Strategic Trade Policy Promote The Development Of China’s Hi-tech Industry

During the period of the“eleventh five-year”plan,China’s hi-tech industry has achieved international trade surplus, and constantly improved the level of technological innovation, kept fast export growth, increased the industrial added value year by year. It has become the new growing point of China’s foreign trade and one of the strategic industries supported by our government. However, our country’s hi-tech industry is still in its early age, hasn’t get strong international competitiveness; the government needs to push through a moderate policy tool to protect its development. Strategic trade policy has provided new reason for government intervention, which supports moderate trade protection to promote industry development; it has become an effective policy tool to promote the development of China’s hi-tech industry and plays an important role.This thesis analyzes the developing trend and characteristics of China’s hi-tech industry during the“eleventh five-year”plan, and proves the important role strategic trade policy has played on the development of hi-tech industry, combining with the practice of the United States and Japan in the semiconductor industry. The theoretical studies focus on three aspects, firstly the strategic trade policy under the framework of WTO, secondly from the angle of economics analyzes the welfare effect of strategic tariffs and R&D subsidies, obtaining the conclusion that the moderate protection can improve the welfare of the country, thirdly, using the industrial organization theory, this thesis has judged the applicability of strategic trade policy in China’s high-tech industries, from the six angles such as scale economics, market concentration, and obtained certain conclusion. The empirical studies take China’s civil aircraft industry for example, using the data of year 2008, adopting the method of calibration model and conjectural variations from Dixit(1988),test the policy effect of strategic R&D subsidies. Empirical study results that the R&D subsidies have obvious effect on shifting profits and protecting the hi-tech industry, but the current R&D subsidy amount is less than the optimal amount. In the last, this thesis puts forward the relevant policy suggestions according to WTO rules, and raises up the innovative strategic trade policy tools such as venture investment and venture investment funds guided by the government. In this field of research, the quantification of external effects of the policy is the future researching direction.