Research On The Impact Of Environmental Regulation On The Export Of China's Equipment Manufacturing Industry

With the economic development process of more than forty years opening aboard,China has gained a high speed in its foreign trade activity.International trade plays an important role in Chinese economy.China has become a global manufacturing factory.It shows that there are different kinds of commodities all over the world with the label of 'Made in China'.However,this process creates a negative influence.China has consumed much of basic energy and raw materials for producing these exporting commodities.During the producing process,a lot of pollution emission damages China5 s environment and breaks sustainable development.Meanwhile,the environment protection issue has caught much eyes of governments and citizens that all around the world.It also becomes a hot point in the international trade field.Some developed countries enforce the trade protectionism by this chance.Confronting with ecology destruction,environment pollution and environmental barriers to trade,China has to adjust its old foreign trade pattern to the new situation,which sacrificed the environment.These factors form the unprecedented challenge for Chinese equipment manufacturing industry export.As a core part of a country's manufacturing,the equipment manufacturing industry catches much attention of the country.The 'Made in China 2025,project which was announced in 2015 shows that China will put much efforts on developing equipment manufacturing industry.It aimed to improve the international competitiveness and export of this industry.During this time,several developed countries also enforced this project.For instance,Trump,new president of U.S.,appealed manufacturing return so as to revive the country's economy in his executing plan.However,due to the constraint of WTO's trade rules,certain countries carry out environmental barriers to trade for importing foreign mechanical and electrical commodities.This method can provide enough space for local equipment manufacturing industry's survival and development.Thus,environmental regulation will have great influence on Chinese equipment manufacturing industry commodities export.Under the background of current international trade's reality,the thesis researches on how to ensure and promote the sustainable development of Chinese equipment manufacturing industry foreign trade activity.It analyses the practical problems that may occur and effects when the government executes environmental regulation on Chinese equipment manufacturing industry.Based on these analysis and individual comprehension,the thesis provides some policy suggestions for government's environmental regulation enforcement and management.The thesis firstly reviews the relationship and acting mechanism of trade and environment which is discussed in existed literatures.Then it argues the theoretical basis of environmental regulation.On this basis and involving international trade theories,the thesis pays much attention to analyzing the effects of environmental regulation on exporting industries.It uses economics model to analyze the issue from four aspects:comparative advantage of exporting products,industrial transfer,international competitiveness of exporting industries and environment barriers to trade.Then the thesis uses specific data and figures to illustrate the current situation of Chinese equipment manufacturing industry export.On this basis,it uses the H-O model which involves the factor of environmental regulation to give an empirical analysis.It shows that the environmental regulation has positive influence on the export,which matches with Porter Hypothesis in some extent.Human capital and material capital also create positive effects,whereas the labor cost has negative effects.The empirical analysis also shows that the export has encountered negative external shock from 2009 due to year 2008's international finance crisis.Based on the conclusion of empirical analysis and practice of Chinese environmental regulation,the thesis argues that the government should adjust present environmental regulation methods after borrowing ideas from western developed countries' experience and considering China's situation.The government should construct basic conditions for using marketing motivation methods,promote environmental technique innovation,construct precaution mechanism of environmental barriers to trade and adjust trade policies to improve the exporting level of Chinese equipment manufacturing industry.These methods can promote the sustainable development of its foreign trade activity.