A Research On Trade Protection Abuse’s Effect On China’s Exportation To EU Under Financial Crisis

Duing to global financial crisis, the growth rate of world economy hassharply slowed down, international economic situation worsened. Historically,both international trade barriers and trade protectionism tend to be higher inthe time of economic recession. Thus, there have been a number ofcountries taking various kinds of trade protection measures, with focus ondomestic effects but regardless of international effects from the underlyingpractices. However, the higher a country’s dependence on foreign trade, themore it is likely to suffer from trade protectionism in times of crisis. For China,it is in a particularly detrimental position, given current global financialturmoil and high dependence on international trade. In this way, China hasbecome one of those who are facing fatal threat from trade protectionism.In views of recent widespread abuse of trade protection practices, thispaper focuses on its specific impact on China’s exportation to EU as a resultof EU’s trade protection. First of all, there is introduction to trade protectionabuse issues under current global financial condition. This part starts off withpresenting primary methods for trade protection, in terms of theircharacteristics and essences. Besides, theoretical support and differencesfrom previous protection practices will be provided, pointing out potentialdangers under current world economics scenario. Following that, the articlefurther focuses on the EU’s increasing protection practices toward China,with respect to current situation, motivation and consequential influences.Specifically, it depicted a comprehensive picture of the protectionismproblems encountered in current Sino-EU trade context, as well as the EU’smain means and features of trade protection. Lastly in this part, it discussespossible driving forces of the EU’s trade protection against China accordingto the theory of trade protectionism.On the basis of the above qualitativeresearches, the following part is an empirical study of the EU’s tradeprotection’s impact on China. By means of statistical methodology, itanalyzed changes of China’s exports to the EU, with respect to various protection practices in different sections of the EU economy. After listingoverall trade level before and after the occurrences of cases, there is portraitcomparison among exports in eight industries to the EU. Further, it presentspresent condition of export to those EU member countries with different levelof trade protection. Then, it horizontally compares China with other countrieswho exports to EU in the same industry. For the rest of this part, it isconcerned about analysis and assessment of export environment for specificproducts subjected to the relative case.At the end, this paper located key points in response to the EU’sprotection practices abuse. It is recommended that product categories canbe identified by using gray correlation method.It also list major countries tobe focused on from protectionism level’s perspective, by clustering analysisof changes in growth rate of China’s export to the EU countries.Accouding tothe above reserch,the auther give some suggestions to strategies towardtrade protection abuse of the EU.