Influence Of Political Diplomacy On China’s Bilateral Trade Flows

In today’s world,with the acceleration of political and economic globalization,political,and economic are closely linked together.Political relations and diplomatic activities,and all sorts of system are endowed with the meaning of the new era,so their effect on economic activity has been extended.Right to realize and analyze the new environment of international political relations,economic activity,and the connection between the system is now between the requirements of new situation and the needs of the development of the theory.In order to promote the bilateral trade of China and the establishment of diplomatic ties between China and countries better development,national leaders of diplomatic activities have been given a new mission.This paper focuses on the role of government leaders,the political and diplomatic influence on China’s bilateral trade flows.According to the theory of international business,international relations and system theory as the theoretical basis,research the bilateral political and diplomatic influence on China’s bilateral trade flows.First of all,from the aspects of theory,analysis the influence of political factors on bilateral trade flows;Secondly,from the empirical aspects,put forward hypothesis,empirical validation.Trade gravity model is applied in this article analyzes the political and diplomatic influence on China’s bilateral trade flow research,in the most basic model into the measure of political and diplomatic variables: diplomacy,the diplomatic level and bilateral friendly cities,and the quantization process.Then selected the 2005-2014,161 countries established diplomatic ties with China’s bilateral trade flows as the research object,to verify this hypothesis.The conclusions: first,the establishment of the bilateral political system,can effectively maintain the bilateral trade.Second,the bilateral friendly political and diplomatic activity has a promoting effect on bilateral trade flow.Third,higher diplomatic level is beneficial to the development of bilateral trade.In the great changes in international system and international political environment more complex cases,Chinese enterprises and Chinese products in foreign trade,are faced with various risks and some uncertain factors.This would require the active play to the functions of the government,political influence,make use of the national leaders to create a good external environment for foreign trade.At the end of the article,from the aspects of visit of the leader of relevant policies and Suggestions are put forward.In this paper,the empirical results of theoretical analysis and practical guidance for the future has a certain significance.