The Development of the Strategic Trade Policy and Its Application in China

Jing Linbo

Chinese Economy, 2017, vol. 50, issue 2, 97-111

Abstract: Strategic trade policy theory, first advocated in 1985, is an important part of the new trade theory. Strategic trade policy emphasizes the importance of public policy under the monopolistic competition, leaving some space for government to increase the national welfare. This article presents the background and the basic framework of the strategic trade policy, and discusses the development of the strategic trade theory internationally and for its application in China. It points out that strategic trade policy develops fast and it needs to integrate more characteristics of developing countries like China into consideration. The measure of the strategic trade policy should be improved in China. The effect of the strategic trade policy becomes more complicated than expected because nothing stands still. Regional trade agreements are the new hidden form of strategic trade policy for China and requires further research.

Date: 2017
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DOI: 10.1080/10971475.2016.1227163

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