Rebalancing the world economy: EU-China trade deficit

The US trade deficit with China was one of the causes of the financial crisis, but Europe also runs a trade deficit with China. MEPs on the International Trade Committee organised a public hearing to assess the situation before drafting a report on how to avoid such global trade imbalances.

With developed markets on the brink of recession, China has become the growth market for many European exporters. In 2010, they exported goods and services worth some €113.1 billion to China. But complaints about unfair trade practices, an artificially low yuan and political hurdles are problems. Our info graphic shows the EU trade deficit with China was €168.6 billion in 2010.

Europe mainly exports machines and transport equipment (more than 60% of EU exports in 2010), chemicals and raw materials. Imports from China are mostly consumer goods including office and telecommunication devices and clothing.