The Evolution Characteristics Of New Trade Protectionism And China's Countermeasures Under The Current Financial Crisis

The worldwide economic crisis, resulted first from the sub-premium crisis and then the financial crisis in USA, has seriously impacted foreign trade of all countries in the world, exports and imports being reduced substantially in size and numbers.As its result, world trade is shrinking and trade protectionism is once again emerging, and even more seriously than ever before. Some European countries, for instance, have launched their rescue plans for their car manufacturers. In Britain, Royal Bank of Scotland Group with government grants in help,was also asked to provide loans to domestic small businesses.With the gradual spread of economic recession in the world, more and more countries will be expected to conduct similar behavior, thus leading to more trade barriers between and among countries.According to the forecast of IMF, because of a possible decline of 2.8% in the world's total trade in 2009,trade of the otherwise important engine of promotion for global economic growth is to have a hard time functioning properly. Some scholars have pointed out that trade protection is especially popular in crisis era.By the U.S.sub-prime mortgage crisis made the world economy be in trouble. The world's total economic output decreased significantly. Overall impact in the international financial crisis, trade protectionism trend began to appear, which cause a world wide concern. This is mainly because it will cause further declines in the total international trade, as a result, the real economy will face with a more adverse market conditions. Therefore, under the context of financial crisis, the research on the evolution of new trade protectionism, characteristics and development trends of trade protectionism is very necessary for understanding and resolving of the crisis.This paper consists of six parts:the first is an introduction to the background and significance of the study; the second part concerns some of the major basic theories and related literature review; the third part features the main analysis of the influence of financial crisis on China and the world trade; the forth part'is where the writer's major analysis, discussion and argument is, some discussion on characteristics of past trade protectionism, followed by an intended comparative study in depth of historical lessons with the features and trends of current trade protectionism, and the writer's conclusion that protectionism is not useful for the recovery of world economy; the fifth part, on the basis of the findings presented in Part IV, some measures and tactics are suggested for China to deal with protectionism;the last part presents a summary of the whole paper.