Balance of Trade Between China and India

李宗晏

（遼寧師范大學）

一、Introduction

This assignment will inform the balance of trade between China and India from the macroeconomic perspective. China and India are very important developing countries in the world. Both countries have a large land area and population. So both had advantages of large labors and large markets. In the recent year， China and India has a rapid economic development. Due to economic growth and development China and Indias living condition have improved and trained a large number of professionals. But China and India still have economic difference between each other， such as Chinas economic growth and development is beyond Indias and they have different outcomes of balance of trade.

二、Main Findings

China records a trade surplus in October of 2014 with 454.05 hundred million dollars. In August of 2014， China records the maximum value of trade surplus with 498.3 hundred million dollar. But in March of 2014， China records the minimum value of trade deficit with -229.89 hundred million dollars. The tendency balance of trade of China is positive （China Balance of Trade， 2014）.

From the figure 2 we can see China and India have a close relationship in economic trade. The transaction amount between China and India is increasing. The tendency of transaction amount between China and India is positive.（Qingfen， 2012）.

From the figure 3 we can see Indias imports from China are bigger than exports from China. The tendency of Indias imports from China is increasing， but the tendency of Indias exports from China is decreasing. So India has a trade deficit with China （India and China Friend， enemy， rival， investor， 2012）

三、Discuss

China and India are the outstanding developing countries and both of the two countries have an ancient civilization. In ancient times China and India has trade with each other. So China and India has a deep relationship in economy. But now China and India has some problems in trade between each other. The biggest problem is trade imbalance. Why China and India do has a trade imbalance between each other？ From the perspective of the world economy， China has comparative advantage to India. Chinese macroeconomic environment and economic output are better than India. Chinese economy has considerably increased in the late 20th century. Indias economy development is about 10 years behind China. Now China already has a very efficient transportation， which its benefit foreign trade. While Indias traffic is not convenient. This affects Chinese imported goods such as fruits， vegetables and milk from India.

四、Conclusion

Economics is an important part in peoples lives which can help you make decisions. In the economic globalization world everyone is closely related to economics. People do the decision about economics not only to affect him but also to affect other people. Just like China and India， even though they are two different countries they can also Influence each other on economic issues. In the current China and India have got good achievements， I think in the future China and India will make more economic contributions to the world.