries. All these economic ideologies are the theoretical bases of industry security research.In China, some researchers have made useful survey in industry security field in late years, but they didn't settle down all issues, there are a series of problems still waiting us to answer. For example, what is industry security, what are the factors affecting industry security in economic globalization conditions, how to safeguard industry security, and what kind of relation lies in between government regulation and industry security, etc.This essay holds the points that industry security means the national industry has the ability of survival and development. The concept has the meanings of three aspects. First, the government has the ability of properly regulating industries, the institutional arrangement can lead to rational market structure and enterpriseconducts, industrial structure is rational and all kinds of industries are brimming with vigor. Second, the national industries have competitive power in international competition, the overwhelming majority of national industries can survive and go on development. Third, the enterprises controlled by the nationals achieve the survival scale and have the ability of sustainable development, they have competitive advantages in international competition.The external factors affecting industry security are the industry control of foreign capital and the dumping of import commodities. The industry control of foreign capital embraces capital control, technology control and brand control, and some transnational corporations control the key enterprises by merger and acquisition in the key industries. Some import commodities dumping blocks the development of infant industry and cuts down the market share of strategic products of national industries. The internal factors affecting industry security are as followings: First, the drawbacks of enterprise governance hinders the improvement of enterprise competitive force, Second, excessive competition in some industries leads to resource waste, and insufficientcompetition in some industries blocks the forming of scale economy, both excessive and insufficient competition hinder the improvement of industry competitive force .Third, the improper government regulation brings about some bad effects on industry development, for example, some regulation makes rent dissipation and cuts down the productive investment, in some fields, the absence of regulation influences the development of enterprises, in other fields, the misuse of government power also makes a lot of bad effects. And the flaws of governance system in state-owned enterprises in natural monopoly industry hinder the healthy development of important industries too.In the market of open competition, if we couldn't deal with the factors properly, the internal risks interfering with industry security would be enlarged doubled and redoubled. The internal factors take effects with the external factors, then the national industry lives in difficult circumstances. We have to deeply study the forming system of risks of open economy and reform the pattern of industry protection. In order to protect industry security we must build open industry protection system as soon as possible.The protection system are as followings:1. We can make full use of the flexible measures of WTO to protect our national industry. There are a lot of exception terms in WTO agreement, we can flexibly make use of this kind of terms to carry out the trade policy which benefits our country.2. The government bears the responsibility of safeguarding industry security. The dumping of import commodity can damage industry security, so we establish government apparatus to cope with the dumping affairs. We still need to set up special agency to deal with the issues of foreign capital controlling the important industries. The.related government apparatus should pay attention to the conducts of foreign capital enlarging control power.3. The trade societies play an active role in protecting national industry. According to the regulations of WTO, trade society could sue and defend in international trade dispute. The trade societies need to reform their administrative organs and running system in order to do their duty in China.4. We must increase the competitive force of national capital. Without competitive force couldn't a product find its market,without competitive force would a enterprise go bankrupt, without competitive force would a industry disappear, and without competitive force would a country find no place to stand. To increase the competitive force of national industry, we must keep a foothold of comparative advantages and develop competitive advantages.5. We must reform the state-owned enterprises of natural monopoly industry and perfect the governance system of which. We have to pay attention to the issue of state economy control force in the reform of SOE in natural monopoly industry. In this field there are two key tasks waiting us to finish, one is attracting all kinds of capital to invest natural monopoly industry, the other is going a step further on corporate governance system.6. We must keep watch on the trends of foreign capital controlling Chinese important industry. In some special industries, Chinese law regulates that foreign capital shouldn't go beyond certain limits, but some foreign investors evade the regulations to enlarge their power. To avoid industry control of foreign capital, the coordination between supervisors and enterprise circles is very...
Keywords/Search Tags:Industry Security, Government Regulation, Industry Control, Open and Protection
PDF Full Text Request
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