隨著歐盟與中國的貿易量在過去十年內急速的成長，歐盟成為了中國最大的貿易夥伴。在學術界中，貿易對國家環境保護條例設立的影響也成為了熱切關注的議題，專家學者們擔憂國際貿易將不僅僅使得先進國家迫於競爭壓力，為了取得國際貿易的競爭優勢，而去降低其環境保護標準，即形成所謂的「向下競爭」(race to the bottom)，更使得發展中國家沒有誘因去加強他們的環境保護措施，而產生所謂「陷入低環境標準」(stuck at the bottom)效應。然而，許多學著(如David Vogel)則認為，透過國際貿易反而使得許多國家的環境保護標準提昇了(trading-up)。
本研究分析了歐盟與中國的貿易和環境保護標準之間的關係。自中國加入世界經濟競爭後，學者們擔憂中國由於競爭的緣故，會使其環境保護標準保持在以往的低水平，然而，中國的改變是可被觀察到的。因此，本研究旨在找出在歐盟與中國的貿易關係中，是否有中國環境保護標準提昇的情況出現。而為了同時觀察中國國內與國際的發展情況，本研究採用「雙層賽局理論」 (two-level games theory)進行分析。更以個案研究方式進行，而三個個案中所探討之三個環境指令(environmental directives)乃是歐盟目前所執行的重要環境指令：危害物質限用指令(the Restriction of Hazardous Substances ，RoHS)、汽車排放標準(car emissions standards)以及歐盟新化學品政策(the Registration, Evaluation, Authorization, and Restriction of Chemicals，REACH)。
本研究欲探究中國如何被歐盟的環境指令影響與如何回應，以及更進一步應用在本身經濟發展和提高環境品質上。經由個案研究的結果顯示，歐盟的環境指令對中國環境保護條例的設立有正面的影響，並且喚醒了政策制定者以及公益團體對環保問題的意識，外來的規章指令迫使中國必須做出回應。因此，本研究結論指出歐盟的環境指令促使了中國制定嚴格的環境保護條例。

Volumes of trade between the European Union and China have increased tremendously over the last decades, with the EU becoming China`s largest trading partner. Among the academic world there are serious concerns about the impacts of trade on national environmental regulation setting. There is fear that international trade will not only put advanced nations under strong competitive pressure to lower their environmental standards in order to stay competitive (race to the bottom) but also provide developing nations no incentives to strengthen their environmental protection measures as this would carry costs and reduce their global competitiveness (stuck at the bottom). In contrast to that believe, some scholars, such as David Vogel, argue that engaging in international trade can – under certain assumptions – result in tighter national regulation setting among trading partners (trading-up).
This study sets out to analyze the linkage of trade and environmental standards between two major trading powers – the EU and China. China`s integration with the world economy has spurred concerns among environmentalists as it was feared that the country`s national environmental regulatory system will be kept at low levels due to competitiveness considerations. However, China, the opposite can be observed. The EU has adopted strict environmental directives in several areas, and China has upgraded its environmental regulatory system. This study aims to find answers to the question if in the case of trade between the EU and China a situation of trading-up can be identified. In order to bring in domestic as well as international developments, the study applies a two-level games approach. The research is based on recent environmental directives that have been adopted by the EU. A selection of three directives forms the basis of the case studies: the Restriction of Hazardous Substances (RoHS), car emissions standards, and the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH). The study provides insights into how China is affected by these external regulations, how it responded to them and how it tries to utilize them to boost its economic development and enhance the quality of its environment.
As the study reveals, European environmental directives have positive impacts on China`s national environmental regulatory setting processes, since the EU regulations not only raise the awareness of the issue among China`s policy makers and public interest groups

but they also called for responses from affected domestic constituents. The external regulations raised the stakes of numerous domestic actors which then had to decide how to react adequately. All in all, the study concludes that EU environmental directives have worked in favor of stricter regulation setting in China.

