Research On The Mechanism Of China-India Trade Friction Under The Visual Angle Of Industry

Since the 21^st century, China-India trade has developed strongly. The amount of bilateral trade has increased by 20 times during 10 years with an average growth rate of over 30 percent, from 3.596 billion dollars in 2001 to 55.88 billion dollars in 2010. However, the trade friction between China and India has been increasingly serious, and now India has become the country which launches trade investigation most to China, exceeding such developed economies as US and EU. What's more, with the unstability and uncertainty of world economy, the global economy pattern has changed. As the emerged developing countries, China and India has not only contributed greatly to the sound development of bilateral relations between each other but that of the whole Asia and world. Therefore, it is of significance theoretically and practically to study the development course of China-India trade friction and find out the countermeasures to cope with the friction.The paper studies from theory and empiricism perspects in qualitative and quantitative method with the dynamic perspective of industrial structure development of the two nations in purpose of studying the characteristics of trade friction occurring frequently between China and India. Firstly the paper begins with the introduction, which expounds the research background and significance, the present domestic and foreign research achievements and the thoughts, research methods and innovation, and it generally analysis the mechanism of the trade friction. On the basis it summarizes the present situation of China-India trade, and then research on both the development course of China-India trade friction and the new features present in recent years. The paper emphasizes on the empirical research on the mechanism of China-India trade friction from the perspective of the industrial structure of bilateral trade. Last it emphasizes the countermeasures to relieve China-India trade friction on the basis of summarizing the above chapters. To ease the trade friction between China and India, China should accelerate industry upgrade, increase the added value of products, improve the trade friction early-warning mechanism and promote export market diversification. China should implement the product differentiation to tackle the problems rising from the national trade policies of India. China and India also need joint efforts to strengthen cooperative partnership and mutual benefits.