Study On China's Intra-industry Trade Development

The paper analyses China's current intra-industry trade development status based on the general classification of SITC and HS4. It finds out that over forty percent of the total trade turnover happens between intra-industry, which is much better than that in the early reform and open period, and great progress on the commodity structure of trade has been made. But with industry subdividing, the phenomenon of " two-low", low intra-industry trade level and low trade term, comes forth, which tell us that more technology and added value should be contained in China's trade commodity and the industry structure should continue to be improved and deepened. Thus, we can obtain more comparative benefit from intra-industry trade. Moreover, the author has specially researched the high-technology commodities in trade and finds that the foreign-capital companies through their processing trade affects much on China's intra-industry trade level. China and foreign countries' large gap on the benefit from processing trade tells us that it is necessary to improve the core competitive power of our capital and technology intensity commodities to gain more intra-industry trade benefit.In addition, there are two empirical analysis routes in the paper. The first is to try to compound the price rate of export and import commodities with intra-industry trade index to reveal the real development status of China's intra-industry. The other is using statistical instrument mostly with relative coefficient to reveal the factors that affect China's intra-industry trade. It finds that the change on supply and demand, technology advancement, economical liberation and great sum of processing trade affect China's intra-industry trade largely.And the paper tries to give advice for increasing the level of intra-industry trade in our country by implementing proper science and technology policy, trade policy and industry policy, etc. Especially, it presents an opinion that "standard" is also a competitive advantage. It reveals that in order to take advantage in the current "standard" competition, high technology-content standard or proper standard should be constituted.