Policy Suggestions For China To Deal With The Sino-US Trade Friction In The New Period

In1979, China established diplomatic relations with America and signed "Sino-US Trade Relations Agreement",that means the normalization of Sino-US trade relations.Sino-US trade has developed quickly,the market has continued to expand,and Sino-US trade is becoming more and more frequent,and the total trade volume between China and the United States grows very quickly.But at the same time,the Sino-US trade friction is always the obstacle of the trade of the two countries.From1979to now,the Sino-US trade friction has gone through four different stages,and the Sino-US trade friction has gone into a high outbreak period,which the trade friction is more intense, and there are more and more extensive trade frictions.In the new stage of strategic friction,there are many aspects are included,including the field of export which China has advantage and the filed of advanced technology products which China do not has advantage.Since in the new stage there are so many frictions,we can not focus on all the aspects.so we just put emphases on advanced technology products frictions,but the breakthrough point is still the whole friction between the two countries.The paper emphasize on the important part and main part of the imbalance between China and United States.that is advanced technology products imbalance.We need to look for the reasons of the imbalance of the advanced technology products between the two countries and then find ways to deal with the imbalance,finally relieve the frictions between the two countries,of which the frictions of the advanced technology products reduced too.Since the Sino-US trade structure and industrial structure are changing constantly, the rapid development of globalization and information makes the trade friction between China and the United States change objects. Products involved in friction are expanding,because there are always new industries and products becoming the objects of frictions.Not only agricultural products, textiles,trade deficit and the intellectual property rights issue are still the traditional objects of trade friction, but also services and advanced technology products have become the focus of Sino-US trade friction.In the era of information economy,advanced technology industry is important for every country in the world.China is the largest developing country, having a great demand for technology.America is always the world’s most advanced technology country.To some certain,the export of US advanced technology products to China can satisfy the rapid expansion of advanced technology products demand,so the rapid development of advanced technology products trade between the two countries is very favorable.But at the present stage,the friction of Sino-US trade is becoming more and more intense, and the friction includes Sino-US intellectual property rights,the technical barriers.The intensity and depth of Sino-US trade friction has a very bad effect for the development of Sino-US trade and for the economic development. Therefore,to find out the measures and suggestions to deal with the friction is urgent.This paper is to analyze in the above background. An important reason leading to the advanced technology trade friction is the Sino-US trade imbalance.and the unbalanced phenomenon is more and more serious. To analyze from the part of Sino-US trade imbalance,Sino-US advanced technology trade imbalance is a big and main part of Sino-US trade imbalance.According to the theory of comparative advantage and the factor endowment theory.the country with abundant technology factor.that means the country has the technology advantage should expand large scale of advanced technology products to other countries.In the paper we analysis the data of competitiveness index for the ten kinds of advanced technology products between United States and China.The results indicate that in ten kinds of advanced technology products,United Stated has the advantage for most of the products,having the competitiveness,so United Stated should export large scale of advanced technology products to China.So the large-scale deficit from United Stated to China is inconsistent with the results of the the theory of comparative advantage and factor endowment theory.Many factors lead to the unconformity between phenomenon and theory and one of very important reasons is that United Stated implement the export control of the advanced technology products to China.The control is one of new trade protectionism,and the theoretical basis of the control is strategic trade theory of the new trade theory.Other reasons include industrial structure transition, the investment to China from foreign enterprise and the promotion for the level of the domestic advanced technology.Since that the advanced technology trade friction problems caused by the imbalance of Sino-US trade, have a significantly bad impact on the economic development China, so for us to find out solutions according to the reasons are very important.we find out solutions from two aspects of the government and the company.For the government,we need to use dialogue to enhance mutual political trust between the two countries;to pay more attention to the high technology digestion and absorption from USA; to promote technological innovation,to give full support of the development of high technology industry; to learn the experience from other countries for the anti export control work experience.For the enterprise,we need to change advanced technology digestion and absorption of our high technology enterprises firstly;to make the large company and small and medium sized enterprises and the western and the eastern to use the resources effectively,to develop the advanced technology; to establish global brands and pay attention to the cultivation of human resources; to actively prevent and deal with technical barriers. From the two aspects,we take concrete measures to solve the problems of Sino-US trade friction caused by the advanced technology trade imbalance.