A Study On The Influence Of China's Foreign Political Relations On Bilateral Trade

Since China's reform and opening up,China's economic exchanges with foreign countries are increasing,and political interaction with the world is more and more frequent,and the economic interdependence between countries is deepening.The impact of political relations on bilateral trade has become the focus of many scholars.This paper selects the political relations quantitative indicators and trade data from 1993 to 2013 between China and the United States,France,Britain,Germany,Japan,Russia(Soviet)and India to analysis the influence of international political relations on bilateral trade.Based on the trade gravity model,this paper conducts an empirical test on this issue.The empirical analysis results show that China's foreign political relations have a significant impact on bilateral trade,the specific performance is that bilateral trade will increase with the improvement of political relations between China and other countries,will decrease with the deterioration of political relations between China and other countries.The conclusion of this paper also gives us some enlightenment from the two angles of theory and Practice.However,it still remains to be further studied in the future on how political relations affect trade and the impact on different trade production department.