Domestic Demand-Creative Foreign Trade And Policy Research Under Deglobalization

Against the background of anti-globalization,trade protectionism has risen in various countries,and they have begun to rely on the domestic market to seek development.Based on the home country market effect and global value chain theory,the article proposes the mechanism of domestic demand-creating foreign trade.The home country market effect theory emphasizes that domestic demand is the basis for foreign trade,and the process of foreign trade involves joining the global value chain and participating in international competition.As China and the United States are the world’s largest developed and developing countries,their domestic demand markets are huge,and the Sino-US economic and trade structure has shown obvious competitive trends in recent years.Therefore,this article chooses China and the United States as the object of studying domestic demand-creation foreign trade.The selection of China and the United States’ respective trading partners is based on the fact that China and the United States account for 75% of their total exports to the world in 2020.It is found that there are 19 Chinese trading partners that meet the conditions,and the corresponding United States has 16.Based on Feenstra’s(2001)gravity model,an empirical model suitable for this study was constructed.The data of China and its 19 trading partners from 2001 to 2019 were used to conduct research on China’s domestic demand-creation-oriented foreign trade.The United States used it and 16 Empirical research on data from two trading partners from 2001 to 2019.In this process,we not only conducted research on the domestic demand-creating foreign trade situation of the overall foreign trade between China and the United States,but also conducted industry-level research on the 10 major industries subdivided according to the SITC1 code.In the study of China and the United States’ respective domestic demand-creating foreign trade,the competition pattern of China and the United States in world trade is derived.Furthermore,from the perspectives of Sino-US trade and intra-product trade,the trade competition between China and the United States is studied,and the list of taxes on Sino-US trade frictions is compared with the empirical conclusions of this article.When faced with trade competition between China and the United States,the policy choices that China can adopt.Finally,this article draws relevant conclusions based on theoretical and empirical research results,and puts forward relevant policy recommendations for China to make full use of the domestic demand and create foreign trade conditions.The research results show that: First,China basically has the domestic demandcreating foreign trade conditions for the entire industry(excluding the three industries under the SITC 1-digit)in world trade;The related substance(3)industry has the conditions for creating foreign trade based on domestic demand,and is stronger than China;finally,it further derives the SITC 2-digit commodity category in which SinoUS trade competition is mainly negotiated.This article puts forward policy recommendations: First,correctly handle the relationship between domestic demand and foreign trade;second,make full use of the strong domestic market for domestic demand;third,accelerate the pace of cultivating a unified market;fourth,adhere to the development route of a strong manufacturing country.