Trade-economic cooperation of Ukraine and China within COVID-19 Pandemic and in post-pandemic time

Olha Yatsenko,Valeriia Osadchuk,Iryna Horbachova,Oksana Aksyonova,Tetiana Tsygankova,A Generowicz,V Koval,B Burkinskyi

doi:10.1051/e3sconf/202125501031

Abstract

Modern trends of trade-economic relations of the countries within the COVID-19 pandemic have been systemized in the development of mutual relations in particular economy sectors have been identified. Direct connection between the increase of export volume to China and Ukraine GDP growth has been established in the study based on the correlation-regression analysis. Weaknesses and strengths as well as opportunities and threats of mutual relations within the pandemic have been defined. The influence of the world crisis, creating a free trade area, and other factors on foreign trade circulation between Ukraine and China have been studied with the tools of empirical gravity model of international trade. Foreign trade circulation up until 2022 with and without creating a Free Trade Area has been forecast based on the modelled data. Perspective directions of trade-economic relations have been defined; the strategy of extending the trade-economic integration of Ukraine and China within the COVID-19 pandemic and in post-pandemic time within customs tariffs liberalization, intensification of symmetric interdependence and complementarity between the countries, within creating a free trade area, diversifying trade turnovers, overcoming the pandemic, reduction of crisis consequences, and strengthening cooperation in new industries of post-pandemic time has been grounded.

Highlights

Modern international economy system is characterized with interdependance of countires that generates both challenges and new development opportunities
The influence of the pandemic consequences on international economic relations of countries is demonstrated through unilateralism, protectionism, increasing uncertainty factors, dynamisation of trade arguments, decreasing economic indices, reduction in import demand, and discontent of population
Mutual relations of the countries are defined as a strategic parnership

Summary

Introduction

Modern global economic system is characterized with tendencies of extending tradeeconomic integration of countries, strengthening their interdependence in order to reach stable economic growth of each one of them, which creates challenges that. People’s Republic of China has occupied the leading role of a trade partner of Ukraine [1, 2]. The events of 2020 have had a negative effect on the system of international economic cooperation including Ukraine and China relations. The study of the dynamics of trade-economic relations between Ukraine and China within the COVID-19 pandemic and in post-pandemic time is of interest. PRC demonstrates interest in cooperation with Ukrainian partners despite a number of negative social-economic factors. In 1992, the agreement between the Government of Ukraine and the Government of People’s Republic of China established the most favored-nation treatment concerning the countries joining the World Trade Organization. Legal treaty base of mutual relations numbers 300 documents

Empirical results and discussion

Advantageous

Findings

Conclusions