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International Trade Policy in Chinese Economy

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (30 April 2023) | Viewed by 26531

Special Issue Editors


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Guest Editor
College of Economics and Management, China Agricultural University, Beijing 100083, China
Interests: applied international trade and economic development

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Guest Editor
School of International Trade and Economic, Central University of Finance and Economics, Beijing 100081 , China
Interests: international trade

Special Issue Information

Dear Colleagues,

Despite the backdrop of the sluggish world economy due to the pandemic and renewed trade protectionism, China’s trade continues to grow. China has deepened its reform via high-level opening-up and increased high-quality development. China has been at the forefront of economic development and the pandemic response globally and has maintained rapid growth in foreign trade, registering a record high in volume and steady progress in quality. According to customs statistics, China’s foreign trade volume in goods in 2021 reached CNY 39.1 trillion, up by 21.4% compared to the previous year. Exports grew by 21.2% to CNY 21.73 trillion, and imports increased by 21.5% to CNY 17.37 trillion. China’s total foreign trade, exports, and imports expanded by 23.9%, 26.1%, and 21.2%, respectively, compared to 2019. Why was this possible for China? What kind of trade policies,,  for example, the promotion of “Belt and Road Initiative” (BRI) and the effectiveness of RCEP, does China use to foster trade growth?

In this Special Issue, we focus on trade policy and want to understand how such policies or other uncommon factors drive China’s trade growth.  Additionally, after more than 40 years of development and growth, China's economy has now entered a period of transformation. We also want to know  how trade has contributed to this transformation.

Prof. Dr. Faqin Lin
Prof. Dr. Dahai Fu
Guest Editors

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • trade
  • trade policy
  • China’s trade
  • Chinese economy
  • RCEP
  • BRI
  • trade growth

Published Papers (14 papers)

