Question

What are the four types of trade barriers and has China imposed any of these?

Answer 1

The trade barriers mean that the trade restriction imposed by the home government against the foreign country. It is mainly because the government needs to protect the domestic industry of the country. It will increase the price of the imported commodity in the economy. There are four kinds of trade barriers that existed in the economy. That is,

Tariff

The tariff is a tax imposed by the government against the imported commodity. The tariff will make the imported commodity as expensive compared to the locally produced goods and services. Sometimes, the government imposed a tariff to protect the domestic industries from foreign competition.

Recently, the trade war between the US and China and China imposed the tariff of the US imported commodity.

Non-tariff barriers

The non-tariff barriers are the tax imposed by the government other than direct tariff imposition. It includes the regulation on the quality of the imported commodity or in the form of subsidies to local producers or the direct financial incentives to the local industries.

Quota

The quota is the limitation of the quantity of imported commodity over some time. It is used to restrict the imported commodity in the local market and also to protect domestic industries from high technology foreign commodity or competition. The quota is in the form of import licenses.

Voluntary export restraint

This almost similar to a quota. Which means that limit the import of specific commodity from individual countries over some time. This is also referred to as import Visas.