China With Japan And Korea Industrial Products Industry Trade Comparison Study

This paper uses Standard International Trade Classification (SITC) to generalize trade types of industrial products between China and Japan or South Korea. This paper counts concrete data of industrial products in the bilateral trade between China and Japan or South Korea, and analyzes the sameness and difference between them. Their sameness is that intra-industry trade level of SITC5-8 industrial products is higher and G-L indices are above 0.55. Vertical intra-industry trade (VIIT) is the main trade form, but horizontal intra-industry trade (HIIT) is becoming more and more important. Their biggest difference is that intra-industry trade levels of SITC5+7 and SITC6+8 industrial products are different, China and Japan bilateral intra-industry trade level of SITC5+7 industrial products is higher, but China and South Korea bilateral intra-industry trade level of SITC5+7 industrial products is higher. This paper displays that China should transform dynamic profit of intra-industry trade into dynamic economic effect. China also should utilize technology overflow effect to adjust Chinese industry construction.