Comparative Advantage and Trade Complementarity between China and Japan

Bilateral trade plays an important part in the economic activity between China and Japan.Using the indexes of trade connection,revealed comparative advantage and trade complementarities,this paper investigated the existing condition,comparative advantage and trade complementarity of the bilateral trade between China and Japan based on the data over the year 1996-2006.The results indicated that there was a remarkable difference of comparative advantage of the two countries,whereas trade complementarities seemed to be significant either in export or in import with a characteristic of outstanding intra-industry trade.It would be better for the full use of comparative advantage and the economic development of both China and Japan to strengthen the bilateral cooperation between them.