Research On Competition And Complementarity Of Sino India Trade

India and China are two large countries which are adjacent to each other geographically. In recent years, these two countries have been called "double engines" of Asian economy, because they all have undergone rapid economic development. Both China and India are not only abundant in natural resources and population but also same in the level of economic development. Therefore, this results in a similarity in the field of foreign trade of the two countries. At the same time, complementary potential exists in Sino-India bilateral trade due to the difference in the industrial structure, natural recourses between the two countries. It is very significant to study competitive and complementary situation of Sino-India bilateral trade and analyze the issues existing in Sino-India trade. Because they have profound meanings for instructing the two countries to make right trade policy and promote bilateral trade.Firstly, the status quo of Sino-India trade has been studied in this paper, then revealed comparative advantage index, export similarity index, trade complementarity index, intra-industry trade index etc have been used to carry out an empirical analysis for Sino-India trade ,the reason of the competitive and complementary situation has also been analyzed. Subsequently, a conclusion and some issues have been raised for the competition and complementarity of Sino-India trade on the basis of the empirical analysis .Finally, some recommendations and suggestions have been brought forward on how to avoid fierce competition and promote bilateral trade by taking advantage of the complementarity of Sino-India trade.It is revealed that competition exists in labor-intensive products of the two countries, such as clothing, textiles, metal products, etc, what's more, in terms of export market; China and India compete with each on United States, Japan and EU. On the other hand, complementarity has been found in manufactured goods, primary products, energy products such as metal working machinery, mineral raw materials, coal, etc. And the outcome of the intra-industry trade analysis shows that the complementarity of bilateral trade mainly comes from inter-industry trade, the level of intra-industry trade between China and India is very low.There is a great potential during Sino-India bilateral trade and Sino-India trade cooperation, but because of some unfavorable factors affecting the relations of economy and trade between the two countries, only if both sides take joint measures to solve the problems, will the trade relation of China and India develop smoothly.