The overall Business Cycle China trend is still towards GDP Growth. A Trade Cycle describes the normal economic development of alternating booms and recessions. However, it is difficult to see the Economic Cycle China in this context since it has seen growth for decades. Learn more about China’s growth history.
Tariff and Non-Tariff barriers to trade are the most common measures to control their exports and imports. Also for China trade barriers, the former is about raising taxes and the latter about introducing limits to the amount of goods traded. Less common China trade barriers are anti-dumping duties & export restraints.
Due to its export orientation, China joined the globally most important trade associations relatively early and consequently had to adapt to their standards. China World Trade Organisation (WTO) & World Customs Organization joining are the most important Trade Association, which goes further than trade agreements.
China has naturally the closest Trade Agreements with Hong Kong and Macau, but there are also extensive China Trade Agreements with a number of other countries all over the world, such as a China ASEAN Trade Agreement. Current trade agreements are usually about the implementation of (limited) free trade.
From a trade historical point of view, China’s economic significance is getting back to where it was for centuries. At the beginning of the 19th century, China Trade History shows that it was even more advanced than Western Europe. The economic reforms starting in the 1970s allowed the country to gain old strength.
Tariff barriers to trade are commonly used to tax imports to a country and sometimes also exports from a country. Value-added tax, consumption tax and general custom duty are the most important China tariff barriers. The main purposes of are to provide funding for the government and to protect the domestic industry.
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