Sovereign debt problems exist not only in European countries. Most advanced countries are troubled with a debt burden. There has been a lot of discussion about the reasons for the crisis in Europe-high government deficits, the role of rating agencies, the attitude of Germany, and so on. Among these, the special structure of the Eurozone is the key to explaining why the sovereign debt crisis happened in Europe rather than in other developed countries. Numerous measures have been taken by European governments to stem the crisis, including the creation of the European Financial Stability Facility (EFSF), conducting bank stress tests, and introducing policies of fiscal austerity. However, these have been insufficient to solve the debt problem. Since Europe has not been able to find a growth engine, it will continue to suffer from this debt problem for a long time. The high debt ratio in Europe will lead to a shrinking of domestic demand and a rise of protectionism, which will have a negative effect on Sino-European relations. However, this situation also presents new opportunities for bilateral cooperation in building new rating agencies and increasing investment. Most has had a lot of discussion about the reasons for the crisis in Europe-high government deficits, the role of rating agencies, the attitude of Germany , and so on. The special structure of the Eurozone is the key to explaining why the sovereign debt crisis happened in Europe rather than in other developed countries. Numerous measures have been taken by European policies to stem the crisis, including the creation of the European Financial Stability Facility (EFSF), conducting bank stress tests, and introducing policies of fiscal austerity. However, These have been insufficient to solve the debt problem. Since Europe has not been able to find a growth engine, it will continue to suffer from this debt problem for a long time. the high debt ratio in Europe will lead to a shrinking of domestic demand and a rise of protectionism, which will have a negatigence However, this situation also presents new opportunities for bilateral cooperation in building new rating agencies and increasing investment.