Effects of China-U.S. energy cooperation on rebalancing trade

As the two largest countries of energy consumption in the world, China-U.S. energy cooperation has been taken place to respond the climate change. And as the important foreign trade partners each other, the bilateral trade imbalance impedes their economical relation. So in this article the ways of effects of China-U.S. energy cooperation on rebalancing trade are studied firstly. Secondly the VAR model is founded and the road and degree of effects of China-U.S. energy cooperation on rebalancing trade are studied positively with impulse response function (IRF) and variance decomposition.