A Study On Agricultural Trade Between China And European Union From The Perspective Of Industrial International Competitiveness

European Union (EU) is one of China's important partners in agricultural trade, and China is also one of EU's important partners. The agricultural trade between China and EU has a good prospect. This paper will analyze the agricultural trade relationship between China and EU and its determinants from the perspective of industrial international competitiveness, and then give some suggestions on China's agricultural trade strategy. It builds a framework for analyzing the agricultural trade between China and EU from the perspective of industrial international competitiveness, and then analyzes the agricultural trade in scale and in structure separately.In scale analysis, it first describes the state of agricultural trade between China and main EU countries and the state of agricultural international competitiveness of each country, and then analyzes the relationship between the state of the agricultural trade and the state of industrial competitiveness with the finding that they are almost in line with each other. Analyzing by a model, it finds that there are four factors remarkably influenced the agricultural trade between China and EU and they are economically active population in agriculture, GDP per capita, the competitiveness of agricultural product processing departments and agricultural support from government. Although China is in trade surplus with many EU countries, China's agricultural international competitiveness and the state of the four remarked factors are the weakest. The future of China's agriculture trade is not optimistic.In structure analysis, it analyzes the structure of agricultural trade between China and EU using Revealed Comparative Advantages Index, and finds that there exists competition between the two parties. This paper suggests that China should pay attention to improve its agricultural international competitiveness and especially the state of the four remarked factors. As to the structure of agricultural trade, China should take advantage of its competitive advantages, and raise the competitive advantage of processed agricultural products at the same time.