Is China a Neo-Mercantilist Nation?

3097 WordsAug 22, 201313 Pages
Is China a Neo-mercantilist nation? Definition: neo-mecantilism Neo-mercantilism is a policy regime that encourages exports, discourages imports, controls capital movement, and centralizes currency decisions in the hands of a central government. The objective of neo-mercantilist policies is to increase the level of foreign reserves held by the government, allowing more effective monetary policy and fiscal policy. This is generally believe to come at the cost of lower standards of living than an open economy would bring at the same time, but offers the advantages to the government in question of having greater autonomy and control. It is called "neo-" because of the change in emphasis from classical mercantilism on military development,…show more content…
Peter Drahos explains that "States realized that patent systems could be used to cloak protectionist strategies. There were also reputational advantages for states to be seen to be sticking to intellectual property systems. One could attend the various revisions of the Paris and Berne conventions, participate in the cosmopolitan moral dialogue about the need to protect the fruits of authorial labor and inventive genius...knowing all the while that one's domestic intellectual property system was a handy protectionist weapon." .  Information Feudalism: Who Owns the Knowledge Economy?. London: Earthscan. 2002. p. 36. 9. Employment-based immigration restrictions, such as labor certification requirements or numerical caps on work visas. 10. Political campaigns advocating domestic consumption (e.g. the "Buy American" campaign in the United States, which could be seen as an extra-legal promotion of protectionism.) 11. Preferential governmental spending, such as the Buy American Act, federal legislation which called upon the United States government to prefer U.S.-made products in its purchases. In the modern trade arena many other initiatives besides tariffs have been called protectionist. For example, some commentators see developed
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