Why is the theory of free trade dominant?

Since its birth, the theory of free trade has been the core theory of international trade, the main line of the development of the whole international trade theory, and even the concept and goal of international trade theory, which has had a far-reaching impact on the trade theory and policy choice of later countries. Throughout the evolution history of international trade, the trade policy choices of developing countries have long deviated from the principle of free trade. It was not until1970s that the trade policies of developing countries tended to be open and liberalized.

Since China's reform and opening up, foreign trade has developed rapidly, especially since the 1990s, China has become more and more closely linked with the world. Foreign trade has become an important driving force for China's economic development. At the same time, the theory of free trade has been continuously applied to the field of practice through the formulation of rules and a series of systems, and has become an important indicator to guide the development of China's foreign trade. After China formally joined the World Trade Organization in February 2006, its trade with other countries became more frequent and its trade freedom was further expanded. China's huge gains from trade are mainly reflected in the following aspects:

1, make full use of cheap and abundant domestic resources and improve resource utilization efficiency;

2. Replenish scarce resources and promote the harmonious development of the whole national economy;

3. Promote the development of other industries and industries.

Tips: The above information is for reference only.

Response time: 2021-12-31. Please refer to the latest business changes announced by Ping An Bank in official website.