Research On China-Chile Bilateral Trade And Culture Difference

The global economic integration linked different cultural countries(regions) from different region together.With rapid development of international trade in goods,more and more goods from another continent become daily necessities in our life,such as Chile's cherries,red shrimp from Argentina,Uruguay's flank gradually came to the attention of the mass consumers.Chile's president Michelle Bachelet came from the other side of the world to attend the Belt and Road Forum for International Cooperation held in Beijing in 2017,to consolidate the trade partnership between the China and Chile,as well as to open further the Chinese market for Chiles goods.The bilateral trade agreements between China and Chile have been implemented for more than a decade.During the ten years,happened the global economic crisis in 2009,after that while the European and American countries met the economic downturn,rapid recovery Chile recovered rapidly with its open foreign trade policy,and China has also became Chile's largest imports and exports trading partner.Based on this background,this paper reviews the trade status of China and Chile,and analyzes it using the gravity model.Firstly,this paper briefly introduces Chile's economic scale and foreign trade situation,and analyzes the country structure and commodity structure of the import and export of Chile.According to the analysis results,between 2001 and 2015,the economy of Chile entered a period of rapid growth,and the scale of the economy increased significantly.But in recent years Chile's economic growth significantly declined,mainly due to Chile's economic development rely on import and export trade,and a large proportion of export trade contributed by copper and its products export.In recent years the international copper prices continued to fall indirectly has a huge impact on Chile's economic development.The analysis of commodity structure between China and Chile shows that Chile mainly exports to China the primary products led by copper and its products,while China mainly export to Chile industrial products.In order to further study the trade relationship between China and Chile,this paper quantitatively analyzes the dominant comparative advantage index,trade complementary index and trade combined degree index.Analysis results show that the export products of China and Chile have a very strong complementarity and a high level of trade combined degree.As both country's export products belong to different position in the international supply chain,Chile in upstream and China in downstream,the two countries export products are their dominant comparative advantage products which is the comparative weak products of the other,therefore,their main export products don't have competition relationship in third markets.In addition,this article using the Hofstede cultural differences theory and gravity model empirical analysis to study the impact of cultural differences to the bilateral trade between China and Chile.Selected the 31 China's main trading partners trade data from 2001 to 2015,using STATA software to make the trade data regression analysis.The analysis results show that the national cultural distance to bilateral import and export trade are blocking effect,six culture dimensions play different role in the import and export trade.Power distance in the import and export trade has promoting effect;Individualism,Masculinity,long-term orientation culture dimension are obstacles in both import and export trade of China;Uncertainty avoidance and indulgence culture dimension has a promoting effect in China's import trade while has hindering effect in export trade.Further analysis shows that the negative impact of culture difference in China's import trade is less than in export trade.Finally,the paper expects the future of bilateral trade development between China and Chile under the new international situation,and suggests paying great attention to the influence of the national culture distance to the goods trades between the two countries.This paper also proposed to promote cultural exchanges between the two countries to enhance mutual understanding and mutual trust,and on the import and export trade shall plan considering from six cultural dimension to strengthen bilateral cooperation,implementation of mutual benefit and win-win results between the two countries.