Trade Retaliation And Counter-retaliation Economics Analysis

Since the beginning of the 1990s, economic globalization in the worldwide is developing quickly, and its impact towards international trade is also growing. The development of economic globalization has deepened economic integration degrees worldwide and has strengthened the interdependence of national economies. However, it also exacerbated the conflict and friction between countries. With international friction and conflict intensified, in order to safeguard their own national interests, some countries, particularly in Europe, the U.S. and Japan which represent the developed countries began to use trade retaliation means to resolve international disputes and conflicts in the economic and trade field. Trade retaliation and counter-retaliation between countries have affected the normal economic and trade cooperation and development. Trade retaliation and counter-retaliation has become one of the major obstacles to the healthy development of the international trade.Since the beginning of reform and opening up, China's economy is growing fast, especially the foreign trade. Since then foreign trade had increased sharply. In 2005, China's foreign trade reached 1.42 trillion U.S. dollars totally, ranking third in the world, the degree of dependence of foreign trade rose to 62%. On one hand, the increase of trade has promoted China's rapid economic growth, on the other hand, it has also produced friction with other countries. China had to face trade retaliation and counter-retaliation. In recent years, trade friction and disputes among China and major trade partners emerged, and the friction and disputes seemed to be fiercer than before. This adversely affected the healthy and stable development of China's foreign trade. At present, it also causes domestic social concern. How to understand this problem dialectically and rationally and how to deal with trade retaliation and counter-retaliation have become major theoretical issue and practical problem, while China is making her stride towards trade power. The thesis falls into five chapters.Chapter One includes two sections. Section One briefly introduces two theories closely related to trade retaliation and counter-retaliation. They are "Anonymous theorem" of game theory and the Public Choice Theory. I think these theories are multiple interpretations of trade retaliation. The above-mentioned theories give a good...