The Impact Of Environmental Reregulation On China’s Export Competitiveness

Since the reform and opening up, China has made remarkable economic achievements. In recent years, global environment is getting worse and worse. Environmental regulation has become a means of restraint, once again the relationship of environment and trade become an economic circles hotspot. The scale of China’s foreign trade is becoming greater, but China’s trade structure is not optimistic, labor-intensive industries and the industries with high energy consumption and high pollution are dominated parts of our industries. China’s sulfur dioxide and carbon dioxide emissions are the world’s top two, environmental issues cannot be optimistic, reflecting the necessity of environmental regulation.In the main part, this paper makes the theoretical analysis and empirical analysis on the export competitiveness of China and environmental regulation. In theoretical part, this paper makes a conceptual analysis of the environmental regulation and a spin-off to the export competitiveness. The environment regulations make the impact to the export competitiveness in these parts:trade scale, trade prices and technological innovation, etc. Environmental regulation will lead to a reduction in the amount of China’s exports, reduce the volume of exports of pollution-intensive industries and increase production costs. Environmental regulation promotes or hinders the technical innovation in different regions and industries.In the empirical part, this paper uses the industrial sector21industries,1999-2010panel data to analyze the environmental regulation and trade comparative advantage. There is a positive U-shaped relationship between environmental regulation intensity and the export competitiveness. At the left end of the inflection point, promoting the strength of environmental regulation is not conducive to the development of trade, the moderate environmental regulation after the inflection point is conducive to the enhancement of the export competitiveness of China’s trade. The paper argues that there will be "U" shaped effect due to the effect of technological innovation. The paper summarizes the empirical results, and has put forward a number of policy recommendations. We can now enhance the strength of environmental regulation of industries to stimulate technological innovation, but to be divided into industry case-by-case consideration; we can enhance human capital strength of the Chinese enterprises and increase investment in science and technology.