Eu-china Trade Imbalance Causes And Countermeasures

The trade relationship between China and EU has been developing rapidly since it was established thirty years ago. However, the trade imbalance problem between the two parties has become a sensitive topic. How to properly solve this problem has become an important issue between China and EU.In this thesis, on the basis of reviewing the adjustment of the policy EU takes to China, I give an overview of the trade imbalance between China and EU from an angle of trade volume, periodical feature and commodity structural feature. Then we analyze the cause of trade imbalance from two angles—theoretic and demonstrational analysis. I focus on the commodity and industry structure, difference in consumption, international transfer of industry, growing FDI from EU to China, EU expansion to Eastern Europe and revaluation of Renminbi Yuan(RMB$). And then we analyzed the impact of trade imbalance between China and EU. At last, based on concluding the research that has been done, the author gives some policy suggestions on how to develop the trade relationship between China and EU as well as to promote trade balance, and hope to give some reference on making trade policy to EU.