Empirical Analysis On TBTs’ Influence On China’s Export Of Electromechanical Products To EU

As the traditional tariff and non-tariff barriers have been reduced to relatively low levels, technical trade barriers has been regarded as tools by the protectionists. Traditional trade theories are generally believed that free trade, to a great extent, can increase the social welfare, one country’s unilateral free trade activity can increase the welfare of the country itself. However, obvious difference often exist between theory and reality, in today’s international trade, it’s normal that free trade and trade protection replace each other or just exist at the same time. Since the establishment of diplomatic relations between China and European Union in1975, the bilateral trade has rapidly improved. At present, the European Union has been China’s biggest trading partner for eight years continuously, China has also been the EU’s second largest trading partner since the year of2003, bilateral trade volume has developed from$2.4billion when China and EU began formal diplomatic relations to more than$500billion in2011, as much as200times more than that initially. However, thanks to the huge imbalances of world trade, EU has made a variety of market access restrictions by technical barriers to trade for imported products, including China products. As for in China’s export to EU which occupy large proportion, electromechanical products has suffered from the European Union’s technical barriers to trade seriously, such as the EU’s WEEE instruction, RoHS instruction and ErP instruction, etc.This paper has introduced present situation and problems of China’s electromechanical products’export trade with EU, and from which can we directly see that EU’s technical trade barriers has actually impacted the export of China’s electromechanical products to EU negatively. In explaining the phenomenon above, a multiple regression model is established to carry on an empirical analysis on the influence of EU’s TBTs on electromechanical export from China to EU, trying to find how EU’s TBTs influence the electromechanical export from China to EU from the perspective of positivism. In addition, essential solutions to stimulate export of electromechanical products to EU and to break the trade barriers are introduced to you by the writer in the end of the paper.