Analysis On The Influencing Factors Of China 's Mechanical And Electrical Products Export To EU Market

With the development of trade expansion, China became the largest exporter of goods trade of world in2008. At the same time, China also ranked first in the export of mechanical and electrical products. The main areas that Mechanical and electrical products export are the European Union, the United States, Japan, etc. As the improvement of China’s terms of trade and expansion of the EU, the European Union became the largest trading partner of China in2008. Our trade relationship between the European Union and China is more and more close. Trade dependency degree is also high, especially in the aspect of mechanical and electrical products export. The European Union is the second largest importer that next to the United States. Mechanical and electronic products account for more than half of all imported products that China export to the EU.In recent years, the exports of mechanical and electronic products was influenced by the financial crisis, China faces serious challenges, especially influenced by the European debt crisis. The exports of mechanical and electronic products from China to the EU declined year-on-year. The growth is slowing down, although exports gradually recovered. Therefore, studying the influence factors of China’s mechanical and electrical products exports to the EU is important to improve the volume of trade. According to the main factors, we put forward the relevant policy suggestions to improve China’s mechanical and electrical products exports to the EU. That will make a great significance on the export of mechanical and electronic products in China.At first, this paper adopts the methods of qualitative and quantitative analysis. From the perspective of qualitative analysis, we introduced actuality of the export of China’s mechanical and electrical products to the EU market, such as:scale, product structure and the export market. We found that there is a decline in export growth, commodity structure and barriers. In order to deal with these problems, we analyze the cause of these problems. Secondly, on the basis of influence factors, using the gravity model panel data to analysis the export of China’s mechanical and electrical products to the EU, and rank the influence factors. The conclusion is as follows:(1) For the EU, the factors that affect the export of mechanical and electrical products from China to the EU are:exchange rate, market concentration, per capita income gap of China and the EU, technical barriers to trade and GDP of the EU members. This order is form big to small.(2) This paper subdivide the EU market and studies the export of mechanical and electrical products from China to the European Union. We want to know these factors how to influence the top10and the last ten members of the EU. It shows that the members of the GDP is the most important factors that influence the export to the top10, the second is the exchange rate. The exchange rate is the most important factors that influence the export to ranking last ten, the second is the per capita income gap between China and the members. Finally, according to the conclusions of the model and the main influence factors, we put forward the suggestions that promote the export of mechanical and electrical products to the EU, it points out that the competition advantage of non-price and consolidating the traditional market, exploring the potential market are the important measures to promote exports.