The latest news is now coming that china is now the EU’s biggest and rigid trading partner overtaking their rivals the United States in 2020. China came up with a wider trend, as trade with most of Europe’s key partners dropped due to the covid-19 pandemic. The trade relation between China and the EU was worth $709bn (586bn euros, 511bn GBP) last year when it is compared with US period it was only $671bn worth of imports and exports. The Chinese economy got holed in the first quarter due to the global pandemic, its economic recovery later in the year got fueled demand for EU goods.
China Overhauls The US As European Union’s Biggest Trading Partner.
During the pandemic, even US Economy got cratered but china was the only major global economy to see growth in 2020, stoking demand for European cars and luxury goods. At the same time, china’s exports to Europe were a major advantage for strong demanded medical equipment’s and electronics.
According to the recent UN figures, China has overtaken the US as the world’s top destination for new foreign direct investment. The new investments into America from overseas companies fell by almost half last year and this led to the loss of its number one status and privilege being a world power. The UN figures also show the direct investment of Chinese firms hiked to 4% taking it number one globally.
The top rankings prove the Chinese growing influence on the world’s economic stage. The country had $163bn inflows alone last year while comparing to the $134bn by the US, the united nations conference on trade and development (UNCTAD) said in its report.
While comparing to the statistics of 2019 the US received $251bn in the new foreign investment while china received $140bn. At present china may be the number one for the new foreign investment but still, the US dominates when it comes to total foreign investments. This brings a clear reflection in the decades it has spent as the most attractive location for foreign business looking to expand overseas. But some of the key experts are in the opinion that the figures underline china’s move toward the center of the global economy which has long been dominated by the US who is the world’s biggest economy. Currently, China is involved in a trade war with the US and it has been predicted to leapfrog it to the number one position by 2028 as per the UK-based center for economics and business research.
In the year 2020, China was the major partner of the EU. And this resulted in an increase in the number of imports and exports (i.e., import +5.6% and export +2.2%) the data is according to the EU’s statistical office. The digits were also like Chinese official data published in January which resembles the trade relationship with the EU hiked by 5.3% to $696.4bn according to Eurostat figures.
Trade with US and UK Plunged
On the other end even though the US and UK remain the EU’S largest export marketers, the trade relationship with both countries got fallen significantly as per valid statistical data. As per data agency, the trade with united states recorded a significant fall in both imports i.e., -13.2% and exports of -8.2%. In late 2020, the US had a trading volume of $671bn with the EU, down from $746bn the previous year. Also, it’s not year clear if the new President of the United States Joe Biden will re-consider the US approach to the trade with Europe. In addition to that the EU and China, however, are trying to strengthen their economic ties with both sides relying on ratifying an investment deal that would give European companies better access to the Chinese market.
The Top-notch analysts are looking forward to the global trade turning around in 2021 after a lackluster 2020.