A Study On The Trade Effects Of Technical Barriers To Trade On China’s Automobile Exports To OECD Members

As economic integration and trade liberalisation become the new norm in world trade,traditional tariff measures are fading from the stage of history,while some Non-Tariff Trade Measures(NTMs),especially Technical Barriers to Trade(TBTs)represented by technical standards and conformity assessment procedures,are playing an increasingly important role.As the number of NTMs has exploded,academics and politicians alike have focused on their potential trade impact.As the largest category of Non-Tariff Trade Measures in recent decades,TBTs have had a profound impact on the international trading system and have generated much debate in academia around their legality,effectiveness and trade effects.However,a large body of literature shows that scholars often reach opposite conclusions when there are differences in the industries that are the focus of research and the nature of the countries affected by TBTs.In recent years,China’s automotive industry has been booming,leaping from being an importer to a major producer and exporter of automobiles,especially in the new energy vehicle circuit,where China’s own new energy vehicle brands have been achieving success in the international market.However,with the major developed countries,led by Europe,becoming more and more concerned about environmental issues,and gradually integrating environmental protection into the trade arena,more and more environmental technical standards have emerged,which has directly led to an increase in the number and intensity of TBTs against automotive products.What exactly are Technical Barriers to Trade in automotive products?What kind of economic and trade impact will it have on China’s automotive exports?These questions have a profound impact on the future development of China’s automotive export industry and have therefore become a major concern for domestic academics and political circles.This paper uses literature research method,quantitative analysis method and fixedeffect trade gravity model to explore the trade impact of Technical Barriers to Trade on China’s auto exports through a study of China’s auto exports to OECD member countries,and accordingly puts forward several suggestions for China’s auto enterprises and the government to deal with TBTs and promote the international competitiveness of China’s auto enterprises,so that China’s auto products,especially new energy auto exports,can continue to maintain high growth and promote the sound operation of the auto industry.First,through a large amount of literature reading,this paper collated and analyzed the relevant studies on the trade effects of Non-Tariff Measures,discussed the necessity of this study from the theoretical level,and made a brief introduction to China’s current automobile market,especially the export situation of the new energy automobile market.In recent years,China’s auto export sales have continued to grow explosively,and the proportion of new energy auto exports has continued to rise.It is necessary to pay attention to the Trade Barriers that Chinese auto enterprises may encounter in the future.However,the number of studies on the impact of Technical Barriers to Trade on China’s auto exports is relatively small and the data are rather outdated,which is difficult to provide sufficient theoretical basis for Chinese auto enterprises and government to deal with trade challenges in the new era.Secondly,this paper investigates the trade activities of Chinese automotive products(HS87)exported to 34 OECD member countries during the period 2010-2020 using a panel data fixed effects strategy based on a trade gravity model.The regression results show that the intensity of technical standards for automotive products implemented by OECD member countries is negatively correlated with China’s automotive export trade volume,with each unit increase in the number of its TBTs reducing the export value of Chinese automotive products by about 1.1%,therefore,TBTs have a negative impact on China’s automotive exports to OECD member countries.At the same time,for each unit increase in the number of TBT notifications,the export share of the original destination market will decrease by about 0.05%.Hence,TBTs have a trade diversion effect on China’s auto exports,and when encountering TBTs,Chinese auto exporters tend to seek alternative markets with lower levels of product technical standards.Finally,based on the regression results,this paper provides useful policy recommendations for Chinese automotive exporters and the Chinese government.Chinese automotive enterprises should increase corporate R&D investment,accelerate transformation and upgrading,and further improve the intra-corporate compliance mechanism to break down information barriers.At the same time,the Chinese government should take the initiative to align with international standards for advanced automotive products,strengthen policy guidance and foster a favourable market atmosphere for technological innovation to better cope with global trade challenges in the future.