The Research On Trade In Manutactured Goods In China-USA Bilateral Trade

Trade in manufactured goods in China-USA bilateral trade has become a bottle-neck issue, any disputes can often be heard from time to time. The trade deficit in labor-intensive manufactured goods contributes a lot to the trade deficit in goods among China and USA; hence, it becomes necessary to study the issue in depth. Only in this way, can we find out the way to improve the structure of manufactured goods in bilateral trade, to upgrade the structure of manufacture industry in China. By empirical analysis, the author studies a great deal of related data of trade in manufactured goods between China and USA, firstly, the paper gives an overview of the scale of the bilateral trade in manufactured goods, and then it deepens the analysis on structure of manufactured goods by using Revealed Comparative Advantage (RCA) to show its comparative advantage, and gets the conclusion that both China and USA have competitive advantage in machinery products (SITC7) and in Clothing and footwares (SITC8). By calculating Grubel-Lloyd (G-L), it shows that in the products of chemistry (SITC5), China and the USA has the feature of intra-industry trade(IIT), but the IIT feature is not obvious in other categories of manufactured goods, most of other manufactured goods can be treated as the inter-industry trade.By the criteria set by Lall, S., who divided all manufactured goods in High technology (HT), Middle Technology (MT) and Low Technology (LT) in2000, by analyzing the change of the percentage of HT, MT and LT goods, the results show there is obvious industry upgrade in China in last ten year, from2001to2010. Among the manufactured goods of bilateral trade, there are some problems:lacking variety in products, being low in the percentage of high technology, and being low in added-value in China. The root of the problems is closely related to four factors:nature resources of USA and China,bilateral FDI (Foreign Direct Investment), trade policy and brand.