Study On The Relationship Between UK-China International Trade And China’s Economy Development

Recent years have witnessed frequent exchange between China and Britain. Visit of Cameron, the current Prime Minister of Britain, to China in 2013, visit of Premier LI Keqiang to Britain in 2014 and visit of President XI Jinping in 2015 created favorable conditions for trade development between Britain and China. Besides, along with the steady progress of China’s diversified trade policies, Sino-British trade is playing an increasingly important role in foreign trade of China. In 2015, Britain became the second largest trade partner among the EU, symbolizing a “gold era” for the SinoBritish trade.Sino-British trade has exerted a far-reaching influence on China’s economic development. In turn, economic development of China has greatly promoted the SinoBritish trade. Based on the development process of the Sino-British trade, this paper mainly analyzes background, scale, structure and policy changes of the Sino-British trade, and studies the influence of Sino-British trade on China’s economic growth, industrial structure and technological progress. Below is a brief review of the research content and conclusions:(1) Before the Opium War(1840~1842), China achieved favorable trade surplus for its silk and tea business, which contributed to rapid development of China’s silk and tea industry. In order to limit opium export from Britain to China, China adopted the “one-port-foreign-trade” policy. After the Opium War, China’s trade ports were forced to open to the outside world, leading China to be in a superior place in Sino-British relations. After birth of the new China, impacted by political factors both at home and abroad, Sino-British trade volume hovered at a low level. During the period, Chinese HK was the major trade site between China and Britain. After China’s adoption of the reform and opening-up policy, China promoted its trade development and import-export trade structure, thus moving Sino-British trade into a normal track. In 1998, China and Britain built up the comprehensive partnership, which contributed greatly to Sino-British relations and trade.(2) The VAR analysis, the Granger causality test and the multivariate analysis are adopted to study the internal connection between bilateral trade volume and China’s economic growth, industrial structure and technical progress during the Sino-British trade progress. Empirical research results suggest that: First, Sino-British trade and China’s economic growth are positively correlated and mutually reinforcing; second, Sino-British trade can contribute to adjustment and optimization of China’s industrial structure and its boost of the development of the second and tertiary industries is even more obvious; third, Sino-British trade can efficiently propel China’s technical progress.(3) Proceeding from the interest relationship between the two trade players, China and Britain, this paper combines the static game and the dynamic game to analyze the game between the two, attempting to strike a balance between trade interests of China and Britain. The single game, the repeated game and the win-win game process of SinoBritish trade relations are analyzed to prove that long-term sustainable bilateral trade between China and Britain is an irresistible choice based on the game results. The multidimensional game progress of Sino-British trade is analyzed, and strategies are chosen from four perspectives, namely politics, military, economics and national internal development. The game refined Nash equilibrium between China and Britain is established.(4) Based on the historical evolution characteristics of Sino-British trade and the relationship between Sino-British trade and China’s economy, this paper puts forward strategies and corresponding countermeasures for sustainable development of SinoBritish trade.