Research On The Sino-EU Trade Imbalance

Two thousand years ago, Hanwu emperor pioneered the well-known Silk Road, as well as the historical jumping-off of the China-Europe’s relationship. Afterwards, with the subrogation of China’s Dynasty and impact of two world wars, the development of China-Europe’s economy and trade is in slow speed. European countries were badly attacked by the Second World War, Europe’s international status declined continually. In1950, France foreign minister put forward the famous Shuman Scheme, which is the symbol of Europe’s combination. Until January1st,1958, when Roman Treaty became into effect, European Economic Community and European Atomic Energy Community came into existence, qualitative leap took place in the course of European integration. With a view to this point, this text takes the course of European Integration and development as the venation, researches historically general situation and actuality on the development of China-Europe trade, and makes a full-scale analysis on the unbalance of China-Europe trade.From1957when European Union’s rudiment came into being to1975when China-Europe established formally diplomatic relations, since China’s economy and politics were in recovery during this period, the development of China-Europe’s cooperation in economy and trade was in tardiness. In1975, China and Europe established diplomatic relations officially, together with1978’s Reform and open, China’s economy recovered strongly, so China-Europe’s trade development took on a blowout tendency. Hitherto, thirty years has past for China-Europe’s cooperation in economy and trade, China and EU’s intercourse has increasingly osculated, thus bilateral relations have acquired continuous development. Since2007, EU, replacing America, became China’s first biggest trade companion, while China became the second trade partner of EU. In addition, EU, as the biggest technique supplier and the hugest sources of high-tech import for China, it provides important energy for Chinese technical creation. However, Sino-EU economic relationship also meets some barriers like trade imbalance. In the sixth chapter for the EU’s trade policy to China, the trade documents were publicized singly for the first time. The paper referred that it is lack of a truly open, fair, mutually beneficial and free markets that contribute to the trade imbalance between EU and China. In2007, Peter Mandelson, coming from UK, warned to China that the relationship between EU and China was in a cross. And EU could not tolerate the huge trade deficit from China. In the10th summit of EU and China, Mandelson stressed again that China should be more open in the inner market in order to solve the problem of trade imbalance.Trade imbalance and the intense trade confliction have already affected the healthy development of Sino-EU relationship and aroused the attention from Sino-governments and experts. The scholars from home and abroad focus on this question and have done a lot of investigations. Based on these investigations, this paper combines the qualitative analysis and quantitative analysis to generate the point that trade imbalance is normal from economy and political angle. Whatever EU or China, the economy should not be intervened excessively. China, as a country having huge trade surplus and being in a bad situation in the international trade negotiation, should pay more attention to the trade imbalance. We should create the new style of international communication model and guide the world opinions to form the new view of imbalance, avoiding the trade protectionism becomes popular again. This paper can be divided into five parts:The first chapter sums up the different point of economy imbalance of current literature and the reason, effect, measures for trade imbalance. The breakthrough point and innovation point for the paper are founded in the summary of research of experts at home and abroad.The chapter two focuses on introduction of different kinds of theories for the analysis of imbalance, such as the theory of comparative advantage, intra-industry trade theory, international political economy theory and so on.The chapter three analyses the trade imbalance from the history aspect. Then the paper reviews the trade development of EU and China from the historical point and analyses the trade imbalance deeply from the trade scale and the structure. The fourth chapter is the major part of the whole paper. The paper explains the reason of imbalance from the following aspects:the difference of advantage of EU and China, international industry transfer, EU FDI, the huge consumption difference between EU and China, and some political sectors. At last, the chapter analyses the effects of trade imbalance from economy and political angle.The fifth chapter gives some suggestions and strategies to solving the problem of trade imbalance, including changing the way of economy increase and the win-win relationship between EU and China.