Research On The Trade Balance Of China And ASEAN

The continued deterioration of the U.S. current account deficit has already caused a new round of global economic imbalances. With the development of global economic, all countries have been involved in this global economic imbalance. As the largest developing country, China has been maintained huge trade surplus, however different from China’s huge trade surplus with Europe and the United States, China has maintained long-standing trade deficit with ASEAN. Southeast Asia as the most potential and vitality region of economic development in the world, has a long history with China in economic and trade exchanges.Since the beginning of the1990s, there was a close relationship between China and ASEAN. After the1997Asian financial crisis, ASEAN got rapid economic recovery; the bilateral trade between China and ASEAN countries has also been sustained and rapid growth. In2002, China and ASEAN signed the Framework Agreement on Comprehensive Economic Cooperation, which lead a sharp rise in the bilateral trade between the two economic communities. In2005, ASEAN has been China’s fifth largest trading partner for13years. By2011, ASEAN became China’s third largest trading partner.With the continuous growth of bilateral trade between China and ASEAN, the trade deficits between China and ASEAN increase year after year. In1994, the trade deficit amounted to$20,000,000, exceeded$20billion mark in2004, in2011, the trade deficit with ASEAN amounted to$22,688,000,000.There are many reasons for the trade imbalance between China and ASEAN, this article focuses on two aspects-economic aspect and political aspect, and made a prediction on the future trend of the trade imbalance between the two economies.This dissertation consists of five parts.Chapter Ⅰ:The first chapter is the introduction. It analysis the background and significance of the dissertation, research situation at home and abroad, research shortcomings and innovation etc.Chapter Ⅱ:The second chapter is the theoretical view of the whole paper. First are the main theories:resource endowments theory, the theory of comparative advantage, the new trade theory and the new-new trade theory. Then are the comments of the re-global-economic-balances.Chapter Ⅲ:The third chapter first reviews the historical trajectory and the development trend of the economic and trade relations between China and ASEAN. Then analysis of its imbalance in terms of total trade between the two economies; followed to analyze the structure of bilateral trade between China and ASEAN trade to claim this imbalance; again, analyze the bilateral trade between China and the main ASEAN’s countries to point out that the bilateral trade imbalance between China and these countries.Chapter Ⅳ:The fourth chapter mainly analysis the reasons of trade imbalances between China and ASEAN and the influence of the trade deficit. Firstly, the differences in resource endowments between China and ASEAN have an influence on the bilateral trade imbalance between the two economies; secondly, through the analysis of intra-industry trade index and the advantage of the different products between China and ASEAN to find the reasons that cause the imbalance; thirdly, from this point of view, the different pace of development between economies and the global transfer of industry have a big influence on the imbalance.; fourthly it claims the influence of RMB exchange rate on the trade balance between China and ASEAN; last but the most important is the influence of the global industry transfer. From the political side, the impact of free trade zone between China and ASEAN made great influences on the bilateral trade imbalances, and the impact of Zero-tariff Policy on the trade deficit In the end it claims the impacts of deficit on China both positive and negative ones.Chapter Ⅴ:Chapter five makes a conclusion of the issues, then simply analysis the future trends of the trade balance between China and ASEAN. It points out that the trade imbalance situation between China and ASEAN will last a long time, both as the global imbalance. Then talk about the ways to ease the trade deficit. In fact China has been in huge trade surplus which cause a lot of international trade frictions and trade protections. So m other word, the trade deficit of ASEAN is not a bad thing for China, it can ease the huge trade surplus of China in some extent, we should have a rational review of the trade imbalance between China an ASEAN.