Based On The Development Of Intra-industry Trade Theory, China - Eu Trade In Agricultural Products

The "Sino-European Union"(S-E) trade relationship has been developing in a significant pace since 1970s, when China and European Union (EU, formally European Communities) first established diplomatic relationship. Currently, the EU has been the third largest trade partner with China and is playing a more and more important role in Chinese foreign trade development. Industrial products are dominant components in the S-E trade with regard to the trade structure. However, the trades on agricultural products also experience significant upward adjustment in the recent years. In the meanwhile, a new trade pattern, Intra-Industry Trade, occurs between China and EU, and is playing an important role in developing the great volume of world trade. Based upon the Intra-Industry Trade Theory, this paper analysis the status quo and hidden problems in S-E trade development. Then, causalities are discussed. Finally, grounded on the results attained, the article forwards suggestions and implications for the better development of Chinese agricultural products trade.With regard to the research methodology, the paper employs several intra-industry trade indexes, which are calculated by trade datum collected from the "Chinese Foreign Economic Statistical Yearbook" and the Statistical Office of the European Communities, to conduct comprehensive analysis on S-E intra-industry trade. The results can be outlined as:1, In the recent years, the level of agricultural products trade between S-E is not high compared to that of the industrial products. However, it develops in a steady and rising pace. In effect, trade barriers such as the green barrier and anti-dumping are main triggers of the slow development pace.2, Inter-industry trade is the main pattern on agricultural products trade between China and EU-15 as a whole. The level of Intra-industry trade between the two partners is relatively low, whereas the degree is relatively high of Marginal Intra-industry trade between them.3 , There are significant differences in the agricultural products trade between China and the individual member countries of EU. The level of Chinese intra-industry trade is high with mid-west EU members such as Germen, England and France. However, thelevel is relatively low with South EU members such as Greece, Spain and Portugal.4, With regard to the trade products categories, there is different development level in Chinese agricultural products trade with different EU members. The level of intra-industry trade on corn is relatively low, however it's relatively high on sugar and sugar related food.Finally, this research forwards implications that China should reinforce the input and education in agricultural science and technology. Meanwhile, the government should take efforts in developing the Horizontal Intra-industry Trade on agricultural products.