Study On The Trade Structure Of Commodity Between Kazakhstan And China

The economic and trade cooperation between China and Kazakhstan has many advantages,such as the adjacent geographical location,the complementary resource endowments,and the close bilateral political relations.Under the impetus of various factors,bilateral economic and trade cooperation between these two countries has maintained a sustained and stable development,and the two sides have reached a series of trade cooperation agreements.However,there are many problems in the trade structure between Kazakhstan and China.The main commodities Kazakhstan exports to China are the resource based products such as mineral products and base metals and the primary manufactured products.The products of trade are few and the added value of the products is low.China has the overcapacity problem in iron and steel,cement,building materials and other industry sectors,however,these products accounted for a relatively low proportion of the products exported to Kazakhstan.The products exported to Kazakhstan have not been combined with the adjustment of China’s own industrial structure.China has obvious competitive advantages in furniture,toys and miscellaneous products,but these products with comparative advantages account for a low proportion of exports to Kazakhstan.Just based on this situation,this paper hopes to make a study on the trade structure of commodities between Kazakhstan and China.In this paper,the author uses the descriptive statistics method to analyze the main commodities that Kazakhstan exports to China and imports from China,as well as their proportions,the trade integration index between Kazakhstan and China,the trade complementary index between Kazakhstan and China,and the trade competition index between Kazakhstan and China.From the analysis it can be seen that the main products that Kazakhstan exports to China are ore products and the main products that Kazakhstan imports from China are mechanical and electrical products;the combination degree between Kazakhstan and China is high,the commodity trade between these two countries is closely linked,and the close degree is increased;Kazakhstan and China have relatively strong trade complementarity in non edible raw materials and fossil fuels and other products;China’s products with strong international competitiveness are mainly the industrial manufactured products,while Kazakhstan’s products with relatively strong international competitiveness are concentrated on raw material commodities,and there is no competition between the two countries completely.The author uses the method of comparative analysis to analyze the influencing factors for the adjustment of commodity trade structure between Kazakhstan and China.The favorable factors for the adjustment of commodity trade structure between the two countries includes the adjustment of industrial structure in the two countries,the improvement of the transportation conditions brought bey the new Silk Road Economic Belt,and the production and investment cooperation carried out by the two governments.The unfavorable factors for the adjustment of commodity trade structure between the two countries are the fierce market competition environment in the two countries and the negative impact of Eurasian Economic Union on China’s export to Kazakhstan.The paper holds that,in order to further optimize the trade structure of the commodity between Kazakhstan and China,the two countries should make full use of the favorable conditions such as the construction of the new Silk Road Economic Belt,so as to solve the problem that the kinds of products are few in the commodity trade between them at present.For Kazakhstan,on the one hand is to adjust the economic structure,promote the development of processing industry,and change the current situation that the products exported to China are mainly concentrated in resource intensive products such as the mineral products and base metal.Kazakhstan should gradually change the export of resource intensive products to the export of manufactured products.On the other hand,it is necessary for Kazakhstan to increase capital and technology investment in the manufacturing sector,so as to introduce the advanced technology,equipment and high-end human resources to promote the upgrading of the manufacturing sector and increase the added value of export products.For China,on the one hand it should further increase the export of automobile,steel,glass and other products to Kazakhstan,so as to better combine with the domestic adjustment of industrial structure,and better solve the problem of excess domestic production capacity.On the other hand,Chinese enterprises should further improve the investigation on the Kazakhstan’s market and the marketing promotion of products,so as to further enhance the visibility of products in the Kazakhstan market,establish a brand image,and increase the export of products with comparative advantages to Kazakhstan.