Research On Competition And Complementary Of Sino Germany Trade

The long-term economic and trade cooperation and development between China and Germany are the important foundation and sustained momentum for bilateral relations. Germany has been China’s largest trading partner in Europe for30consecutive years, while China has become Germany’s largest trading partner in Asia and the third largest trading partner in the world. According to relevant statistics, the bilateral trade volume reached$169billion in2011, which accounted for one third of the totally Sino-European trade volume and increased by about600times compared to the amount of$274million at the beginning of the establishment of diplomatic relations between Germany and China. The Sino-German trade fields have been expanded continuously and trade products have been expanded from the traditional textile and raw materials gradually to aerospace automobiles,, communication equipment’s and other high value-added products. The trade and investment cooperation between China and Germany constantly goes deeper:On the one hand, the Germany’s investment in China grows steadily and the projects in China involve almost all China’s investment fields which are open to the outside world. By the end of2011, Germany’s actual cumulative investment in China exceeded more than$18.3billion, ranking absolutely the first in the EU countries; On the other hand, the quantity and quality of China’s investment in Germany have been improved. By end of2011, China’s non-financial investment in Germany amounted to$1.92billion. In addition to cooperation in automobiles, chemicals, machinery, electrommunication and other traditional areas, China and Germany are actively exploring trade communication in new energy, new materials, environmental protection and green economy and other new areas. China is today’s largest developing country and Germany has the strongest economic power in Europe, so the two countries have huge potential and broad prospects in economic exchanges and cooperation. The Sino-German economic and trade exchanges will be a win-win situation in the future whether in the view of respectively economic development or investment potential of both sides. Since the explosion of European debt crisis, Germany’s economic growth had slowed down. The latest figures show that Germany’s economic climate index has fallen to the monthly lowest point for the past two years. Therefore, strengthening the economic cooperation with emerging countries especially China is beneficial for German to solve the economic plight caused by blocked export to Euro and further keep its economic pioneer status in Europe. For China, further strengthening economic and trade cooperation with Germany also plays a significant role in revitalizing the export trade which has reduced because of influences of the debt crisis. In view of the bilateral cooperation potential, both economic scale and market needs of the two countries have great potential for growth.’First of all, the first chapter of this article elaborates the significance, purposes and methods of research. Chapter two combs related theories on international trade. Chapter three reviews the development progress of Sino-German trade and analyzes the present situation of the bilateral trade from the points of trade scale, trade structure, foreign trade dependence, etc. Chapter four makes analysis on bilateral trade competitiveness by measuring the export similarity index and the revealed comparative advantage index. Chapter five describes the trade complementarity between the two countries. Chapter six puts forward policies, advice and suggestions on the Sino-German trade development.