The influence of domestic market barriers on China’s foreign trade competitiveness

Abstract

Since the reform and opening up, with the increasingly opening of the market, China’s companies have also developed to some
extent. The number of domestic companies going global is also growing gradually. Under the efforts of the government and various small
and medium-sized enterprises, China’s economy is growing more and more rapid. However, in the process of economic growth, there are not
only a variety of explicit and implicit international trade barriers, but also exist large and small domestic market barriers. It is mainly reflected in the various restrictions on local enterprises in different provinces to protect local enterprises and improve the local GDP level. Based
on some practices of inter-regional local (regional) protectionism, such as preventing local enterprises from moving across regions, setting
up logistics barriers of foreign trade commodities from other provinces, and market access barriers. The segmentation of commodity market
brought by such local protectionism will undoubtedly destroy the formation of a national unified large market, lead to the distortion of factor
market prices, and further hinder the play of the scale economy effect of each regional market and the formation of comparative advantages,
thus setting up barriers for the adjustment and upgrading of China’s industrial structure.