Study On Competitiveness And Complementarity In Manufactured Goods Trade Between China And Japan

China and Japan are the two largest economies in Asia,The development of trade between thetwo countries have an important impact for Asia and even the world.As we all know,90%of theSino-Japanese trade is trade in manufactured goods,Japan has abundant capital and advancedtechnical advantages as a manufacturing powerhouse, As an emerging big manufacturing country,while China has abundant labor resources and a huge market, Due to differences in factorendowments,China and Japan have strong complementarity.However, with the growing strength ofthe Chinese economy and the continuous optimization of the industrial structure, trade inmanufactured goods between the two countries is also showing a competitive characteristics.Reasearch on competition and complementary trend of Sino-Japanese trade has importantimplications for enhancing the development of China’s manufacturing industry and deepening theSino-Japanese trade cooperation as well as promoting the development of regional economicintegration.This paper is divided into five parts, the first part is, first, did a summary of today’s domesticand foreign academic research on the current situation of Sino-Japanese trade relations, and thenmade a basic expression of the theory of comparative advantage, the theory of competitiveadvantage and intra-industry trade, and third described data sources.The second part analyzed thecurrent situation of each China and Japan and Sino-Japanese bilateral Manufactured goods traderespectively, then studied the evolution of the structure of manufactured goods trade between thetwo countries, and summarized the basic characteristics. The third part through using the revealedcomparative advantage index and trade competitive index,obtained the conclusion that China havehad competitiveness in some products and the comparative advantage between China and Japan haschanged. The fourth part used the trade complementarity index and intra-industry trade index toanalyze the complementary nature of the finished goods,and then think that the Sino-Japanesemanufactures still have highly complementary, and present the characteristics of intra-industry trade.The last part summarized the existing problems on manufactured goods trade according to theabove analysis first,and then put forward policy recommendations for how to improve thedevelopment of China’s manufacturing industry and promote cooperation of manufactured goodstraden between the two countries.