Research on the Competitiveness and Complementarity of China-Indonesia Bilateral Trade

Abstract

This paper uses comtrade data to calculate the export similarity index, trade integration index and intra-industry trade index between China and Indonesia. These three indices help to analyze the competitiveness and complementarity of bilateral trade between the two countries. The conclusions are as follows: As the trade between China and Indonesia are progressively closer, and the bilateral trade in the two countries is highly complementary and each has its own advantageous industries. On this basis, we put forward several opinions: Under the background of “Belt and Roadâ€, Chinese enterprises will increase investment in Indonesia's oil and gas exploration, fishery and other industries. Besides, they also can expand investment areas, accelerate the construction of infrastructure in the two countries, and increase the export of superior products.