Dongbei University of Finance and Economics
Chinese Foreign Trade, Final Paper, Summer Term 2006

EU-Chinese Trade Relations

by: Hannes Mungenast

Table of Contents

List of graphics 2 [only in downloadfile]
List of tables  2 [only in downloadfile]
List of abbreviations 2 [only in downloadfile]

1. Introduction  3

2. EU and China  3

2.1. General Facts 3
2.2. Geography and History  4
2.3. Economy  6

3. EU-Chinese Trade 8

3.1. History  8
3.2. Trade Statistics 9

4. Special Trade Issues 13

4.1. Technological Cooperation 13
4.2. Textile Conflict 14
4.3. Intellectual Property Rights  15

5. Conclusion 16

Bibliography 17
 

1. Introduction

This paper is the final paper for the course Chinese Foreign Trade. The EU-Chinese trade relations are a very important aspect of today’s world economy and are expected to even increase in future. These trade relations are equally important for both sides and will have a strong impact on the future of both parts. This importance convinced me to choose this topic.
First of all, chapter 2 gives a summary of the most important aspects of trade-related statistics about China and the EU to give an overview of the two parties. In chapter 3, the most essential trade statistics will be presented. Before ending with an overall conclusion, chapter 4 will deal with some special trade issues of importance.

2. EU and China

This chapter gives an overview of the most important statistics about EU and China, which are relevant for trade.

2.1. General Facts

First of all, let’s take a look at some statistics to compare the two countries. China has with its 9.5 billions sq km more than double the size of the EU and with 1.3 billion people almost three times more inhabitants than EU. The average Chinese inhabitant is much younger than in the EU and despite of the one-child policy China is growing more rapid than EU.

The average European citizen lives six years longer than the average Chinese one. Especially with the life expectancy of women there are huge differences. The two most important politicians in China are President Hu Jintao and Prime Minister Wen Jiabao, while the most important EU-politician is Jose Durao Barroso, the head of the EU commission.

Table 1: General Facts [table only in downloadfile]

2.2. Geography and History

China is an Eastern Asia country, bordering to several countries. The People’s Republic of China was founded on 1 October 1949. After the reforms of Deng Xiaoping, commencing in the year 1978, China opened to the world and has become an important power in the global world.

Graphic 1: Map China [graphic only in downloadfile]

The European Union is located in Europe, consisting of 25 independent countries. This means that the EU is no country; it is a federation of independent countries. However, the EU is much more than just a free-trade association such as ASEAN, NAFTA or Mercosur. It has some characteristics of independent nations such as its own flag, anthem and currency. In addition, the member countries gave some legislation power to the EU. About 70 per cent of all laws in Germany are based on decisions of the European Union. The EU was founded after World War II in 1951 and grew from six to now 25 member states.

The EU consists of the following countries: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and United Kingdom. In addition, Bulgaria and Romania will join the EU in 2007 and Croatia, Macedonia and Turkey have the status of a candidate country.

Graphic 2: Map EU [graphic only in downloadfile]

2.3. Economy

[...]