Research On Intra-product Trade Of Sino-Japanese Electrical Industry

Since the1980s, with advances in technology and economic globalization, global production networks in the rapid expansion. Countries in the world to focus on their comparative advantage with production processes, work together to create and share value and therefore the division developed the products of one of the main forms of trade in international trade, and was widely discussed.China and Japan each other neighbors, Have a long-term trade relationship. Japan is China’s fifth largest trading partner, China is Japan’s second largest trading partner. Sino-Japanese import and export trade volume reached$329.46billion in2012; electronic products had$161.4billion which accounted for nearly50%of total trade, and become the subject of Sino-Japanese trade; while mechanical and electrical products up to$77.3billion in parts and components, so intra-product trade is the main form of Sino-Japanese trade.Because of the important of intra-product trade, the paper based on the summary of product trade theory. Analyzing the characteristics of the intra-product Sino-Japanese trade, building models to measure the level of the intra-product Sino-Japanese trade of mechanical and electrical products industry, and comparing the level of competitiveness product and comparative advantage index to get the benefit situation of China in the intra-product. Analysis showed that the intra-product between the two countries are high, but our products are still in the low end of the value chain, getting meager benefits, with China’s participation in the international trade, China Electromechanical competitiveness has been considerable progress, So this paper empirical analysis of the impact of market size, Japan’s direct investment (FDI), trade openness and other factors on the Sino-Japanese trade of mechanical and electrical products.Based on these studies, we draw the basic conclusions and put forward relevant suggestions around the market in terms of technological innovation, create a competitive environment and vigorously promote the use of information technology.