Study On The Impact Of Rules Of Origin On China’s Manufacturing Trade Competitivenesson

As a "world factory",China’s manufacturing industry is facing the risk of "low-end locking",and the sustainability of the comparative advantage of manufacturing products is facing challenges.In 2015,"made in China 2025" proposed to "build a competitive manufacturing industry".It is very important to find a breakthrough to promote the development of China’s manufacturing trade competitiveness.With the blossom of international regional economic integration,China has proposed to "recommend regional economic cooperation and free trade area negotiations step by step and with emphasis" in the 2006 government work report.As of December 2021,China has signed14 bilateral trade agreements and two multilateral trade agreements of China ASEAN and RCEP.Rules of origin are an important carrier for the implementation of strategic trade policies.Only countries that meet the requirements of rules of origin can enjoy preferential tax rates in regional trade arrangements.In the formulation of rules of origin,the various judgment standards and processing process requirements of product trade within regional trade arrangements are different.Whether to use rules of origin will enable Member States to choose between the "satisfaction cost" and "preferential tariff income" consumed by the use of rules of origin,which will have an impact on the trade of different products in the manufacturing industry,and then affect the trade competitiveness of the manufacturing industry.Therefore,the study of the impact of rules of origin on China’s manufacturing trade competitiveness plays an important role.Firstly,by analyzing the impact mechanism of rules of origin on China’s manufacturing trade competitiveness,from the two perspectives of intermediate trade and final trade,this paper finds that loose rules of origin can promote the development of manufacturing trade competitiveness through the trade effect and investment effect of intermediate trade;Strict rules of origin have a negative impact on the trade competitiveness of manufacturing industry by affecting the trade of intermediate products and final products at the same time and inhibiting investment.Secondly,this study calculates the rules of origin of different industries of China’s manufacturing industry based on the seven point assignment method.It is found that the rules of origin of food manufacturing,tobacco processing industry and textile industry are highly restrictive,while the rules of origin of petrochemical industry,general special equipment manufacturing industry,electrical machinery and equipment manufacturing industry are relatively loose.It is found that the highly restrictive rules of origin reduce the competitiveness of countries in world and bilateral trade,The low restrictive rules of origin increase the trade competitiveness of countries around the world and bilaterally.Thirdly,through empirical evidence,it is proved that the rules of origin have an impact on trade competitiveness by affecting the trade of intermediate goods.Moreover,the stricter the rules of origin are,the less conducive to the development of trade competitiveness.Finally,this study puts forward policy suggestions on how to use rules of origin to promote the trade competitiveness of China’s manufacturing industry.