Research on the Status of European and Chinese Trade Competition in the Third Party Market

¹ School of Economics and Management, North University of China, Taiyuan, Shanxi, 030051
² University of International Business and Economics, Beijing, 100029

Abstract

China’s increasingly important role in the global economy has changed the nature of global competition and reshaped international trade. At the same time, the EU has long been the most important force in global trade and continues to maintain a very large trade surplus. We discussed whether China is an increasingly important competitor of Europe in third-party markets, especially Latin America. More specifically, we have empirically estimated the elasticity of substitution between European exports and Chinese exports to Latin American economies (i.e. Their response to Latin American exports to changes in relative export prices). The results of this article show that over time, the competition between China and the EU in Latin America has increased. Before 2007, the competition between China and the EU was relatively high. Less, this reflects to a certain extent the fact that China mainly exports inferior products. However, since 2007, the substitution elasticity has increased, reflecting China ’s rise in the value chain upstream. We also studied China and the EU’s. The competition between the key industries of the EU exported by the Americas. We found that the competition between China and Europe in the field of motors and road vehicles is more intense. This should be sought Global level to maintain the competitiveness of European sounded the alarm.