Research To The Problem Of Trade Imbalance Between China And Japan

The trade between China and Japan has increased at an unprecedented speed since the two countries established diplomatic relation in1972. However, along with the growth of trade between the two countries, the problem of trade imbalance has become more and more serious. According to the statistics of Chinese government, the trade deficit between China and Japan has increased to314.1billion U.S. dollars at the end of2011. And Japan has become the third largest source of foreign trade deficit of China after Taiwan and South Korea. Trade deficit is becoming the most outstanding problem between the two countries; therefore, much attention should be paid to the problem.This paper, based on the theory of international trade, accepts a method of combination of theoretical analysis and empirical analysis. It consists of3parts. The first part talks about the foreword and the theory, including Chapter1and Chapter2, which mentions the methods and ideas of this research, and introduces some fruits of the former researchers about the trade between China and Japan. The second part, from Chapter3to Chapter4, probes into the history and status of trade balance between China and Japan, as well as the issue of trade deficit. Meanwhile, this part studies the reasons causing the huge trade imbalance, including economic specialization, the needs of economic growth, direct investment, trade and politics. The third part, including Chapter5, is about the strategy for reducing the trade gap. The strategies, which are concluded on the part of China, will be elaborated in detail. China should adjust the commodity structure and foreign capital policy. At the same time, the enterprise innovation ability also plays an important role. The content of every chapter is organized as follows:Chapter I:The preface. This chapter introduces the goal and the meaning of this research, the results of some experts at home and abroad, the structure, the difficulties and innovations of this paper.Chapter Ⅱ:The theory. First of all, this paper summarizes the theories on international trade comprising of comparative advantage, the theory of factor endowments, the theory of direct investment and theory of plutonomy.Chapter III:The history、status and main features of the trade deficit between China and Japan. While reviewing the trade history and the present situation of trade imbalance by figure and graph, it also explains the main characteristics of the trade deficit. Finally, the paper analyzes the negative effects of the trade imbalance between China and Japan.Chapter Ⅳ:The main reasons for trade imbalance between China and Japan. This paper analyzes the reasons from the point of economy specialization, competitiveness, direct investment and political factors. The different factor endowment of the two countries is the most basic reason. Meanwhile, although some commodities’ trade competitiveness is being strengthened gradually in China, it also can be concluded from the analysis of the trade competitiveness change between the two countries that the gap of technology and capital is still huge, China’ trade competitiveness is still far behind Japan, therefore, the trade deficit raises gradually accompanying with the increase of trade amount. The influence of direct investment from Japan to China can be summed up in two aspects:direct investment leading to import from Japan and surplus transfer caused by processing trade. Finally, the trade relationship between China and Japan is being affected by bilateral political relations, the United States intervening in a high profile and transferring trade surplus from America to China will affect the trade between China and Japan.Chapter Ⅴ:Suggestions for reducing the trade deficit between China and Japan. Combining of the foregoing analysis, this paper put forward some niche-targeting measures from adjusting import and export commodity structure、rational utilization of Japanese investment in China、establishing independent innovation technology system in our country and improving bilateral trade political environment.