The Influence Of Sino-US Trade Friction On Bilateral Trade Structure

In August 2017,US President Trump signed a memorandum to launch a "301investigation" on China,which represented the beginning of a new round of Sino-US trade friction.This trade friction is different from the past ones.China and the United States have launched investigations on sanctions and tariffs imposition in various fields such as the economy,finance,and technology.As for the imposition of tariffs,four rounds of measures have been implemented by December 31,2019.The Sino-U.S.trade frictions have a significant impact on the two countries and the Sino-U.S.bilateral trade products suffer firstly.This research mainly focuses on the Sino-US trade commodity structure.The commodity structure of foreign trade can better reflect the industrial structure,resource endowment,and economic and technological development level of a country(or region).Although the Sino-US trade friction is a short-term factor,the four rounds of imposed tariffs as purposeful measures have a marginal impact on the trade structure.The Sino-US trade friction is in the process and the lag effect has not yet appeared.So this research is to predict the development trend of Sino-US trade.In Sino-US trade relations,the United States has a deficit in goods trade and a surplus in services trade with China.On the whole,the United States' trade with China has been in a deficit for a long time.In terms of import and export strength,there exists the fact that China's export dependence on the United States and the United States' import dependence on China are relatively high.It can be seen that mechanical and electrical equipment is always important product of China's import and export to the United States.In addition,China's exports to the United States are concentrated on labor-intensive products,and China's imports to the United States are concentrated on capital and technology-intensive products.In the background of Sino-US trade frictions,Sino-US trade issues have attracted increasing attention,and the essence is largely a matter of trade structure between thetwo countries.Through a comparative analysis of the four rounds of tariff imposition between China and the United States,it can be seen that the tariffs imposed by China and the United States are concentrated in high-tech industries,and most of the products subject to the tariffs are products that account for a relatively large proportion of the trade between China and the United States.Although the proportion of major products in China-US trade has not changed much,each product's response to the Sino-U.S.trade friction is different,and there is a certain time delay between the fluctuation of various products and the impact of tariffs.The empirical part of this study is to build mathematical models to explore the changes in the trade structure,displayed comparative advantages,trade competitiveness,and intra-industry trade levels of important tariff-added products under Sino-US trade friction.First of all,after the escalation of Sino-US trade frictions,the Lawrence Index of each of the major products imposed tariffs is still small.The Lawrence Index of some products fluctuates,and the products that are most affected are concentrated in products with a large proportion of China's imports and exports to the US.Secondly,from the perspective of the comparative advantage,the Sino-US trade friction will affect the RCA index of products that China and the United States have a comparative advantage over each other.Thirdly,from the perspective of trade competitiveness,under the Sino-U.S.trade friction,the industries whose trade competitiveness are most affected include food and tobacco,plant products and vehicle transportation equipment.Finally,under the Sino-US trade frictions,the level of intra-industry trade of the major products imposed tariffs has shown a trend of rebound.Among them,the G-L index of resource-intensive products such as plant products and tobacco fluctuates,and the G-L index of vehicle transportation equipment declines during the lagging period of imposed tariff measures.Here we notice that under the Sino-U.S.trade friction,the products that are more affected are the products that account for a relatively large proportion of China-US imports and exports.These products are mainly capital-intensive products such as mechanical and electrical equipment.What causes these products to be most affectedby Sino-U.S.trade? The article explores the reasons for the changes in Sino-U.S.trade structure under the background of Sino-U.S.trade frictions.The author holds the opinions that the Sino-U.S.trade frictions focusing on China's manufacturing industry,the trade transfers effects of tariff,and the vertical division of U.S.multinational companies in China under the background of GVC,have expanded the impact of Sino-US trade frictions on high-tech product trade,changes in trade structure,and changes in intra-industry trade.Finally,the article proposes China should actively guide the development of Sino-US relations,seek support within the WTO framework agreement,strengthen corporate innovation mechanisms,guide multinational companies in China reasonably,and continue to actively implement the "Belt and Road" initiative.