Study On Trade Volume And Influencing Factors Between China And European Union

The European Union is the largest regional economic group, playing a significant role in theworld. It is one of the most important trade partners of China. Apart from the long and solid tradehistory, the European Union and China, currently, have already built up a comprehensive and strategicpartnership since21stcentury, constantly facilitating the prosperity of bilateral trade. The tradebetween these two sides, however, confronts with some problems like the expanding trade deficit inEU and intensitifed frictions, which would impede the further development. Hence, analyzing therelevant influential factors in China-EU trade and predicintg the EU trade potentials could providescientific management basis, which is conducive to healthy trade development.This paper targets the analysis of contributing factors in the booming period of China-EU tradesince2000. It could be mainly divided into three parts including character summarizing, factoranalysis and empirical research. First of all, the paper briefly reviews the advancement of China-EUtrade, and sums up the trade status quo between the two sides in light of the features that showed inthe prosperous trade period. Secondly, integrating the international business theorem with actualcharacters, the paper suggests various factors, potentially affecting China’s export trade volume to EU.Finally, based on the empirical research on the trade date from2002to2011between China and19main EU countries, the paper calculates the trade potential in terms of China’s exports to these19EUcountries by quantifying influential factors and applying them to the trade gravity model, puttingforward some plausibale countermeasures and suggestions so as to promote the sustaineddevelopment of China-EU trade.