Sino-EU Trade Conflicts Study

European Union and China are two important power of the world economy. Along with China's economy high speed development and EU's eastward expansion, EU and China have become important trade partner. At present, European Union is our country No.1 trade partner, our country is the European Union No.2 trade partner. In 2006, China remained the European Union's 2nd largest trading partner and displaced the United States as the largest source of EU imports. According to Chinese statistics, the EU continued in its role as China's first trading partner (ahead of both the US and Japan). Chinese imports to the EU totalled approximately€191 billion during that period, representing a year-on-year increase of almost 21%. Likewise, EU exports to China increased by 22.5% to approximately€63 billion. Whereas the EU enjoyed a trade surplus with China at the beginning of the 1980s, trade relations are now characterised by a sizeable and widening EU deficit with China (approximately€128 billion in 2006). Following the rapid development of Sino-EU trade, trade conflicts also unceasingly increased which affected Sino-EU trade ties seriously, trade conflicts already the question which becomes urgently awaits to be solved. We start our study from the structure of Sino-EU trade product and the form of Sino-EU trade conflict, analyze the anti-dumping conflicts, technical trade barrier conflicts, intellectual property right conflicts and conflicts over safeguard measures between China and EU. Base on the case study, we give strategies for both government and enterprise.Based on the international trade standard classification system 3.0 edition classification, by calculating the Sino-EU trade product RCA index, analyzes the comparative advantage of Sino-EU trade product. Through the analysis, China have the comparative advantage in the textile industry primarily labor-intensive product, comparative inferiority in the capital intensity and resources intensity product; But European Union has comparative advantage in both the labor-intensive and the capital intensity product, but comparatively, capital intensity product and so on machinery and transportation, chemical industry and steel and iron comparison superiority are more obvious. Although European Union is maintaining the great favorable balance to China's machinery and the transportation product, but it is also joyful to see that the comparison superiority of China's capital intensity product like machinery and transport vehicle are strengthening unceasingly, this explained our country and the European Union machinery and in the transportation product industry the trade depth is strengthening, also has the unceasing expanded tendency. While gave each other the massive opportunities, the bilateral industrial competition also lay down the friction foreshadowing to China and European Union.Sino-EU's trade conflict form was Anti-dumping, the technical trade barrier, the intellectual property rights friction and the safeguard measure, in which Anti-dumping case has occupied the majority. Base on the analysis of the European Union trade policy laws and regulations, according with the conflicts case in recent years and the national condition and the economy degree of development of both side ,it analysed the characteristic, the reason and the influence of these four kind of friction.In above analysis foundation, It should establish the government, the Trade association and the enterprise Trinity trade friction system. The government should consummate the trade relief system, the attention economical diplomacy and strive for market economy status, built good internal and external environment for the enterprise; The trade association must display own bridge, supervising and managing and the early warning function fully; The enterprise should pay great attention to own quality and the brand development, positive respond to European Union's related lawsuit, those who has the condition should invest to EU. Under tripartite joint effort , trade between China and EU will develop more healthy.