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

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  • Jing Linbo

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.

Suggested Citation

  • Jing Linbo, 2017. "The Development of the Strategic Trade Policy and Its Application in China," Chinese Economy, Taylor & Francis Journals, vol. 50(2), pages 97-111, March.
    • Handle: RePEc:mes:chinec:v:50:y:2017:i:2:p:97-111
    DOI: 10.1080/10971475.2016.1227163
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    Cited by:

    1. Mohsen Bahmani-Oskooee & Tatchawan Kanitpong, 2019. "Asymmetric Effects of Exchange Rate Changes on Thailand-China Commodity Trade: Evidence From 45 Industries," Chinese Economy, Taylor & Francis Journals, vol. 52(3), pages 203-231, May.

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