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Management & Engineering 15 (2014) 1838-5745 Contents lists available at SEI Management & Engineering journal homepage: www.seiofbluemountain.com Innovation of Wanjiang Regional Foreign Trade in the Context of Low-carbon Economy Fang ZHANG1,, Guanhao WEI2 1. Lecturer, School of Engineering Management, Anhui Polytechnic University, 241000, P.R.China 2. Undergraduate, School of Economics, Xiamen University, 361000, P.R.China KEYWORDS ABSTRACT Low-carbon economy, Anhui foreign trade, Innovation The Wanjiang region’s foreign trade in recent years has been the rapid development of foreign trade indicators rising; foreign trade has become an important part of economic development in Anhui Province. However, in the context of global low carbon economy, Anhui foreign trade has also been from Europe and the United States and other countries a variety of low-carbon measures and regulations. It is important to know how to avoid risk, response to the global wave of low-carbon economy, innovation and transformation of Anhui Province’s foreign trade-related strategies. © ST. PLUM-BLOSSOM PRESS PTY LTD 1 Introduction Global warming, oil prices soaring high oscillation, energy security and other problems caused by the strong concern of the international community, due to global warming brought serious losses to the social and economic development profoundly touched on energy security, ecological security, water security and food security even a threat to the survival of humanity. Since 2003 the British government published a White Paper on Energy, low-carbon economic development model has been generally recognized in the world, human development goals of the new century. Western developed countries have introduced a low-carbon economic development strategies and policies, and become a new model of sustainable development. China, India, Brazil and other developing countries will also be a low carbon economy on the agenda, and introduced policies to promote domestic economic transition to a low carbon economy. As the central province of Anhui Province have the advantages of good location, rich natural resources and abundant labor resources. Foreign trade of Anhui Province in the past 30 years developed into the upper level of the country’s foreign trade development. However, in the process of constant development, there are some problems, especially compared with the eastern coastal provinces, Anhui foreign trade dependence on foreign trade is not high, the overall small-scale, foreign trade accounted for small proportion in the country, exports of the commodity economy efficiency is not high and low value-added and other issues. The existence of these problems Anhui Province’s foreign trade development mode may be faced with severe challenges in the future trend of low-carbon economy. Corresponding author. E-mail address: [email protected] English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD DOI:10.5503/J.ME.2014.15.017 77 2 Characteristics of Anhui’s Foreign Trade 2.1 The structure of export products, mainly in low-end manufactured goods In recent years, industrial development in Anhui Province to speed up the proportion of industrial products in exports rising continuously enhance export competitiveness, foreign trade structure has also been improved to varying degrees. Compared with the eastern coastal areas and the national average, the manufactured goods in our province is not only the proportion of low and most of them belong to low value-added, low degree of processing, low-tech labor-intensive products or technologies mature product, capital and technology intensive products rarely, the economic benefits of export commodities. Mechanical and electrical products, for example, the export of electromechanical products in Anhui Province, the vast majority of exports through processing trade to achieve, most of which is labor-intensive processing, value-added rate is very low, indicating that the Anhui Province, also in the field of technology-intensive establish a competitive edge. 2.2 Export markets with a high concentration Study the structure of a national or regional export markets can be seen that the geographic direction of the areas of trade is reasonable, too unitary and centralized trade geographic direction is susceptible to the country or regional financial environment, the impact of trade policy. With constantly improving the level of opening up and vigorously develop foreign trade, Anhui has established and most countries in the world trade relations. Anhui export countries and regions has reached 199 in 2003, Anhui Province's foreign trade partners to expand to 218 by 2007, but the main trading partner remains the European Union, the Unit ed States, Japan, accounting for a quarter of the province’s total export . Anhui foreign trade development is highly dependent on Europe, the United States, Japan and other developed countries and regions; the export market concentration is still relatively high. This is highly dependent on the markets of developed countries, Anhui foreign trade vulnerable to the impact of a small number of national trade policy changes in the face of trade friction, extreme lack of room for maneuver in the environmental protection as an excuse for new wave of trade protectionism. 