The Analysis On The Feasibility Of Implementation Of The Strategic Trade Policy In China

After entering WTO, China has to further reform its foreign trade system, widen market openness. But trade liberation doesn't means complete free trade, it's impossible for the existence of absolute free trade in real world with great polarization of rich and poor countries. Foreign trade policy is the derivation of domestic economic policy, As a developing country, China still has a considerable gap with those developed countries in terms of the efficiency in market based resource allocation, government behavior and executive efficiency, and the strategies undertaken by Chinese enterprises an industries. Following the opening of the domestic market, some industries will be surely impacted by the incoming outsiders. Hence we have to give a proper protection to trade so as to maintain our economic interests and foster the industrial development. Then what kind of foreign trade policies should China take so that we can give a certain protection to our economic development?Based on above, this thesis introduce the theory of Strategic Trade Policy (STR), then a research topic is raised for analyzing the feasibility and required conditions of implementing the STR in China. As a developing country experiencing the system restructuring, China is far away from a mature market system. This concealed condition exists for providing a constraint to the STR. For this course, the countermeasures should be adjustable for abstaining the national benefits. The model shows that imposing optimum tariff on import cars will bring China great benefits.