Research On China Trade Policy Adapt To Innovation-driven Economic Growth Mode

China is in the transition stage from investment-driven to innovation-driven growth mode, which is both the need of China’s economic transition, but also the direction of China’s future policy adjustments. Under such circumstance, China’s foreign trade policy must be adjusted to adapt the new growth mode. The purpose of this paper is to study the principle, direction and specific measures of China’s foreign trade policy adjustment.First, we build a "technology accelerate progress hypothesis" to explain the mechanism of technological development, considering that the progress of science and technology is decided by both its conventional development and institutional innovation impact. The speed of conventional technological progress is relatively fixed, mainly relying on a country’s population size. The institutional innovation leads to institutional change which determines the acceleration rate of science and technology progress. And the explanatory power of the hypothesis is verified by further explanation of Needham Puzzle, Yuasa phenomenon and the rapid technological development after China’s reform and opening.Then, the paper, in theory, analyzes the macro system that trade policy influences the science and technology progress. Under the open and equilibrium conditions, the upgrade of industrial structure and the economic sustainable development can only be driven by the innovation of science and technology. Any direct support policies for the industries contrary to the comparative advantage will lead to structural differentiation. Moreover, under stable equilibrium conditions, policy intervention can also lead to the industry degeneration and the failure of science and technology progress. The key of new-time policy transition lies in the change from subsidizing industrial production to promoting technology innovation. But, for strategic infant industries that have high productive efficiency and strong technology and incomplete competition, the government should give certain support through policy subsidies.Thereafter, the paper, in theory, analyzes the micro system that trade policy influences the technology progress. Under open conditions, the technology development of one country mainly comes from three aspects, including learn by doing, R&D investment and technology spillover. The combined effect of the above three will make every country specialize the technological edge industries among its own comparative advantage industries. Dynamic comparative advantage and the game theory analysis shows that, for low-tech countries, the open policy can lead to faster technology development, industrial upgrading and the welfare improvement. For medium-tech countries, the open policy may lead the nation into the "medium-tech trap", with the stagnation of industrial upgrading and the slowing of technology development. For high-tech countries, the open policy means higher monopoly profits, continuous technological progress and industrial upgrading. Accordingly, the medium-tech countries should launch policy support and use the advantages under the open conditions, achieving faster technology development and industrial upgrade.On the basis of theoretical analysis, this paper proposed four principles for the adjustment of foreign trade policy, which are economic openness principle, government decentralization principle, follow comparative advantages principle and the medium-tech support principle. Then, on the basis of analyzing the present Innovation-driven performance of the foreign trade policy, along with the above four principles, this paper suggests the direction and measures of foreign trade policy adjustment.First, shift from aggressive export-oriented to neutral service-oriented. Under new circumstances, we should set innovation-driven as a foothold, change the "three-in-one" aggressive export-oriented strategy and policy that have high tax and high finance, subsidies for high-tech industries and subsidies for labor-intensive industries. We should set the "five in one" neutral service-oriented strategy and policy. For which we need to reduce subsidies for excessively high technology industry, reduce the tax burden of private enterprises, reduce subsidies for traditional export industries, increase the input of the improvement of the market and public facilities, and standardize the necessary support for enterprise upgrade. The logical thinking of the "five in one" policy is:to set the government subsidy for high-tech industries as a breakpoint, liberating the high-subsidy low-efficiency shackles of government revenue. Thus, we can relax the taxes levied standards for private enterprises, optimize the market environment, get through the upgrade of the industrial structure and technological progress endogenous channel, making the traditional export sector no longer subsidies industry undertaking the employment task and the government shrinking financial resources have more opportunities to invest in public infrastructure and enterprise endogenous upgrade escort. Second, shift from participating in the international specialization to the interaction of globalization and regionalization. Analysis on Revealed Value added by Technology found that China has higher specialization status in East Asia than in the international market. Thus, China can shift its policy from participating in the international specialization to the interaction of globalization and regionalization. On the one hand, technology advances from the international introduction of technology to enhance the international spillover. On the other hand, through more participation in East Asia specialization, China can improve the "learn by doing" technology progress and form up a development mode of technology with the interaction of globalization and regionalization. To promote the process of regional integration in East Asia, this part further proposes the measures for "Shallow pool phenomenon". The measures are as follows:make full use of the advantages of China’s total economic output and economic influence, deepen standardized bilateral and multilateral cooperation with the neighboring countries, gradually form up a new East Asian regional core and dedicate to promoting the construction of regional economic integration in East Asia.Third, shift from the introduction of foreign capital,"go out" investment to talent internationalization support. Firstly, we proposed a "new two-gap" theory considering the introduction of talent. At present, China’s development is neither a lack of foreign exchange reserves, nor the lack of domestic savings. The "two-gap" theory which guides the developing countries to introduce foreign capital and debt no longer has its theoretical significance. According to the phenomenon observed, this paper suggests a "new two-gap" theory for the introduction of talent, which is that the introduction of talent can not only compensate for the technological gap, but also can compensate for the industrial gap of the developing countries. Thus, the developing countries can achieve fast developments using the latecomer advantages. Talent internationalization strategy is an important national deployment. This paper further suggests that the strategy that talent internationalization supports foreign capital means the shift from the introduction of the investments to the talents. It is a policy suggestion that we can promote the international competitiveness of enterprises through talent internationalization, thus promoting the direct investments overseas. Suggestions are also made that we should take the introduction of talents and personnel training both into account, which also goes for the entrepreneurial talents and innovative talents, the incentive mechanism and competition mechanism and the domestic and international mobility of talents.