The Study Of Intra-industrial Trade In The Manufacturing Sector Between China And Germany

The development of intra-industry trade is the main trend of international trade at the moment, it is worthy of being studied for it’s changing the traditional trade model. As the European Union’s largest economy, Germany is a trading power ever since the industrial revolution, its achievements in manufacturing sector have attracted attention all over the world. China and Germany established diplomatic relationship in1972, but Germany has always been China’s biggest trading partner in Europe since1975, so the importance of the bilateral trading relationship for both of them is self-evident. Sino-German trade had passed through several different stages, now it is heading for intra-industry trade, which is especially obvious in the manufacturing industry. The development of intra-industry trade in manufacturing sector between China and Germany is good for China capitalizing on economies of scale, technology spillovers, human capital formation and business innovation to improve the overall level of the industry gradually. It contributes to product diversification and differentiation too. Therefore, to study the intra-industry trade in the manufacturing sector between the two countries is particularly necessary.This article will be based on the intra-industry trade theory, at the same time, combining theory with practice, to analyze the current situation of intra-industry trade in the manufacturing sector between China and Germany. I hope to get insight into the factors that impact the intra-industry trade of manufacturing products for the two countries, so I can give a few references on how to develop Sino-German international trade accordingly. The article will be done step by step. First of all, it will be a brief overview on the intra-industry trade studies, including those accomplishments of the abroad and home scholars’. Secondly, I will descript the quo-status of Sino-German international trade. Again, with the statistical data, it can be seen that the current international trade between the two countries is concentrated in the manufacturing sector, also, with the data, it is possible for me to use statistical indicator (G-L index) to gauge the intra-industry trade level in the manufacturing industry between China and Germany, and study the factors that affecting its development. Finally, as long as I understand the main trend of the international trade and those affecting factors, I can put forward some suggestion in order to promote the trade development between the two countries.