2.3 Lagging behind the development of trade in services Trade in services is a new focus in recent years, countries in the field of international trade competition, international and domestic trade in services in a rapid increase in the development stage. Anhui three years, the total imports and exports of the three major items of trade in services accounted for 23% of the year all trade in services imports and exports totaled 33% and 50%. Developed countries on behalf of the trade direction of development of advanced services and emerging IT-based services, such as communication services, insurance services, financial services, computer and information services, advertising services, movies, audio-visual services such as trade in services in the province exports, the proportion is quite weak. 2.4 Upgrading of the structure of export products In recent years, the National Foreign Trade and guidelines to encourage the two outside, big into large, give full play to the comparative advantage of China’s labor costs of processing trade in recent years, China’s foreign trade of the fastest growing segment, it accounted for more than half of the total imports and exports. Anhui in the way of trade from a single trade, developed into “general trade as the main processing trade and other forms of trade to supplement the pattern”. General trade in the way of the Anhui Foreign Trade and a dominant position, although the general trade from 2003 showed a continuous downward trend, but the proportion is far higher than processing trade and other forms of trade. According to the Anhui own level of economic development in Anhui Province in general trade in the low-level stage, which need to strengthen the development of processing trade. Processing trade relative to the average trade accounted for a lower, inadequate development, which to a certain extent reflects the advanced technology required the transformation of traditional industries, the introduction and use of equipment, lack of Anhui’s industrial structure adjustment and upgrading, and then in turn affect the structural upgrading of the export products of Anhui. 3 The Main Factors to Affect the Development of Foreign Trade in Anhui Province 3.1 Structure of export products in the low-end manufactured goods Exports of Anhui Province, in the low-end manufactured goods accounted for more than half of the inter-industry homogeneity, low degree of competition is very serious. These low-end manufactured goods in the export structure to determine its value-added export products unit margins are thin, only to win, mass production, exported in large quantities; the production process must consume a lot of resources, a large number of emissions. According to the trend of low-carbon economic development, requiring enterprises to adopt cleaner energy such as oil and gas, not to mention the world’s oil and gas resources can support the increased costs will make the most business failures. That is, to adapt to the trend of low-carbon economy, Anhui foreign trade export structure must be changed to such a high energy consumption, mainly low value-added product mix, and gradually moving towards the diversification 78 of export product structure and high-class. However, from Anhui Province, the current stage of economic development and the development process in many characteristics, the completion of the structure of export products diversified and high-class change will be a long-term task. 3.2 Foreign low-carbon policy Foreign low-carbon policies on the potential impact of Chinese exports has a certain degree of uncertainty, could be transformed into technical regulations or standards for low-carbon future, a combination such as technical barriers to trade and border adjustment tax to limit China’s exports. Overall, Anhui foreign trade export is still in extensive stage of growth, exports relatively high energy consumption, carbon dioxide emissions, compared with developed countries, there is still a big gap. Period of development in low-carbon economy, countries are to carry out low-carbon competition, the implementation of foreign low-carbon policy will Anhui foreign trade and sustainable development have a major impact. For example, the European Union, Japan, the United States have proposed to improve the efficiency of energy use, and give policy or financial support, who improve the energy efficiency of early large amplitude, whoever may be regulatory or standardization of energy efficiency, in order to export products from other countries an adverse impact to the country. 3.3 European and American carbon tariff policy In June 2009, the U.S. Congress passed the “Clean Energy and Security Act, the bill stipulates that from 2020 on imports of emissions-intensive products, such as cement, steel and aluminum a number of chemical products, to impose special tariffs on carbon dioxide emissions. In December 2009, as the EU’s main think-tank the European Policy Research Center, the latest research report suggestions that the EU should consider to take mitigation measures to the national export commodity taxation to the EU.” Europe and the United States decided to start a carbon tariff; China is undoubtedly will bear the brunt. According to World Bank research report, once the carbon tariff is full implementation in the international market in China may be facing an average of 26 percent tariffs; exports may decline by 21%. Obviously, carbon tariffs, once implemented, will become some countries sniper weapon “Made in China”. At present, the developed countries “carbon tariff” is in the planning or formulation stage, the developed countries have not yet formally implemented a “carbon tariff”, but with the development of low-carbon technologies, carbon tariffs may be a technical way, which will be China’s foreign trade enterprises encountered a new problem. “Carbon tariff” as a new type of trade barriers will increase export costs and burdens, Anhui foreign trade development process need to face the problems and challenges. 4 The Improved Method 4.1 The use of tax policy Use tax policy to adjust foreign trade and exports the way, the local government must first establish the concept of changes in foreign trade development mode, get rid of the dogma of the blind pursuit of export volume growth, study and formulate constraints to enhance the quality and efficiency of foreign trade index system, these focus on quality and effective indicators as the basis for assessment of government performance. Regulate the development of low-carbon industry can be timely to consider through the adjustment of the tax, energy tax, limiting the high-energy, high-polluting enterprises export; for enterprises using advanced technology to give tax breaks or concessions, or to provide financial support, in order to encourage energy conservation and technological innovation. This is of great significance to improve the export product mix, the foreign trade growth mode, promote the sustainable development of foreign trade. 