Intra-industry Trade And The International Trade Competitiveness Of China

Along with China's entry into WTO, there are more and more trade and economic cooperation with countries all over the world. The intra-industry trade is becoming increasingly important in foreign trade of China. We need to develop intra-industry trade to promote trade competitiveness. Trade competitiveness is equal to the industry competitiveness in international market.The marginal push force for economic development caused by the only production element quantity is decreasing because of the existence of the rule of decreasing marginal return. China must make the corresponding adjustment in the manner and policy guidance of participation in the international division of labor and trade under the global economic integration and international industrial adjustment background. The key to the continuous stable development of our country's economy is the realization of industry upgrading and enhancement of the industrial international competitiveness. There is limitation if we persist the comparative advantage in the international division of labor and trade guidance. If we stereotypically follow the traditional pattern of labor and trade, we still could gain the comparative advantage. But the purely comparative advantage guidance of international division of labor system has the possibility to put China which has relatively cheap resources to the world's lowest level of the industry chain, and can also enlarge the relative disparity with the foreign economic level. The related characteristics of intra-industry trade can do more to the industry competitiveness. Intra-industry trade and industry international competitiveness has the relationship of mutual influence and promotion. In reality, intra-industry trade gets more and more portion in the international trade. Therefore, we need to understand the importance and feasibility of promotion international industry competitiveness from the trade angle. It is one of the condition to guarantee the stable and continuous fast growth of Chinese economy. This essay propose to develop intra-industry trade which has the characteristics of competitive advantage in order to optimize industrial structure and update the competitiveness of industrial organization, and finally update industrial international competitiveness and trade competitiveness.