1. Introduction 1
1.1 Global Economic Integration and Internationalization 2
1.2 The European Union as Trade and Environmental Power 3
1.2.1 The Evolution of the EU’s Environmental Legislation System 6
1.2.1.1 European Integration: From Rome to Lisbon 6
1.2.1.2 Environmental Directives in the EU 9
1.3 The Emergence of China as a Trading Power 12
1.3.1 China’s Economic Reform 14
1.3.2 China and International Trade 17
1.3.2.1 Trade Composition 20
1.3.2.2 Going Global Strategy 22
1.3.3 Trade and Technology 23
1.4 The Sino-EU Foreign Trade Relation 25
1.5 The EU-China Trade under the WTO 29
1.6 China, International Trade and the Environment 32
1.6.1 China and its Environmental Protection Management 34
1.6.2 China’s Legislation-Making Process 38
1.6.3 From Interventionism to Regulatory Governance 42
1.6.4 The Role of Local Governments 44

2. Trade and the Environment 47
2.1 From Stockholm to Doha 47
2.1.1 The North-South Divide 48
2.2 Effects of Trade and Investment on the Environment 50
2.3 The Evolution of Environmental Protection Measures 51
2.3.1 The Precautionary Principle 53
2.3.2 The Polluter Pays Principle 54
2.3.3 Life-cycle Approaches 55
2.3.4 Environmental Requirements and Market Access Restrictions 56
2.4 Trade, Development and the Environment 57
2.4.1 Globalization, the Environment and Policy Convergence 59
2.5 Effects of Trade on the Regulatory System 62
2.5.1 Competitiveness and Environmental Regulation 63
2.5.1.1 A Race to the Bottom… 64
2.5.1.2 …Stuck at the Bottom… 67
2.5.1.3 …Or Trading-Up? 67
2.5.2 The Imposition of Environmental Standards 70
2.5.2.1 The Motives for Applying Standards 72
2.6 Institutions, International Organizations and Trade 74
2.6.1 The EU, the WTO and the Environment 75
2.6.1.1 The Agreement on Technical Barriers to Trade 84
2.6.1.2 The Agreement on Sanitary and Phytosanitary Measures 85
2.7 The Research Problem 86
2.7.1 The Research Question 88
2.7.2 Research Design and the Use of Theoretical Approaches 89
2.7.3 The Case Selection 91
2.7.4 The Method of Process Tracing 95
2.7.5 Data Sources 96
2.7.6 Limitations of the Study 97

3. Theoretical Framework 99
3.1 Overview of the Chapter 99
3.2 Trading-up and the Two-level Game Approach 100
3.2.1 Behavior of Actors 105
3.3 Changing Actors’ Behavior 107
3.3.1 Changing Preferences 108
3.3.2 Changing Constraints 108
3.4 International Bargaining 110
3.5 The International Context and Behavior of Countries 112
3.5.1 Multilateral Agreements and the Environment 114
3.5.2 International Trade Organizations and the Environment 115
3.5.2.1 Dispute Settlement 116
3.6 Domestic Political Processes 118
3.6.1 Domestic Politics and Regulatory Trade Measures 119
3.6.2 The Role of the National Government and its Actors 121
3.6.3 The Ratification of Agreements 123
3.6.3.1 Formal Ratification 123
3.6.3.2 Informal Ratification 124
3.6.3.3 China’s State Owned Enterprises 128
3.7 Linking International and Domestic Politics 130
3.7.1 External Influences on the Target Country’s Win-set 131
3.7.1.1 Changes in Preferences 132
3.7.1.2 Changes in Constraints 133
3.7.1.3 Changes in the Institutional Structure 134
3.7.2 External Influences on the Initiator’s Win-set 135
3.7.2.1 Changes in Preferences, Constraints and the Institutional Balance 136
3.7.3 Internal Influences on the Win-set 137
3.7.4 The Role of Multinational Actors 138
3.8 The Formulation of the Hypotheses 139

