STAT/09/72
18 May 2009

EU - China Summit
EU27 deficit in trade in goods with China of 170 bn euro in 2008
China second trading partner of EU27

Between 2000 and 2008 EU27 trade in goods with China¹ more than tripled in value, with EU27 exports to China rising to 78 billion euro in 2008 compared with 26 bn in 2000, and imports rising to 248 bn from 75 bn. As a result, the EU27 trade deficit with China increased significantly, reaching 169 bn in 2008, compared with 49 bn in 2000.

The share of China in the EU27's total external trade in goods more than doubled between 2000 and 2008. In 2008, China was the EU27's second most important trading partner after the USA, accounting for 6% of EU27 exports and 16% of EU27 imports.

On the occasion of the 11^th European Union - China summit, which will take place on 20 May in Prague, Eurostat, the Statistical Office of the European Communities, issues data on trade and investments between China and the EU.

Germany, 43% of EU27 exports to China and 21% of EU27 imports

Among the EU27 Member States, Germany (34 bn euro or 43% of EU exports) was by far the largest exporter to China in 2008, followed by France (9 bn or 11%), Italy and the United Kingdom (both 6 bn or 8%). Germany (51 bn or 21% of EU imports) was also the largest importer, followed by the Netherlands² (41 bn or 16%), the United Kingdom (33 bn or 13%) and Italy (24 bn or 10%).

All Member States registered deficits in trade with China in 2008. The largest deficits were observed in the Netherlands² (-37 bn euro), the United Kingdom (-27 bn), Germany and Italy (both -17 bn) and Spain (-15 bn).
Nearly 60% of EU27 exports to China in 2008 were machinery and vehicles³ and one fifth were other manufactured articles³, while these two groups accounted for more than 90% of imports. At the detailed level, the main EU27 exports to China included aircraft and motor cars, while the main imports included computers and parts, mobile phones and video games.

EU27 trade in goods with China

million euro

EU27 Member States' trade in goods with China

million euro

EU27 trade in goods with China by product

million euro

EU27 surplus of 6 bn in trade in services with China

In 2008, the EU27 exported 20.3 bn euro of services to China, while imports from China amounted to 14.5 bn, meaning that the EU27 had a surplus of 5.8 bn in trade in services with China, compared with +1.5 bn in 2006 and +4.0 bn in 2007. The surplus in 2008 was mainly due to other business services⁴ (+3.7 bn) and royalties & license fees (+1.6 bn). China accounted for around 3.5% of total extra-EU27 trade in services.

EU27 trade in services with China

million euro

* Provisional data

Fall in investment flows between EU27 and China in 2008

EU27 Foreign Direct Investment (FDI) into China rose from 6.7 bn in 2006 to 7.1 bn in 2007, then fell to 4.5 bn in 2008, while Chinese direct investment into the EU27 decreased from 2.2 bn in 2006 to 0.6 bn in 2007 and 0.1 bn in 2008.

EU27 FDI flows with China

(million euro)

* Provisional data

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

1. 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 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.
2. 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.

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