Research On The Influencing Factors And Countermeasures Of China-India Trade Imbalance

China and India are both ancient civilizations of the world and have thousands of years of development history.According to the Indian history book?Manu Code?,trade between the two countries has been realized in the early 4th century BC,and it has a history of nearly 2500 years.Since the 1990 s,with the improvement of the economic level of China and India,trade between the two countries has become closer,and the areas of cooperation have continued to expand.China has become India's largest trading partner.However,For two world powers with huge development potential,economic and trade relations should have been an important accelerator to promote China-India relations,but with the rapid development of bilateral trade,the problem of China-India trade imbalances has gradually become prominent and has gradually become one of the main factors of impeding the further development of China-Indian trade.Many research results show that China-India bilateral trade is highly complementary and has huge trade potential.As early as 2010,China and India set a goal of reaching a bilateral trade volume of 100 billion U.S.dollars in 2015.However,the bilateral trade volume of that year was only 71.6 billion U.S.dollars,and the target has not yet been reached.The development of bilateral trade not only lags far behind expectations,but also develops seriously imbalanced.Since entering the 21 st century,the China-India trade surplus has surged from US $ 196 million in 2001 to US $ 57.88 billion in 2018,an increase of nearly 295 times.In contrast,India's exports to China have increased approximately 17 times in 18 years.And China's exports to India increased by about 39 times.What are the main reasons for this gap or the imbalance between China and India? What are the difficulties in solving theimbalance between China and India? How to solve?This study believes that the current difficulties in dealing with China-India trade imbalances are mainly as follows: first,the asymmetry and one-way issues of trade complementarity;second,protectionism caused by China-India trade surplus;and third,India's restrictions on Chinese investment Fourth,bilateral trade between China and India is easily affected by political relations.Therefore,coping with China-India trade imbalance and promoting China-India trade development need not only start from the trade itself,but also need to take a comprehensive and comprehensive view of the issue based on China-India bilateral relations.To this end,based on a review of the overall situation of Sino-Indian trade,this article will explore the influencing factors of Sino-Indian trade imbalance through empirical and theoretical analysis,and point out the difficulties or dilemma in resolving the Sino-Indian trade imbalance and propose corresponding responses.The thesis is divided into six chapters.The first chapter is the introduction,focusing on the background and significance of the topic,the domestic and foreign literature review,research methods and ideas,and the innovations,difficulties and deficiencies of the thesis.The second chapter details the trade imbalance and Its related theories,from classical trade theory,neo-classical trade theory to new trade theory,emerging classical trade theory,and new-new trade theory.The third chapter mainly describes the current situation and main characteristics of China-India trade imbalance,including the review of the development history of China-India trade,the current status and problems of China-India trade development,and the main characteristics of China-India trade imbalance.The main characteristics of the imbalance include the general characteristics,the characteristics of inter-industry trade,and the characteristics of intra-industry trade.Chapter 4 conducts an empirical study on the influencing factors of China-India trade imbalance through measurement methods and explains the empirical results.The fifth chapter mainly analyzes the root causes of China-India trade imbalance by comparing and analyzing the economic growth mode,industrial structure and statistical caliber of China and India,and compares the currentcomposition of China-India trade by comparing the composition of trade products.Analysis of main areas and market potential.Chapter ? analyzes the main difficulties or dilemmas of the China-India trade imbalance in accordance with the analysis results of Chapters ?,?,and ?,and proposes the path options for solving the China-India trade imbalance.The basic conclusion of this article is that since the 21 st century,the trade surplus between China and India has grown rapidly and is likely to continue.The main causes of the imbalance in China-India trade are different economic growth models and industrial development structures between the two countries,and there are large statistical caliber errors between the two countries.India's per capita GDP and China's direct investment in India have a certain impact on the imbalance between China and India.Combining with the main difficulties in resolving China-India trade imbalances,this article propose ways to expand investment in India's secondary industry and deepen the concept of“China-India+”cooperation and five countermeasures,including expanding service trade cooperation,developing multilateral economic and trade relations,improving trade statistical systems and rules,and regulating bilateral economic and trade dialogue mechanisms And downplay political factors with "business in business".