Strategic Trade Policy In The Application Research In The Equipment Manufacturing Industry In Our Country

“The equipment manufacturing industry is the basis of the technical equipmentfor national economic development and national defense construction and strategicindustry, the basic conditions for industrialization, is a concentrated expression of thenational competitiveness.” The development of equipment manufacturing industry isof great strategic significance for China’s economic development and national security.In the equipment manufacturing industry initial stage, under the guidance of thetheory of the infant industries, China protected the domestic industry and market byhigh tariffs and non-tariff barriers. After nearly20years of development, China hasestablished a number of equipment manufacturing enterprises, in the developmentprocessing, the appropriate protection of the government and policy guidance isessential. But, at the same time, high tariffs and other protective trade measures alsoproduced some negative effects, and the excessive protection leads to a lack of marketcompetition mechanism, inefficient enterprises, and slowed industrial development.After joining the WTO, China must adapt to the inherent requirements of the WTOtransition to free trade, China’s trade policy should be followed to make theappropriate adjustments. However, according to the current development of China’sequipment manufacturing industry, the full trade liberalization is not appropriate.Therefore, how to choose the trade policy is a crucial issue. Strategic trade policy isdeveloped in the1980s to adapt to new international trade environment and tradepolicy theory. It stressed that the government intervene in the increasingly fierceinternational competition, so as to strive for the best interests of the international trade.Strategic trade policies are appropriate to the current development of China’sequipment manufacturing industry, this research and demonstration.This paper Starts from the theory of strategic trade policy. It analysis thefeasibility of the strategic policy in Chinese equipment manufacturing industry, basedon the premise of the policy application.And then it makes policy recommendationsto Chinese equipment manufacturing industry, under the new situation,combiningwith the the developed countries expieriences in using the strategic trade policy in thisarea.