Study On Present Situation Of Triangle Trade And Its Influence On China’s Labor Productivity

In the wave of economic globalization and regional economic integration, There is a flourish of intra-product trade within East Asia. Along with the constantly refined intra-products trading division of East Asian economies as well as adjusting technical and economic levels, triangular trade increases significantly. Triangular trade of this study refers to China as an export platform in East Asia, importing components and intermediate products from East Asia developed economies, using its own comparative advantage in labor for further processing and assembly, and finally exporting finished products to Europe and America. This not only affects the trade status of China in East Asia, even worldwide, but also affect China’s own mode of production and economic development. Therefore, this thesis detailed analyses current situation and developing trends of triangular trade and China’s role in the triangular trade.For the economic impact of the triangular trade brought to China is positive or negative, different scholars have different voices. Some people think that more harm than good. This trade pattern would cause lock-in effect of comparative advantage and economic crisis spread risk. Besides, the trade imbalance will lead to more friction, some other people think more good than harm. Through competitiveness effect and technology spillover effect, China will get more advanced digestion and absorption opportunities for technology and win more broad prospects for development. Based on this, the focus of this article examine the impact of trade on Chinese labor productivity triangle:firstly, distinguishing different effects accordance with different skill levels and the scale of the industrial sector; next, exploring different impacts on China labor productivity.The study found that China’s status as a hub in the triangle trade is still significant; Triangular trade trends continue to enhance in the machining industry; triangular trade to enhance Chinese labor productivity tends to decrease with industries of lower skill levels; the effects of parts trade importing from the East Asian economies and manufactured trade exporting to Europe and America are very different to labor productivity.