The Study Of International Trade Interdependence Between China And Japan

In recent years, with the deepening of China’s economic reforms, China’s foreigntrade continued to strengthen and its position in international trade has been improved,which made China’s good trade has been ranked first in the world, surpassed Japan tobecome the world’s second largest economy. Japan, one of the countries which hasclose trade relationships with China, has a increasingly frequent trade with China. Ourquestions are how closely is the trade between the two countries, how is the processof the development of, and what is the cause of this kind of close relationship. Manypeople think that the Japanese has developed economy and advanced technology. Inthe contrary, China’s economy is relatively backward but China is rich in naturalresources and labor resources. In the consequence, China highly depends on Japanesecapital and technology-intensive industries, while Japan’s dependence on China’slabor and resource-intensive industries is higher. There are also some scholarsillustrate the interdependence between the two countries by theory. However Throughempirical analysis it can be better explained whether it is true. In this paper, we willexplore the dependence problems between China and Japan use the foreign importand export statistics of Japan. Then we can analyze the trend of this dependence andfind out the factors which affect trade changes. We can propose appropriate policyrecommendations on China’s foreign trade by the results of the analysis. It hasimportant practical significance to enhance the strength of China’s international trade,improve the level of China’s economy.Firstly, we describe the research background and significance of the topic byanalyzing trade between China and Japan. The trade relation between China and Japanhas a long history. The more fierce the trade is,the deeper the effects are. However inrecent years, trade frictions and ethnic disputes between China and Japan haveintensified, and as a result, the relationship between the two countries becometighter. To solve the problem how the trade relations are in such complex background,to study the interdependence has significance importance. By listing domestic andforeign literature，we introduce the origin and development of trade dependence andillustrate the results of those studies.Secondly，we present the research methods and research direction of this article onthe basis of original findings. We present some classic theories such absolutecomparative advantage, comparative advantage, trade dependence and so on. We alsopresent the total dependence on trade and industry trade dependence and other related definitions as required in this paper. Then we will do the research and analysis by themethod of descriptive statistical analysis.First，we describe and improve the data selected for research. To solve Japan’s tradedependence on China，we select10more concentrated industries except the total tradefrom Japan’s exports and imports to China. Common characteristics of theseindustries are large amounts of trade and more complete data content. In order tomake the findings more accurate and persuasive, we selected these10sectors of datafrom the "Statistical Yearbook of Japan" from1989to2012.Due to the time span largeand the data projects are still incomplete entries, we complete the data in accordancewith those we have had, and consummate them with the help of Eviews. After thecompletion of data processing, we compare the dependence using the method ofstatistical analysis. Firstly, by analyzing the total import, the total export and the totaltrade, we find out that Japan’s dependence on China’s import trade is greater thanexport. Then by compare the10industries data, we find out that apan’s export andimport trade in both inputs dependence on coal and crude oil in addition to the twoindustries declined, the dependence of other industries have different levels ofimprovement. But the industry structures of import and export have large differences.Export trade based on capital and technology-intensive products，while import mostlydepends on labor and resource-intensive products.Then we will analyze the factors which affect the trade between Japan and China,including Exchange rate factors and non-exchange factors.And the non-exchangefactors contain the Industrial structure and complementarity and the Technicalprogress this two impacts. Analysis concluded that non-exchange factor is afundamental factor in foreign trade. While, Exchange rate, though not decisive, butalso has a certain impact for the development of trade.In the final chapter, we get the conclusion and some advises. We summarize theresults of the analysis and research before，and based on the result，put forwardrelevant policy recommendations on key aspects of the proposed adjustment ofindustrial structure, the advances in knowledge and technology, the introduction andmanagement of foreign direct investment, as well as the financial industry theproposed development and other relevant policies. We hope it could be helpful for thedevelopment of the deeping of the trade between China and Japan.