THE INFLUENCE OF RAPID GROWTH OF CHINA TO EXCHANGE RELATIONS WITH THE EU

Abstract

In order to overcome the disadvantages of the existing two types of economic systems - the socialism and capitalism, there was a need to find a system that will use the positive aspects of both systems. One country succeeds more than successfully to combine bases of the centrally planned and market system. Socialism in the Chinese style, as it is called by Gregory and Stuart proved to be a successful practical example of the market socialism. After the implementation of China's reforms, they have kept a one-party system and state ownership, but have accepted the market allocation of resources. In the Constitution of the People’s Republic of China, Chinese economy is voluntarily classified as a socialist market economy. That China is more than a successful example of market socialism, is shown by the remarkable growth rates and the unprecedented progress of the country in the last thirty years. Reforms have enabled the opening of China to foreign trade, which before 1978 was almost non-existent. After the establishment of the first diplomatic relations with the EU, in 1985 the Agreement on Trade and Economic Cooperation EEC and China was signed, which officially begins establishing bilateral trade relations. Special importance for the progress of trade relations is China's entry into WTO in 2001, and the signing of the strategic partnership of the EU and China in 2003. The volume of trade between the two economies is growing steadily, and the main characteristics of their trade relations is a continuous deficit which the EU has realized in the exchange with China. Although the European Union is the largest trading partner of China, and China is the second trading partner of the EU, differences and difficulties in the field of trade still exist.