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trade exported to China occupied as high as 67.2 billion yen. From the data we can estimate that if Japan insisted to limit imports of Chinese agricultural products, its own losses would be greater. That is to say, the trade war not only destroyed the two countries' fundamental interest but also damaged the Japanese economic recovery since 1997.

In fact, the trade war upgraded recently years, such that the domain of China's photovoltaic (PV) industry bears especially the brunt. Along with The Solar World submitting one paper, which requires the application of the anti-dumping investigations on Chinese PV products, to the European Union (EU), Chinese PV industry is once again jittery since there has been already extreme suspicion for this industry. Actually, both sides on trade war make losses, whatever. With an increasingly close link among global economy, if one industry undergoes a great turbulence, it is possible to have a ripple effect for the other relative industries. If China's PV products lose the EU market, at least sixty to seventy percent of the domestic PV industry would be collapse, which will result in a mass unemployment in China. Meanwhile, it may hurt the import and export of the other industries. Furthermore, the trade war is bound to undermine the rules established by the WTO. Since China and the EU are both members of the WTO, a trade war must affect international trade. So, with the escalation of the trade war, whether join the WTO will still increase China's international trade?This issue is worthy to be explored.

1.2.1 Implications From Trade War

From Cheng Deming's report (2011), Chinese Minister of Commerce, we can clearly see the tremendous achievements of China's foreign trade after accession to the WTO. Meanwhile, we also recognize many problems in multilateral trade. China mainly exports primary products to the world, while it imports cutting-edge technology from developed countries, which makes China suffer a disadvantage among international trade. The main advantage of the vast majority of the Chinese exports is that they are produced by using cheap labor, so that the cost of the same product is greatly reduced compared with that of countries. The processing industry in the southeast coast of China develops well and China's exports are mainly concentrated in this region. However, advantages sometimes reverse to disadvantages. If China's products have absolute competitive edge in the international market, China may be faced with other countries' anti-dumping challenge. Facing these challenges, China must adjust the structure of domestic industry, converting labor-intensive advantage to technology-intensive advantage. Besides, it can also make efforts in developing Chinese characteristic national industry which means to make its own products irreplaceable in the international market. Will China's accession to the WTO increase its international trade in the end? If YES, what are the factors that affect the international trade? This paper will use the standard gravity model as a cornerstone, gradually adding a variety of variables that may affect bilateral trade during the regression analysis.

1.3 The Baltic Exchange Dry Index (BDI)

A new view in this paper is that the author employs a freight financial derivative, the Baltic Exchange Dry Index (BDI), as a variable into the gravity model to estimate whether it has any relationship with