With the development of economic globalization, the multi-national corporations extend overseas production network continuously, and intra-product specialization and trade has been an important way for the developing countries to involve in international specialization and trade. China seizes this chance and involves in intra-product specialization and trade by comparative advantage of low-cost labor, resources and other production factors. Since the1990s, processing trade and foreign trade of China have increased dramatically. In promoting the development of foreign trade, intra-product specialization has also brought some questions to China. It is an important and immediate task what are the effects of intra-product specialization to foreign trade and how to solve the existent problems of foreign trade within intra-product specialization that confronts China.This paper introduces the definition, characteristics, process impetus and formation mechanism of intra-product specialization, and study the reasons why China involves in intra-product specialization. Then it reviews the history and analyses the current situation China involves in international specialization. Afterwards, it explores the effects of intra-product specialization on foreign trade commodity structure, geography feature, and trade avails in China, and analyses the influence over the value of import and export and foreign trade disequilibrium by econometrics models. Finally, it discusses the strategies to develop foreign trade of China in intra-product specialization perspective.
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