Analysis Of China’s Export Competitiveness Under The Asymmetric Economic System

Since the1980’s, China’s foreign trade grew sustainedly and rapidly. Affected by the global financial crisis in2008, the total import and export growth rate fell in2008, appeared a negative growth in2009. As recovery of China economic, China import and export trade grew to$3.86676trillion in2012with export reached$2.04894trillion increased7.9percent by year of2011. The export trade of the first8months of2013reached$1.42926trillion with9.2percent increasing to the same time in2012. China foreign trade has increased by dozens of times, and has maintained a steady growth in30years.Because of the outstanding performance of China in the process of global economic downturn, developed countries take protectionist trade policy for China, China is facing increasing external political and economic pressure (Blanchard Olivier,2009;Feldstein,2008), Clamor for the appreciation of the renminbi (Steven Dunaway,2006;Goldstein and Lardy2006;Roubini,2007). When The European and American countries get rid of recession, China will face more severe challenge of foreign trade and the RMB appreciation pressure. Considering China highly dependent External demand and adjustment demand structure difficultly, decline in exports will seriously affect China’s economic growth and employment. Therefore, Under the asymmetrical economic system, reveals the reasons of the continuous improvement of China’s export competitiveness, for accurate assessment of China’s economic growth potential, and maintain the international competitiveness of China has important significance.At first, this paper adopted highly disaggregate HS-22digit commodity trade data between1996to2011to measure China’s and other countries’export sophistication. And then we measure the competitive alternative index relative to the developing countries and developed countries. Our measured results found that China’s export sophistication presents a rising trend, the competitive alternative index relative to the developing countries has a downward trend, compared with the developed countries to have a rising trend. On the basis of competitive alternative index that we measured. At first, we use the time series data of China to empirical test the relationship between competitive alternative index with China export and trade structure, we found that competitive alternative index has obvious effect to the structure of export. So we further using co-integration analysis and error correction model to empirical test the relationship between competitive alternative index with China’s export sophistication. The results show that:There is a long-term stable co-integration correlation between FDL competitive alternative index and export sophistication; FDI promotes China’s export sophistication; competitive alternative index relative to the developing countries has significantly negative correlation with China’s export sophistication; competitive alternative index relative to the developed countries has significantly positive correlation with China’s export sophistication. Generally speaking, under the asymmetrical economic system, with low cost impact of developing countries, China’s export growth is no longer derived from cost advantages relative to the developing countries, but depends on the improvement of technical level of China’s exports, developing countries’s competitive alternative promote upgrade of China’s export technology structure.