The Impact Of Trade Frictions Between China And The United States On Export Trade Competition And Complementarity In High-end Manufacturing Industries Between China And The United States

As one of the key spirits conveyed by the Sixth Plenary Session of the 19 th CPC Central Committee,adherencing to opening up has been carried out consistently throughout China’s development process in the past,and this key point has become one of the “secrets” of China’s rapid economic development.In the past decades,China has been actively participating in economic globalization,pursuing win-win multilateral cooperation,and striving for a high level of opening-up.As the largest developing country in the world,the trade relationship between China and the US,which is the largest developed country in the world,naturally has a profound impact on the development of the global economy.In fact,since the formal establishment of diplomatic relations between China and the US in the last century,China and the US have reached a number of strategic cooperative relations,including a series of global communication mechanisms such as the Joint Commission on Commerce and Trade,the Strategic Economic Dialogue and the Global Economic Dialogue,and have always adhered to multilateral rules such as the WTO Free Trade Agreement and some bilateral trade agreements.Within the past decades,China and the US have formed a mutually beneficial relationship with highly complementary structures and deeply intertwined interests through the complementary comparative advantages caused by the differences in resource endowment and technologies,as well as the differentiated development of the market and the emphasis on the overall industrial structure,which has steadily and effectively promoted the economic development of the two countries.It has greatly promoted the reconstruction and optimization of the manufacturing value chain worldwide and improved the efficiency and benefits of the global value chain.However,since Trump took office,the US began to vigorously advocate“America first”,holding the banner of “Unilateralism”,“Trade-Protectionism” and“Economy-Hegemonism”.Combined with the structural contradictions gradually emerging in the development of China-Us relations in the past,the widening trade deficits and the negative expectations of the US on the future global trade environment,the US began to impose tariffs and took some other actions.The trade frictions between China and the US continue to escalate,and break the good development and win-win relationship between China and the US in economy and trade cooperation step by step.On 23 rd March 2018,the US released a list of taxes on China totally about 50 billion yuan.China responded by imposing tariffs on more than100 kinds of goods,including fruits and pork,worth about 3 billion dollars.Such an event has also become the substantive starting point of Sino-US Trade Friction since the US officially launched the “Section 301” investigation against China on 18 th August 2017.In a long term,Sino-US relations have become more and more different from the past,and the world economic pattern affected by Sino-US trade relations has been also changing.The uncertainty in the field of economy and trade between China and the US will remain at a high level,and the process of economic globalization is also facing severe challenges.As the one of the focus areas of Sino-US Trade Friction,the advanced manufacturing industry needs to be re-examined how the export trade status of the two countries in this field has been affected by the Sino-US Trade Friction.Based on the bilateral trade data of the advanced manufacturing industry before and after the occurrence of Sino-US Trade Friction,this paper attempts to measure the export trade competitiveness or complementarity of the advanced manufacturing industry between China and the US.Based on the measurement results,the regression based on the DID model is used to analyze and explore the influence of Sino-US Trade Friction on the export competitiveness and complementarity,which refers to the advanced manufacturing industry.Finally,this article puts forward some policy recommendations for China,given the empirical analysis results.The research results show that the export goods trade between China and the US shows a high level of competitiveness in the advanced manufacturing industry,and this competitiveness is almost manifested in all subsections of advanced manufacturing industry.At the same time,no matter the advanced manufacturing industry,as a whole,or its subsections,the export trade competitiveness between China and the US was not significant in the early stage,but has been steadily strengthening in the past 20 years.According to the regression results of the DID model,the Sino-US Trade Friction has a significant negative effect on the export trade competitiveness of the advanced manufacturing industry,and this conclusion is significant and robust under the placebo test,which is based on the fictitious individual of treatment group and the fictitious time of policy intervention,and robustness test.