An Empirical Study of Trade Status and Determinants Between China and “One Belt-One Road” Countries: Based on the Trade Gravity Model

Research Background and Significance

Today's world is experiencing unprecedented changes. On the one hand, some developing countries represented by China have achieved remarkable development, promoting globalization and continuous reform of the current economic governance system. On the other hand, some powerful countries like the United States tried to deviate from the trend of economic globalization and advocated trade protectionism, which may hinder or even destroy the stability of the current international order. “One Belt- One Road” initiative, in September 2013, conveyed the strong desire and determination of China to build a better world with all other countries. “One Belt- One Road” is recognized by the international community. Over the years, the initiative has been implemented in action. More and more countries are willing to actively implement the “one belt and one road” initiative in all aspects of cooperation.

“One belt- One road” is an effective way to promote bilateral trade. This initiative has achieved good results in various fields over the past six years. In terms of trade connectivity, first, the level of trade and investment facilitation has been further improved. China has set up 12 pilot free trade zones open to the world, and the average tariff has been dramatically reduced. Second, trade between China and other countries along the border has increased in size. China has established bilateral e-cooperation mechanisms with many countries along the belt and road. “One Belt- One Road” initiative will improve the economic and trade contacts between participating countries by 4.1%, so “The belt and road” cooperation is a booster for expanding bilateral trade flows and achieving trade linkage. It is also a powerful platform for countries to deepen exchanges and cooperation and participate in and actively promote economic globalization.

China's “One Belt- One Road” initiative is closely related to trading. Studying the trade status and its influencing factors between China and the participating countries is significant. Since the trade situation of China along the belt and road has been analyzed, the factors affecting bilateral trade can be broadened. China's “One Belt- One Road” trade scale, trade liberalization, better implementation of China's opening-up strategy, and China's opening-up policy will also be of some reference value.