The Interaction and Coordination between International Trade and the Environment in China

This paper investigates the interaction and coordination between China's international trade and environment We try to explore the Impact of China's free trade on the environment, and due to the presence of externalities, the difficulties and challenges for China's environment protection We combine the available empirical evidence and China's actual situation, and yield some clearly conclusion First, China's past economic growth model indeed caused many negative effects on the environment, which is mainly composed by composition and scale effects of free trade However, we can now take advantage of free trade to carry out a wide range of remedies Second, Chinese government should improve the system of property rights by strengthen environmental legislation and regulations to address market failures, but we are opposed to unilateral trade and environmental agreements, because It will result in the loss of social welfare