Complementarity of Trade between Ukraine and the People's Republic of China as an Indicator of the Effectiveness of Bilateral Cooperation

Introduction. The People’s Republic of China is Ukraine’s major trade partner in the Asia-Pacific region and its second global trade partner after the Russian Federation. To understand the existing level of bilateral trade and its efficiency and impact on Ukrainian economy, it is necessary to utilize not only quantitative parameters but also analytical indicators of external trade, such as the comparison of trade patterns, in order to determine the level of consistency of trade and the prospects of possible cooperation.

Purpose. To analyze the status of contemporary bilateral trade cooperation between Ukraine and China, to measure the consistency of Ukrainian-Chinese trade by using the direct and reversed trade complementarity indexes, and to determine the role and position of China among Ukraine’s major trade partners in the Asia-Pacific region.

Results. Quantitative analysis of commodities trade was conducted. General trends of trade between Ukraine and the China were outlined. The result of the calculation of direct and reversed trade complementarity indexes were used to provide valuable insight into the possible prospects of bilateral trade, and problems and threats to economic security were uncovered due to the changes in trade patterns of Ukraine by comparing them to the respective parameters of partners in the Asia-Pacific region.

Conclusion. The trade between Ukraine and China is growing steadily despite negative trends in the Ukrainian economy. However, the structure and quality of trade are decreasing, and the gap between Ukrainian exports to China and imports from China to Ukraine is constantly growing. It is evident that China is becoming a competitor to Ukraine on the global market and is less interested in Ukrainian exports. Possible actions to prevent and avoid severe competition and improve trade relations were proposed.