Research on Factors Leading to a Shift of China's Largest Trading Partner from the European Union to ASEAN

In this paper, the author investigates why China may turn its eyes from the EU to ASEAN from four perspectives, namely, COVID-19 epidemic, BRI, Chinas structural transition of economy and geopolitics. By reviewing the existing literature and analyzing specific cases, the study found that (1) COVID-19 in 2019 led to global transport and supply chain restrictions, a shortage of raw materials and increased operating costs. Many countries and enterprises have to make new plans and adjustment to the supply chain. (2) The Belt and Road Initiative will promote China-ASEAN cooperation in infrastructure construction and international trade and investment, and form regional economic integration cooperation. (3) China is promoting the transformation of industries from labor-intensive to high value-added through economic structural transformation, and enhancing international competitiveness. (4) Nowadays, the world situation is increasingly complicated and confusing, and more and more countries pay attention to geopolitics. The changes in trade relations between China and the United States and the adjustment of trade relations between the European Union and China will promote the reconfiguration of global supply chains and strengthen regional economic cooperation. It not only reflects the deepening of regional economic cooperation, but also reflects the profound adjustment of the global economic pattern.