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Research

21 pages, 1142 KiB  
Article
Examining the Threshold Effect of Environmental Regulation: The Impact of Agricultural Product Trade Openness on Agricultural Carbon Emissions
by Jingwen Lu and Lihua Dai
Sustainability 2023, 15(13), 10048; https://doi.org/10.3390/su151310048 - 25 Jun 2023
Cited by 1 | Viewed by 841
Abstract
Agricultural product trade openness is a crucial factor impacting agricultural carbon emissions. This study analyzes the relationship between trade openness and carbon emissions in China. Using panel data from 2002 to 2020 for 31 provinces, a threshold panel model is employed to examine [...] Read more.
Agricultural product trade openness is a crucial factor impacting agricultural carbon emissions. This study analyzes the relationship between trade openness and carbon emissions in China. Using panel data from 2002 to 2020 for 31 provinces, a threshold panel model is employed to examine the non-linear relationship from an environmental regulation perspective. The findings reveal a significant single-threshold effect of environmental regulation. When environmental regulation intensity is low, trade openness is positively associated with agricultural carbon emissions. However, when environmental regulation intensity is high, trade openness significantly reduces carbon emissions. Regional regression analysis indicates that this single-threshold effect holds true in major grain-producing, grain-selling, and grain- producing- selling balance areas, although regional differences exist. This study emphasizes the need to coordinate environmental regulations and trade policies, strengthen environmental control, and leverage the threshold effect of environmental regulation in reducing carbon emissions through agricultural product trade openness. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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19 pages, 934 KiB  
Article
Do Digital Trade Rules Matter? Empirical Evidence from TAPED
by Tao Jiang, Yizhu Hu, Fazli Haleem and Shaolong Zeng
Sustainability 2023, 15(11), 9074; https://doi.org/10.3390/su15119074 - 4 Jun 2023
Viewed by 2505
Abstract
This study aims to examine (1) the impact of digital trade rules on digital services exports, (2) the heterogeneity of this impact in different trade categories, (3) the impact of digital trade rules on the growth of services exports through reducing trade costs, [...] Read more.
This study aims to examine (1) the impact of digital trade rules on digital services exports, (2) the heterogeneity of this impact in different trade categories, (3) the impact of digital trade rules on the growth of services exports through reducing trade costs, and (4) whether this impact is different in national income levels. In order to test the hypotheses, this study uses panel data from the TAPED database encompassing 143 economies between 2005 and 2019, employing a differences-in-differences model as the analytical framework. Our empirical results yield several key findings. Firstly, digital trade rules have a significant role in promoting the export of digital services. Secondly, the impact of trade rules on different types of trade and national income levels is significantly different. Thirdly, the mechanism analysis results show that trade costs have an intermediary role, and digital trade rules can promote the export of digital services by reducing trade costs. Finally, compared to “high-income countries”, the establishment of digital trade rules brings greater benefits to the digital services trade of low- and middle-income countries. Digital trade has brought significant changes to globalization development. Few studies address the role of digital trade rules in regulating the development of digital trade, and some researchers suggest reconstructing the global trade rules to meet the growth of digital trade. Nevertheless, research on how digital trade rules affect digital services exports is still sparse. This study contributes to the literature by revealing the importance of digital trade rules and provides a reference to promote institutional openness in the field of digital trade. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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18 pages, 308 KiB  
Article
Does Green Finance Promote Export Sophistication? An Analysis of the Moderating Effect Based on Green Taxes
by Kai Zhang and Dongyuan Liu
Sustainability 2023, 15(10), 8303; https://doi.org/10.3390/su15108303 - 19 May 2023
Cited by 2 | Viewed by 1310
Abstract
This study examines the impact of green finance on export technological complexity by using panel data from 30 provincial-level administrative units in China from 2011 to 2019. The study finds that green finance significantly promotes export sophistication; with the promotion effect varying by [...] Read more.
This study examines the impact of green finance on export technological complexity by using panel data from 30 provincial-level administrative units in China from 2011 to 2019. The study finds that green finance significantly promotes export sophistication; with the promotion effect varying by the geographical location and institutional environment, the mechanism test shows that upgrading industrial structure and enhancing technological innovation are the two transmission paths for green finance to enhance export sophistication. Additionally, the study finds that green tax moderates the impact of green finance on export sophistication. The threshold effect test reveals that industrial structures, as well as their upgrades and technological innovation, have a single threshold. However, they need to reach a certain threshold value before they can play their role to the fullest, while green tax has a marginal increasing effect. The study provides a new perspective on the relationship between green finance and export sophistication, and the empirical evidence for current green finance policies promotes the development of the real economy. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
