Application Of Strategic Trade Policy In Chinese Automobile Industry Of Foreign Trade

After the World War II, great changes had taken place in the world economy, and at the same time there were some new ideas and features in the field of international trade. With the changes of the world structure, the multi-national corporations and intra industry trade began to appear. The traditional trade theory cannot fully explain the conditions. Then American economist first put forward the strategic trade policy, and its assumptions are imperfect competition and economists of scale, totally different from the traditional trade theory. It can explain more realistic problems in international trade and provide the train of thought for trade policy.At present, China reform is entering a crucial stage and the deep water area. The automotive industry is a pillar industry of our country, the development of which is of great significance to China’s industrial structure upgrading and economic development. With the development of economy, people’s requirements on the quality of life is more and more high in all aspects of daily life and they hope they could reach convenient and comfortable state. So car demand increases gradually and the international competition is becoming increasingly. In the course of development, the government provides appropriate protection and corresponding policy guidance, which is indispensable. Although the whole automobile industry is showing a rising trend, but it is lack of international competitive power.So we start to reflect that if it is appropriate to carry out trade policy to our automobile industry and if it is conductive to the promotion of the development of automobile industry, especially after joining in the WTO and the 2008 global financial crisis and the following economic recovery. It is necessary to analyze trade policy on the China’s auto industry. As the theoretical value of mature international trade, the strategy trade policy provides the theoretical basis for the development of Chinese automobile industry in the current international competition background.The article focuses on analysis of the strategic research and development subsidy policy effects on the auto industry from the perspective of trade policy theory. This first chapter proposes thesis research background and significance, and the strategic trade policy makes a brief review of relevant literature, and this paper introduces the writing context and the innovation. The second chapter reviews the basic theory of strategic trade policy briefly and lays a theoretical foundation for later analysis. This third chapter introduces how Japan and Korea use strategic trade policy and its application effect. The fourth chapter introduces the present situation of the auto industry in our country and existing problems, and reasons why auto industry implements the strategic trade policy, and then empirical analysis. The fifth chapter introduces the suggestions of the development of auto industry in our country, such as increasing research investment, reducing tariffs and improving the market access threshold. The last part is the conclusion on the basis of summarizing the deficiency of the thesis.