The Euro Exchange Rate Changes On The China-eu Economic And Trade Relations

In 1999, Euro came into being, as the milestone of EU's process. And it has great effect on world economy. The paper discusses the situation of trade between China and EU, then analyzes the influential factors, especially the fluctuation of exchange rate of euro. The exchange rate is the price of money. If it changes, the price of goods will change, hence it has impact on the trade quantity between two countries. As a rule, this will urge the government make new policy on foreign trade. Since euro born, Euro's exchange rate fluctuates a lot. These changes have great impact on the trade between China and EU.China has made great progress in the economy. Because of internal and external demand, China's GDP grows rapidly. The external demand is of much importance to China's development. After the expand in 2004, the number of EU has grown to 25 from 15. EU has passed the USA and Japan, becoming the largest trade partner , the largest technique supplier and the fourth investor of China. So it is significant to study the trade relationship between China and EU.This paper falls into four parts. The first chapter analyzes the fluctuation of euro; the second chapter introduces the trade situation; the third chapter analyzes Euro's influence on trade situation between China and EU; the last chapter gives policy suggestion based on all the factors proposed in the paper.As for analytical method, this paper uses the method of combination of theory and practice, as well as abstract and concrete. Not only analyzes the reasons of Euro's fluctuation, but uses economic theory to explain. Not only summarizes the si(?)ation between China and EU, but analyzes the influencing factors. Based on all analysis, some policy suggestions that benefit China are given...