Analyzing the Competitiveness and Complementarity of the Tea Trade between China and Mekong River Basin Countries

Yang Wei; Mohammad Affendy bin Arip; Chin-Hong Puah

doi:10.32479/ijefi.20422

Authors

Yang Wei Faculty of Economics and Business, Universiti Malaysia Sarawak, Sarawak, 94300, Malaysia; & Anhui Finance and Trade Vocational College, Anhui Economics and Management College, Hefei, 230000, China
Mohammad Affendy bin Arip Faculty of Economics and Business, Universiti Malaysia Sarawak, Sarawak, 94300, Malaysia
Chin-Hong Puah Faculty of Economics and Business, Universiti Malaysia Sarawak, Sarawak, 94300, Malaysia

DOI:

https://doi.org/10.32479/ijefi.20422

Keywords:

Tea, Mekong Countries, Comparative Advantage, Trade Complementarity Index

Abstract

This study examines the competitiveness and complementarity of the tea trade between China and Mekong River Basin countries (Cambodia, Myanmar, Thailand, Vietnam, and Laos) from 2014 to 2023. Using the Revealed Comparative Advantage (RCA) index, the Trade Complementarity Index (TCI), and the Trade Intensity Index (TII), the research assesses China’s position in the tea market of the region. The survey results indicate that China has maintained a strong comparative advantage in tea exports, occupying a dominant position in the region, but competition from Vietnam is particularly significant. China’s tea trade exhibits strong complementarity with Cambodia and Myanmar while maintaining close trade ties with Vietnam, Cambodia, and Thailand. Recent trade complementarity and trade intensity between China and the Mekong River Basin countries show a steady upward trend, signaling increased alignment in bilateral trade. The study offers policy recommendations—adopting market-specific strategies, fostering regional cooperation, and optimizing product structures—to enhance China’s tea trade competitiveness.