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By Lu Gang, Member of the Research Team on "Policy Research on Economic and Trade Cooperation between China and Countries along the "One Belt and One Road " Routes, Research Department of Foreign Economic Relations, DRC

Research Report No.64, 2016 (Total 4947) 2016-5-20

Abstract: Countries along the "One Belt and One Road" routes have become China’s most important or key export markets in the implementation of free trade strategy, whereas China is not yet the main export market for these countries and most of them have not taken China as the major country to sign FTA with. There are mainly three reasons. First, the major export markets of these countries are not in China, and so they are not eager to expand their export volume to China through signing the FTA. Second, the manufacturing industries in many of these countries are competing with China for market share and they are worried about the impact of a dwindling import after signing FTA with China. Third, some industrial sectors in China are equally concerned about the impact of increased import commodities from these countries to their business. However, China has placed much hope on the markets of these countries for its increased export in the future. In order to promote the sustainable development of bilateral trade, relevant measures should be adopted to alleviate the trade imbalance between China and countries along "The Belt and Road". Firstly, China should help them to expand their export capacity. Secondly, China should increase import from these countries while reducing some items of export to them. Thirdly, China should help them to build the trade facilitation capacity.

Key words: "The Belt and Road" Initiative, trade, trend