4. EU Environmental Regulatory Standards and China’s National Regulatory Setting 143
4.1 Overview of the Chapter 143
4.2 Case One: The RoHS-Directive 143
4.2.1 The Background 143
4.2.2 Global Trade in E-Waste 145
4.2.3 China’s Domestic E-Waste Challenge 146
4.2.3.1 National Policies, Regulations and Measures 148
4.2.4 The European Union’s Response to the Global E-Waste Challenge 150
4.2.5 The Potential Impact of RoHS-Directive on China 153
4.2.5.1 The Importance of the EU as an Export Destination 155
4.2.5.2 China’s Electronic Sector 155
4.2.6. Compatibility of Directives with GATT/WTO Rules 158
4.2.6.1 The EU and the Precautionary Principle 159
4.2.6.2 RoHS and GATT/WTO 159
4.2.7 The Implementation of National Regulations in China 161
4.2.8 Reaction from the Industry 167

4.2.9 Section Summary and Conclusions 171
4.2.9.1 Did EU RoHS lead to a trading-up? 171
4.2.9.2 Explaining the Outcomes 174
4.3 Case Two: Vehicle Emissions Standards 184
4.3.1 The Background 184
4.3.1.1 Early Efforts in Exhaust Emissions Control 186
4.3.1.2 First Attempts in Controlling Vehicle Emission Standards in Europe 187
4.3.1.3 The European Vehicle Exhaust Emission Standards “EURO” 189
4.3.1.4 Vehicle Emissions and Global Warming 191
4.3.2 Emission Standards and the GATT/WTO Framework 192
4.3.3 Air Pollution in China 194
4.3.4 Existing Legislation in China 196
4.3.5 The Development of China’s Automobile Industry 199
4.3.5.1 The Importance of the Auto Industry 200
4.3.5.2 State-Industry Relations 203
4.3.5.3 The Rationale of International Car Makers 204
4.3.6 Heading Global: The Importance of the EU as Export Market 205
4.3.7 The Implementation of Vehicle Emission Standards in China 208
4.3.7.1 Fuel quality 210
4.3.7.2 Fuel Economy Standards 211
4.3.8 China and the Climate Regime 211
4.3.9 Section Summary and Conclusions 212
4.3.9.1 Did EU Vehicle emission standards lead to a trading-up in China? 213
4.3.9.2 Explaining the Outcomes 216
4.4 Case Three: Registration, Evaluation, Authorization, and Restriction of Chemicals 226
4.4.1 The Background 226
4.4.2 The EU Efforts to Control Risks of Chemical Substances 227
4.4.3 The EU REACH directive and GATT/WTO 232
4.4.3.1 Proportionality of the Measure 234
4.4.3.2 Treatment of Imported Products 235
4.4.3.3 Treatment of Undisclosed Information 237
4.4.4 Chemicals and China 238
4.4.5 The Potential Impact of REACH on China 241
4.4.6 The Chemical Industry in China 243
4.4.7 Reforming the Domestic Chemical Legislations 248
4.4.8 Section Summary and Conclusions 252
4.4.8.1 Did REACH lead to a Trading-up? 253
4.4.8.2 Explaining the Outcomes 255

5. Summary of the Cases and General Conclusions 264
5.1 Synopsis 264
5.1.1 Three Selected Cases of Environmental Directives 268
5.1.2 The Outcomes 269
5.1.3 Reading the Observed Outcomes 270
5.1.3.1 The Issue of Problem Identification 271
5.1.3.2 The Perception of the Measures as Protectionist Tool 273
5.1.3.3 The Compatibility with International Trading Laws 274
5.1.3.4 The Size and Targeting of Trade Measures 277
5.1.3.5 The Impact on Trade Measures on the Overall Economic Development 279
5.1.3.6 Costs of Compliance 280
5.1.3.7 Baptist-bootlegger Coalition and Credibility 283
5.1.3.8 Integration of non-environmental Related Actors 285
5.1.3.9 The Role of Local Governments in the Process 287
5.2 Answer to the Research Question 290
5.3 Generalizing to other Cases and Countries 296

6. Bibliography 299

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