An Analysis Of The Competitive Situation Of China - India In Sri Lanka 's Economic And Trade

With fast-growing economy,Sri Lanka has become an emerging economies in South Asian in recent years. In 2010-2013,the average annual GDP growth rate was 7.5%. Relying on the important geographical location and the growth ability of strong economic, Sri Lanka becomes the most investment potential country in South Asia and even in Asia countries. Foreign direct investment(including foreign loans) attracted by Sri Lanka in 2013 is $1.42 billion in totally.China and India are close neighbors in Asia and also are the most important two developing countries in the world today. Accompanied by the rise of China and India, the economic competition between the two countries has become a focus of international business in the 21 st century. The Indian Ocean region is currently the world’s new economic growth area and it is also the maritime traffic artery,especially the important component of the Asia-pacific strategy for the two countries. Sri Lanka, as an emerging economic growth in South Asia, is bearing the economic and political competition between the two countries. So it, how to maintain a good competitive advantage in trade areas in Sri Lanka, is a big problem for China. To achieve steady growth,this relates to the immediate interests of the Chinese enterprises close, also relates to the success of China’s strategy in the Indian Ocean.Firstly this article analyzes the overall situation of economic and trade field in Sri Lanka in recent years, and we focus the facts, such as trade, foreign direct investment and project contracting. It is concluded that there is a huge market opportunity in Sri Lanka at present and more and more countries are establishing the economic and trade relationship with Sri Lanka. Then we focused on the history and current situation of the development of economic and trade relations between China and Sri Lanka, and India with Sri Lanka. For China and India, they established the economic and trade relations with Sri Lanka so long ago, especially after the civil war, they both increased the cooperation with Sri Lanka in economic and trade, their competition in all areas also gradually revealed. Later, this article analyze the specific competition situation from three areas, the bilateral trade, direct investment and engineering contracting, between China and India in Sri Lanka and we reveal the advantages and disadvantages in the economic and trade when China and India do business with Sri Lanka through visual means, such as data and form. Finally, combining their competitive situation of economic and trade development in Sri Lanka, we find some existing problem in the development of economy and trade between China and Sri Lanka, and try to give some suggestions.