A Study On The Coordinated Development Of Economy And Trade Between China And South Asia

At present, the world economy is confronted with the dual pressure of financial crisis and economic development cycle. There are both complementary and competitive between Chinese and South Asia trade. There is a long-term economic and trade relationship between them, the close cultural ties, but the economic and political conflicts and border disputes also exist. The present study, whether in international trade theory, or practice asks for the research of economic and trade relations development among developing countries. The real needs of economic development show that the formation mechanism and development characteristic in economic and trade relations among developing countries is completely different with the developed economies. International trade will play a strong role in the least developed countries to reduce poverty. The economic and trade development among developing countries is significant for the coordinated development of world economy, and expanding the development is conducive to the sustained process of economic growth, the production capacity of import and export and employment and sustainable livelihoods, which has the very obvious need for practice. Strengthening the research in this field will be very good to make up the inadequate research. As the development of foreign trade with the neighboring South Asian economy and China global superpower, it has the practical significance. The research on the economic and trade development between big country and small developing countries, and between big countries, has some typical and representative. This paper attempts to use the research methods of new economic geography theory, and analyse the problem characteristics, influence factors for the trade development between Chinese and South Asian countries, and then puts forward the countermeasures of coordinated development.The economic and trade development between China and South Asia shows obvious regional characteristics that product similarity and complementary feature, obvious imbalance of trade, especially the economic and trade relationship between the countries of South Asia and China due to asymmetric import and export volume and structure are the important performance. The main factors influencing the formation of this situation is on the one hand, the deepening of labor division leads to adjustment of innovation diffusion in the status of international trade has become an important force to promote regional trade development, constantly reshaping the economic and trade relations between China and South Asian; on the other hand, the market obstacles, the lagging interregional infrastructure and the development of political uncertainty among big powers trust are twisted the normal economic and trade development between China and South Asian. Uaing the gravity model analyzes the economic and trade ties between Chinese and South Asian. The results show that among the trade relations with China, India is the best, Nepal, Sri Lanka, followed by Pakistan and Bangladesh.The coordinated development of trade between China and South Asia need from promoting the development of border trade to strengthen the interregional trade links, vigorously developing the overland trade routes between China and South Asia, perfecting interregional trade policies to reduce the transaction cost, the optimization of interregional trade mode to realize the complementary advantages, the political basis interregional coordination of Sino Indian political relations in many aspects, improving the trade cooperation mechanism between China and South Asia.