Analysis Based On The Political Economy Of China's Trade Moderate Protection Policy Research

There have always been heated disputes and disagreements between free trade policy and protective trade policy in the development of international trade and the evolution of trade policies. There is, however, no such a policy as absolute "free trade" or full protective trade only existing in abstract theories of trade. Specific trade policies are social products under various restrictions home and abroad, in form of a combination of the two policies with one given the primacy. And it is the same with China's trade policy. With the development of economy globalization, the fact that many developed countries have switched their policy to strategic protective trade policy, makes China, the already third biggest trading power face more challenges and a reasonable adjustment. So it is necessary for China to perform a moderate protection trade policy. Based on the theory framework of political economy, from the three theories of improved trade condition, market failure and strategic trade policy, it is explained that the analysis of pure economics can not absolutely explain the exact protection of trade. It is obtained that political economy theories help to justify a moderate protective trade. The moderate protection of China's trade policy is analyzed and discussed.Firstly, beginning with the dispute between free trade and protective trade, the rationality of free trade and the justice of protective trade are analyzed in theory in this paper. Admitting the rationality of free trade policy, the justice of protective trade policy is analyzed from the perspectives of pure economics and political economy, respectively.Secondly, the internal balance target, its national interests and external environments of China's trade policy are introduced. On one hand, the relation of the government's internal target and group interests upon its trade policy is revealed by analyzing the great influence between internal target and group interests. On the other hand, based on strategic position of national interests, China's trade policy influenced by the atmosphere of international trade environments under WTO framework from multilateral trade system and economy security is discussed. Thirdly, the method of the ShengBin's is followed, selecting date from 2000 to 2003 years, the part of vitiate is modified and the Hausman examination is used by the Eview5.1 regression method. The results show that the protective structure of China's impost is endogenous vitiate determined by many political and economical factors and it is the integral action result of national interests and interests influences.Lastly, based on the results of exact evidences, a moderate protective trade policy for the sake of China is further presented, which it is reasonable choice to the development of overall nation and economy, and the relevant policy suggestions are presented.