A Study On International Trade Friction And Government Behavior Under Fair Trade System

Though WTO advocates fair trade and try to restrain all the member countries'act through relevant rules and mechanism, the worldwide trade frictions become more severe. It is estimated that China will remain as to international trade frictions to be a high-incidence region in several years to come. The negative influence of high-incidence of trade friction shall not be neglected. It is worth noting that the government should have done more things to face such challenges, which is responsible for coping with such problems. On the one hand the government should draw lessons from the successful experience of foreign countries on coping with trade friction in order to improve the management capability on trade friction of our government; on the other hand it is urgent to carry out the economic reform, consummate the legal system and gradually lessen the institutional factors of trade friction so that our legitimate interest and rights may be protected to a great extent.The thesis is divided into four chapters:Chapter one deals with fair trade system and international trade friction. First, it introduces the basic frame of fair trade system, which includes the essential goals and four basic principles of WTO (namely, non-discriminatory principle, market access principle under a foreseeable and increasing basis, promoting fair competition principle, encouraging development and economic reform principle), policy-reviewing mechanism and dispute resolution mechanism. Then it presents five main forms of international trade frictions under the fair trade system, namely, the frictions between dumping and anti-dumping, subsidy and anti-subsidy, frictions of safeguards, technical trade frictions and frictions with relation to intellectual property rights; it also analyzes the characteristics of trade frictions under the fair trade system: some rules of WTO has been used as pretences to launch international trade friction by some countries; meanwhile, the means of multilateral negation as a solution of international trade friction has been widely adopted. Finally, the thesis probes into the origins of international trade friction under the fair trade system in three aspects, which results in international trade friction: the theoretical origin lies in trade protectionism theory, upon which the government's trade policy making is based; the economic origin lies in the imbalance of trade development between different countries and the protection on their declining industries; the political origin is for the need of domestic political struggle.Chapter two deals with the theoretical bases of management of international trade friction by the government and its practice. Trade management is a combination of free trade and trade protection. The paper makes analysis of game theoretical model of different policy choices of trade management and draws a conclusion that trade management is a suboptimal choice of which every country have to choose when the optimal one is impossible. The government should be an active participant in safeguarding the legitimate interest and rights of domestic enterprises in case that international trade friction arises.Chapter three refers to the status quo of the management of international trade friction by our government. At first, the thesis deals with the characteristics of trade friction in which China involves. Then it analyzes the governmental factor in the trade friction. Export-oriented foreign trade policy is an essential inducing factor of international trade friction. The status of non-market-economy-country also put Chinese enterprises at a serious disadvantage and leads to frequent anti-dumping measures against Chinese enterprises. China's relevant laws and regulations needs to be consummated for the government to resort to legal means to cope with international trade friction. The early warning system needs to be established to prevent or avoid the occurrence of trade friction. Chapter four makes research on the strategies of the management ofinternational trade friction of Chinese government. Firstly, the paper unscrambles the legal grounds of trade friction management by our government at three levels, that is, the legal system of WTO, the international treaties to which China is a party and the foreign trade legal system of China. Secondly, it suggest several breakthrough points of the management of international trade friction from the angles of management means, public relations and dispute resolution mechanism of WTO.The thesis put forward some proposals on the aforesaid governmental factor in the international trade friction: to make adjustment of the foreign trade policy and adopt domestic demand oriented economic booming strategy; to shift the government functions completely and try to gain other countries'acknowledgement of China's market-economy-country status; to consummate relevant laws and regulations to make them more operable;to make the best of the platform of international organizations, attach importance to bilateral and multilateral talks and actively participate into the making and consummation of the international rules; to build up early warning mechanism against trade friction. The main contribution of the thesis is that it systematically discourses the relationship between trade friction and act of government. Five years later after china's access to WTO, the trade friction is still aggravating, so the suggestions on the governmental management of international trade friction have a positively realistic significance in the context of fair trade.