15 pages, 273 KiB  
Article
The Impact of Green Finance on China’s Agricultural Trade
by Yinghan Wang, He Liu, Jie Zhou, Dungang Zang and Qianling Shen
Sustainability 2023, 15(9), 7688; https://doi.org/10.3390/su15097688 - 8 May 2023
Cited by 2 | Viewed by 1918
Abstract
Enhancing the effectiveness of green development of the agricultural trade economy with green finance is a practical need to promote the healthy development of agricultural trade. This manuscript empirically analyzes the impact of green finance on China’s agricultural products import and export trade [...] Read more.
Enhancing the effectiveness of green development of the agricultural trade economy with green finance is a practical need to promote the healthy development of agricultural trade. This manuscript empirically analyzes the impact of green finance on China’s agricultural products import and export trade by using provincial-level panel data from 30 Chinese provinces from 2001–2019. The findings show that: (1) Green finance positively impacts China’s agricultural import and export trade at the 1% significant level, expanding the scale of agricultural imports and exports. (2) The positive impact of green finance on China’s agricultural import and export trade is heterogeneous across regions. Accordingly, this paper puts forward policy suggestions such as strengthening the support of green finance to agriculture, focusing on the improvement of green total factor productivity in agriculture, and promoting synergistic regional development through the implementation of differentiation of green finance. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
22 pages, 1169 KiB  
Article
Does Service Trade Liberalization Promote Service Productivity? Evidence from China
by Xin Fu, Tangyou Wang and Hongxu Yang
Sustainability 2023, 15(8), 6440; https://doi.org/10.3390/su15086440 - 10 Apr 2023
Cited by 1 | Viewed by 1734
Abstract
This paper investigates the effects of service trade liberalization on service productivity. Based on a city-level database from 2006 to 2019, we estimate the labor productivity of the service industry and show the varying trends of productivity growth. Additionally, by exploiting the cross-city, [...] Read more.
This paper investigates the effects of service trade liberalization on service productivity. Based on a city-level database from 2006 to 2019, we estimate the labor productivity of the service industry and show the varying trends of productivity growth. Additionally, by exploiting the cross-city, cross-time variation at the time of China’s innovation pilot city policy of service trade liberalization, we employ a difference-in-difference strategy to estimate the effects. The empirical evidence suggests that liberalizing the service trade has a positive effect on service productivity. In addition, the evidence indicates that service trade liberalization could increase the productivity of the service industry in cities located in the eastern and central parts of China, as well as in those cities with a higher degree of marketization. The main influencing channels of service trade liberalization on productivity predominantly occur through the increase in technology spillover, market competition, and human capital. China’s evidence highlights the positive relationship between trade liberalization and productivity in the service industry and provides implications for realizing the sustainable development of services in developing countries; therefore, China and other developing countries are suggested to continuously formulate and deepen their service trade liberalization strategy. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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19 pages, 3799 KiB  
Article
Research on the Evolution of Global Electronics Trade Network Structure since the 21st Century from the Chinese Perspective
by Xiaodong Zhu and Xin Liu
Sustainability 2023, 15(6), 5437; https://doi.org/10.3390/su15065437 - 20 Mar 2023
Cited by 3 | Viewed by 1881
Abstract
With the development of technology and the widespread adoption of digital technology, the trade volume of electronic products keeps improving. For a country’s trade situation, it is important to study the global trade of electronic products. In this paper, the data on global [...] Read more.
