Study On The Trade Policy In China

With economic globalization and trade liberalization, China's market is more open to all nations. So if China would employ trade policies with overprotection as before, it would obviously counteract the process of economic globalization and trade liberalization. However the absolutely free trade policy is not desirable. Hence these two policies can not match international backgrounds and China's economic facts. So choice of trade policies is always controversial in theory and application.Free trade and protective trade are competitive and compatible. In fact detailed trade policies include no absolute free trade and protective trade policies. Two kinds of policies do always interweave each other. Free trade can improve national welfare because free trade is necessary for China to match the trend of globalization and liberalization. However, as a developing nation with economic change China must reject absolutely free trade policy with international circumstance and national economic facts considered. Hence it is necessary for China to adopt the policy of positively managed and free trade accorded to national industry structure and WTO rules.The paper includes four chapters:Chapter one describes historical succession of International trade policy, different choices for trade policies in nations and acquisition of national interest and orientation of International trade policy.Chapter two analyzes advantages and disadvantages of free trade, and competition and compatibility of free trade and protected trade.Chapter three is divided into three parts: first one is for historical succession of China's foreign trade policy. Next one is for adjustment of China's International trade policy after entry into WTO. In final part China's foreign trade that is positive to economic growth are shown.Chapter four Selection of China's Foreign Trade Policy.