The Evolution of Chinese Trade Policy[1]

7/31/2019 The Evolution of Chinese Trade Policy[1]

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Company

LOGO

The Evolution of Chinese Trade Policy

Comparative Trade Policy

Yang Jingjin

2nd Semester of IT&EC


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Overview

The trend of International trade

Protectionism Liberalism Protectionism

The trend of Chinese trade policy

From protectionism adjust with different

international environment

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Contents

From 1949 to 19781

From 1978 to 19922

From 1992 to 20013

After 20014


5 Conclustion

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From 1949 to 1978

Close-door protective trade policy (plannedeconomy and government control)

The core trade policy: control the foreign tradeand protect domestic economy

-- Western countries: economic blockade-- Chinese economic guide: independent and self-

sufficient

The Evolution of Chinese Trade Policy4


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From 1949 to 1978

Trade System

-- High convergence, combined state and enterprises

government replaced market to allocate resources

-- directly restrict export in terms of quantity

not join any trade organization and engage inbilateral economic cooperation (except for Soviet

Union in early period)

-- control foreign exchange rate and overvalue RMB



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From 1949 to 1978

Trade Strategy

Import Substitution Policy

-- before 1960s, heavy industry(compatible)

-- introduce basic industry

-- deteriorating international balance sheet

(the foreign exchange payment over receive)-- unable to digest the introduced technologyand

equipment



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From 1978 to 1992

Open-door protective trade policy (planned

commodity and government control )

In 1986, submit Memorandum of foreigntrade system of P.R.C. to GATT for resuming

its membership

Two Stages

1978-1987: distribute the power of foreign trade

operation

1988-1992: lose the control on foreign exchange

rate, encourage processing industry



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From 1978 to 1992

The principles of trade policy

-- export-oriented, support export industries

(refund tax, allocate more resources, etc)

-- comparatively strict import restriction through

tariff, import certificate, etc)

-- encourage foreign direct investment and

introduce advanced technology.


Export labor-intensive products

Import capital- and technology-intensive products

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From 1992 to 2001

Protective trade policy with liberal trendunder socialist market economy

Influenced by Mercantilism to increase

trade surplus, which resulted a lot of tradeconflicts

China becomes world factory because of

the economic globalization ( industrialtransfer/shift from developed countries toexploit the cheap labor cost)



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From 1992 to 2001

Import policy

-- adjust tariff (lower 255 commodities import

tariff, average tariff rate decreased to 23%)

-- reduce and regulate the non-trade barriers

(single managed floating foreign exchange rate,

eliminate a large amount of quota certificate)

-- improve legislation according to GATT and WTO

(enact anti-dumping rules, etc)



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From 1992 to 2001

Export policy

-- continue the export tax-refundable policy

-- establish the Import and Export Bank

-- managed floating foreign exchange rate

-- form various chambers of commerce and

participate in international exhibitions

-- develop export aid



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After 2001

China became the member of WTO afterDec, 2001

The goals for trade policy

-- promote international trade

-- construct balanced industrial structure

-- upgrade industrial structure

-- promote economic growth at fast speed



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After 2001

Special concern over the admission of WTO

-- until 2016, China will not be regarded as market

economy when involved in the investigation of

anti-dumping procedure

-- before 2009, WTO will inspect and evaluate the

Chinese trade policy every year

13 The Evolution of Chinese Trade Policy


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After 2001

Keep the trade relations with present

partners

-- US, EU, Korea, Japan are major trade partners

-- Chinese FDI are mainly from these countries

-- adjust domestic policy in line with the change

in these countries

Regional Integration

-- FTA with ASEAN



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Suggestion

Take up more strategic trade policy

-- from labor-intensive to capital- and technology-

intensive production

Legislation on trade policy

-- enact anti-dumping, countervailing subsidies

regulation to recover the market competitiveness



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Company

LOGO


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Company

LOGO

Comparative Trade Policy

Yang Jingjin

2nd Semester of IT&EC

Documents

The Evolution of Chinese Trade Policy[1]