Research On Trade Imbalance Between Chinese Mainland And Taiwan

The Chinese Mainland and Taiwan recovered trade in 1979 and now it has been more than thirty years of recovery. The volume of the Cross-strait trade has increased from 35 million dollars in 1979 to 198.31 billion dollars in 2014.In the process of the Cross-strait trade, a notable feature is Taiwan has a continuing trade surplus on Chinese Mainland. According to the statistics from General Administration of Customs of China, Taiwan has been enjoying the trade surplus on Chinese Mainland since 1980 and the magnitude of the surplus is gradually widening. Now the trade surplus from Chinese Mainland is the main source of trade surplus of Taiwan. In today’s context of regional economic integration, the two sides of Cross-strait will face the following critical issues such as how to accelerate the regional economic integration, optimize trade structure, and reduce the magnitude of Cross-strait trade imbalance.This paper reviews on the historical stage of Cross-strait trade first, and then summarizes the trends and favorable factors of the Cross-strait trade. Subsequently, in views of the Cross-strait trade and trade between China and South Korea shares the same characteristic that the Chinese Mainland has the trade deficit, so the comparative analysis of Cross-strait trade and trade between China and South Korea is meaningful. The next part is the theoretical analysis and empirical analysis in order to explore the causes of Cross-strait trade imbalance.This paper utilizes the comparative analysis, qualitative and quantitative research methods and believes that the causes of Cross-strait trade imbalance include unbalanced trade policy, as well as different market volume between the two sides and the direct investment to Chinese Mainland from Taiwan. Further analysis finds that the export market of Europe and America is the root cause of Cross-strait trade imbalance. In the new context of today’s political and economic situation, the adherence of trade liberalization and further economic integration are future cooperation paths for Chinese Mainland and Taiwan. These will also help to narrow the trade imbalance of two sides.