An Analysis On The Causes Of Sino-US Trade Surplus In The Perspective Of Intra-product Specialization

Since the establishment of diplomatic ties between China and America in1979,the Sino-US trade have developed rapidly.In1993,China had trade surplus with America for the first time. From then on, this condition has continued to now. Trade friction in Sino-US has intensified gradually. Since2008, the financial crisis has burned out in the whole world.The tension developed in trade relationship between China and the United States, which is caused by widening trade surplus in Sino-American. RMB has a great rising pressure. However, the rise in RMB doesn’t bring out the decrease in Sino-US trade surplus. According to Un Comtrade database show, China’s trade surplus to the United States was$181billion in2010.So, a research on the cause of Sino-US trade surplus becomes very crucial.This paper uses the method of theory with practice, from the normative analysis and empirical analysis methods to analyze the cause of Sino-US trade. From the view of normative analysis, we study the total trade situations and each industries trade situations from China to US and main trade partners in East Asia. From the view of empirical analysis, we research the trade in parts between China and main trade partners, which is based on the intra-product perspective, using the panel data model to analyze. The result shows that there is a long-term cointegration relationship between intra-product specialization and Sino-US trade surplus. Trade in parts between China and other trade partners have an positive and significant influence on Sino-US trade surplus, and RMB exchange rate hasn’t an significant influence on Sino-US trade surplus. Besides considering different industries, not all the industries have surplus with America. It can be found that high-tech sectors, such as aviation spacecraft manufacture,and medical, precision instruments and optical instruments have trade deficit with America. So, if Sino-American can enhance the intra-product trade, the trade surplus can be reduced.