Research On Sino-Indian Trade Potential And Trends

As the world’s two biggest developing country, China and India is not only an important country in Asia, even play an important role in the development of the global economy. Therefore, the economic and trade relations between the two countries have a major impact to the economic and trade cooperation in the Asia‐Pacific, and even the whole world. Especially China’s accession to the WTO in2002, the two countriesˊcooperation areas also unprecedented expansion, bilateral trade is growing rapidly. In2010, while India has also become an important market of China’s overseas project contracting and investment.Based on such a rapid development, this paper mainly analyze the China‐Indian trade issues.This article mainly research the trade between china and India from the1990s, analysis the present situation and the existing problems in the development of the trade between china and India, explore potential trade and puts forward relevant policy Suggestions. So the bilateral trade between China and India can continued healthily.Specifically, this article in the first chapter is the introduction, the paper introduced the research background and significance, reviewed domestic and foreign related research, and the whole framework of the paper has carried on the summary. The second chapter said the basic theory of trade, this paper respectively introduces the classical international trade theory, new classical international trade theory and modern international trade theory, the theory and the related theory of trade through the whole article. The third chapter studies on the current situation of China and India trade, firstly discusses the development of China‐India trade since the1990s, then studies China‐Indian bilateral trade relations from degree of trade integration，competitive and complementary between the two countries，and analysis the characteristics of the China‐Indian trade dependence is asymmetrical; In addition, China’s export commodity structure change gradually, the China‐Indian trade competitive gradually weakened; Finally, China and India have trade complementarities in many areas, but the two sides did not make full use of its comparative advantage. In this paper, the fourth chapter mainly analyzes the existing problems in the development of China‐India trade, mainly includes the India‐China trade deficit with China, serious trade protectionism and low degree of political trust between China and India. In the above, the chapter v of this article put forward the development of china‐India trade mainly focused on the potential field that has high complementary, for example agricultural products, fuel and mineral areas, transportation services, tourism services, etc., and puts forward relevant policy Suggestions, including establishing a free trade area, improve the service trade, mutual understanding between the two countries and strengthen the complementarities of the two countries trade, expand the intra‐industry trade between china and India, broadening the ways and forms of investment in India, realize the diversification and differentiation of export products, establishment the mechanism of trade friction to solve and so on.This article believes that China and India on many products have strong trade complementarities, bilateral trade development potential is huge, as long as the two countries clearly recognizing the current situation of the bilateral trade, settle well problems of bilateral trade, China’s and India’s bilateral trade will continue to the healthy and orderly development.