The Trade Effect Of China's Tariff Concession Policy In Sino-Vietnamese Bilateral Trade

Since the normalization of Sino-Vietnamese relations in 1991,the relations between China and Vietnam have become closer in political,economic,cultural,educational and other fields,especially in trade relations.Due to the gradual and effective reduction of tariffs between the two countries,the total trade volume between China and Vietnam surged from more than 30 million US dollars in 1991 to more than 121.986 billion US dollars in 2017.The early harvested products of China and Vietnam began to reduce taxes in 2004,and the subsequent Agreement on Trade in Goods gave more preferential treatment and care to the new ASEAN member countries(including Vietnam).With the tax reduction arrangement going on,the trade volume of the two countries has made a new breakthrough in many tax reduction time points,such as the total bilateral trade in 2005 and 2015.By collecting the total import and export volume of Vietnam trade history over the years,sorting out the structure of import and export commodities,and analyzing the structure of import and export commodities according to HS commodity code,and calculating the corresponding weighted average tariff rate of commodities to observe the corresponding relationship between the two.Then we use the revised gravity model to analyze the trade effect of tariff concessions in China,which shows that tariff concessions in China have brought positive effects to the trade between the two countries.However,Sino-Vietnamese trade relations still face great challenges.The two sides have great similarities in export products,which leads to the competitiveness of their products in the international market.In addition,trade imbalance and the single commodity structure of import and export between the two countries also exist.Although the positive effect of China's tariff concession policy on Vietnam is conducive to promoting the development of bilateral trade and economy,and makingbilateral trade more rapid and free to exchange and develop,these problems limit the positive effect of China's tariff concession policy on the two countries.In order to conform to the trend of Global trade liberalization,China and Vietnam should continue to implement preferential tariff reduction policies and optimize tariff concessions and their details.China needs to focus on improving the utilization rate of tariff concessions,making tariff and non-tariff policies work together,and improving the effective tariff collection and control system in order to improve the quality of Sino-Vietnamese trade model and realize mutual benefit and win-win in essence between the two countries.