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Economic Transition and Trade-Policy Reform: Lessons from China

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  • Kiichiro Fukasaku
  • Henri-Bernard Solignac Lecomte

Abstract

Trade-policy reform is an essential feature of China’s economic transition to a market economy. On the one hand, the liberalisation and decentralisation of export activities has boosted exports. On the other hand, the reform of China’s import regime has been progressing much more slowly. This has two negative consequences. The persisting combination of high nominal protection rates and numerous tariff exemptions creates a dual regime: export-oriented firms enjoy free access to imports, while the domestic sector remains highly protected from international competition, which allows for continuing misallocation of resources. This incompleteness of trade reforms currently prevents China from joining the WTO, which might eventually hamper its further integration into the world economy ... La réforme de la politique commerciale en Chine est un élément essentiel de sa transition vers une économie de marché. La libéralisation et la décentralisation des échanges ont permis une forte croissance des exportations, mais la réforme du régime des importations est beaucoup plus lente. La persistance de barrières douanières élevées, assorties de nombreuses dérogations, est à l’origine d’un régime dualiste : les entreprises exportatrices importent librement leurs intrants, alors que le secteur domestique reste fortement protégé de la concurrence internationale, ce qui entretient la mésallocation des ressources. De plus, l’inachèvement des réformes empêche la Chine d’accéder à l’OMC, ce qui pourrait, à terme, compromettre la poursuite de sa stratégie d’ouverture ...

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File URL: http://dx.doi.org/10.1787/603777642281
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 112.

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Date of creation: Jul 1996
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Handle: RePEc:oec:devaaa:112-en

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Cited by:
  1. Josh Ederington & Jenny Minier, 2002. "Tariff Uniformity and Growth," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(2), pages 65-73.
  2. Thierry Mayer, 2006. "Policy Coherence for Development : A Background paper on Foreign Direct Investment," Sciences Po publications 253, Sciences Po.
  3. Françoise Lemoine, 1996. "Trade Policy and Trade Patterns During Transition: a Comparison Between China and the CEECs," Working Papers 1996-02, CEPII research center.
  4. Xiaohui Liu & Chang Shu, 2003. "Determinants of Export Performance: Evidence from Chinese Industries," Economic Change and Restructuring, Springer, vol. 36(1), pages 45-67, March.
  5. Bin, Sheng, 2000. "The Political Economy of Trade Policy in China," Working Papers 10/2000, Copenhagen Business School, Department of Management, Politics & Philosophy.

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