Effects Of The New Protectionism On China's Foreign Trade Under Multilateral Trade System

It is the official sign of general agreement on tariffs and trade in 1948 that marks the establishment of the multilateral trading system (MTS). In this system, members can make international coordination of trade policies from different countries. Its carrier develops from GATT to WTO, which greatly declines the world tariff level and accelerates the process of trade liberalization. However, it's far from real freedom. As to protect their own industrial interests, different countries adopt different trade protection measures. The forms of these measures often turn from tariff to non-tariff protection under the restraint of MTS, such as anti-dumping,countervailing,green barrier,technical barrier.Our foreign trade grows rapidly and makes long-term trade surplus after we become a member of WTO, which makes foreign countries adopt kinds of new protection measures. According to WTO, China has become the biggest victim of new trade protection measures. China's export trade had been greatly hit especially after prevailing protectionism caused by 2008 financial crisis. Therefore, it is necessary to make a research on the effects of new trade protection measures to our export trade.In this context, I make analysis of this topic from four angles. First, the paper introduces various theories of trade protection and its new forms and features, especially the features under financial crisis. Second, it describes the formation mechanism of trade protection and its economic effects. The formation mechanism is mainly from the perspective of supply and demand and game theory. The economic effects involve anti-dumping,technical barrier and safeguard measures which do great harm to our exports. Third, by using large amounts of data, the article mainly states the current situation of the measures which are adept by our top three trading partners—European union, United states, Japan. It summarizes the country distribution and product category of measures. Then, the paper makes quantitative explanation by gravity model. Finally, it suggests three methods to deal with the new measures of trade protection from system, export structure and marketing.My paper has done a lot in system construction and material processing, and the using of gravity model is quite innovative. But it's still not good enough, the model is based on old framework and can't figure up specific data of the effects to our export trade due to the data limitation. So, the model remains to be further improved.