China became the European Union’s largest trading partner, outpacing the United States last year. Trade between China and the union last year reached USD 709 billion, while the value of the union’s trade with the United States was $671 billion. At the same time, Beijing overcame a general trend – last year trade with most European partners fell due to the covid-19 pandemic, the BBC news server wrote today.
Although the Chinese economy contracted 6.8 percent in the first quarter, its subsequent economic recovery has driven demand for EU cars and luxury goods. Exports from China to Europe also enjoyed strong demand for medical equipment and electronics. China is the only major economy to grow last year.
“In 2020, China was the EU’s main partner. A 5.6 percent increase in imports and a 2.2 percent increase in exports contributed to this result,” said Eurostat.
These values are close to official data released by China in January. According to them, trade with the EU increased by 5.3 percent last year to USD 696.4 billion. The EU’s trade deficit with China rose to 219 billion from the previous USD 199 billion, according to Eurostat data on Monday.
Although the United States and Britain remain the EU’s largest export markets, the bloc’s trade with both countries fell sharply last year. “Trade with the United States has seen a significant decline in imports (13.2 percent) and exports (8.2 percent),” according to EU statistics.
The transatlantic trade has been the subject of a series of disputes that have led to the introduction of tariffs on steel and other goods, such as French cognac and American Harley-Davidson motorcycles. Last year, trade between the US and the EU reached USD 671 billion, a year earlier it was USD 746 billion. It is not yet clear whether the new US President Joe Biden will reconsider his business approach to Europe.
The European Union and China are trying to deepen their economic ties. At the end of last year, the 27 negotiated an initial investment agreement with Beijing, which will facilitate mutual access to markets from investors in both regions.
Source: CTK and EU Stat Office
