An Analysis On The Trade In Machinery And Electrical Products Between China And ASEAN

At present, machinery and electrical products have replaced the traditional export products such as textile, clothing and footwear in the trade between China and ASEAN as the largest bilateral trade products. This paper attempts to analyze the overall level of mechanical and electrical products between China and ASEAN countries by using theoretical and empirical research methods with the help of existing statistical data.To explain why the machinery and electrical products trade between China and ASEAN countries develop so rapidly, this paper concludes that economies of scale, geographical advantages, the establishment of free trade zone, the reduction of tariffs and comparative advantage are contributing factors in bilateral trade; while similar industrial structure and lower degree of trade dependency are restricting factors.The conclusion of this paper: machinery and electrical products of China and the ASEAN countries are both complementary and competitive. In general, Chinese electromechanical products are less competitive. Finally, some policy suggestions are presented based on the result of the research.