Research On Sino-US Intra-product Trade And Benefits Distribution

China and America have established diplomatic relations for more than thirty years, and Sino-US trade has developed rapidly. In2010, China became US’s second largest trading partner, so did America. The rapid development of Sino-US trade is inseparable from global Intra-product division of labor and trade, which as a new form in the international division of labor, dominates Sino-US trade. Sino-US intra-product trade has promoted the economic growth in eastern coastal areas of China and created an opportunity for China’s integration into the new international division of labor. For a long time in the future, Sino-US intra-product trade will continue to be the main forms of Sino-US trade. Many factors affect Sino-US intra-product trade, mainly including the difference between the China’s and America’s per-capita GDP, the US and East Asia direct investment in China, economies of scale and the per capita GDP, of which the East Asia direct investment in China and economies of scale play a vital role. Under the influence of net terms of Sino-US trade, the condition of Sino-US intra-product trade has not been improved significantly; under the influence of import and export of Sino-US processing trade, the intra-product trade of Sino-US processing trade has not reached a high level; under the influence of China’s position in the production network in East Asia and foreign direct investment, the level of intra-product trade of China’s exports to the United States added value is lower than that of China’s foreign intra-product trade. There exists the imbalance of distribution of interests in Sino-US intro-product trade. From the perspective of static trade interests, the Sino-US trade surplus has been expanded rapidly, and China’s foreign exchange reserves have been increased sharply and relatively China has won more trade interests. From the perspective of dynamic trade interests, wage level in China’s manufacturing industry has been increased constantly. Compared with America, China has only gained a small amount of trade interests. China should properly handle a series of problem arising during the process of Sino-US intra-product trade and the distribution of interests and continually promote Sino-US intra-product division to shift from low value-added production processes to the links of high value-added research and development and marketing to win more trade interests and ultimately realize Sino-US Trade healthy development and upgrade China’s industrial structure.The dissertation contains seven chapters. The first chapter is introduction. In this chapter, background of the topic and the purpose of research and the theoretical and practical significance is elaborated, related literature is reviewed, the structure arrangement and research method is clarified, and the innovation and shortness is given.The second chapter is the theoretical basis of Intra-product division of labor and trade. On the basis of the traditional comparative advantage and economies of scale, international division of labor has deepened into Intra-product division of labor. As a new form of international division of labor, the Intra-product division of labor has impacted a great influence on the international trade and China’s economy with its profound meaning both theoretically and practically. Intra-product division of labor bears the common forms of the traditional division of labor while with its diversified form of realization. Also, Processing Trade, Intra-mediate Trade, and Intra-product Trade, as the practical form of the Intra-product division of labor have become the main way of global trade today. With the strengthening of the economic globalization and the gradual promotion of the global strategies of the multinational corporations, the proportion of trade within products has been increased step by step, and the relationship among distinct countries has become closer, more and more developing countries have been figured in the global production, as a result, a new structure of the world economy has come into being.The third chapter is the overview of Sino-US Trade. Sino-US Trade have developed into the second trading partner for each other from scratch. The trading relationship between Sino-US has the characteristics that the trading subject is foreign investment enterprises, the main products are manufactured goods and the main trading method is processing trading. As the reinforcement of the direct-investment from America to China in recent years, the export from China to America has kept increasing, and this caused Imbalance between Sino-US Trade, The Imbalance of Sino-US Trade becomes a critical problem that Sino-US Trade facing. The main factors are the Export Restraints policy of America; Statistical Caliber is different between two countries, the Exchange rate of RMB and Transit Trade and so on. The way to handle this Imbalance is an important indicator for the proceeding of Sino-US Trade. This text referred the sentence:In the US diplomatic history, there is none of the diplomatic policies can guide the development of the relationship between Sino-US Trade so broadly and long-ranged as well as be supported by as much people as the consensus of Sino-US diplomatic relationship establishment did. There is a unique opportunity among the most developed and fastest developing countries that is to make contribution to the world through cooperation with each other regarding to the foresight and sagacity that we possess.The fourth charter is The condition of Sino-US intra-product trade-as the export of manufacturing industry to US. The condition of Sino-US intra-product trade shows truly the current situation of Sino-US intra-product trade and to better the condition of China’s intra-product trade against US by the comparative advantage of cheap labor and natural resources. With the rapid growth of China’s Processing trade, the volume of Sino-US processing trade has witnessed very fast increase likewise. According to the estimate result of Sino-US intra-product trade by processing trade, the overall level of Sino-US intra-product division of labor is lower than that of China’s processing trade. America has always kept a relatively low percentage of processing trade in its export to China, while that of China to the US has been very high all along. Processing trade is the leading role of Sino-US trade, while enterprises with foreign direct investment have played a crucial part in China’s export of processing trade. Therefore, the influence of foreign investment enterprises