Analysis of the Competitiveness and Complementarity between China Japan and other RCEP Member Countries

Using ESI index, TCI Index and IIT Index to compare the competitiveness, complementarity and Intra-industry trade level between China Japan and other RECP member countries (South Korea, Australia, New Zealand and ASEAN). Both China and Japan are obviously competitive with South Korea and ASEAN, and are obviously complementary with Australia and New Zealand. Also, both China and Japan are mainly engaged in Intra-industry trade with South Korea and ASEAN, while mainly engaged in Inter-industry trade with Australia and New Zealand. Moreover, through the empirical analysis of panel data, the competition between trading countries is an important factor affecting the level of Intra-industry trade level of these countries, and the level of Intra-industry trade is an important indicator to measure a country's economic development level and industrial competitiveness. Therefore, both China and Japan should actively participate in the construction of "RCEP", while expanding the trade areas of economic complementarity with Australia and New Zealand, they should actively expand the trade depth with South Korea and ASEAN through benign competition.