4.2 Strive to foster the export product base Anhui provincial government should make great efforts to cultivate key import and export enterprises, export industrial base, and export of industrial clusters, which is to enhance the potential for further development of import and export trade, the key to improve the overall competitiveness of foreign trade. Anhui Province during the “Eleventh Five-Year” bred 30 import and export of billions of dollars of U.S. dollar enterprises (including two enterprise is above 2 billion, one is 1 billion to 2 billion, four is 5 million to 1 billion); construction Wuhu, Hefei two national automobile and auto parts export base construction of Hefei High-tech Industrial District and Bengbu fine chemicals, two national and Hefei software and other five provincial-level high-tech products export base. In the “12th Five-Year” period, the further development of the import and export of the strength of the backbone enterprises, the formation of a number of highly competitive export base. Play to the advantages of industrial clusters to improve the ability to resist risks of Anhui Province's foreign trade in Anhui foreign trade structure has sustained growth and stability. 4.3 Low-carbon product development With the development of a low carbon economy, the state will establish a low-carbon economy and taxation support policies, the government will discount limit the two high a capital exports and other measures to support enterprises in low-carbon technological innovation. Anhui foreign trade enterprises to increase capital investment, the introduction of scientific and technological personnel and scientific and technological achievements, and pay close attention to low-carbon products and low-carbon technologies, and 79 increase research and development on low-carbon products and brands is an important measure to cope with the trend of low-carbon economy. The European Union, the United States, Japan, and China National Development and Reform Commission is about to preparing the introduction of low-carbon standard low-carbon standard in the international foreign trade enterprises should enhance learning and understanding of these standards, in particular, the understanding of the brand products whether or not to comply with the major developed countries low-carbon standard on the target market to respond to the challenges of the new low-carbon trade barriers in foreign countries and regions in the future. 4.4 Implement the “going out” strategy Anhui Province is to the advantage of industry focus on major markets, political stability, economic development, and the liberal investment environment, countries and regions, to encourage enterprises of various ownerships to a joint venture, cooperation, sole proprietorships and other forms, the establishment of overseas production and processing base and resource development. More trade friction with the Anhui Province of Europe and the United States and other countries investment, you can bypass trade barriers, promote the export of related products. Industrial transfer to developing countries, transfers of appropriate technology and mature industries to Latin America, Africa, Eastern Europe and South Asia, and meets the host countries need, but also expand the market space of Anhui. Can focus on promoting the outward development of a number of enterprises in the implementation of the Anhui Foreign Trade, “going out” strategy, and if we can focus on promoting the Chery Automobile, the overseas processing project of the Yangtze River shares on Iran, Indonesia, Vietnam and other countries. 5 Conclusion Anhui Province’s foreign trade in recent years has been the rapid development of foreign trade indicators rising; foreign trade has become an important part of economic development in Anhui Province. In 2008, Anhui’s total imports and exports reached $ 20.435 billion 2006-2008 average growth rate of 30.9%, but still small overall size of the foreign trade, import and export volume accounted for less than 1% of the total national imports and exports, only Jiangsu Province 5.21%, 9.68% in Zhejiang Province. These data show that the level of foreign trade development in Anhui Province with the national foreign trade development. Along with the province to attract foreign investment to undertake the industrial transfer of the eastern coast of central and western regions, play a low-cost advantage in the development of export processing. How to keep the development under the conditions from the extensive development of foreign trade to a low carbon-intensive, sustainable development of foreign trade to change the way not only requires government departments to strengthen the policy guidance also requires companies to increase their competitiveness, formed from the enterprise innovative mechanisms to local foreign trade. Combination of Anhui economic characteristics, the following explains how to promote Anhui foreign trade development mode shift from the government, foreign trade enterprises. References [1]. LIU Liping. Fortunately, the New Wing. The Path to the Sustainable Development of Foreign Trade in Anhui Province [J]. International Trade, 2010, (6) (in Chinese) [2]. Yellow River, ZHAO Renkang. Low-carbon Economy with International Trade Rules Remodeling [J]. Foreign Affairs Review, 2010, (5) (in Chinese) [3]. ZHUANG Guiyang. Chinese Economic and Low-carbon Development Pathways and Potential Analysis [J]. 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