Research On Competitiveness And Complementarity Of Agricultural Trade Between China And ASEAN

For China and members of ASEAN agriculture has an important role, therefore in the process of trade cooperation of China and ASEAN agricultural trade is also the focus.The construction of China-ASEAN Free Trade Area start from 2002.In order to promote trade, two sides began to implement the "Early Harvest Program" in 2004. Based on it China and ASEAN countries began lower taxes for most agricultural products. Because the reduction of tariff, agricultural trade volume between China and ASEAN increased rapidly.In 2004 bilateral trade volume was only 5.834 billion US dollars, while in 2014 the bilateral trade amounted to $ 29.572 billion.Although agricultural trade volume between China and ASEAN increased, the deficit of Chinese agricultural products expanded and adverse impact on China gradually revealed. So it is essential to research the current situation and trade relation between China and ASEAN, which is better to strengthen complementary trade of both sides and reduce vicious competition.This paper first studies the theoretical basis of agricultural trade of China and ASEAN, and the situation of bilateral agricultural trade. Then by building index of RCA and TC this paper analysis competitiveness,the researchers find that compared to most ASEAN countries international competitiveness of Chinese agricultural products is poor.And China has a strong competitive advantage in deep processing of agricultural products(labor-intensive agricultural products), while ASEAN is more competitive in terms of cereals and grease(land-intensive agricultural products). Except cereal and cocoa products comptiveness of Chinese manufactured food has a tendency to decline,which is worthy of attention. By building index of TCI and GL researchers find that China and ASEAN are highly complementary in terms of agricultural products, and trade complementarity index of Chinese imports from ASEAN is stronger than trade complementarity index of Chinese exports to ASEAN. And to meet the diversity of agricultural products intra-industry trade of China and ASEAN is mainly in primary agricultural products, and to compensate for the difference of natural resources inter-industry trade of China and ASEAN is concentrated both in grease and deep processing of agricultural products.Because coexistence of competitiveness and complementary, the construction of China- ASEAN Free Trade Area and the implementation of Early Harvest Program have both positive and negative impact on China. Beneficial effects include expanding Chinese exports to ASEAN, increasing the number and variety of Chinese agricultural products,improving Chinese agricultural technology and employment,making more Chinese enterprises go out; Adverse effects include ASEAN agricultural products hitting Chinese southern agriculture, lower tariff making our tariff revenue reduce, and making Chinese trade long-term deficit.Finally this paper makes conclusion,and based on adverse impact on China it puts forward policy recommendations,like adjusting Chinese southern agriculture,improving quality and technology level of agricultural products,improving the storage technology and reducing logistics cost,and implementing differentiated trade strategies.