What Are the Different Types of Restrictions on International Trade?

Trade protectionism (trade protectionism) refers to the proposition and policy of restricting imports in foreign trade to protect domestic products from competition with foreign products in the domestic market, and to provide various benefits to domestic products to enhance their international competitiveness.

Trade protectionism

(International trade theory or policy)

Protectionism has the following characteristics: The main means of protection are

What is it

Protectionism means

Smoot-Hawley Tariff Act

In June 1930, in response to the economic crisis, the United States promulgated the bill, raising tariffs on more than 2,000 imported goods to the highest level in history. After the bill was passed, many countries including the United Kingdom, France, Germany and other countries took action against the United States.

The rapid rise of the Chinese economy, the deepening of the integration of the Chinese economy into the world economy, and the gradual transfer of global manufacturing centers to China have all determined the status and development of China's international trade. As a new member of the WTO, China's knowledge and experience on how to use the WTO rules and master international trade is still limited. Against the background of the rise of a new round of protectionism, China's response ideas and strategies can be started from the following aspects: :

Our countermeasures

1. From the perspective of economic development, it is an objective trend for global manufacturing centers to move to China, and China will have more internationally competitive products in the future. But at the same time, this transfer process is also due to the fact that countries that are more advantageous than China in terms of labor force are currently catching up, but other conditions are still relatively backward at this stage. It is necessary to seize this period and actively promote the optimization and upgrading of the domestic industrial structure and strive for improvement. A new step.

2. With pragmatic diplomacy as the guiding ideology, strengthen international communication and coordination, and strive for Western countries to recognize China's market economy status as soon as possible. There are generally three ways to resolve trade disputes: negotiate settlement; file a lawsuit with the WTO; and engage in a trade war. The real trade war is difficult to occur, and the WTO dispute settlement mechanism is also ineffective, so trade disputes and frictions between countries are mainly resolved by bilateral consultations and negotiations. Through exchanges and negotiations, we strive to break down regional trade barriers and create a good international trade environment.

3. Actively promote the integration process of regional economic organizations such as the ASEAN Free Trade Area and APEC, adjust China's trade direction, avoid excessive concentration of trade imports and exports in a certain country, and attach importance to regional economic cooperation. With the process of world trade liberalization blocked and new trade protectionism rising, strengthening cooperation in the form of regional economic integration will help create a stable international trade environment.

4. Under the guidance and assistance of competent trade authorities, business entities and industry associations should actively learn about international trade, master international trade rules, and strengthen domestic trade legislation such as the formulation of the Anti-dumping Law. At the same time, China should seize the opportunity to promote the optimization and upgrading of the industrial structure, improve the technological level of commodities, and enhance the competitiveness of commodities in the international market.

5. As a WTO member, China should actively participate in the ongoing WTO Doha Round multilateral trade negotiations, actively participate in the formulation and modification of multilateral trade rules, use effective multilateral trade rules to constrain and resist new protectionist actions, and gradually promote trade liberalization Strive for a favorable international trade environment.