1 Introduction

Since the establishment of diplomatic relations between China and Australia in 1972, bilateral trade volume has significantly increased, with China becoming Australia's largest trading partner. In 2019, the bilateral trade volume reached 158.97 billion US dollars, and Australia's trade surplus with China was 48.83 billion US dollars. Australia's exports to China are mainly metal ore and coal, while China's exports to Australia are mainly electromechanical products and labor-intensive products. In recent years, the trade relationship between China and Australia has deteriorated due to political and economic frictions, resulting in high prices of Australian metal ores and coal, soaring energy prices, and limited production capacity in the steel and metallurgical industries. To clarify the bilateral trade status, it is proposed to use the "trade value added" method to re measure the interdependence of China Australia trade, in order to understand the asymmetry in the context of global industrial chain evolution.

2 Literature Review

The literature review section provides an in-depth analysis of the current research status of the interdependence between China and Australia in trade, covering multiple dimensions such as trade dependence, competitiveness and complementarity, sensitivity and vulnerability, and value-added trade. Research shows that there is an imbalance in the degree of trade dependence between China and Australia, with China's dependence on Australia gradually increasing. In terms of trade competitiveness and complementarity, China Australia trade is mainly based on complementarity, but there is asymmetry. Sensitivity and vulnerability analysis indicates that China's dependence on Australia is relatively sensitive and fragile. The study of value-added trade reveals the limitations of traditional trade accounting methods and proposes more accurate trade accounting methods. Domestic scholars mainly focus on recalculating the trade balance and dependence, as well as more accurately measuring the bilateral trade situation. However, existing research mostly adopts traditional statistical methods, which lack credibility in the context of deepening global division of labor. This article will use the latest data from the perspective of global value chains and segmented industries to conduct a more accurate analysis of the asymmetry of China Australia trade dependence.

Analysis of Asymmetric Trade Dependence between China and Australia in the Context of Global Value Chains

This chapter measures the trade dependence between China and Australia by constructing a trade dependence index, and analyzes the asymmetry of the trade dependence relationship between the two countries. By using the value-added decomposition method, analyze the China Australia trade model from the perspective of exports, calculate the bilateral trade share index, and measure the China Australia trade dependence. The backward correlation index is used to measure the "upstream dependence" relationship between China and Australia, while the final demand contribution rate is used to measure the "final demand dependence" relationship. Research has found that the China Australia Trade Dependence Index shows that China's trade dependence on Australia is weaker than Australia's trade dependence on China, and Australia's trade dependence on China is constantly increasing.

4 Conclusion and Implications

Since the establishment of the China Australia trade relationship, China has been in a long-term deficit state with serious trade imbalances. Based on a global value chain perspective, the study analyzed data from 2005 to 2018 and found that Australia has a higher dependence on China's trade. China's upstream dependence on Australia has long been lower than Australia's dependence on China, and Australia's final demand dependence on China far exceeds China's dependence on Australia. The overall trade dependence relationship between China and Australia is asymmetric, and Australia is at a disadvantage. In the face of deteriorating economic relations between China and Australia, China should take advantage of the asymmetric advantage of trade dependence, adopt countermeasures to safeguard trade interests, and implement a "two legged" strategy to develop domestic resources, create an open business environment, accelerate foreign investment, and enrich resource import channels.