The Reason And Countermeasures Of The Chinese Local Protectionism Formation

The reform and the Opening of China has led to rapid development in economy and has brought to numerous issues in society in China at the same time. Local protectionism of China was appeared at the turning point of china’s economy and it is not only the subject of research in politics and but also the subject of research in economy. In the course of delegation from central government to local government in China, the requirement of central government that local government was asked to implement their policy more active caused local protectionism.Generally speaking, Localprotectionism meansa kind of phenomenon that local government don’t take account of long-tenninterests of country and only pursues and protects the temporary profits and economic development of its region by using its economic and administrative means.There is the different phenomenon of local protectionism between in China and in western countries. The motivation and purpose of this local protectionism is the economic profit maximization of local district and have a chance for local government officials to get a dominant position to promote. And its main forms of expression are separation of market and blocking of area.We can analyze the local protectionism in China that have reflected the economy of China from the economic theory. According to the theory of unbalanced development among local provinces. Dual structure of economy have been showed by the difference of economic development level and industrial structure and it has affected local protectionism that hinder the rationalflowof production factors. This theory consist with Chinese development policy that firstly develop the eastern part of China, and then develop the central and western part of China inducing by eastern part of China.[Public choice theory] explains that conversion of central government function can solve the local protectionism of china and these kinds of economic theories play a important role to understand the cause of formulation of the local protectionism in China.Economicimbalancebetween regional area,unstableindicator ofperformance review of government officials, the failure of state-owned enterprisereform, unstable taxsystem of China have caused China’s localprotectionism.Korea’s local protectionism also derived from the development of autonomy, but the concept of Korea’s local protectionism is a little different from the that of China. Korea’s local protectionism means such a phenomenon that local people are against establishing averse facilities(NIMBY facilities) such as nuclear waste disposal place, waste disposal place, jail and so on in their district and they are for inducting profitable projects such as establishing new airport in their district. Korea’s local protectionism have been increasing since democratization movement in 1987 and implementation of local autonomy in 1996.Local protectionism affects the severe and bad effects of whole country, so it is very urgent and important issue to solve local protectionism because many essential project that need for country and local district couldn’t continue or abandon due to local protectionism.China’s Local protectionism has also created very bad effect because it hinders the rationalflowof production factorsand as a result of it. it makes bad influence in unified market and realization of economy of scale. The protection of local company can lead to the competitive weakness of local companies and it is not only bad for their creativity and optimum upgrade, but also disadvantageous for local long-term development. It is important to take an action for bad effects that local protectionism caused and It is important to prevent the enlargement of local protectionism as well. China have to prohibit local protectionism through the continuous market-oriented reform and fair taxation system. For executing these proposals, the Index of performance assessment of Chinese governenment official need to be changed from only one factor as economy contribution to many criteria such as political, social, cultural and ecological contributions.In conclusion, Chinese government need to supplement economic management system and also need to complete the laws and regulations through learning from legislation principle of western countries.