A Study Of Competition And Complementarity Between China And Kazakhstan Under The Silk Road Economic Belt

Chinese President Xi Jinping proposed the conception of "the New Silk Road Economic Belt" during his Central Asia visiting in 2013, which received general support from the countries along the New Silk Road Economic Belt. In recent years, the world economy has been suffering from the sluggish growth due to financial crisis and European debt crisis, while the countries along the New Silk Road face the same trouble. With the consensus of developing economy through promoting cooperation, China meets an excellent timing to construct the New Silk Road Economic Belt.Kazakhstan is the first zone of the new Silk Road Economic Belt construction. It is significant for the further construction of the New Silk Road Economic Belt to cooperate with Kazakhstan in economic and trade fields. Based on the theory of comparative advantage and the theory of regional cooperation and factor endowment and by using the Finger-Kreinin Similitude index, the degree of trade combination index and complementarities index, this paper makes an analysis of international trade's competitiveness and complementarily between China and Kazakhstan in the world market. The conclusions of the study are:(1) China has an advantage in the capital-and technology-intensive industries and labor-intensive industries, Kazakhstan has an advantage in resource-intensive industries.(2)Inner-industry are complementary highly between the two countries.(3)Reasons of industrial competitiveness and complementarity include differences between the two countries in natural resources, labor costs, technological level, geographical position, economic development level, and the difference in the industrial structure.(4)In the international industrial chain between China and Kazakhstan, China has a comparative advantage, while Kazakhstan is in an inferior position. Based on trade data of economic cooperation between China and Kazakhstan,taking the consideration under the framework of the New Silk Road, this paper will recommend the following policy suggestions:(1)SinoKazakhstan Strategically Co-operative Partnership should be build under the frame of Silk Road Economic Belt. The two countries should strengthen business ties and open up new areas of cooperation.(2)China and Kazakhstan can work together to consistently expand their coordination and cooperation in industrial manufactured goods trade(3)Promoting financial innovation and striving to achieve a smooth docking of the Asian infrastructure investment bank and the new Silk Road Economic Belt.(4)China should accelerate the construction of interconnection and traffic facilities in Central Asia, and improve the effective implementation of the cooperation agreement.