Technical Barriers To Trade The Game In The Government Motives And Behavior

In the process of the development of contemporary international trade, technical barriers to trade (TBT) have been increasing its role by strengthening the impact on international trade and world economy, especially on the developing countries. As the world's largest developing country and the third largest trading country, China's foreign trade has also been severely constrained by technical barriers to trade, the restriction of technical barriers to trade has become China's first major non-tariff barriers to development of foreign trade. Therefore, studying the economic and political reasons of technical barriers to trade and seeking for its solutions is of important theoretical and practical significance.This paper is divided into seven chapters. Chapter 1 introduces the research background, the purpose and significance of research ideas. Chapter 2 analyzes and summarizes the literature studying in both the TBT field and the political economy of trading field. Chapter 3 uses Dual-Oligopoly model to reveal the interaction within interest groups, government and common people, with a conclusion of the government is of dual-characteristics with both free-trade and trade protection intention. Chapter 4 employs game theory to analyze the counterwork between two countries in short term and in long term under the TBT background. Chapter 5 made clarifications for the trading standard policy process in US and in China. Chapter 6 reviews the recent trend of TBT and how China learns to use TBT as its weapon. Chapter 7 makes a conclusion for the whole paper and gives several solutions to overcome TBT.This paper reveals that if one country started TBT to another, the first one will gain more trading profits but the other one will lose more, so it will start revenge action, as long as it has the capacity to revenge. But it is this power of revenge makes the trading partners prefer to compromise but not conflict.