The Impact To China Manufacturing International Competitiveness Under Environment Cost Internalization

In China’s industrialization process, China’s economic scale continues toexpand and foreign trade develops rapidly, China appears to a veritable tradecountry. China’s has not correctly handled the environment cost. When China’sforeign trade develops, the waste of resources is serious, especially inmanufacturing. So is ecological environment. The concept of internalization ofenvironment cost arises at the historic moment. The internalization of environmentcost is that the environment cost as a part accounting to the total product cost, so theenvironmental serves as a kind of production factors. According to the theory ofinternalization of environment cost, it is known that the internalization ofenvironment cost is beneficial to increase the social welfare. Observing the situationof China’s manufacturing export in recent years, it can be found that althoughmanufacturing export is keeping a high growth rate, the internationalcompetitiveness of manufacturing is relatively weak. China’s manufacturing has ahigh consumption of energy, and lets out a large number of three industrial wastes.In the process of production, China has ignored to account environmental cost,leading to the price of manufactured goods deviates from the normal value of theproducts. China can’t avoid the "ecological dumping" lawsuit in foreign trade, at thesame time, manufacturing products may be affected by the internationalenvironmental conventions, so the internalization of environment cost inmanufacturing is necessary. The internalization of environment cost measures inmanufacturing will significantly influence the international competitiveness ofmanufacturing. This kind of influence can be concretely analyzed by the qualitativeand quantitative methods. Qualitative analysis includes three levels to analyze theinfluences to international competitiveness of manufacturing. This paper analyzesthe influences to enterprise, industry and national policy, through internalization ofenvironment cost. And we can draw a conclusion that the internalization ofenvironment cost in China’s manufacturing is helpful to improve the internationalcompetitiveness of manufacturing. Quantitative analysis concludes the sameconclusion. Finally, this paper puts forward measures in three levels to promoteinternational competitiveness of China’s manufacturing.