The Demonstration Analysis On The Effect Of Chinese Trade Policies On The Competitive Ability Of Its Infant Industries

Since joining the WTO, China start to fulfill its commitments of our entry of WTO gradually, and open the domestic market, accelerate the pace of trade liberalization.On one hand, there are many important realistic factors in the international market, so it is necessary and pressing for our country to protect the infantile industries .The practical causes are as follows: the first one is that there is a trend of trade protectionism in the international market; the second one in that, as a developing country, we need to develop our infantile industries. Therefore, it is a wise choice for us to protect our infantile industries within the reasonable scope of WTO . On the other hand, at the beginning of our reform and opening-up of last century, our government has taken many kinds of policies to protect the domestic infantile industries. These policies has already promoted the development of related industries, but has also brought some long-standing abuses. For example, our many industries lack the innovation motivity, the growth potential. And their industrial competitive ability hasn't been obviously enhanced. Because they have been protected by our trade policies for long time.Therefore, in order to promote our infantile industries development rapidly, we need to reconsider the effect and influence of former trade protective policies to promote our infantile industries' international competitiveness. By doing so, we can summarize the experience of the previous trade policies implementation process, and solve an urgent realistic problem. The problem is that after joining WTO, whether we should open the international trade completely? Especially for the infantile industries, what kind of trade policy we should adopt to achieve the double aim both promote their international competitiveness and protect them reasonably under the WTO frame? For the concrete study simply, this article selects the automobile industry as our study object of infantile industries. Basing on the theory of protecting infant industries, the article mainly do some research in these aspects: firstly, it introduces the nature and the trade policies of our automobile industry, secondly it carries on the quantitative analysis on the correlation dependence of the trade policies and the automobile industrial development. Finally, it gives some countermeasures and the suggestions of promoting our automobile industry international competitiveness under the open trading condition. Since long ,our automobile industry, like a baby in the swaddling clothes, has been protected greatly by trade policies. But it will face drastic competition after our entry WTO, so we have to worry for the huge pressure of competition which our infantile industries face in the international trading condition .Obviously, it will be a stern challenge for our automobile industry to open the domestic market gradually and cancel the trade protection under the WTO multilateral trading frame. The practical significance of the article is as following: reviewing the policies of our automobile industry; analyzing the influence of the protective policies on the international competitiveness of itself; doing research by combining the trade policies and the industrial international competitive ability. It seems to have important academic and practical significance for the development of our automobile industry and other infantile industries to carry on the research.