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With the development of China’s comprehensive national strength in recent years, especially the rapid expansion of foreign trade and the steady growth in trade volume, China not only cooperate with developed countries like E.U, the US and Japan as trade partners, but also treat developing countries as important cooperative partner. Kyrgyzstan is a developing country which borders on Xinjiang China, but its location (in Eurasian heartland) is extremely important, Concerned all the factors that mentioned above, to further open up the Kyrgyzstan’s market have a vital significance to the long-term development of Xinjiang. To study the bilateral trade of Xinjiang and Kyrgyzstan can help to provide important basis on the study of the trade between developing countries.Based on the data of classification trade between china and Kyrgyzstan as well as Xinjiang and Kyrgyzstan, the paper is designed to discuss the bilateral trade between Xinjiang and Kyrgyzstan by combining theory and practice. First, this article is specified in the background of the trend of globalization, the deadlock of WTO negotiation, and with particularly favorable natural conditions between Xinjiang and Kyrgyzstan. Secondly, theoretically speaking, the theory of absolute advantage, the theory of comparative the advantage, isomorphism based on H-O, the theory reciprocal demand, the theory of intra-industry trade. And thirdly, we burden the responsibility to analyze the trading data from the 98th chapter catalogue of China and Kyrgyzstan, and to reveal the trading current situation of China and Kyrgyzstan, putting forward the main problems existing in the trading. Furthermore, we could reach the relevant conclusion by virtue of practically analyzing the bilateral trading, calculating the advantage index and the calculation of intra-industry trade, and doing a quantitative research into the status of bilateral trade.Xinjiang is the only province of China which border on Kyrgyzstan. First, analyse the problems exist in trade and the bilateral trade present situation of Xinjiang and Kyrgyzstan, to further prove the trading present situation of Xinjiang and Kyrgyzstan is just the same as the trading situation of China and Kyrgyzstan. Second, analyse each industry structure, trade structure, economic policy and terms of trade of Xinjiang and Kyrgyzstan, to expound and prove the trading complementarity of Xinjiang and Kyrgyzstan is greater than the competitiveness. At last, this context gives an advice for the development of the bilateral trade of Xinjiang and Kyrgyzstan.
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