A study on the relationship between Chinese international trade and environment : based on the empirical analysis of Chinese import and export trade

Today, Environmental protection attracts a lot of attentions in the international stage. Environmental issues gradually shift from domestic issues to international issues. Environmental protection is moving toward the institutionalization and legalization, and gradually penetrates into the multilateral trade rules and national foreign trade policies and regulations. Thus, the phenomenon make closer link between international trade and environmental protection. In theory, international trade and environmental protection are unified, because their fundamental goal is to achieve sustainable human development. However, in practice, we found that due to the free development of trade, national environmental protection policies are not uniform, and some regulations unduly interfere with other’s affairs, and the conflict will make the relationship more complex. This article is starting from the analysis of the relationship between international trade and environmental protection; to grasp the essence of the conflict between the two, seek coordination and feasible approaches to compromise the conflict between international trade and environmental protection. This paper uses a combination of qualitative analysis and quantitative research methods to explore the relationship between international trade and environmental pollution. The main object of study is the world's largest developing countries - China. This paper uses the theory of "Externalities" to explain the relationship between international trade and environmental issues. On one hand, the two are in conflict with each other. The negative externalities are serious environmental pollution problems caused by the large-scale production because of international trade. At the same time, in order to avoid environmental contamination, there is a need to limit or control certain international trade. On the other hand, the two promote mutually. Countries are aims at seeking economic development through trade freedom, so that the natural resources are fully configured. In the empirical analysis part, this paper uses the method of least squares analysis and Granger causality test and draws the conclusion that international trade is indeed one of the reasons for China's environmental problems. Therefore, China's international trade brings the economic growth rapidly at the expense of the ecological environment and natural resources. After referring to the principles and methods of some domestic and international coordination, this paper discusses how to deal with the environmental issues and international trade. Combined with Chinese actual conditions, this paper proposes to levy widespread environmental taxes, and use emissions trading system as an auxiliary. This proposition not only overcome the ‘Pigovian tax’ information asymmetry defects, but also reduces dependence on market mechanisms by the implementation of the emissions trading system on the part of the property which is easy to define.