Research On Competitiveness And Complementarity Of Trade Between China And South Africa

March25,2013,Mr President Xi Jinping arrived in Pretoria with his lady,and began a state visiting and to attending South Africa the fifth meeting of leaders of the BRIC countries which held in Durban.Xi Jinping was elected as the President of PRC.South Africa was the first state visiting after the election.It is a significance sign that show South Africa and China friendly relationship and economic cooperation. Xi general secretary, said:"China and South Africa have an important effect on developing countries,becoming the most dynamic emerging countries. Consolidation and development of South African relations, not only benefit the two countries peoples, but also conducive to promoting the unity of developing countries cooperation and world peace and development."In recent years,due to the U.S. subprime mortgage crisis, the European sovereign debt crisis deepened, the growth of global economy is slowing down and the international market demand decline. Although the financial crisis started in the developed countries, but the impact on developing countries is also very profound. All along, South Africa’s major trading partners are the European countries, but because of the financial crisis, the European market slump and orders plummeted, so the government has been seeking a new way out of the depressed economic situation.South Africa will focus on "Go to the East". China is the largest developing country in Asia and the world’s second largest economy.In2012, China’s total trade volume surpassed the U.S..South Africa and China seeking cooperation in international trade also becomes more urgent. Especially in2011, China has become South Africa’s largest trading partner, making the development of trade between South Africa and China are concerned about in the whole world. In this case,research on competitiveness and complementarity of trade between China and South Africa is theoretical and practical significance.This paper is divided into six main parts, the specific content of the framework are as follows:The first part of the introduction, including the papers of the research background and research purposes, research status review, article content frameworks, research methods and articles on innovation.The second part, analysis China and South Africa the scale of trade during2003-2012,structure of export product,and the use of trade with the index of bilateral trade between China and South Africa,combining degree of empirical analysis. In recent years, trade between China and South Africa have been expanding, developing very rapidly. South Africa’s trade with the degree of China rose sharply, while China and South Africa trade with the index almost remained unchanged, indicating that South Africa’s dependence on the Chinese market to improve.The third part is using the SITC data from UN COMTRADE trade analysis revealed comparative advantage between China and South Africa. Using RCA index for the dynamic analysis,the2003-2012comparative advantage of Chinese products with export trends:focus on in labor-intensive and capital-intensive products. South Africa has a comparative advantage in the export of products focused on resource-intensive products. Furthermore RCA index for static analysis,the use of two-digit SITC classification Chapter63for static analysis,China and South Africa has a comparative advantage of products and industries.The fourth part of the use of trade complementarity index,according to the Standard International Trade Classification (SITC) data of2003-2012,the first to use data on trade complementarity between China and South Africa for dynamic analysis, the Chinese export to South Africa imported products complementary concentrated in labor-intensive products South Africa exports of Chinese imports complementary focus on resource-intensive products. Second,the use of2012data for63of chapter two digits static analysis,which have complementary products and a number of match. Finally, intra-industry trade index, calculated the level of intra-industry trade between the two countries,bilateral trade between China and South Africa are mainly concentrated some of the mineral resource categories of primary products, and some lower-industrial products.Mineral resource category,optics,watches,medical equipment category and mechanical products are mainly inter-industry trade,the two sides are highly complementary.South Africa are dominate in the mineral resource products and China are dominate in optics, watches,medical equipment category and mechanical and electrical products such as high-tech products an advantage.This is mainly by both national conditions, resources and other decisions.For some raw material products,paper,technology content of products is based on intra-industry trade.Part Ⅴ under Chapter Ⅲ, Chapter Ⅳ data conclusion of inter-industry trade between China and South Africa Competitiveness and complementary industries generated causes and reasons for complementary.Through South industrial competitiveness and complementarity analysis on industrial competitiveness in the South there was obvious difference, the two countries have different industries. Industrial advantages are different, you can use the theory of comparative advantage and factor endowment theory to explain such differences in labor costs between the two countries.Due to the differences in resource endowments and production costs, result in different industrial competitiveness.Meanwhile,the two levels of technological development,economic development and international industrial chain pattern is caused by the main intra-industry trade between the two countries.Part VI draw up the conclusion.Make the proposal of promotion of trade between China and Africa development.Two countries should mutually beneficial cooperation we should seize this favorable opportunity, take advantage of the favorable factors promote bilateral trade development, continuous innovation cooperation, the two sides from expanding trade to benefit.