Research Of China's Strategic Oil Trade Police

As a commodity with strategic significance, oil plays a key role in promoting the national economy. However, along with the incessant growth of china's oil dependence on import and frequent variation of international oil price, it is undeniable to tell that china's oil security has reach a crucial point, which mainly embodies itself on acquirability, price variability and transport safetyness. Accordingly, Chinese government established a set of strategic trade and industrial policy in order to guide the oil enterprise's trade and producing behaviors. These policies do have some effects on promoting oil import and on curbing export. Since there has been no research on the theoretical basis and output of these trade policies, this paper aims to fill in this blank.Together with the advent of imperfect market and oligopolistic, there comes the theory of strategic trade policy, which argue that government may change or keep the strategic behaviors of a monopoly enterprise by imposing certain interference policies in order to achieve the most benefit. This theory may provide as the basis for analyzing China's strategic trade policy.This paper chooses calibrating model to run the experimental analysis of China strategic policy. Calculate import volume, import price, enterprise profits, consumer surplus and total welfare under each of the 5 analyzed policy scenario, and compare their results.In order to search for the foundation for China's present oil trade policy and find out an optimum policy combination, that aims at both protecting oil security and promoting overall welfare. The last chapter of this paper gives a bunch of policy suggestions, starting from extension model of strategic trade policy, and from a general equilibrium and external economy point of view.