Research On Intra-industry Trade Of Electromechanical Products Between China And The EU

With the development of the international trade, the traditional inter-industry trade has been replaced by intra-industry trade. Intra-industry trade became very important to every country. In 2005, the EU has become the largest partner to China. The scale of trade between China and the EU continues to expand. Enhancing trade of electromechanical products is a part of strategy of most countries. The volume of electromechanical products trade has developed with the growing of Chinese foreign trade. The intra-industry trade of electromechanical between China and the EU is very important to Chinese economy.Firstly, this essay has introduced the current development situation of intra-industry trade of electromechanical products between China and the EU, and has measured the development level of the intra-industry trade between China and the EU by using the measuring method which is introduced before. On that basis, this essay has summarized the essential features of intra-industry trade of electromechanical products between China and the EU. In this part of the essay, it mainly adopted the index method to measure the intra-industry trade level.Secondly, through empirical analysis, this essay has analyzed the main factors.which influenced the development of the intra-industry trade of electromechanical products between China and the EU, including the income per capita of China and the EU, the direct investment of the EU, the Chinese market scale of electromechanical products and the scientific research input of China. On the basis of empirical analysis, it indicates that the factors of the direct investment of the EU in China and the Chinese market scale of electromechanical products have a certain degree of negative effect on the intra-industry trade of electromechanical products between China and the EU while the factor of scientific research input of China plays a positive role. And the factor of the income per capita of China and the EU has no influence with the development of the intra-industry trade between China and the EU.Finally, this essay has proposed some suggestions to development of the intra-industry trade of the electromechanical product between China and The EU. The main proposals include: the government should make several rectifications in policy on using FDI from The EU, and adjust industry policy of electromechanical product to expand the economy of scale. The corporation should pay more attention on the technology and talent introduction. Brand strategy is also an important to the corporation.