The Theory And Empirical Research Of Influence Mechanism Of Intra Industry Trade On The Sino-US Trade Friction

With the deepening of economic globalization, the Sino-US trade is gettingmore and more closed. However, in recent years, with the continuous expansion ofthe scale of Sino-US trade, bilateral trade friction has taken a growing trend. Fromthe two respective foreign trade development, it can be seen that the trade frictionbetween China and India or Japan which have higher intra-industry trade level isrelatively mild, and with the same there has few trade friction between USA and EUwhich also have a high intra-industry level. This seems to imply that intra industrytrade has some correlation with trade friction. Probing into the relationship betweenintra industry and the Sino-US trade friction will provide a new solving way.Firstly this paper explained the causes and features of intra-industry and thetypes and causes of trade friction, on the basis the effects mechanism of intra industry on trade friction has been discussed. Secondly summarize the developmentof Sino-US intra industry trade and the characteristic of Sino-US trade friction,combined with the current trade situation, test the reverse relationship between intraindustry and the Sino-US trade friction using statistical analysis and model testmethod. Finally, according to the inverse relationship, propose countermeasures toalleviate the Sino-US trade friction based on intra industry trade angle.The research shows that, first, the intra industry trade effect on the tradefriction through three aspects, one is the intra industry trade helps to reduce the tradeadjustment cost, the two is to contribute to balance the distribution of the tradebenefits, the three if to help to change the trade competitive advantage. All the threeeffects can help to reduce the trade friction; second, the development of intra-industry trade level and trade friction has a reverse relationship. One of the Sino-USfrequent trade friction reasons is the low level of the overall intra industry trade, andit is more easily to lead to trade friction on the industry and products which have arelatively low level of intra industry. This is because the low level industry will leadto higher trade adjustment cost, trade interests are not balanced, and trade advantages defects. Therefore this paper proposed countermeasures to alleviate thetrade friction based on intra industry trade. The specific recommendations includebreed difference advantage, contractible income gap as well as the development ofeconomy of sale.