With the development of technology and the widespread adoption of digital technology, the trade volume of electronic products keeps improving. For a country’s trade situation, it is important to study the global trade of electronic products. In this paper, the data on global trade in electronic products from 240–246 countries and regions from 2000 to 2021 are used to create complex network models. Characteristic indicators, such as the network density, average clustering coefficient, average path length, and centrality are used to analyze the evolution of the global electronic product trade network pattern. The results of the complex network analysis show the following: (1) Since 2000, global electronic products have shown a trend of fluctuating growth, showing a state of three-pole differentiation. In addition, the trade volume is unevenly distributed, with the United States and China in the leading positions. (2) The global electronics trade network has significant scale-free and small-world characteristics, with high network density and close ties between countries. (3) There are differences between the closeness centrality and the betweenness centrality of the global electronic product trade network. The core countries are mainly in Europe and North America, while the influence of Asian countries is rising. (4) The global electronic product trade network has a clear division of communities and undergoes dynamic evolution. (5) Global electronic product trade is influenced by natural resources, economic and technological strength, political culture, and other factors. Finally, three policy suggestions are made for the development of China’s electronics trade. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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27 pages, 1098 KiB  
Article
Evaluating the International Competitiveness of RCEP Countries’ Biomass Products in the Context of the New Development Paradigm
by Qing Guo and Wenlan You
Sustainability 2023, 15(5), 4102; https://doi.org/10.3390/su15054102 - 23 Feb 2023
Cited by 1 | Viewed by 1428
Abstract
As research related to the clean use of primary energy and new energy technologies continues to intensify in countries around the world, biomass energy has been incorporated into the long-term development plans of many countries for energy use due to its unique zero-carbon [...] Read more.
As research related to the clean use of primary energy and new energy technologies continues to intensify in countries around the world, biomass energy has been incorporated into the long-term development plans of many countries for energy use due to its unique zero-carbon emission advantages. However, there are fewer studies on the competitiveness of biomass products in the literature. In this study, we adopted the constant market share (CMS) model and IRCA index method to measure the long-term trend of international competitiveness of biomass energy products in Regional Comprehensive Economic Partnership (RCEP) countries, which enriches the research on the competitiveness of biomass energy products. The two methods integrate multiple indicators to analyze the competitiveness of biomass energy in each country, making up for the deficiency that the RCA index can only be analyzed from trade volume. The results show that (1) the international competitiveness of biomass energy products in RCEP countries is on an upward trend; (2) the main biomass energy products of RCEP countries lack comparative advantages in the world market; and (3) the export market structure of biomass energy products in RCEP countries is not adapted to the world market demand. Finally, based on the above research findings, this paper puts forward some policy suggestions for exporting biomass energy products. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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18 pages, 580 KiB  
Article
Study on the Impact of Air Pollution on Agricultural Export Trade
by Haipeng Chen, Jie Zhou, Jia Liang, Dungang Zang, Martinson Ankrah Twumasi and Qianling Shen
Sustainability 2023, 15(3), 1775; https://doi.org/10.3390/su15031775 - 17 Jan 2023
Cited by 1 | Viewed by 1765
Abstract
With the gradual intensification of the global environmental pollution trend, air pollution has a vital impact role in agricultural export trade. This manuscript uses balanced panel data from 30 Chinese provinces and districts from 2005–2019 in China to empirically verify the mechanism of [...] Read more.
With the gradual intensification of the global environmental pollution trend, air pollution has a vital impact role in agricultural export trade. This manuscript uses balanced panel data from 30 Chinese provinces and districts from 2005–2019 in China to empirically verify the mechanism of the impact of air pollution on agricultural exports. The following results were achieved using the fixed effect and moderating effect model. The results show that air pollution significantly inhibits the growth of agricultural export trade. In particular, the presence of environmental regulations will weaken this adverse effect. Regionally, the negative impact of air pollution on China’s agricultural export trade in large agricultural provinces is significantly greater than that in non-agricultural areas. To ensure the sustainable development of China’s agricultural export trade, we should strengthen the ability to cope with air pollution, actively expand diversified international markets, and strive to improve the technological content and green level of exported agricultural products in order to achieve innovative green development of agricultural export trade. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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12 pages, 287 KiB  
Article
Empirical Analysis of Sustainable Trade Effects of FTAs Based on Augmented Gravity Model: A Case Study of China
by Bangchu Qiu, Gang Tian and Daoming Wang
Sustainability 2023, 15(1), 269; https://doi.org/10.3390/su15010269 - 23 Dec 2022
Cited by 1 | Viewed by 2248
Abstract
China has developed many strategies to promote sustainable trade, including accelerating the signing of free-trade agreements (FTAs). However, there is a lack of studies examining the impact of FTAs on the sustainable growth of foreign trade from a holistic perspective. This paper applies [...] Read more.
