China And The Eu Trade Complementarity And Competition In Empirical Analysis

Since China and the European Union established their diplomatic relations, their bilateral trade has gone through rapid development. In 2004, the European Union (EU) became China's biggest trading partner as a result of the EU's eastward expansion and China became the EU's second biggest trading partner because of the complementarities of the trade between China and the EU. This paper analyzes the complementarities and competitions of the trade between China and the EU on the basis of the theory of comparative advantage and the theory of intra-industry trade.The paper can be divided into four chapters.Chapter One is the openness of this paper. It introduces research background, research objective, research train of thoughts, the possible innovations, the weak points, logic frame and the source of data etc.Chapter Two, is the theory of international trade, which makes essential foreshadowing for the following study.Chapter Three analyzes the realistic foundation of China and the EU bilateral trade, focusing on probing into complementarities and competitions. We classify a large amount of primitive trade data in the past years and sum up the whole trends of China and the EU trade patterns from total amount characteristic to country classification and to trade structure.Chapter Four introduces the research conclusions: the trade between China and the EU is very complementarily related and is mainly based on the vertical division of labor among different industries. In addition, the intra-industry trade is getting increasingly important in the trade between China and the EU and the division of labor between them is developing in the horizontal direction with the increase of the competitiveness of Chinese industrial manufactured goods.lt also puts forward the future policies on China and the EU.