Analysis Of Influential Factors And Mechanism Of Sino-EU Trade

With the opening and reform policy being carried out in the1980s, China’s economic development has skyrocketed benefited a lot from the foreign trade. China’s total foreign trade volume increased from38.1billion dollars in1980to3641.7billion dollars in2011. China has surpassed the United States to become the world’s largest trading nation by2012. It proves that foreign trade is important to the China’s economic development.The trade relationship of China and the EU has become more and more deeper since the establishment of diplomatic relations between China and the European Community in1975. With China’s entry to WTO in2001, China and the European Union’s bilateral trade, FDI and technical cooperation have achieved remarkable achievements. Nowadays, as China’s largest trading partner and China’s largest technology supplier, the European Union plays an important role in China’s foreign trade. The research of Sino-EU trade has become more and more necessary in recent years.Based on the1995-2011statistics, this article devoted to a study of the influential factors and mechanism of Sino-EU Trade. We can predict the future of development of Sino-EU trade from the Empirical analysis, sum up the corresponding policy recommendations. This article is divided into five chapters. The first chapter introduce the research background, relevant research at home and abroad as well as the innovation and shortcomings of this paper. The second chapter is the analysis of the trading situation of China and the EU. Discussing the development process of Sino-EU trade, we make a summary of the main features of the Sino-EU trade. The third and fourth chapters are the main focus of this paper. According to the calculation of the Sino-EU trade index of the third chapter, we can analyze the characteristics of Sino-EU trade, including the analysis of the trade conditions and trade status of Sino-EU trade. It also laid the foundation for the analyses of Sino-Eu trade which discussed by gravity model in the fourth chapter. In the fourth chapter, we first introduce the gravity model, and then, through the introduction of the gross domestic product, per capita gross domestic product, spatial distance, FDI, foreign-trade dependence index and the euro exchange rate to the model, we establish export gravity model and import gravity model, and obtain the degree of influence of various factors on the Sino-EU trade based on the empirical analysis. According to the previous chapters analyses, we try to predict the future of Sino-EU trade, and put forward some suggestions. Firstly, in the process of development of Sino-EU trade, China should be prudent to the adverse effects of the European debt crisis. Secondly, China should speed up the process of trade liberalization and strengthen the economic construction. Thirdly, China should use the foreign capital more efficiently and strengthen the guidance of the EU’s enterprises investment in China, meanwhile, China can encourage Chinese enterprises to expand the EU market. At last, in order to avoid the risk of the fluctuation of the euro exchange rate, China should pay attention to the euro exchange rate in the future, and make full use of the financial innovation tools...