An Analysis Of The Influence Of China's Intra-Industry Trade And Relevant Policy Suggestions

It has been nearly 30 years after reform and opening up in China, its economy has achieved great progress and in a relative high level, and the foreign trade develops quickly, whose trade value increases steadily and structure optimize continuously. However, the structural contradiction in current economy is remain severe as before, such as the low technique content in export goods, relatively low added-value, the trade conditions need to improve and so on. At the same time, the price scissors between the low added-value and high added-value products in international market widen increasingly, the trade conditions of developing countries deteriorate continuously besides China. As a result, the trade structure is unable to be stable at the present level, and it is inevitable to change. Only by complying itself with the trend of international trade can China form a sustainable development.In such a background, how to build a bright future for foreign trade which not only cause the foreign trade to be an economy growth engine as usual but also obtain the increasing trade benefit is an important research project. This paper analyses the influence of China's intra-industry trade in empirical style on the base of the western countries' research on trade theories and influences. Meanwhile, it provides theoretical reasons for developing foreign trade, readjustment of the industrial structure and advancement of industrial competitiveness through delving into the influence factors of horizontal and vertical intra-industry by subdividing China's Intra-industry Trade. In this paper, intra-industry trade is not only regard as the main ways in international division and coordination of developed countries but also a new form in division and coordination between developed and developing countries. Intra-industry trade can promote the new and main industries to development, encourage mass production and improve consumers' utilities as well as standard of living. This paper do research on theories and influence factors of intra-industry trade in order to explore the objective laws in development of intra-industry trade, combine which with specific Chinese conditions to make significative suggestions for the government in trade, industrial and especially science and technology policy-making, as well as striving to offer useful concepts in promoting trade structure and gaining more trade benefits.