China has overtaken the United States for the first time in history and becomes the EU’s largest trading partner. The trade volume between Europe and China has reached $709 billion. The current trade volume between Europe and the United States stands at $671 billion.
The former President, Trump in his tenure, had imposed punitive tariffs on China and the EU. The EU subsequently imposed retaliatory tariffs on US goods.
It is not clear yet how the Biden Administration will deal with the trade agreements.
In 2020 EU exports to the United States fell by 8.2%; EU imports from the United States also fell by 13.2%.
The trade deficit between China and the EU countries has also grown to $219 billion.
After Brexit, the trade volume between the European Union and the UK also dropped sharply. The EU’s imports and exports to the UK have decreased by about 13%.
The ratio of trade volume between the EU and traditional partner countries (mainly the United States) to EU-China trade has changed, and China has become the EU’s largest trading partner for the first time in history.
Despite the impact of the pandemic, EU trade with China is increasing. The EU exports to China have increased and the Chinese economy has recovered from the pandemic.
China’s strong consumer power has helped promote the sales of European products, especially automobiles and luxury goods; while China’s exports benefit from Europe’s strong demand for the COVID-19 vaccines and electronic products.
The Chinese Foreign Ministry has claimed that China and the EU are important economic and trade partners. The two sides have strong economic complementarities, and there exists a great potential.
The rapid development of bilateral trade has strongly influenced the economic and social development of both sides and improved the welfare of the people.
China is working to expand its economic interests to provide greater opportunities for the EU member countries.
It also hopes that the EU will continue to be an open trade and investment market, and work with China to safeguard economic globalization to ensure an open trade and investment environment.