China has developed many strategies to promote sustainable trade, including accelerating the signing of free-trade agreements (FTAs). However, there is a lack of studies examining the impact of FTAs on the sustainable growth of foreign trade from a holistic perspective. This paper applies an augmented gravity model to verify the trade creation and diversion effects of China’s FTAs that are currently in effect. A panel data analysis over the period of 1995–2019 is conducted on 34 countries and regions, including China, and Poisson pseudo-maximum likelihood (PPML) is employed to test three different fixed-effects models. The results show that the trade effects differ across FTAs, with nine FTAs generally making positive contributions to China’s trade and social welfare growth, and the remaining five FTAs exhibiting varying degrees of trade diversion or contraction effects. Empirically, it is clear that participation in FTAs has contributed to the sustainable trade of China, but China still needs to take prudent action to pursue further trade liberalization in order to counter the potential threat of trade diversion. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
22 pages, 3563 KiB  
Article
Partnership Diplomacy and China’s Exports
by Yaying Liu, Jin Chen and Churen Sun
Sustainability 2022, 14(19), 12147; https://doi.org/10.3390/su141912147 - 26 Sep 2022
Cited by 1 | Viewed by 1847
Abstract
The use of active diplomacy tactics could explain the rapid growth of China’s trade. By collecting information from the official statements on China’s Ministry of Foreign Affairs website, we constructed a dataset of China’s partnerships to investigate whether partnership diplomacy influenced China’s exports [...] Read more.
The use of active diplomacy tactics could explain the rapid growth of China’s trade. By collecting information from the official statements on China’s Ministry of Foreign Affairs website, we constructed a dataset of China’s partnerships to investigate whether partnership diplomacy influenced China’s exports during the period of 1995–2018. We found empirical evidence that partnership diplomacy had a significant and positive impact on China’s exports. The lag terms of the partnerships and the voting data from the United Nations General Assembly have been used as instruments to reduce potential endogeneity. Our mechanism analysis showed that the positive effect of partnership diplomacy on China’s exports followed the law of comparative advantage. By reducing bilateral trade costs, partnership diplomacy has mainly fostered exports in products and industries for which China is more productive and competitive, such as “machinery and electrical equipment” and “textile and articles thereof”. Partnership diplomacy is believed to bridge the ideological gaps between partner countries and enable them to pursue common interests. In light of this, partnership diplomacy could be regarded as a positive factor that has driven China’s export expansion. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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22 pages, 1586 KiB  
Article
Research on the Relationship between Agricultural Carbon Emission Intensity, Agricultural Economic Development and Agricultural Trade in China
by Dungang Zang, Zhijia Hu, Yunqi Yang and Siyu He
Sustainability 2022, 14(18), 11694; https://doi.org/10.3390/su141811694 - 18 Sep 2022
Cited by 12 | Viewed by 2141
Abstract
Under the interactive background of more emphasis on low-carbon and environmentally friendly agricultural production modes and the coordinated development of agricultural foreign trade, China is paying more and more attention to the coordination between agricultural trade, economic development and ecological agriculture development. This [...] Read more.
Under the interactive background of more emphasis on low-carbon and environmentally friendly agricultural production modes and the coordinated development of agricultural foreign trade, China is paying more and more attention to the coordination between agricultural trade, economic development and ecological agriculture development. This paper selects the relevant data of China from 2002 to 2020 as the research object. Taking the agricultural carbon emission intensity as an indicator of environmental pollution, measuring it and then constructing a time series model for analysis, the research finds that, in the long run, the increase in agricultural carbon emission intensity in China will reduce the level of agricultural trade by 2%, which will also lead to a decline in the overall development level of the agricultural economy by 2 to 4 percent. At the same time, this paper also finds that the current situation of China’s agricultural trade reduces the development of China’s agriculture by 1%, which will also lead to an increase in agricultural carbon emission intensity by about 0.5%. Finally, this paper finds that the development of the agricultural economy makes the overall increase in agricultural trade 2%, and with the development of the agricultural economy, the agricultural carbon emission intensity decreases by 0.1%, but the impact is small. Therefore, it is necessary to improve the construction of a leadership mechanism, implement the development strategy of low-carbon agriculture and provide corresponding financial security and other policy suggestions to promote the coordinated development of China’s agricultural trade and low-carbon agricultural production environment. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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14 pages, 720 KiB  
Article
Institutions Rule in Export Diversity
