The evolution of trade relationships between China and the EU since the 1980s Available to Purchase

It is argued that the evolution of trade between the People’s Republic of China (PRC) and the European Union (EU) falls into three phases: limited contact; both sides seeking rapid growth and becoming mutually dependent; and high mutual trade levels with political considerations re‐emerging, China being kept at arm’s length by GATT/WTO and the EU restraining trade through increasing quotas, tariffs and anti‐dumping actions. Nevertheless, high levels of Intra Industry Trade (IIT) demonstrate mutual dependence. Cultural and political differences, as well as incompatible statistical records, prevent trade reaching its full potential at present.