Abstract:

With rapid increase in imports and exports in recent years，China’s economic strength is rising，but China has long
been the country with the largest trade barriers. But Germany，whose trade has also led the world like China，develops smoothly
in foreign trade and has much less trade friction，thus forming the unique“German model”. “German model”has been the
unique social market economy model since the World War II，and the success of the“German model”is based on the reasonable
foreign trade industrial structure，strong support from government，high technology elements in export product，equivalence
of the import and export trade，and great emphasis on services trade. Drawing lessons from the successful experiences of
the“German model”，China can develop foreign trade by further perfecting government’s policy support，grasping industry
trends，promoting industrial upgrading，and by optimizing the structure of export commodities. Such measures give play to
market competition，the creativity of enterprise，the initiative of individuals，and adjust the distortion of the fairness resulting
from market failures through high taxes and generous welfare and other social security measures，and finally realize the common
progress of government functions，social development and the interests of individuals.

Key words: &ldquo, German Model&rdquo, ；China&rsquo, s foreign trade；social market economy；service trade；trade equivalence