The Applicability In China For The Political Economy Analysis On Trade Policy.

The traditional trade theory based on New Classic economics put free trade as the best trade policies, which could be shown in the theory of Adam Smith and Ricardo , named theory of factors for maximum benefits. However the reality in every country is not accordance with the theory. Trade protection is still popular. Now we step into the 21th century. Economy develops rapidly, the world's big factory is more obvious and international trade becomes more toughly. All show the trend of globalization, which should make free- trade policies as the mainstream. But the fact is not so. Though the purpose of WTO is to support free trade, with reduction of tariff and quota in most countries, non-tariff barriers such as technology barrier, green barrier, have become new and strict means of trade protection. China's exporting is suffering these non-tariff barriers. For importing, China also adopt these similar means. Why is China both a victim and a performer of trade protection? The thesis wants to discuss how China makes up its trade policies.Firstly, it researches the reasons of trade protection and the explanation of trade policies in the standpoint of the traditional trade theories. The theories like Best tariff theory, Na?ve industry protection theory, Keynesian trade protection theory and Strategic trade protection theory, only declare the reasons on some aspects and should be founded under certain conditions. And they thought the trade policy is exogenous, has neglected internal causes of the trade policy . But in view of historical and the reality, the formulation and the execution of the trade policies is an internal process.The article built the political and economics model of China's trade protection by analyzing the evolution of China's politics system and every interest group in China, even the degree who influence the government's decision , and as per the analysis forms of protecting-sale model. The model studies the social welfare function which is concerned by Chinese government. It considers not only the influence on the people's income when they play roles as producers, but also the influence on the people's welfare when they play roles as consumers. But the attention weight is different. The experiences prove that the government gives special attention on the producers in the special interest groups and the weight of special element's revenue in different divisions is also different. Government has strategic inclining to special divisions'development. Therefore the governmental target function among the model of China's trade protection is different from the lobbying groups in the Western political system, which mainly shows the"state"consideration on political decisions for welfare distribution and industry strategy and also shows the preference of the central government decision-makers under the centralized system .