EU trade deficit with China down in H1

17  January 2013

BRUSSELS — The first six months of 2012 saw some decrease of EU trade deficit with China due to continued growth in export, said a report issued by Eurostat Tuesday.

According to the report, EU exports to China rose from 66 billion euro ($86.2 billion) in the first six months of 2011 to 73 billion euro ($95.3 billion) in the first six months of 2012, while imports stabilised at just over 140 billion euro ($182.8 billion). As a result, the trade deficit decreased from 75 billion euro ($97.9 billion) to 67 billion euro ($87.5 billion).

This follows continued drop in EU trade deficit with China. Eurostat’s report shows that the deficit reached its peak in 2008 of 170 billion euro ($222 billion), then gradually fell to 156 billion euro ($203.7 billion) in 2011.

The report also gives evidence of continued increase in trade volume between China and EU over the past decade. According to the report, EU’s export surge from 26 billion euro ($33.9 billion) in 2000 to 136 billion ($177.6 billion) in 2011, while import shot from 75 billion euro ($97.9 billion) to 293 billion ($382.6 billion) at the same time.

China was the EU27’s No.2 trading partner next to the United States, accounting for 9 percent of EU27 exports and 16 percent of EU27 imports in the first half of 2012, the report says.