Study On Competition And Complementarity Of Trade Between China And Russia

China and Russia are important trading partners, and the two countries are also the two largest economies in of the newly industrialized countries. Mutual trade between the two countries is growing and Russia is the fourth Chinese export target countries which just after Japan. While from the point of view of imports field, Russia is China’s third largest imports target. In the eighth China-Russia Business Summit Forum, China vice Premier Wang Yang pointed out that by the year 2020, total bilateral trade between china and Russia will exceed 200 billion.This paper analyzes the China and Russia trade competition and complementarity as well as bilateral trade problems between China and Russia. In the analysis of competitive and complementary trade between China and Russia, this paper establishes a bilateral state coordinates, abscissa represents the competitive of bilateral trade, its value is represented by the similarity of export trade between China and Russia; ordinate representative China-Russian trade complementarity by the comprehensive trade complementarity index. Based on certain assumptions the index value is determined by two factors of the intra-industry trade balance in the two countries and the intra-industry trade proportion of all bilateral trade data.The coordinate displays that the trade competitiveness between China and Russia continue to decline, the bilateral trade competitiveness index goes down from 39.36 in 2004 to 30.5 in 2013.At the same time the trade complementarity of the two country is going up, and the comprehensive trade complementarity index rose from 23.52 to 51.24 in 2013, so the whole of China and Russia foreign trade development towards less confrontation and more complementary direction.In the qualitative analysis part this paper points out the specific factors that obstruction the development of bilateral trade as following. The first factor is the difference in economic field, politics field and cultural field between China and Russia.The second one is "gray customs clearance" issue which result from complicated customs clearance procedures. The third one is the bilateral trade structure and product quality problem. The firth one is the deficiency of the trade service system and the last one is discordance of trade system between China and Russia.Base on the analysis above the paper gives some advises as following to promote the China-Russia trade. First, we should enhance the politics and culture communication to create a better trade environment. Secondly, we need to promote bilateral trade system to improve and standardize the trade order. Third, we should improve trade infrastructure and public services level. The last advice is that we should try to improve the structure of bilateral trade and improve the quality of traded goods. If all these advice can be implemented, bilateral trade between China and Russia will enter into a new period of development.