The Industry Characteristics Of China's Foreign Trade Balance And Its Causes

China's economy has witnessed great rapid development since 1980.Owing to export-oriented policy,China's foreign trade has made tremendous achievement.Great trade surplus is benefits for China's economy,and makes great contribution to employment and foreign exchange reserves,and has also exerted certain influence on the global trade structure and financial structure.However,huge surplus in successive years brings to China's government some problem in economic decision-making,such as the pressure on appreciation of RMB,trade conflicts and so on.Based on the theory of comparative advantage and trade practice,a country should have obvious industry characteristics whether it is a trade surplus or a deficit.Therefore,it is of certain importance for the development of China's foreign trade to comprehensively analyze China's export trade,features and changes of trade surplus and deficit in different industries and the causes of these features.Theoretically,this paper is a further application of traditional trade theories.Based on the theoretical logic of the formation of trade balance industrial characteristics,the author will apply the statistics of China's foreign trade from 1984 to2015,so as to analyze industry features and its causes of China's foreign trade balance.According to SITC classification,this paper,combined with CTB index and RCA index,makes a dynamic and descriptive analysis of trade balance among nine major types of products at the level of double digit code.Meanwhile,the paper reveals how commodity structure of China's foreign trade changes since opening up and reform.Additionally,the paper analyze the influence of different industries on trade balance.Based on this,the paper further analyze how these factors-comparative advantage,the strategy and policy of economic development,trade model,RMB exchange rate and foreigners`direct investment-influence industrial characteristics.Through analysis and research,the paper draw some conclusions as follows: After opening up and reform,the commodity structure of China's foreign trade have been ungraded greatly.Trade in primary products is featured by trade deficit while industrial products trade surplus.The former mainly comes from type-one,-two and –threeproducts while the latter is mainly from type-six,-seven and –eight products.The change of trade balance industrial characteristics is in line with basic principle and dynamic development of comparative advantage.Additionally,these factors,including development strategy and policy,trade model and PDI,exert an important influence on trade balance industrial characteristics while RMB exchange rate has a limited impact on them.