An Empirical Analysis On The Imbalance Between Sino-EU Trade

Sino-EU economic and trade relations have developed into the world's most important bilateral economic and trade relations. Both China and EU gain significant economic interests from the expanded bilateral economic and trade exchanges, which is accompanied by a large number of trade friction between China and EU, and trade friction, which has become barrier in the process of the rapid development of Sino-EU trade, are caused by Sino-EU trade surplus. How rational view and correctly handle the trade imbalance between China and EU, give fair and objective explanation theoretically, and pursue reasonable and win-win solution, all of these concerned about the overall situation of Sino-EU economic and trade relations development.The essay boasts large amounts of data, graphics and statistics. In the previous chapters, we use relevant data and chart to analyze the current situation of China's foreign trade and Sino-EU trade imbalance. In the empirical chapter, we measured the relationship among ICC, IIT and RCA, and tested the transfer of business activities among the elected East Asian economies in1990s. In addition, we use co-integration analysis method to prove that there are long-term existences of co-integration relationship between EU-China trade deficit and the proportion of its import from East Asian countriesMany factors contribute to the Sino-EU trade imbalance, of which has gone far beyond the scope of research. This essay does not intend to produce the reasons for the EU-China trade deficit one by one, and also does not to establish a regression model which contains all of the reasons. In this essay statistics and measurement tests have shown that there are long-term existences of co-integration relationship between EU-China trade deficit and the proportion of its import from East Asian countries. In which EU imported from Japan proportion of its total imports contribute the most prominent, followed by the ASEAN and the last is the Republic of Korea. It is precisely because East Asian countries transfer to China in manufacturing areas which cause the European Union imports from China, so as to reduce its import form East Asia countries. All of these will undoubtedly aggravate the trade deficit in EU-Sino trade. Sino-EU trade imbalance is a tide and the inevitable result of economic globalization.In neglect of industrial transfer led to the transfer of surplus and one-sided accusation of the less opening of the Chinese market will exert a negative impact on the healthy development in the economic and trade cooperation between China and the EU, which not only do harm to China's economy, but also do harm to the economic growth of European Union.