Trade Complementarity of Sino-US Wind Energy Products: based on UN Comtrade Data

Abstract

China and the United States are both major countries in the world in the production of and trade in wind energy products, and they are also important trading partners. Therefore, it is of great practical significance to analyze and evaluate the Sino-US bilateral wind power complementarity for re-examining their respective comparative advantages and re-understanding the benefits that trade liberalization brings to both countries, in an attempt to strengthen the trade relations between China and the United States and enhance trade complementarities in wind energy products under the global circumstances of fierce competition. In this paper, based on the trade data from the UN Comtrade database in 2007-2016, a quantitative analysis was conducted on the complementarity of Sino-US wind energy products, by adopting the quantitative research methods of trade combination degree index (TCD), export similarity index (SI) and trade complementarity index (TCI). The results shows that: i) the total trade volume of wind energy products between China and the United States has increased rapidly, and the trade surplus between China and the United States has been expanding year by year; ii) the overall trade balance of wind energy products trade between the two countries is generally stable, and the dependence of China's wind energy products on the United States is much higher than that of the U.S wind energy products on China; iii) the Sino-US wind energy products between China and the United States are highly competitive in the international market; iv) Sino-US wind energy products have different degrees of complementarity in bilateral trade. Finally, this paper proposed policy implications based on the findings of this study.