EU - China Summit EU27 deficit in trade in goods with China down to 67 bn euro in the first six months of 2012

Reference: STAT/12/135 Event Date: 18/09/2012

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STAT/12/135
18 September 2012

EU - China Summit
EU27 deficit in trade in goods with China down to 67 bn euro in the first six months of 2012

EU27 international trade in goods with China1 has grown significantly over the last decade. EU27 exports to China rose continuously from 26 billion euro in 2000 to 136 bn in 2011. Despite the general decline in EU27 exports in 2009, EU27 exports to China continued to increase. EU27 imports from China rose from 75 bn in 2000 to 248 bn in 2008, then declined to 214 bn in 2009, following the general downwards trend in EU27 imports, before reaching a new peak of 293 bn in 2011. As a result, the EU27 trade deficit with China which had increased from 49 bn in 2000 to a peak of 170 bn in 2008, fell to 156 bn in 2011.

The data for the first six months of 2012 show a continued growth in EU27 exports to China, while imports remained nearly stable. EU27 exports to China rose from 66 bn in the first six months of 2011 to 73 bn in the first six months of 2012, while imports stabilised at just over 140 bn. As a result, the trade deficit decreased from 75 bn to 67 bn. In the first six months of 2012, China was the EU27's second most important trading partner after the USA, accounting for 9% of EU27 exports and 16% of EU27 imports.

On the occasion of the 15th European Union - China summit, which will take place on 20 September in Brussels, Eurostat, the statistical office of the European Union, issues data on trade and investments between China and the EU.

Germany only Member State with a trade surplus with China

Among the EU27 Member States, Germany (34 bn euro or 47% of EU exports) was by far the largest exporter to China in the first six months of 2012, followed by France (8 bn or 11%) and the United Kingdom (6 bn or 8%). Germany (30 bn or 21% of EU imports) was also the largest importer, followed by the Netherlands2 (26 bn or 18%), the United Kingdom (19 bn or 14%), Italy and France (both 13 bn or 9%).

All Member States, except Germany (+4 bn euro), registered deficits in trade with China in the first six months of 2012. The largest deficits were observed in the Netherlands2 (-22 bn), the United Kingdom (-14 bn), Italy (-8 bn), Spain and France (both -5 bn).

EU27 Member States' international trade in goods with China

million euro

EU27 international trade in goods with China by product

million euro

EU27 international trade in goods with China

billion euro

EU27 surplus in trade in services with China up to 7.5 bn euro in 2011

Both EU27 exports and imports of services with China1 grew between 2009 and 2011. In 2011, the EU27 exported 25.1 bn euro of services to China, while imports from China amounted to 17.5 bn, meaning that the EU27 had a surplus of 7.5 bn in trade in services with China, compared with +5.7 bn in 2009 and +6.6 bn in 2010. The surplus in 2011 was mainly due to surpluses in other business services4 (+3.4 bn), royalties & license fees (+2.0 bn) and computer & information services (+1.2 bn), partly offset by a deficit in transportation (-0.8 bn). China accounted for around 4% of total extra-EU27 trade in services.

EU27 international trade in services with China

million euro

EU27 direct investment of 18 bn in China in 2011

EU27 Foreign Direct Investment flows (FDI) into China1 amounted to 17.8 bn euro in 2011, compared with 6.2 bn in 2008, 8.1 bn in 2009 and 13.4 bn in 2010, while China invested 3.1 bn in the EU27 in 2011, compared with limited flows in 2008, 2009 and 2010.

EU27 FDI flows with China

(million euro)

However, a more complete picture of FDI between the EU and China must take into account the significant role of Hong Kong in channelling investments from and to China. EU27 FDI flows to Hong Kong amounted to 6.8 bn in 2011, compared with 7.0 bn in 2008, 1.1 bn in 2009 and 6.1 bn in 2010, while Hong Kong invested 5.0 bn in the EU27 in 2011, compared with 3.7 bn in 2008, 1.7 bn in 2009 and a peak of 14.6 bn in 2010.

• All data for China presented in this release exclude Hong Kong.

• Dutch imports and therefore the trade deficit are over-estimated because of the “Rotterdam effect” where goods destined for the rest of the EU arrive, and are therefore recorded in harmonised EU external trade statistics, in Dutch ports. This then has a positive effect on the external trade balances with China of those Member States to which the goods are re-exported as these shipments would be recorded as intra-EU trade with the Netherlands rather than extra-EU trade with China. To a lesser extent, Belgian trade figures are similarly over-estimated.

• Machinery and vehicles includes power generating and industrial machinery, computers, electric and electronic parts and equipment, road vehicles and parts, ships, airplanes and railway equipment.

Other manufactured articles include leather, rubber, wood, paper, textiles, metals, building fixtures and fittings, furniture, clothes, shoes and accessories, scientific instruments, clocks, watches and cameras.

• Other business services comprise merchanting and other trade-related services, operational leasing services and miscellaneous business, professional and technical services.