Brussels, 26/06/2015 (Agence Europe) - After a slight drop between 2010 and 2013, the EU's trade deficit with China increased in 2014 to stand at -€137.7 billion, according to data published by Eurostat on Friday 26 June, ahead of the EU-China summit in Brussels on 29 June.
Record imports for EU. With the exception of the downturn recorded in 2009, the value of the EU's imports from China has more than doubled over the last decade, rising from €129.2 billion in 2004 to a record €302.5 billion in 2014.
EU exports to China, which remained steady in 2009, more than tripled over the 2004-2014 period to stand at €164.7 billion last year.
In 2014, China remained the EU's second largest trading partner after the US, with a 14% share of the EU's total trade in goods with the rest of the world, compared with 9% in 2004. In ten years, China's share of EU imports rose from 12.6% in 2004 to 18% in 2014, and its share of EU exports almost doubled (5.1% in 2004, compared with 9.7% in 2014).
Manufactured goods very largely prevailed in bilateral trade in goods, accounting for 97% of the EU's imports from China and 86% of the EU's exports to China. The €152 billion deficit recorded by the EU for manufactured products with China was only partially offset by a slight EU surplus in raw materials (+€9.5 billion), especially for basic products (+€6.3 billion).
German motor. Goods exports from the EU to China increased by 11% in 2014, compared with 2013. Germany remained the top European exporter to China (€75 billion, or 46% of the EU's goods exports to China), ahead of the UK (€19.6 billion, 12%), France (€16.2 billion, 10%) and Italy (€10.5 billion, 6%).
The EU's imports of goods from China rose by 8% in 2014. Germany was also the top European importer (€60.9 billion, or 20% of the goods imported by the EU from China), followed by the Netherlands (€57.3 billion, 19%), the UK (€45.8 billion, 15%), France (€25.4 billion, 8%) and Italy (€25.1 billion, 8%).
All the EU member states showed a deficit in their trade in goods in 2014 - with the exception of Germany (+€14.1 billion) and Finland (+€0.7 billion). The biggest deficits were observed in the Netherlands (-€48.8 billion), the UK (-€26.2 billion) and Italy (-€14.6 billion).
Balance of EU services in surplus. EU exports of services to China soared by 27% between 2012 and 2014, rising from €25.1 billion to €31.7 billion, while imports progressed more moderately, from €20 billion to €22.6 billion over the same period. The EU thus saw the surplus of its trade in services grow by €4 billion between 2012 and 2014, rising from €5.1 billion to €9.2 billion. The surplus is largely attributed to travel services (+€3.3 billion), payment for use of intellectual property (+€3.1 billion) and telecommunications, computer and information services '(+€2.5 billion). In 2014, China accounted for 4% of the EU's trade in services and was the EU's third largest partner, after the US and Switzerland.
China is net investor in EU. Foreign direct investment (FDI) flows between the EU and China have remained consistently positive over the last four years. In 2014, EU FDI in China nevertheless slipped back to €9.1 billion, whilst Chinese FDI in the EU progressed to €12.1 billion, making China a net investor in the EU last year. (Emmanuel Hagry)