China's Tariff Policy Effects

Since People's Republic Of China found on 1949, Chinese People have recaptured the right of administration of customs and the independent right of tariff, hereafter, Chinese People constitute the tariff policy independently. Through summarize the evolvement and development about the china tariff policy in different historical period by the numbers, this article open out the developmental process of the China tariff policy. China tariff policy come through the process that from close protection to open protection, from long-term high tariff to the independent reducing of tariff in big range and then to the reducing of tariff according to WTO.This article analyze the corresponding economic effect in the process of development of china tariff policy. China tariff policy act an important role in the development of china economic and the advancement of china social and the inosculation with world economy. Use the western economics theories about tariff, such as model of local balance of import tariff, model of actual rate of protection, model of effective rate of protection, model of tariff bund and so on, utilize the statistical data from bureau of statistic and ministry of finance and general administration of china customs, this article study the positive and negative effect of china tariff policy. The positive effect of tariff policy include five aspects, the first is the protection of domestic industry, the second is the increasing of financial income, the third is the promoting of utilization of foreign capital ,the fourth is the developing of the process trade, the fifth is the encouraging of regional development. The negative tariff policy effect have three aspects, the first is the rampant smuggle, the second is the blocking of the development of domestic industry, the third is the weakening protection effect because of reducing tariff.At present, china tariff policy have some problems in six respects, the first is the dummy protection, the second is overfull depend on tariff in national finance, the third is the excessive tariff cut policy, the fourth is unreasonable tariff structure, the fifth is unbalance proportion of process trade. This article bring forward four advices to solve the problems that mentioned above, the first is to definitude the protection of fragile industry as the actual selective standard of china tariff policy, the second is to implement the switch of china foreign trade policy, from exporting for foreign exchange to exporting for profit, the third is on the basis of domestic industrial developmental policy , government should adjust and optimize the tariff structure and ascertain the optimization tariff to support interrelated industries, the fourth is aggrandize the function of china customs, perfect the law of tariff and innovate the means of collection of tariff.