The Impact Of Trade Protectionism And Inward Foreign Direct Investment On China's Tire Industry

This study provides an overview and discussion of trade protectionism and trade remedy instruments such as anti-dumping duties, countervailing duties, global safeguards and China-specific safeguards, which have been used by many countries against mainland Chinese imports. Previous studies of trade protectionism have examined its relationship with import penetration, unemployment levels and capital intensity. In the cases against China, other factors could also have impact on the quantity of the protectionist measures levied against its exports. Since its opening up and reform began in 1978, China's explosive growth has been characterized by an extraordinary amount of inward foreign direct investment (FDI), which has propelled the nation's GDP forward and provided incentives for foreign investors to conduct business in the mainland. This study seeks to determine whether a relationship can be found between trade protectionist measures and those industries that the Chinese government has especially pushed through the promotion of inward FDI, using regression analysis and a case study on the Chinese tire industry.