Characteristics Analysis On China’s International Trade Development Upon European Debt Crisis

Since European sovereign debt crisis took place, the Euro-zone economy has declined and the global economic resurgence has been slackened, which restrains the growth of global trade demand. In addition, Euro devaluation and the Europe Union trade protectionism also have negative outer influence on the growth of China’s external trade. China and the Europe Union are mutual significant trade cooperative partner, and as a result, the impact brought by Europe Debt Crisis shall definitely be transferred to China through trade system, and induces new characteristics of China’s external trade growth.This paper analyses the new characteristics of China’s external trade growth from four perspectives. First of all, the Europe Debt Crisis has negative effects on the outer environment of China’s external trade growth, including weak power of external trade growth, the increasing trade infractions between China and EU, and the Euro devaluation. Secondly, China’s commodity trade keeps growing, but also has obvious fluctuations accounting for Europe Debt Crisis; on the other hand, the growth of China’s service import outnumbers export, and the trade deficit grows. Thirdly, in geographic point of view, Euro-zone economic decline makes the proportion of China’s export to EU decrease, slows the growth of export to USA and Japan, and makes the proportion of China’s export to new rising market countries increase; meanwhile, the mid-west area of China has risen in external trade. Moreover, in the analysis of trade structure, after Europe Debt Crisis, China’s commodity trade structure keeps upgrading--the proportion of mechanical, electrical and hi-tech products export increases, the proportion of processing trade export decreases; meanwhile, new change occurs in service external trade—the proportion of new rising and high value-added service import and export increases, which benefits the optimization and adjustment of service external trade structure. At last, based on the previous analysis on external trade characteristics, this paper offers policy proposals aiming at the healthy and further growth of China’s external trade.