Study On Trade Structure Optimization Of Agricultural Products Between China And The Five Central Asian Countries

Agricultural products trade development between China and five Central Asian countries directly impact on the balance of china’s eastern and western economy and the agricultural economy contribution of the five Central Asian countries to the whole economy. Meanwhile, concerning the extensive and instable growth of agricultural products trade between China and five Central Asian countries, low contribution to the agricultural industry and worsening trade welfare, practical requirement of optimizing the structure of agricultural trade between two parties are much needed.This paper thus based on the generalized comparative advantage theory, and agricultural products trade practice of China and the five Central Asian countries, along with their special geographical and political environment, deeply discussed the trade structure through the three levels as commodity structure, market structure, elements of structure, and draw the main conclusions as follows:The market structure. Kazakhstan and Kyrgyzstan has absorbed the majority of market share of China’s exports; China’s imports of agricultural products from these nations are mainly from Uzbekistan.Market structure’s disparity lead to the long-term limit to growth of both china’s and five countries’ agricultural products trade, unlikely to form a new trade growth points, and thus affects the overall economy.Structure of commodity. The trade in agricultural products between China and these countries are mostly the eleventh types of agricultural products, being the majority share of the agricultural products trade. Meanwhile, china hold its diversity of trade products only at Kazakhstan and Kyrgyzstan.With other countries,China hold a stable trade only in the eleventh kinds of agricultural products.Overall, besides these kinds of products, agricultural products exports from china to these countries are mainly tea, cold fresh fruit and vegetable products.The commodity structure is relatively simple.Elements of structure. The trade in agricultural products between two parties are mainly resource and labor-intensive products, but Capital intensive products are nerely none.According to the relevant theory of factor endowments, China and the five Central Asian countries are in the primary stage of the trade structure compared to the real trade, with low factor content of trade products.Inter industry trade share the most,leading to the instability and disparity of overall growth of agricultural products trade between two parties.The deeper structure aspects. Through the three levels analysis above,it notes that the most china’s agricultural products trade,especially the export trade to these countries do not meet demand of comparative advantage, and even counterproductive.Concerning current political, economic, geographical environment between two parties.This paper suggests the reason for this difference rests in the communication barrier in China ‘s eastern and western industries.