Research on Trade Potential between China and Countries along The Belt and Road——Based on Trade Costs

This paper analyzes the trade potentiality between China and the countries along "the Belt and Road" by gravity model,and draws the following conclusions:China and ASEAN belong to the type of expansion and giant potentiality; China and developed countries, Japan, South Asia, West Asia, Central and Eastern Europe, Africa belong to the type of expansion potentiality; China and CIS and Central Asia belong to the type of remodel and expansion potentiality. Some policy suggestions are put forward based on the analysis of trade potential index. First of all, to improve the level of infrastructure connectivity with the countries along "the Belt and Road". Secondly, to create more trade promotion platforms. Thirdly, to explore the construction of free trade area with willing countries (regions). Fourthly, it is necessary to innovate the mode of trade and investment cooperation. Fifthly, to continue to promote trade and investment facilitation.