EU trade with China significantly up in 2014 for both goods and services
TextileFuture gives you in this Newsletter an overview of EU trade with China in 2014. Except for the drop recorded in 2009 following the financial crisis, the value of EU European Union imports of goods from China has significantly increased over the last decade, from EUR 129.2 billion in 2004 to a peak of EUR 302.5 billion in 2014. Exports, which did not decline in 2009, have more than tripled over the period 2004-2014 to hit EUR164.7 billion last year. The EU trade deficit with China, continuous during the whole period, decreased between 2010 and 2013, before growing again in 2014 to -EUR 137.7 billion
China is the second most important EU trading partner behind the United States, accounting for 14 % of total extra- EU trade in goods in 2014 (compared to 9 % in 2004). Over this 10-year time period, the share of China in extra- EU imports increased from 12.6% in 2004 to 18.0% in 2014, and its share in exports almost doubled (5.1 % in 2004 vs. 9.7 % in 2014).
Manufactured goods dominate both imports and exports
EU trade in goods with China is clearly dominated by manufactured goods, which accounted in 2014 for 97 % of total EU imports from China and 86% of EU exports to China. The EUR 152.0 billion deficit recorded by the EU for its trade in manufactured goods with China is only partially offset by a small EU surplus in primary goods (+ EUR 9.5 billion), in particular for raw materials (+EUR 6.3 billion).
Germany and Finland are the only EU Member States recording a surplus in goods with China
Among the EU Member States, Germany (EUR 75.0 billion or 46 % of EU exports of goods to China) was by far the largest exporter to China in 2014, followed at a distance by the United Kingdom (EUR 19.6 billion or 12 %), France (EUR 16.2 billion or 10 %) and Italy (EUR 10.5 billion or 6 %). Compared with 2013, exports to China increased in each of these four largest partners. At EU level, exports of goods to China grew by 11 % in 2014.
Germany (EUR 60.9 billion or 20 % of EU imports of goods from China) was also the largest importer from China in 2014, ahead of the Netherlands (EUR 57.3 billion or 19 %), the United Kingdom (EUR 45.8 billion or 15 %), France (EUR 25.4 billion or 8 %) and Italy (EUR 25.1 billion or 8 %). Among these top EU importers from China, imports increased in all in 2014. EU imports of goods from China rose by 8 % in 2014.
Every EU Member State recorded a deficit in trade in goods with China in 2014, except Germany (+EUR 14.1 billion) and Finland (+EUR 0.7 billion). The largest deficits were observed in the Netherlands (-EUR 48.8 billion), the United Kingdom (-EUR 26.2 billion), Italy (-EUR 14.6 billion), Spain (-EUR 12.4 billion), France (-EUR 9.2 billion) and Poland (-EUR 8.9 billion).
Growing surplus in EU trade in services with China
EU exports of services to China jumped by 27 % between 2012 and 2014, from EUR 25.1 billion to EUR 31.7 billion, while imports increased more moderately, from EUR 20.0 billion in 2012 to EUR 22.6 billion in 2014. As a result, the EU surplus in trade in services with China grew by EUR 4.0 billion over the last three years, from EUR 5.1 billion in 2012 to EUR 9.2 billion in 2014. This surplus was mainly due to surpluses in travel services (+EUR 3.3 billion), charges for the use of intellectual property (+EUR 3.1 billion) and as well as telecommunications, computer and information services (+ EUR 2.5 billion). The most significant deficit was registered for transport services (-EUR 1.7 billion). China accounted in 2014 for around 4 % of total extra-EU trade in services, representing the third most important EU partner behind the United States and Switzerland.
China net investor in the EU in 2014
Although fluctuating from one year to the next, FDI Foreign Direct Investment flows between the EU and China have continuously been positive over the last four years. In 2014, EU investment in China however decreased to EUR 9.1 billion, while Chinese investment flows into the EU rose to reach EUR 12.1 billion, meaning that China was a net investor in the EU last year.