Reasons For China-ASEAN Agricultural Trade Deficit

Agricultural products are one of the main commodities in China’s foreign trade.Agricultural trade is the main commodity in the trade between China and ASEAN.Most of China and ASEAN members are developing countries.How to ease China’s trade deficit position with regard to ASEAN agricultural products and ensure balanced development of the two countries ’agricultural trade is conducive to promoting in-depth economic cooperation between the two countries.It also plays an important role in China’s construction of the Belt and Road Initiative.China has a long history of agricultural trade with ASEAN.However,China has always been in a trade deficit position.The long-term deficit has caused China to lose its agricultural trade advantage in Southeast Asia.It is also not conducive to China’s further upgrading and transformation of agriculture and the optimization of agricultural industrial chains.Therefore,maintaining the balance of trade between China and ASEAN agricultural products also guarantees the balance of trade between China and ASEAN countries in a large sense,thus maintaining common economic,political and cultural development.In the context of the Belt and Road policy,China-ASEAN trade in agricultural products is playing an increasingly important role in bilateral economic development.In light of the background of the times,the contents of this study can be divided into the following parts:Firstly,this paper establishes the research background and significance,combs the research thoughts according to the research object and content,and draws up the technology roadmap.Secondly,integrating domestic and foreign literature,we can know that the reasons for the previous arguments on China’s agricultural trade deficit with ASEAN are as follows: First,the level of economic development of bilateral countries;Second,the existence of costs will also affect the trade deficit.Costs are divided into production costs and transaction costs,and these two costs are positively related to the resulting trade deficit;Third,the level of regional economic integration has an important impact on trade behavior;Fourth,China’s import and export commodity structure to A S E A N i s a l s o o n e o f t h e r e a s o n s f o r t h e t r a d e d e f i c i t.Then,this paper further analyzes the trade status of China-ASEAN agricultural products according to the above-mentioned literature research ideas,mainly divided into commodity structure analysis and agricultural product trade volume analysis.Using the GL index,the NARS index analyzes the complementarity of goods and studies the reasons for the degree of deficit.Based on the empirical modeling to find out the factors affecting the trade of agricultural products in China-ASEAN,this paper establishes two empirical models: the first is the export model of China to ASEAN agricultural products,and the second is the import model of China to ASEAN agricultural products.The export and import volumes of China to ASEAN were respectively used as explained variables.China’s GDP,RMB exchange rate and transportation distance and per capita disposable income are used as explanatory variables.It is demonstrated that there is a linear relationship between the interpretation variable and the interpreted variable.These factors are relevant to the trade deficit position of China,thus further utilizing these factors to ease the trade deficit between China and ASEAN agricultural products.Finally,the full text is summarized and combined with the "Belt and Road" policy to provide suggestions to ease the trade deficit in agricultural products between China and ASEAN.Conclusion: To ease China’s deficit position in agricultural trade with ASEAN,we can start with the following points:(1)China develops agricultural products with complementary effects with ASEAN;(2)to stabilize the exchange rate and ensure the smooth and orderly development of import and export trade;(3)Improve the logistics system and reduce transportation costs.This study provides theoretical basis and data support for the in-depth development of agricultural trade between China and ASEAN in the context of the Belt and Road,which is of theoretical and practical significance.