The China-Russia trade relationship and its impact on Europe. Breugel Working Paper Issue 4, 2016
Journal: Archive of European Integration (AEI) (University of Pittsburgh)
Year: 2016

This paper analyses empirically how increasingly close trade relations between China and Russia might affect the European Union (EU). We show that EU countries are complementary to Russia on the Chinese market. However, Chinese exports are increasingly relevant substitutes for EU exports on the Russian market. This means that an increase in China-Russia economic cooperation should have a negative impact on European exports. We simulate a scenario in which trade tariffs between Russia and China a