by Wenni Lei and Yuwei Luo
Sustainability 2022, 14(18), 11594; https://doi.org/10.3390/su141811594 - 15 Sep 2022
Cited by 1 | Viewed by 1297
Abstract
We used the data of 133 countries to explore the determinants of export diversity among candidate variables that are clearly exogenous or endogenous but with a well-established instrument. These candidates include geography, resource abundance, and institutional quality. Our results suggest that institutional quality [...] Read more.
We used the data of 133 countries to explore the determinants of export diversity among candidate variables that are clearly exogenous or endogenous but with a well-established instrument. These candidates include geography, resource abundance, and institutional quality. Our results suggest that institutional quality is important in determining export diversity, and a country with better institutions has a more diversified export structure. Once institutional quality is controlled for and instrumented with European settler mortality, variables such as geography and resource abundance, which significantly determine export diversity in the baseline regression, are no longer significant. The results are still robust even using alternative measures of institutional quality. They also indicate that the mechanism whereby institutions largely determine export diversity has been presented under the guise of natural resource abundance and geography. Therefore, to some extent, the “natural resource curse” is not a curse, but simply two sides of the same coin. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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19 pages, 1263 KiB  
Article
Research on the Impact of Technical Measures on Enterprise Export Participation
by Han-Lin Wang and Wan-Wan Zhao
Sustainability 2022, 14(14), 8909; https://doi.org/10.3390/su14148909 - 20 Jul 2022
Viewed by 1506
Abstract
Technical Measures to Trade have the characteristics of strong concealment and imperceptibility, which makes some WTO members frequently use “technical barriers” to restrict China’s product exports. Based on the multi-period differences-in-differences method, we use micro-data at the level of Chinese companies from 2000 [...] Read more.
Technical Measures to Trade have the characteristics of strong concealment and imperceptibility, which makes some WTO members frequently use “technical barriers” to restrict China’s product exports. Based on the multi-period differences-in-differences method, we use micro-data at the level of Chinese companies from 2000 to 2013 to empirically test the impact of technical measures on the export participation of companies from the perspective of corporate heterogeneity. The study found that for the strength of the technical measures, the coefficients on the technical measures variables are all significantly positive. From the perspective of the types of Technical Measures to Trade, the increase of Technical Barriers to Trade and Pre-shipment Inspection has significantly improved enterprises, and the promotion effect of Sanitary and Phytosanitary Measures on the export participation degree of enterprises is not significant. According to the intermediary effect model, it can be concluded that there is an indirect transmission channel through which technical measures affect the participation of enterprises in export through export diversification. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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17 pages, 1046 KiB  
Article
Temporal and Spatial Variations in China’s Government-Official-Appointment System and Local Water-Environment Pollution
by Xingheng Xie, Mengting Zhang and Changbiao Zhong
Sustainability 2022, 14(14), 8868; https://doi.org/10.3390/su14148868 - 20 Jul 2022
Cited by 2 | Viewed by 1347
Abstract
Environmental governance is one of the priority tasks that is faced by China in its drive for sustainable social development. Environmental protection necessitates an equal focus on pollution-source control and pollution governance, and it shall be safeguarded with sound local economic-development models and [...] Read more.
Environmental governance is one of the priority tasks that is faced by China in its drive for sustainable social development. Environmental protection necessitates an equal focus on pollution-source control and pollution governance, and it shall be safeguarded with sound local economic-development models and long-term environmental-protection mechanisms. In this study, we investigated the government-official-appointment system and the effects of the personal characteristics of government officials and economic variables on the local water-environment pollution, measured by industrial wastewater discharge, using a dataset of Communist Party of China (CPC) municipal committee secretaries and municipal governors covering the period 2003–2012. We found that some temporal and spatial factors of China’s personnel-management system for government officials are correlated to the environment. More specifically, the turnover and interjurisdictional transfer of municipal governors contribute to long-term environmental protection, longer tenures facilitate better environmental protection, municipal governors who serve in their native provinces but not in their native municipalities facilitate better local environment protection, and officials may take different approaches towards environmental maintenance and governance. Full article
(This article belongs to the Special Issue International Trade Policy in Chinese Economy)
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