Complementary And Competitive Trade Research On China's And Japan's Automobile Products

Automotive trade plays an important role in the development of a country's automobile industry; trade development level reflects the manufacturing production capacity, which affects the healthy development of the national economy. Japan is an important trade partner of China, have closely related with China and it is also the world leader in automobile industry level. As the financial crisis and the impact of Japan's economic stagnation, Japan's automobile products trade severely affected. While China as a new automobile trading nation, its automobile products trade rapid development in recent years, the volume of trade begin to grow rapidly. Automotive trade between China and Japan has started change from the complementary to competitive. Therefore, studying competitiveness and complementary between China's and Japan's automotive products trade, help us to recognize the status quo of China automobile products, find the gap between China's and Japan's automobile products, increase competitiveness level of China automobile products trade and strengthen bilateral automotive trade, it has practical significance.Firstly, it begins its analysis on automobile products trade status quo from three aspects which is trade scale, trade structure, changes of trade and reasons for such changes. Then through the combination of trade index, trade complementary index and intra-industry trade index to analysis the complementary between China and Japan automobile products. The results show that there are complementary between China's and Japan's automobile products, followed complementary reasons between China and Japan were analyzed, which is caused by difference of factor endowments, economic development scale and technology, Japan's investment in China and China's form of trade. Then we analysis competitiveness between China's and Japan's automobile products by the export similarity index, trade competitiveness index and index of revealed comparative advantage index. It found that only a very small part of the products of China have a comparative advantage, most of the products are very weak on competitive advantage or non-existent competitive advantage. Finally, on the basis of these studies suggestions are proposed to enhance trade between the two countries in the automobile products.