A Study On CAFTA And The Intra-industry Trade In Machinery And Electrical Products Between China And ASEAN

In 2005, China-ASEAN free trade zone has begun to enter the stage of full implementation, and will be completed in 2010. In recent years, China and ASEAN in the transfer of industries, industrial restructuring gradually developed from traditional industries trade to intra-industry trade, a complementary division of a new trend. Between the two sides of the intra-industry trade developments in the study, will be a unique perspective to help us to understanding China and the ASEAN regional economic cooperation prospects. At present, the trade of mechanical and electrical products in China's foreign trade occupies an important position, and mechanical and electrical products in China and ASEAN each other advantage in exports products, not only compete with each other, and cooperate with each other, the industry and trade characteristics is very conspicuous. Therefore, the study on intra-industry trade in machinery and electrical products between China and ASEAN has a very important significance.In this paper, using the academic and empirical research methods and existing statistical data to analyzing the level of mechanical and electrical products industry between China and ASEAN countries since the 1990s. Furthermore, analyzing bilateral intra-industry trade from the structure of the country and commodity groups structure of mechanical and electrical products. Through research affect bilateral trade within the main factors revealed the decisive factor between China and ASEAN trade of mechanical and electrical products industry. At the same time, studying effect on both sides mechanical and electrical products industry trade in the background on the establishment of CAFTA, and proceeded to put forward the relevant policy recommendations.The conclusion of this paper: machinery and electrical products of China-ASEAN countries are both complementary and competitive. In general, Chinese's electromechanical products are less competitive. The establishment of CAFTA accelerated the process of economic integration, expanded bilateral trade volume increased by the region's trade, direct investment, encourage enterprises to achieve economies of scale and so on within the industry and the development of greater trade promoting role.