Research About Comparative Advantage Of Chinese Products In The United States And Real Exchange Rate

Since the fortieth anniversary of the establishment of diplomatic ties between the two countries,trade relations have become increasingly close.However,since 2018,trade frictions between the two countries have intensified,triggering sharp fluctuations in the exchange rate of the renminbi.So it is necessary to study the comparative advantages of Chinese products in the American market and their relationship with the real exchange rate of RMB.So based on HS classification criteria and export similarity index FK,this paper finds that Vietnam is the most competitive country in the U.S.market.Then this paper studies the comparative advantage of Chinese products in the U.S.market through the indicative comparative advantage index RCA* and dynamic indicative comparative advantage index DRCA.The results show that there are many kinds of products with strong competitiveness in the U.S.market.The comparative advantage is stable,while Vietnam's products with strong competitiveness in the United States market are few and the comparative advantage is weakened,but the competitiveness of individual products such as textiles,shoes,furniture and other products is strong;the dominant advantage growth rate of China's textile industry is faster than Vietnam's,while the dominant advantage growth rate of Vietnam's mechanical and electrical industry is faster than China's.Exports in the U.S.market pose a potential threat.Based on this,this paper studies the relationship between the display comparative advantage of different products and the real exchange rate.Through co-integration and impulse response,it is found that the relationship between the display comparative advantage of different products and the real exchange rate is different.This is because the elasticity of different products to the exchange rate is different.Specifically,in the long run,the display comparative advantage of knitted products and the real exchange rate are different.Real exchange rate is a mutually reinforcing relationship,and the comparative advantage of knitted products promotes the real exchange rate more than the real exchange rate promotes the comparative advantage of knitted products.In the short run,the increase of real effective exchange rate and the technological progress of China relative to the United States will both have a positive impact on the comparative advantage of non-knitted products exported by China in the United States market,but from the perspective of In the long run,the increase of the comparative advantage of non-knitted products will restrain the increase of the real exchange rate;in the long run,the relationship between the comparative advantage of footwear products and the real exchange rate is mutually restrained,but in the short run,the increase of the comparative advantage of footwear products will positively promote the real exchange rate;the change of the real exchange rate and the display of furniture products are better.The trend changes show a negative relationship,and the negative impact of the real exchange rate on the comparative advantage of furniture products is greater than the negative impact of the comparative advantage of furniture products on the real exchange rate.Finally,this paper puts forward some suggestions to improve the comparative advantage of Chinese products in the US market,such as paying attention to the threat of Vietnam to China and giving different improvement suggestions for different product types;opening up new export markets to reduce dependence on the US market;and using financial tools and policies to adjust the exchange rate so as to stabilize the RMB exchange rate in a reasonable range.