Structural Imbalance In Sino-US Trade

Since China and the United States established diplomatic relations in 1979, their bilateral economic and trade relations have developed rapidly. But at the same time, the trade imbalanced becomes more and more serious and gives rise to problems and conflicts in RMB rate of exchange, intellectual property protection, anti-dumping and countervailing. The enlarged trade imbalanced between China and US has become the chief obstacle to the development of bilateral economic and trade in the future. Therefore, how to understand the fundamental issue of the trade imbalance between China and US is the key point to resolve Sino-US trade relations.The paper considered that the Sino-US trade imbalance to a certain degree is a structural imbalance closely due to the different position of the two countries in the international production system which is characterized as Intra-Production Specialization. The traditional trade theory, based on the final product which is not able to be divided, failed to explain the difference between the two countries in the position of Industrial division as well as the trade imbalance accordingly. However, recent development of Intra-Production Specialization Theory makes up for the traditional trade theory by breaking the premise of the indivisibility of product and forms a solid theoretical foundation for resolving the problem of Sino-US structural trade imbalance.Began with Sino-US high-tech product trade paradox, this paper discussed about the Intra-Production Specialization Theory, and then came to the application of the theory to the overall balance of trade, trade commodity structures, as well as "East Asia - China - US" triangle of division of labor and trade patterns for the system analysis, by analyzing graphs and diagrams, and taking empirical research in statistical models. Finally the paper gave the conclusion that: The Sino-US trade imbalance is to a certain degree of structural imbalance with a feature of long-term stabilization, which is made by "East Asia - China - US" the triangle of division of labor and trade patterns. China and the United States, especially the United States side, should treat the trade imbalance at the background of the globalized labor division, and steadily push forward bilateral trade relations.