The Measures and Effects of Strategic Trade Policy Promoting Automotive Industry Development in Japan

The core idea of strategic trade policy is, under imperfect competition and economies of scale, government can promote the development of domestic industries with restrictive import policy and subsidies export policy. Japan is a successful example of promoting the development of domestic automobile industry with strategic trade policy. According to the different characters of initial stage, rapid growth period and mature period of industry development, Japan has implemented restriction import, subsidies export and encouraging foreign investment policy. These policies have promoted greatly the development of automobile industry, improved the international competitiveness and stimulated economic growth. China should learn from Japanese experience to formulate trade policy and industrial policy according to the different stage of industry development. Meanwhile, China should also pay attention to cultivating industrial capability of independent development and innovation ability.