The political situation in Bulgaria remained unstable in 2014. The BSP failed in the European parliamentary election in May and the central-left government resigned in July. After that，the central-right CEDB won the parliamentary election in October and formed a new government. Deflation and high deficit and unemployment rate exerted continuous negative impacts on Bulgarian economic growth. Bulgaria-Russia relationship became strained because of the Ukraine crisis. As a result，Russia announced the abandonment of the “South Stream” project on December 1，2014. Bulgaria and China are cooperating in a number of fields under the “16+1” mechanism.