Impact Of The European Sovereign Debt Crisis On China’s Economic Growth

As the representive of regional monetary integration, the euro area has become a focus of public attention because of the European sovereign debt crisis. The European sovereign debt crisis, which has caused a serious impact on the stability of the euro area as well as the global economic growth, is a result of a variety of factors. To some extent, it also accelerates the pace of reform of the international monetary system. After the global financial crisis and the European sovereign debt crisis, China, as one of the most important trading partner in Europe, is filled with more uncertainty in the future economic development. The main problem, that China is facing, is how to prevent and deal with the impact caused by the European sovereign debt crisis.This paper is mainly divided into three parts:First, on the basis of the introduction of European sovereign debt crisis in three-pronged approach, the author analyses the three transmission channels, through which the crisis spreads into China. Second, do an empirical test on the impact of the European sovereign debt crisis, by building a VAR model, which chooses the European and China’s economic sentiment index as variables. We find that, the impact of efforts strengthens during the first three stages, and then gets weakened after that. Third, put forward with China’s response measures from three angles----international cooperation、regional construction and domestic reforms.