Analysis On Sino-US Trade Tendency Through Their Intra-Industry Trade

Intra-industry trade have emerged since the end of World War II, with the development of international trade, Intra-industry trade gradually become a new international trade pattern. In recent years, intra-industry trade has become a hot research field. This is because the development of intra-industry trade increasingly wide spreads. Now intra-industry trade has not only confined to the developed countries, it also has become increasingly important in developing countries.China and the United States, as the largest developing country and the most developed countries in Asia-Pacific region, their bilateral trade is not only their economic growth engine, but also has a significant impact to the world economy. To Sino-US trade, We should not overlook inter-industry competition, based on the comparative advantage theory enshrined in resource endowment, also have to pay close attention to the expansion of intra-industry trade which will be the main trend to enhance international trade.This paper, using the United Nations database on trade, the Chinese Customs Statistics Yearbooks and the United States Bureau of Statistics published data, empirically analyses intra-industry trade of Sino-US with Grubel-Lloyd indicators and Greenaway index. Through the analysis of multiple perspectives, we receive characteristics and development trends of Sino-US intra-industry trade, subsequently to reflect the tendency of Sino-US intra-industry trade from the empirical perspective. Through much empirical analysis, the conclusions are: Sino-US intra-industry trade index is generally low, inter-industry trade is the basic pattern of bilateral trade. From the industry structure, the main support of intra-industry trade is the industrial products. From the trade patterns, the main features are not the horizontal intra-industry trade, but the vertical intra-industry trade differentiated with the price and quality. The latter accounts for the leading status in intra-industry trade. And the trend has been strengthened in recent years. Within the factors which impact the Sino-US intra-industry trade index, the rapid development of processing trade aroused from foreign direct investment plays a key role. Finally based on the above conclusions, we seek to the action plan to upgrade our international trade patterns and international trade competitiveness primarily from the government, industries and enterprises.