Economy, Business And Markets
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Lessons to Learn From China in Supporting Domestic Production

The Chinese believe demand for foreign products and foreign currency are two sides of the same coin, therefore they have opted for gradually raising the value of foreign currencies instead of putting up the tariff wall
China believes that increasing import tariffs or banning imports are ineffective policies, so they opted for a different strategy by replacing tariff policy with currency policy.China believes that increasing import tariffs or banning imports are ineffective policies, so they opted for a different strategy by replacing tariff policy with currency policy.
Currency policy should be backed by a monetary policy that keeps the inflation rate at very low levels of below 5%. In doing so, the cost of local production decreases, competiveness of domestic products improves and manufacturers profit from exports

In pursuit of the New Year’s national goal, “Support for Iranian Products”, the government has banned the purchase of foreign-made products that are domestically produced for all government agencies, public institutions and non-departmental public organizations. 
But how successful might the government be in achieving this goal?
Move the country forward on a different, more propitious path with regard to this year’s national goal, Ali Mirzakhani, editor-in-chief of Persian economic daily Donya-e-Eqtesad, says in an editorial published recently. Excerpts from the article follow:
Public organizations traditionally adopt one of the two inefficient methods in the face of yearly goals: Officials issue a set of directives and schedule pertinent conferences; banners will pop up all over the place within a couple of weeks. 

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