must be eliminated when analyzing the Sino-US intra-product trade from the aspect of processing trade.The level of intra-product division of labor in exports to the United States in most of the eight sectors in China’s manufacturing industry is higher than that of the overall intra-product division of labor in China’s exports of manufacturing industry. On the whole, the level of intra-product trade in China’s exports of manufacturing industry to the United States has been upgraded rapidly, which is faster than that of the intra-product trade in China’s exports of manufacturing industry. Among the eight sectors of China’s manufacturing industry, the VSS value of exports to the United States of the sectors of machinery and equipment manufacturing industry, manufacturing of metal products and non-metallic mineral products industry is higher than that of the overall exports of manufacturing industry. In all the sectors of manufacturing industry, the VSS value of exports to the United States of machinery and equipment manufacturing industry has been much higher than that of the overall exports of manufacturing industry.The fifth chapter is The empirical analysis on the related factors of sino-us intra-product trade. The three factors of economic, physical, social have an effect on Intra-product trade. The economic factors contain Comparative advantage, economies of scale and transaction costs; the physical factors consist of the characteristics of industries, the productive structure and the differences among the different production processes; the social factors mainly include industrial policy, the strategy of foreign trade and the features of culture. The developing process of Sino-US intra-product trade, China’s GDP, the per capital GDP in China, the absolute value of the difference between the per capita GDP in China and US, American foreign direct investment towards China, ten of East Asian countries foreign direct investment to China, the average tariff level of China, economies of scale and so on,all of them affect the development Sino-US intra-product trade. Among them, there is a strong complementarity in the Sino-US economic structure, which gives great impetus to the rapid expansion of Sion-US trade. The US and East Asia direct investment in China play the leading role in the Sion-US trade. Built on the basis of scale economy of the Chinese labor advantage play an important role on Sino-US intra-product trade. The raising of china’s purchasing power has a positive impact on the Sino-US intra-product trade. The descending of the average of china’s Tariffs is not obvious to the Sino-US intra-product trade. The thickness of Sino-US market approach is disadvantageous to the development of the Sino-US intra-product trade.The six chapter is The empirical analysis on Sino-US intra-product trade and Benefits Distribution. With the deepening of intra-product division of labor, the connotation of trade interests has been extended gradually from traditional trade interests distribution to intra-product trade interests distribution. The balance of trade indicates that China has gained quantitative advantage in Sino-US intra-product trade and China has obtained a lot of trading interest both at macro-level and at micro-level. The deterioration of the condition of China’s net export trade to the US and the improvement of that of income trade indicate that it really lacks the theoretical basis to judge China’s gains and losses of its trade to the US sheer by the import and export prices and quantities. The condition of net trade and income trade always present a totally opposite trend, for the condition of net trade is exposed easily to the import and export prices while that of income trade is subjected to the fluctuations of export quantities.By means of the Input-output table, we can work out the added value, the proportion of added value and the level of intra-product division of labor of the export products of China’s manufacturing industry to the US. Both the added value and the level of intra-product division of labor have experienced improvement on the whole, and the proportion of added value has maintained around40%throughout. In regard of distinct divisions, the added value and the level of intra-product division of labor of mechanical equipment manufacturing industry and other manufacturing industries gained the fastest growth. The situation above fundamentally is consistent with the status of the current global division of labor of the value chain and Sino-US trade. On one hand, foreign investment enterprises have a large proportion in the added value of China’s exports to the United States; on the other hand, accessories or intermediate products have a large proportion in Chinese exports. The results of empirical analysis indicate that China has gained a considerable amount of static trading interests and the level of Sino-US intra-product trade correlates with balance of trade positively; from the perspective of dynamic trading interests, Wages raise of the manufacturing sector is considerably slower than the growth in Sino-US trade balance and China has got a few dynamic trading interests.Chapter seven is the conclusion and policies. The trading relationship between Sino-US has the characteristics that the trading subject is foreign investment enterprises, the main products are manufactured goods and the main trading method is processing trading. But the level of the Sino-US intra-product trade is lower than the level of china foreign intra-production trade. China takes on the situation of the advantage of the quantity and the quality in an inferior position in the benefits distribution from Sino-US intra-product trade. The "triangular trade" mode among China, East Asia and the US takes a leading role in the Sino-US intra-product trade. In the empirical research, the Sino-US intra-product trade has positive correlation with the US and East Asia direct investment in China, the difference between the China’s and America’s per-capita GDP, the average tariff level of China, economies of scale and the per capita GDP. The GDP of China is in negative correlation to the Sino-US intra-product trade. China should participate actively in the Intra-product division of labor and trade, improve the level of the Sino-US intra-product trade, adjust the policies of foreign direct investment and enlarge the strength of foreign direct investment, take some positive actions to the development of processing trade strategy. If China can do these well, it can gradually improve the interests of Intra-product trade to the US.