What Is Bilateral Trade?

Bilateral trade refers to trade between the two countries to maintain a balanced import and export balance. Bilateral trade must be signed by the governments of the two countries. It is trade based on bilateral settlement. Both parties to this trade pay for imports from the other country with their own exports, instead of paying for imports from a third country with each other's exports. The import and export volume of the two sides should be basically balanced. As the value of goods and services exchanged between the importer and exporter is basically balanced, payment difficulties are resolved or reduced, and the development of international trade is promoted. Later, as countries gradually relaxed foreign exchange controls and multilateral settlements expanded, the proportion of bilateral trade gradually decreased. ^[1]

[shung bin mào yì]

Bilateral trade refers to trade between the two countries to maintain a balanced import and export balance. Bilateral trade must be signed by the governments of the two countries. It is trade based on bilateral settlement. Both parties to this trade pay for imports from the other country with their own exports, instead of paying for imports from a third country with each other's exports. The import and export volume of the two sides should be basically balanced. As the value of goods and services exchanged between the importer and exporter is basically balanced, payment difficulties are resolved or reduced, and the development of international trade is promoted. Later, as countries gradually relaxed foreign exchange controls and multilateral settlements expanded, the proportion of bilateral trade gradually decreased. ^[1]

A direct measure of the degree of liberalization is a reduction in tariffs, a reduction in non-tariff measures and reductions in other trade restrictions. However, due to the huge differences between nominal tariffs and actual tariffs in developing countries, and the difficulty in quantifying non-tariff barrier measures and data collection, many economists use the results of trade liberalization to approximate the degree of trade liberalization. . Around the turn of the century, in order to meet the challenges of the new situation, the United States, Japan, China and other countries revised their free trade strategies in a timely manner and increased the intensity of negotiations on free trade agreements. ", Or" multilateral "and" bilateral ".

According to the statistics released by the Customs on January 11, 2007, the European Union continued to be my largest trading partner in 2006. China-EU bilateral trade totaled US $ 272.3 billion, an increase of 25.3%, accounting for 15.5% of China's total foreign trade import and export value. The United States is China's second largest trading partner. The total value of bilateral trade between China and the United States reached US $ 262.68 billion, an increase of 24.2%. Japan is China's third largest trading partner, and the value of China-Japan bilateral trade is US $ 207.36 billion, an increase of 12.5%. Followed by Hong Kong, ASEAN, South Korea, and Taiwan Province. Among them, the total bilateral trade between the mainland of the motherland and Taiwan Province in 2006 exceeded US $ 100 billion for the first time, reaching US $ 107.84 billion. Among them, the mainland of the motherland exported USD 20.73 billion to Taiwan Province, imported USD 87.11 billion from Taiwan Province, and the trade deficit reached USD 66.38 billion.

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Bilateral free trade agreements are a way for China's economy to integrate into the world economy and have a profound impact on China's sustainable development. In order to achieve the long-term goal of sustained economic growth in China, China can take the promotion of regional economic integration in East Asia as an important strategic goal, but it should not be limited to East Asia. According to its own strategic interests, China can explore the possibility of establishing bilateral economic cooperation or free trade agreements with important trading partners in the world in order to obtain the maximum economic benefits. Therefore, to get out of the predicament, China's entry into the WTO alone is not enough, and it must work hard to build a bilateral or regional free trade system. The following adjustments will be necessary for China:

(1) Establish China's basic position in overall foreign trade, adhere to the position of a developing country with a large population and urgently need to enter globalization and regionalized trade exchanges, and use this as a starting point to determine policy orientation and standards.

(2) While opening the market, rapidly improve China's non-tariff barrier system, and at the same time establish a mechanism to initiate non-tariff barriers, including information acquisition, countermeasure research, and decision-making mechanisms. For non-tariff barrier trade disputes, the Chinese government must assist enterprises to actively participate and accumulate experience.

(3) Actively participate in activities to strengthen bilateral trade, such as the establishment of various free trade zones. At the same time, an equal and pragmatic policy orientation is adopted, with the basic purpose of seeking reciprocity, and it should not be too early to reflect the characteristics of leading regional cooperation. Especially for the cooperation of ASEAN countries, we must dispel their instinctive vigilance after China's entry into the WTO.

(4) While internally cleaning up rules that are not commensurate with the WTO, we must actively assist enterprises in reforming and transforming to provide better conditions and support for their participation in international market competition. At the same time, we must vigorously develop truly capable intermediary organizations related to international trade. If China's entry into the WTO, participation in economic globalization should be a basic strategy, then strengthening bilateral or regional economic integration should be a priority strategy. A bilateral free trade agreement is to make trade between the two parties to the agreement as liberal as possible.

On September 20, 2018, Premier Li Keqiang said in response to questions from representatives of Chinese and foreign entrepreneurs attending the 2018 Tianjin Summer Davos Forum that no matter what kind of bilateral trade negotiations, the basic rules of multilateral trade should be maintained.