| Since the first trade partnership between China and the EU was established in 1975,China and the EU have carried out a number of mutually beneficial cooperation in trade,investment and other fields based on the general trend of economic globalization.At the 17 th China-EU Leaders’ Meeting in 2015,the two sides signed the "China-EU Cooperation 2020 Strategic Plan",which promotes the China-EU investment partnership.At the 21 st China-EU Leaders’ Meeting in 2019,China and the EU concluded the "Geographical Indication Agreement Negotiation",which is of milestone significance for promoting China-EU trade partnership.In 2021,President Xi Jinping and EU leader Michel proposed that China and the EU should respect each other,achieve mutual benefit and win-win results,and actively integrate the "Belt and Road" initiative with the economic development of EU economies.Since the amount of foreign investment attracted by the host country is affected by the trade liberalization of the host country,it is of great significance to consider the impact of the level of EU trade liberalization on China’s foreign direct investment.This paper firstly summarizes the relevant domestic and foreign literatures on trade liberalization,foreign direct investment,and the relationship between trade liberalization and foreign direct investment,and then summarizes the relevant theories that provide the theoretical basis for this thesis,and then analyzes China’s direct investment in the EU.The status quo lays a theoretical foundation for subsequent empirical analysis.Finally,this paper selects the panel data of 28 countries in China and the EU from 2004 to 2019,conducts an empirical study based on the extended gravity model,and analyzes the impact of EU trade liberalization on China’s OFDI.Through empirical analysis,the following conclusions are drawn: the EU’s trade liberalization has a promoting effect on China’s OFDI,the economic scale of China and the EU and the increase of the EU’s population base have affected my country’s direct investment in the EU,geographical distance and exchange rate changes to a certain extent.This will inhibit the growth of China’s direct investment in the EU.It can be seen that in the long-term trade disputes and frictions between China and the EU,the trade dependence is still increasing,and China and the EU are striving to form a mutually beneficial and win-win situation.The higher the level of EU trade liberalization,the greater the improvement of the EU’s business environment,and the greater the direct investment of Chinese multinational enterprises in the EU,which is conducive to strengthening the investment cooperation between China and the EU.In recent years,European economic growth has been weak,and the EU is also facing the impact of events such as the European debt crisis,Brexit,and the COVID-19,which has made the EU’s economic development sluggish.In order to promote the economic development of the EU,the EU has made great efforts to plan the new "Invest in Europe" plan to stimulate investment and improve the capital market alliance,which is conducive to promoting the bilateral trade and investment partnership between China and the EU.Finally,based on relevant empirical results,this paper will put forward relevant suggestions on strengthening China-EU bilateral exchanges,clarifying the EU investment environment,increasing investment in new industries,and China-EU cooperation in addressing the dilemma of COVID-19. |
