The Impact Of European Sovereign Debt Crisis On EU-China’Economic And Trade And Countermeasures

Since the second half of2009,global economic recovery situation has becomestability,but the sovereign debt problem of the Eurozone appears gradually. EuropeanSovereign Debt Crisis arrived from the dot to face and from local to whole,and globalfinancial market turbulence,and the crisis has a profound effect on internationaleconomic and trade as well as national monetary system.Currently，the EU has become China’s largest export market, in the meanwhile, it isan important source of foreign investment to China,and also an important destinationfrom China’s investment. In China’s foreign exchange reserves, euro has the secondshare which is after U.S. dollor. Therefore, the European sovereign debt crisis is bound tohave serious negative effects to our export. There will be some changes in the investmentbetween China and EU. Because of the volatility of euro exchange rate inshort-term,China’s foreign exchange reserve structure will be adjusted accordingly.So ithas important theory and practical significance to research the influence of EuropeanSovereign Debt Crisis,and put forward corresponding countermeasures andsuggestions,which will promote the development of EU-China’Economic and Trade.Firstly,this paper introduces the beginning,spread,diffusion as well as the evolutiontrend of European Sovereign Debt Crisis,and then summarizes several characteristics ofit.Secondly,this paper analyses the effect mechanism to EU-China’Economic and Tradefrom three channels:the international trade channels,financial channels,and marketexpectations.With the method of comparative analysis,this paper compares the changesof EU-China’Economic and Trade before and after the crisis.It analyses the effect onEU-China’Economic and Trade from three angles,which include export trade,processingtrade and trade products,and compared the changes of investment between China and EUbefore and after the crisis,and through studying the present situation of China’s foreignexchange reserves,it analysed the influence of foreign exchangereceserves.Finally,combined with the practical situation of EU-China’Economic and Trade, it put forward several targeted countermeasures,such as deepening bilateral tradecooperation through various channels,improving two-way investmentmechanism,protecting China’s foreign exchange reserves management system and soon,so as to promote the development of EU-China’Economic and Trade telations.