Comparative Analysis of Export Similarity Index between China and EU

Abstract

This paper is to do research on the export similarity between China and European Union (EU) in world market, American market and Indian market by using the export similarity index during 2007 to 2013. The empirical analysis on these indexes indicates that China and EU have a higher level of export similarity index in developed countries‟ market, which induces a fierce competition of export products. In the developing countries‟ market, they have a downward trend, which weaken their trade competitiveness and strengthen trade complementary. Based on this tendency, effective measures should be taken to strengthen inter-regional trade cooperation between China and EU and reduce the bilateral trade friction. Meanwhile, our authority need continue to push further reform of the industrial structure and enhance the competitiveness of the export products.