EU-China Trade In Facts And Figures Go back »
2010-07-30 | All chapters
China has now become the biggest exporter in the global economy ahead of Germany and the US. China accounts for about 11 % of world trade in goods. China is the first major economy to rebound effectively from the crisis. In the first part of 2010, China’s growth rates compare with levels before the crisis. China is on track to overtake Japan and become the world's second largest national economy in 2010.More than half of China's exports are currently produced by foreign invested enterprises (processing trade). Neighbouring Asian companies in Japan, Taiwan, Hong-Kong and South Korea play a major role in this process. The role of European enterprises in China’s processing trade regime is limited, but the majority of finished consumer goods is exported to the EU. EU-China investment
European companies invested €5.3 billion in China in 2009 (up from €4.7 billion in 2008). This is about 2-3% of overall European foreign direct investment.
China invested €0.3 billion in 2009 (compared to a net disinvestment of €1.8 billion in Europe in 2008).
Current issues in EU-China trade
Barriers to trade in China are estimated to cost EU businesses €21 billion in lost trade opportunities every year, according to a study in 2007 financed by the European Commission. That is one-fourth of current EU exports to China.
Intellectual property rights infringement remains a huge problem for European businesses in China. Almost 54% of all counterfeit goods seized at European borders in 2008 came from China. Seven in ten European businesses operating in China say that they have been the victim of IPR violations. In 2007, European manufacturers estimated that IPR theft cost them 20% of their potential revenues in China.
IPR protection is an important issue for Europe. Rates of counterfeiting European products were reported to be around 5-10% of turnover of EU companies in China.
The EU uses trade defence instruments following strict and non-political procedures, and to a lesser extent than other major economies. This restrictive policy is best illustrated by the fact that the use of trade defence instruments covers only about 1% of total imports from China
As of May 2010, the EU had 52 anti-dumping measures in force against Chinese imports.
European services companies continue to find it difficult to break into the Chinese market often they have to deal with red tape and cumbersome procedures.
China maintains investment and ownership caps in many sectors such as banking, construction and telecommunications, although China has signed agreements to open its market. As an example, of the 22 000 telecoms licenses it has granted since 2001 only 14 have gone to foreign companies. Foreign law firms in China are still not allowed to employ Chinese lawyers and are not permitted to participate in bar exams to gain Chinese qualifications.