Chinese And Indian Trade, Competition And Cooperation From The Trade Structure

The Sino-lndia diplomatic relation has experienced ups and downs since it was established in 1962, and the trade between the two countries went closely with it, which once was badly retarded and stagnated. In recent years, following the improvement of the diplomatic relationship between China and India, the economic cooperation has accelerated, and trade volume has speed up. Under this condition, some people contribute the development to the warming up of the political relation of the two countries. They believe that since China and India are both developing countries, they have many similarities in economic system, developing goals, etc. They compete with each other in many respects, so mainly trans-industry trade should be a leading part. However, another idea has thought that the two economies are complement each other in many ways, which form the original purpose of trade, thus intra-industry trade has great potential. Actually, according to the reference we have now, the study to Sino-lndia trade is far from enough right now. Therefore, by using the data of recent 15 years, this article attempts to give an all-round positive study to the trade relation between the two countries through analyzing the commodity structure, so as to discuss the feasibility and way of the economic cooperation between them.After a short looking back to the developing track of Sino-lndia trading, this article will give a comprehensive and detailed analysis to the comparative advantage, competition, in the trading between China and India, as well as the condition and potential of the bilateral intra-industry trade. First, on the basis of standard international classification(SITC), the article classified all the commodity into different groups by standards separately form sketchy to detailed, and then systematically calculate the Balassa Revealed Comparative Advantage Index of each group. The result indicates that in both China and India the labor-intensified commodity has the comparative advantage. Therefore the two countries have competition in commodity trades of this type. Meanwhile, by calculating the Trade Specialization Coefficient Index Export Similarity Index, the article also gives a study to the competitiveness and its degree between the two countries. The result shows that the two countries have a high similarity in export structure, so they will meet a fierce competition in the third market. However, there is also some complementariness in the bilateral trade, which shows a intensive trend. In addition, by analyzing the Intra-industry Index, we also know that the intra-industry trade takes up a certain part. Although still not outstanding, it really has great potential because big differences always exist in the entire developing speed of the two economies. At last, the article makes a prospect toward the future by summarizing all the analysis in former chapters, and discussing the questions exist in establishing the bilateral cooperation and its mechanism, as well as offering some advise of promoting a further development.Sino-lndia trade has returned to an accelerating track after experienced the twists and turns. It is true that many problems remain in bilateral trade, such as anti-dumping investigations frequently occurred between the countries. However, they are just minor points which can hardly change the direction of the main stream. Since Sino-lndia relation is now developing to a healthy direction, it is believed that under the joint effort of people in both countries, trade relations, much more progress will be gained gradually in trade field.