A Study On The Competitiveness And Complementarity Of Bilateral Trade Between Brazil And China

Brazil is the largest economy in Latin America and also a very important economy in the world scenario.China is the second-largest world’s economy only after the United States.In recent years,Brazil and China’s economic development and comprehensive national strength have contributed to the development of the world economy and the growth of the developing countries.As BRIC members,both Brazil and China exert a certain influence not only over the developing countries but also over the world economy.Bilateral trade between the two countries is conducive to promote the economic development of the two countries,and also plays a role in the development of BRIC countries and developing countries at the same time.In the current period of regional economic development,cooperation is an important basis for national development.Therefore,Brazil and China should strengthen their cooperation,intensify bilateral trade ties,and promote the common development of the two countries through the promotion of trade in goods.Thus,this paper mainly analyzes the subject of Brazil and China’s bilateral trade competitiveness and complementarity,and tries to understand the bilateral trade development situation to find out the true status quo of the current trade,and put forward the improvement strategy in theory to promote a better development of trade between the two countries.The work is done as follow:Analysis of the current situation of trade development between Brazil and China.At present,bilateral trade between Brazil and China is growing closer,with ever-expanding scale and increasing product structure.China is the first largest trading partner for Brazil.Meanwhile,Brazil is an important trading partner for China.Analysis of the trade competitiveness between Brazil and China.Through the analysis of import and export similarity index,it can be seen that both Brazil and China have competitive advantage in product categories such as minerals,machinery and transportation equipment.Brazil is more competitive in primary goods while China holds the competitiveness in capital or technology-intensive products.Therefore,it can be concluded that in the process of trade between both countries,complementarity far outweighs competitiveness,which is conducive to the further development of bilateral trade between the two countries.Analysis of the trade complementarity between Brazil and China.It is shown that in the bilateral trade between Brazil and China,Brazil has been in a trade surplus,which means there is an imbalance in the degree of integration.China’s complementarity is relatively higher in capital or technology-intensive products.At present,the mainly trade is of primary products,while trade of capital or technology-intensive products is intra-industry trade.However,with the declining trade index,trade relations have changed and began to become inter-industry trade.Analysis of the existing problems in the trade between Brazil and China.It is pointed out there are serious problems of anti-dumping,competition,China’s long-term deficit,trade frictions and political inclination.Some suggestions are given in order to handle these problems.As internationally influential countries,Brazil and China should strengthen the communication,reduce the application of anti-dumping,enhance the development of trade liberalization,eliminate the anti-trade rhetoric and opposition,and on the basis of adhering to the principle of equality and mutual benefit,we have laid a good foundation for the development of bilateral trade between Brazil and China to promote the continuous and normal development of bilateral trade activities.