Managed Trade Policy And Foreign Trade Management Problem Research Of Chinese Local Government

Planned economy transferring into market economy, power of central government delegating to local government, international managed trade policy being in vogue and WTO accession are new national and international situations that Chinese local governments have to face. Planned economy has been transferring into market economy which adjusting and disposing resources mainly through "the invisible hand". While in our country, defects of economy adjusted simply by market appeared obviously due to the weakness of economic base, low level of management and the imperfections of market system adjustment. In foreign trade, the quantity of factories is so large that the scale is small and scattered, the returns of scale economy are hard to accomplish, thus export presents low level of expansion resulted in decreasing of international market competitive power in labor and natural resources concentrated industries. So, how to give full play to the functions of governments-"the visible hand"-to make up the market defects and restrict the negative effects of market are problems demanding prompt solution. As the highly centralized and unified management system of our country had been disintegrated, foreign trade management appears a vacant state, and it can only and must be filled by the local governments.In the last twenty years, managed trade policy has been taken by the developed countries flaunting as the banner of free trade, but bring about protective trade actually. Trade policy of this kind is situated between free trade and protective trade increases the difficulties of superior industry development and commodity export in developing countries and also hinders their economic development process. So, we should pay highly attention to managed trade policies of other countries, study and use their experience for references and formulate managed trade policy of our own.After entering the WTO, the central and local government are restricted in the right of intervening foreign trade market directly, but this does not mean that governments have lost their effective powers completely. The thought of secondary selection of WTO rules and managed trade are just to provide enough space for local governments to carry out foreign trade management.With its role transferring, position ascending and environment complicating, local government has been demanded to add the strength of trade management, and should choice the foreign trade industries and optimize the foreign industries structure and dispose recourses reasonably on the bases of the theory of comparative advantage, take the advantage of the game theory to deal with the regional and inter-regional trade relationship, thus enhance the international competitive power of our goods.