Intra-production Trade Patterns Of East Asian Region And China's Countermeasures

Since 1980s especially from1990s, East Asian trade pattern has been unprecedented changed. The traditional inter-industry, intra-industry trade could not explain it well, in fact the latest emerging trade pattern in East Asia that based on division of the production links is intra-production trade pattern. At this point we can put the post-war trade patterns in East Asia has been divided into three phases: the post-war era -1960s inter-industry trade patterns; 1970s-1990s intra-industry trade patterns; since 1990s, intra-production trade patterns.The raise of intra-production trade in East Asia makes intraregional trade in East Asia, have some new features. First of all, intra-production has based on division of a decentralized production, therefore, a product-oriented trade pattern of the region, bound to spring in a large number of components import and export, which undoubtedly make East Asia intra-regional trade increase substantially. However, this increase in the ratio of integration is largely due to an increase in imports within the region, while the expansion of intraregional exports are lagging behind, which led to the East Asian region, imports and exports of "non-symmetry" with the result that the regions become more dependent on outside the region's trade exports as a source of vitality of its growth, and this dependence in the past 10 years has been the case.With regard to the rise of East Asian intra-production trade, the reasons for this view have three main points: first, the East Asia trade and investment liberalization. Since the 1980s to the early 1990s, East Asia had a trend of economic liberalization, which Laid the foundation of the East Asian intra-production trade patterns; Second, technological advances led to further separation of the production process. "Modular" mode of production as the value chain adds new natural breakpoint, making production value chain can be decomposed into a series of discrete stages of production, making the product modular design, production outsourcing and in accordance with the principle of lowest cost in the whole region and even the world're-layout becomes more feasible, but also makes intra-production has become possible; Third, changes in production organization. Advances in technology not only led to the production of separability, but also led to changes in production organization, the traditional vertically integrated production of large enterprises began to be replaced by production networks.Pattern of trade within production in East Asia has been running mainly on the benefit of three operating mechanism: First, production networks and vertical professional development; second, decentralized production of border control and logistics services; third, the East Asian production system of concentration and dispersion mechanism. It is three kinds of mechanisms to ensure the East Asian intra-production trade patterns effectively run. With intra-production trade pattern continuous deepen and developed , East Asia also emerged a new change, the formation of East Asia "New triangular trade" pattern of East Asia, China has become the product assembly center and an export platform. Although China has been actively participating in the process of East Asian production networks, and gained a huge development. However, in the present, China is still in the bottom of the product value chain, our development is based on low-cost raw materials and labor costs formed the basis of high resource, high-energy consumption characteristics of the investment, export-driven industrial and economic development model. That is not sustainable. Therefore, China must change the position of intra-production specialization in East Asia's, and actively promote the industry to upgrade and maintain the economy's sustainable development.