China and India Trade Competition and Complementary: Analysis of the “Belt and Road” Background

Abstract

In recent years, bilateral relations between China and India are the focus of international attention. Despite the constant friction between China and India, the fact that China is the largest trade partner in India is not changed, and the bilateral trade volume in 2017 has set a new record of history. The continued implementation of the strategy of “One Belt and One Road” of the Chinese government has brought lots of new opportunities for China and India economic and trade cooperation. In order to analyze the competitiveness and complementarity of trade between China and India under the background of “One Belt and One Road”, the article uses the “UN” UNCOMTRADE database, measuring the trade of China and India of revealed comparative advantage index, trade integration index, export similarity index, the specialization of the revised coefficient index and coefficient of consistent index, to analyze competition and complementarity of trade between China and India. Results show that the trade structure of China and India has a certain competition, but also has a lot of complementarity; There are many types of products in mutual trade: China mainly exports manufactured goods to India, and the India exports to China mainly primary products and semi-finished products. According to the strategy of “One Belt and One Road” background, we try to put forward policy measures to promote China’s economic and trade relations with south India.