The European Sovereign Debt Crisis To Central Europe (yuan) Trade Influence

Euro zone is an important partner of China, and the trade between them is vital to Chinese economic development. However, the broken of the European sovereign debt crisis decrease the economic growth of the Euro countries, which makes the trade between China and Euro zone facing troubles.By analyzing the product’s structures of the trade between China and Euro zone, I’ve chosen the articles of apparel and clothing as well as the general industrial machinery and equipment to do the research on the impact of European sovereign debt crisis on the trade between China and Euro zone. I’ve done the empirical research about that by using the relevant data from the fourth quarter of2009to the fourth quarter of2011, and the results showed:Firstly, European sovereign debt crisis mainly affect the trade between China and Euro zone by the channel of revenue.If the GDP of euro countries decrease1%, the total exports of industrial equipment will be decreased by3.8%, the total imports will be decreased by6.08%; the total exports of clothing from China to Euro zone will be decreased by2.85%.Secondly, compare to the revenue channel, the exchange rate plays a relatively smaller impact on the trade between China and Euro countries. If euro depreciates1%, the total clothing exports valued in euro will be increased by1.01%, but its impact on industrial equipment trade is limited.Thirdly, the stock price index in each euro country has an impact on the export from China to Euro zone. If the stock price index decreases1%, the total clothing exports will be decreased by0.34%, the total equipment exports will be decreased by0.49%.