Abstract After entering WTO, China has accelerated the pace of integrating the global economy. The trade relationship between China and the east Asian countries is becoming more and more intimate. The sustaining and stable development of Chinese economy calls for its cooperation with east Asian countries and areas. And China must first reinforce its cooperation with its neighbor east Asian countries and areas. In recent years, China's foreign trade has continuously been expanding and its structure has taken great changes as well. In addition, the comparative advantage of Chinese industrial products to other East Asian countries is also taking great structural changes. This article adopts RCA index to analyze the comparative advantage of the Chinese industrial products in the trade with the east Asian countries. Generally speaking, Chinese labor-intensive and resource-intensive products, such as food, drinks, tobacco, costume and sewing products, have comparative advantage in Japan and "Four Tigers", while capital-intensive and technology-intensive ones, such as electrical machine and component, paper and paper products, chemical industrial products, iron and steel, nonferrous metal and products, in other ASEAN countries. Comparative advantage roughly determines the division pattern between one country and other (or other areas). Yet the products with competitive advantage don't mean they are internationally competitive. Furthermore, international trade pattern has undertaken tremendous changes. So it is far from enough to conduct division and trade in the light of mere static comparative benefits. China needs to strive to form trade structure with inter-industry trade as its core, to develop higher inter-industry trade, to turn comparative advantage into competitive advantage, and to improve its international competition. In order to ease the trade conflict with East Asian countries, to safeguard and develop a sound trade relationship and to win double-win in competition, it is necessary to make strategic adjustment of Chinese industry structure and rebuild China's competitive advantage. The article is to point out the type, characteristics and status of Chinese industry in the East Asian international division by analyzing the comparative advantage and competitive advantage of the Chinese industrial products in the trade with the East Asian countries.
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Received: 17 March 2003
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