Compare And Analysis On The International Competitiveness Of Electromechanical Industry Between China And Germany

With the development of global economy, the international industrial division of labor is going to refinement increasingly and the trade as well as connection across countries is becoming closer. Currently, bothdeveloped anddeveloping countries regardexpanding the export of mechanical and electrical products as a significant wayto enlarge export and improve their economic and technological level. Since set up a strategy which called reform and opening-up, China’s manufacture is developing and occupying an important position in the world’s economy. Besides, Germany is famous for its powerful manufacture all over the world. The comparative analysis of international competitiveness between China and Germany on electromechanical industry has drawn more close attention and it has an influence on the traderelations between the two countries.Referring to the related study and the theory and system about international competitiveness, this paper analyses and compares the condition of international competitiveness of mechanical and electrical products, through which this paper points out the gap between China and Germany’s electromechanical industry. At the same time, by using the theory of intra-industry trade and indicators, the paper analyses and introduces the status of international division of labor between the two countries. The paper provides a reference for the correct understanding about the competitive and collaborative relations, and the paper provides some suggestions about how to improve the international competitiveness of our mechanical and electrical products.Firstly, according to the views of traditional comparative advantage theory, this paper makes a comparison through RAC index, TC index and export similarity index. Thecomparison and analysis show that Germany’s mechanical and electrical products have a strong advantage and the level of China’s mechanical and electrical products is improving. Germany’s mechanical and electrical products occupy the main market of high-tech products, while China participates in the division of labor with the advantage of resources and labor.With the development of global economy, the prerequisites of trade has changed, we cannot simply use the traditional comparative advantage theory and its index to analyses. The intra-industry theory provides a tool for us to analyze the international competition under the new situation. Therefore, the paper analyzes the difference of international competitiveness between China and Germany’s electromechanical industry, with the base of intra-industry trade theory. We can see the difference of international competitiveness of the products through the product structure, the style of participating in the division of labor and the status of value chain of the international division of labor. Through the analysis we can draw the conclusion that the development of intra-industry trade of electromechanical industry is unbalanced. The trade bases on the way of China’s export of labor-intensive and resource-intensive products to the Germany, and import of capital-intensive and technology intensive products from the Germany. This overall vertical intra-industry trade pattern is consistent with the difference of comparative advantage between China and Germany’s mechanical and electrical products, and it confirms the analysis and conclusion through the view of comparative advantage theory.