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China is constantly modifying its trade policies to create a suitable environment to allow it to achieve its economic growth objectives. To begin with, various trade policies were introduced to assist achieve economic goals. For instance, the foreign trade policy was set to maintain a mutual agreement between China and other nations they tend to trade with. In part, the strategic trade policy like the open trade was an intended move to market China’s products and to gain favor with all countries (Jian & Evenett, 2010). The paper will discuss foreign trade policy, strategic trade policy, its trade barriers, and trade sanctions and embargos.

Foreign trade policy

The export and import trade in a given country comes with regulations set by the government. The role of foreign trade policy is to maintain a mutual agreement of the needs and wants while trading. As a country, China has a foreign trade policy. According to article 5 on the general provision, “China shall on the principle of equality and mutual benefit, advance and develop trade relations with other nations and regions, take part in such regional economic trade agreements based on custom union agreement, free trade agreement, and take part in regional economic organizations” (Zhao, 2016). These provisions guide China in regards to both import and export trade with other countries. For instance, the country has started reducing its tariffs imposed on goods and services to promote a good trade relationship as guided by the policy. According to the policy, the trade will be based on equality and mutual benefit; which means that both nations have to benefit on the relationship.

Strategic Trade policy

Strategic trade policy is a regulation introduced by a government which tends to shift profits in oligopolistic international markets in the home country firms. In light of this, China has acted strategically by influencing the market through manipulation of their prices and products to maximize their profits at the expense of other nations. For instance, the China free trade policy is a strategy influence the international markets to open up to their products and services. The country has realized the need to have a good relationship with other nations even as they try to adhere to international trade laws (Zhao, 2016). According to the China trade strategy, it is not only important to coordinate relationships among major countries like the US but more interestingly to pay attention to less developed nations in Africa to win their trust. Therefore, the open trade policy tends to provide a market for China’s product.

Trade barriers

In all markets, there exist barriers that can prevent a country from active trading. Like any other country, China is challenged by a variety of trade barriers. These challenges are like imposed restrictions, tax and fees that discourage trading. For instance, China has faced a lot of challenges from the US regarding the claims of unfair trading practices. As a result of this, the US imposed a tariff on a further $200 billion worth of Chinese products which is considered a retaliatory trade wars among the superpowers. (Jian & Evenett, 2010).

The US duty on China affects about 600 items such as rice, textile, and handbags among others. In addition, China has faced other challenges such as restrictions to the sale of their products in different countries. Huawei an electronic corporation has been restricted in countries such as the US, Australia, and India among others. These countries introduced a restriction order on the sale of Huawei products in their market.

Trade sanctions and embargo

China has been affected by various trade sanctions and embargo on the sale of specific products. The European-China embargo on the sale of arms to China which was later lifted with the introduction of codes to manage the lethal arms affected the relationship between China and European Countries. In addition to this, there was also the food embargo against China had its potential consequences to the country. The Chinese policymakers considered the food embargo by the west as a threat to their food security (Christensen, 2015). Based on this, it is apparent that China has been affected by imposed sanctions and embargo against essential products such as food resulting in the issues of food shortage.

Yes, China is a member of the world trade organization (WTO) is an international organization that has a mandate of handling trade rules between member nations. The country became a member of WTO in 2001 after a constant struggle with trade policies and regulation. China was losing its relations with other nations globally which was a threat to its intended economic growth (Jian & Evenett, 2010). Therefore, it was important to operate under an organization to allow it to set policies and regulations fit for its survival.


China has introduced trade regulations and policies to the international market as they trade with other countries. However, despite the introduction of these trade regulations, China has always considered its local producers by setting up favorable tariffs compared to imported products. The core of business has been to maintain a mutual relationship between countries and get a benefit as well. Despite this, China has faced trade sanctions and embargos where some countries bar its products.

Reference list

Christensen, T. J. (2015). The China challenge: Shaping the choices of a rising power. WW Norton & Company.

Jian, L., & Evenett, C. S. J. (2010). What Commercial Policies Can Promote China’s Sustainable Trade Strategy?. Winnipeg: International Institute for Sustainable Development (IISD).

Zhao, S. (2016). Chinese Foreign Policy: Pragmatism and Strategic Behavior: Pragmatism and Strategic Behavior. Routledge.