Yunnan Province To Participate In Gms Economic Trade Cooperation Basis And Its Benefits

Currently, economic globalization is becoming faster and faster, the economicties between countries are more closely than ever before. In order to gain greatereconomic benefits, many countries have established regional economic cooperation tostrengthen economic ties between them. However, the Lancang-Mekong Sub-regionEconomic Cooperation is the case apparently. Yunnan Province is the bridgehead ofthe Lancang-Mekong Sub-region Economic Cooperation in China, the trade betweenYunnan Province and sub-regional countries develops rapidly since the Lancang-Mekong Sub-region Economic Cooperation has been established, which promotes theeconomic growth and optimizes the industrial structure of Yunnan Province.There are many research results about the cause of foreign trade and its interestin the domestic or abroad, these research results generally agree that the foreign trademust be based on the real economic condition, and foreign trade can promoteeconomic growth and optimize the industrial structure.In this paper, the foreign trade between Yunnan Province and GMS countries isconsidered as the object of study. The paper first studied economic conditions andinterests of foreign trade between Yunnan Province and GMS countries, the researchresults show that there are some economic conditions to promote bilateral tradedevelopment between Yunnan Province and GMS countries: First, there is acomparative advantage in different industries between Yunnan Province and GMScountries. Second, there is a strong trade complementarity between Yunnan Provinceand GMS countries, which is the most important driver factor of bilateral tradedevelopment. Third, there are rising levels of economic openness in Yunnan Provinceand GMS countries, which also contribute to the rapid development of bilateral trade. Fourth, rapid economic growth of Yunnan Province and GMS countries is also amajor motivation to the development of bilateral trade. Meanwhile, there are hugetrade benefits between Yunnan Province and GMS countries: first, foreign tradecontributes significantly to the economic development of Yunnan Province. Second,foreign trade can optimize industrial structure of Yunnan Province.Finally, the paper analyzes trade problems between Yunnan Province and GMScountries, then propose policy recommendations. Among them, the policyrecommendations of settlement currency: First, China should sign bilateral currencyswap agreement with sub-regional countries actively. Second, the issue of RMBpositions should be resolve prudently. Third, it is important to establish a soundmonitoring system for cross-border movement of RMB. Fourth, it is important toestablish bank settlement system. The policy recommendations of monetary andfinancial cooperation: First, accelerating the innovation of financial products. SecondYunnan Province should participate in Asian bond market actively. Third, Kunmingcity should be built into a regional financial center. Fourth, it is important to establishregional financial stability system. The policy recommendations of North-SouthEconomic Corridor: First, Yunnan Province should accelerate the construction ofindustrial clusters on the basis of North-South Economic Corridor. Second, YunnanProvince should accelerate the construction of Kunming regional internationalmetropolis on the basis of North-South Economic Corridor. Third, Yunnan Provinceshould adjust the production layouts actively. The policy recommendations of China-ASEAN Free Trade Area: First, Yunnan Province should optimize the trade productstructure, and develop key industries. Second, Yunnan Province should establishefficient capital markets, and improve investment and financing capacity.