New Development Of Trade Relationship Between China And European Union

This article reviews the development of trade relationship between China and European Union, analyses some new issues such as the Chinese participation of WTO, thorough circulation of Euro-currency ,the east expansion of European Union, and prospects the future of the development of the bilateral trade relationship between China and European Union. At the same time, it puts forwards some suggestions on how China should handle the trade relationship with European Union when facing the new chances and challenges. Since China and European Union established the formal diplomatic relationship, the trade relationship between both sides has experienced the steady development period (to 1989), the depression period (from 1989 to 1992) and from 1993, the trade relationship between both sides recovers and enters into a brand new development period. Through the mutual effort of both sides, the trade relationship of both sides currently enters into a mature and steady development stage at present.Both sides have got significant achievement on trade, investment,economic cooperation and assistance.The individual economy of both sides has made great progress. With mutual trust relationship between both sides deeps, it will benefit to the cooperation of both sides on many new fields. The track of the development of trade relationship between China and European Union in recent 20 years shows that the development of trade relationship between both sides is always synchronous with the development of Chinese economy. On Dec 11, 2001, through the efforts of more than 10 years, China formally participated in the World Trade Organization and became the 143rd member country of the organization. Participation of WTO brings the Chinese market to the global trading system and reflecting a inexorable trend of China's reform and opening up to the outside world and modernization construction. Therefore, it is very significant. From January 1, 2002, which was 20 days later, the Euro was formally introduced into the monetary circulation of Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, Holland, Austria, Portugal and Finland, the 12 European Union member states, The currencies of these 12 countries will withdraw from the historical stage. Chinese participation of WTO and the formal circulation of Euro-currency are important opportunities for both China and European Union to develop their own economy and disclose a new history chapter for the economic development between China and European Union. On the Copenhagen European Union Headquarter meeting on Dec 13, 2002, the 15 member countries of European Union accomplished the entry negotiation with 10 middle and east European candidate countries, Holland, Hungary etc. They will become the formal member countries after May 1, 2004. The east expansion of European Union is a chance for European Mainland to achieve boom, peach and democracy and provides new chances and challenges for the development of trade relationship between China and European Union. The European economy and Currency Alliance announced establishment and the naissance of Euro-currency on Jan 1, 1999. Through three years interim, from Jan 1, 2002, Euro-currency began circulate. The overall circulation of Euro-currency enforces the centripetal force and coherence inside European Union and enhances the effect and opposes force to the outsiders. On the whole, the overall circulation of Euro-currency will have positive effect on the development of trade relationship between China and European Union on the long term. It will help the expansion of trade between both sides, enhance the mutual investment, the circulation of goods and the cooperation in industry. Also, it may make our country to get ride of the excessive single dependence on US dollar, which can increase the initiative and flexibility of our choices on external trade. But on the other hand, due to many unsteady elements in the European Union economy situation, the trade protection creed springs up, which brings new challenges t...