The Interdependence Study Of Sino-US Trade

The United States has always been one of the largest China's trading partners. The economic structures of China and the United States are complementary, So Sino-US trade plays an important role in promoting China's economic development. This paper is a study of Sino-US interdependence of trade. The literatures about foreign trade are abundant. They mainly research from three perspectives including the complementarity of trade, competition and trade benefits, but the research of trade benefits is not systematic and intensive.On the basis of summing up the literature, this paper analyzed fundamental situation of Sino-US trade. With the data of trade and other relevant data between 1992 and 2007, the paper did a intensive study on the trade interdependence from three perspectives including the complementarity of trade, competition and trade benefits. Through the research, the paper got the conclusion that the current interdependence of Sino-US trade is strong, but there is a trend of decrease. Sino-US trade brings benefits to both countries. In the same time, it also found that while China's manufacturing industry developed rapidly in recent years, now they have to face with many problems, including that labor costs are rising fast, most products are low value-added, R&D investment is not enough and other issues. These problem need to be solved urgently. China's economy is in the process of transition, the industrial structure needs to be adjusted. There are many innovative research methods in this paper. In addition to using the traditional index, such as combination of trade, revealed comparative advantage, similarity of export product, complementarity of trade, the net trade ratio and terms of trade and so on, the paper but also did an in-depth on the structure of trade comparison between the United States and China. When analyzing the Sino-US trade benefits, it also added national income per capita, consumption of resources and the profits of multinational corporations. The paper did a more comprehensive study on the interdependence of Sino-US trade. This research can supply policy recommendations on the development of Sino-US trade and minimizing the negative impact of the United States sub-loan crisis.