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Low Tariffs And Modern China's Economic Development

Posted on:2002-11-03Degree:MasterType:Thesis
Country:ChinaCandidate:Y FengFull Text:PDF
GTID:2206360032954829Subject:Political economy
Abstract/Summary:PDF Full Text Request
China's entry to WTO has been a great important matter in modern times. Since China and U.S signed the bilateral agreement on China's entry to WTO in Nov.1999, China has accelerated its negotiation and preparation work, and the day when China enters WTO formally can be expected soon. However, how china's economy will be influenced by WTO and what strategy China should take accordingly are focuses of people's attention. Much experience both of developed and developing countries which entered WTO has been studied for reference, but the author of this paper finds that China's modern history from 1840 to the 1930s which developed modern economy with low tariff can also provide references and may be a new field of vision for today's entering WTO.As we know, modern China developed far behind western industrial countries because of its petty farmer and self-close economy. China was forced to enter international market by western cannon and sword, and the extremely low tariff became a great trait of China's modern economy. Generally, the academy negatively judged of the low tariff as it reduced the financial income and couldn't protect national industry. However, as a two-bladed sword, low tariff also helped modern China to impel into international market and benefit from free trade. We should take a new look at low tariff which will be helpful to our knowledge of entering WTO.The paper consists of four chapters. The first chapter introduces the contents,traits of modern tariff and related international trade theories which guide this paper. Low tariff, including import and export tariff and inland port tariff, was not only passive but also non-reciprocal, and could not insure financial income nor could it protect national industries. After introducing free trade and protective trade theories, the author divides the history of modern Chinese economy into two periods, with the 1920s being the division. According to free trade theory, in the former period low tariff helped China more efficiently take part in international work dividing, take advantage of resources and introduce advanced technology,ideas,machines which raised productivity; in the latter period, with the development of national industry, low tariff became a hindrance increasingly, but we still can't neglect its positive effects.The second chapter gives a survey of the history of Chinese economy from 1840 to the 1930s. Before the opium war, China's petty farmer economy was far behind western industrial civilization, but since the 1840s, China has made great improvement in many fields, financial and national incomes were greatly increased, traditional and modern industries were improved. All these showed that modern China made substantial development under low tariff.The third chapter which is the main part of this paper analyzes what role low tariff played in China's modern development. Firstly, low tariff directly promoted foreign trade, not only in quantity, but also in structure. As a result, China's modern economy greatly went up. Secondly, low tariff made the national market bounded up with international market, with the opening of lots of trade ports, the appearance of new organizations and estates and investment in transportation, low tariff not only expanded overseas market but united domestic market, especially made a conversion from traditional market to modern market. Thirdly, low tariff played a positive role in resources exploitation and modern industry's springing up. Inspired by international market demand, some new resources such as wool,bristle,Chinese wood oil were exploited. At the same time, low tariff created new demand from abroad, helped commercial capital change into industry investment, so modern industry emerged as the times required. The prosperity of industries such as weaving,flouring and so on made great economic benefits and propelled China's economy. Fourthly, the transparence of low tariff and standardization of tariff system decreased trade cost effectively. Fifthly, low tariff was also p...
Keywords/Search Tags:low tariff free trade economic development of modern China
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