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Financial crisis, a resurgence of trade protectionism seems to follow the trend and rallied together. From short-term positions to maximize their own interests, many economies with a trade protection policy, trying to set up trade barriers to balance international payments, inhibit capital flight, to stimulate domestic demand and reduce the unemployment. In the short term, to achieve some of these goals is possible. Therefore, in the context of the financial crisis, trade protectionism has become the economy out of the economic plight of many of the “rational choice.” A recent World Bank report: Global financial crisis to launch measures of trade protectionism 78, 47 of which have been implemented.

In general, imports and serious trade deficit larger developed economies, but also tend to take trade protection policy. The export and trade surplus significantly larger emerging economies, will assume more of the negative consequences of trade protection. Statistics: Since October 2008, Europe and other developed economies have strengthened protection of the trade of Chinese goods, mainly involving a variety of types of goods. Since October 2008, China’s export growth rates have continued to decline, which is the worldwide trade protectionism policy, outside the economy will decline in purchasing power and the result of the role, but a sharp decline in export growth and “drag” the sustained and rapid development of the entire national economy.

Clearly, trade protectionism has been through trade and capital and other channels, had an impact on China’s economy. Therefore, how to take effective measures to respond to the challenges of trade protectionism, is the current urgent need for answers to important issues. The short term, we need to rely on international co-governance to expand external market, based on creating a more favorable international trading environment. But the longer term, China’s economic structural problems in the two to be resolved: the production of export products mainly in the middle part of the R & D and marketing aspects of the development is lagging behind; over-rely on export-led economic growth, domestic demand, especially consumer demand-led relatively insufficient. Therefore, China must accelerate industrial upgrading and expansion of the domestic market to enhance the international competitive advantage and market potential to tap the domestic form of trade protectionism and effective breakthrough. Proceeding from this, our short-term and long-term factors should be integrated, co-ordinate international cooperation and national efforts to respond to the challenges of trade protectionism.

As the world’s most important trading economies in the world, China should build international and regional level co-governance mechanisms play an active role. Recently, China has actively participated in the G20 financial summit, and the Boao Forum for Asia, and international cooperation platform with the emphasis on the attitude of trade protectionism. The future, China should deepen cooperation with other economies (especially the EU, U.S. and Japan) and international economic organizations (especially the World Trade Organization, the International Monetary Fund and World Bank) communication and coordination, through regular dialogue and building work mechanisms to promote support for trade financing, disclosure and other protective behaviors against trade protection measures implemented. Game theory in the “prisoner’s dilemma”, has been demonstrated between individual rationality and collective rationality are often biased, and therefore we should strengthen the other major emerging economies of communication and coordination, through the “collective propaganda” and “collective bargaining” approach to minimize the loss of trade protection.

But for the “Prisoner’s Dilemma,” the optimal solution from individual rationality to collective rationality, have to depend on the game’s commitment to advance the main mechanism of inter-and post-punishment mechanism. Based on this, the protection of trade with China in order to reduce the probability of occurrence, reduced the negative impact of trade protection in China, China is not only indicate their commitment to adhere to the principles of free trade, should also clearly express their extra-territorial protection policies will take over the appropriate punishment. In the former case, such as: the degree to improve trade facilitation, encourage the participation of foreign enterprises in China, the implementation of zero tariff treatment to less developed countries, to send trade and investment promotion missions overseas procurement, which reflects the Chinese to make a boycott of trade protection, prior commitment to adhere to free trade is credible, this commitment should be based on the future of the growing strength of China’s economy continued to strengthen. In the latter case, for those particular economies, particularly China’s major trading partners 过度 trade protection policy, we Zeying an important concern for its economic and social benefits for an appropriate response. This is a signal, a warning to other countries can trade with China to protect the “unscrupulous” and “rushed to follow suit.”

But the fundamental way to solve, we should see, in the international market, quality is the last word. Only through the implementation of production optimization strategy in order to form a continuity of trade protectionism breakthrough. With the international market, the quality of imported goods, technology, service requirements become more stringent, our businesses must improve quality and upgrade the industrial structure to enhance international competitiveness. Whether it is export-oriented enterprises or domestic-oriented enterprises, product quality on the business should be the “lifeline” to look at the height. Of export-oriented enterprises, to protect and enhance the quality of its implementation strategy is related to Chinese goods in the international market as a whole image. To this end, companies should expand the international market, increasing the share of the profit point of view, through technological improvements and organized to promote the product quality to protect and enhance the smooth implementation of the strategy. China and the Government should maintain the goods from the perspective of the overall brand, and constantly improve product quality for export inspection and quarantine, risk prevention and crisis management system. On upgrading the industrial structure, compared with traditional manufacturing, modern services and advanced manufacturing trade protectionism in response to better do to cope. Of course, the Government through the industrial policy guidance, perfect factor markets, supply of public goods such as, for enterprises to upgrade industrial structure provide favorable conditions.

The rise of trade protectionism, export trade to our challenges. Thinking from another level, it is also something that is not a reminder. In the future, China’s response to global trade protectionism is a fundamental change in the path of economic development by expanding domestic demand, particularly domestic consumption demand to the formation of the external market “order to succeed.” On the one hand, must address the development of private enterprises to deepen reform of the financing system to relax trade access, control pace of RMB appreciation, and promote value-added tax reform, thus releasing the potential of private enterprises in productive consumption. On the other hand, must improve the distribution system and taxation system to address the widening income gap relative to the problem, and for low-income farmers and improve the urban basic health, basic education, basic housing, social security, in order to enhance people’s consumption capacity and enhance the residents’ willingness to consume.