EU Trade with India and China
26 November 2007by eub2 -- last modified 26 November 2007
EU27 trade with China grew by 150% between 2000 and 2006. EU Trade with India up by 80%.
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China and India play an increasing role in EU27 trade. China, which was the fourth trading partner of the EU27 in 2000, has since 2003 become the second trading partner after the USA. India, which was the 17th trading partner in 2000, ranked ninth in 2006.
On the occasion of the EU-China Summit, which will take place on Wednesday 28 November in Beijing, and the EU-India Summit, which will take place on Friday 30 November in New Delhi, Eurostat, the Statistical Office of the European Communities, issues the latest data available on trade and investments between China and the EU27 and India and the EU27.
Germany accounts for more than 40% of EU27 exports to China
Between 2000 and 2006, EU27 trade in goods with China grew by more than 150%, with exports increasing from 26 billion euro to 64 bn and imports from 75 bn to 195 bn. As a result the EU27 deficit in trade with China rose from 49 bn in 2000 to 131 bn in 2006. In 2006, China accounted for 6% of EU27 exports and 14% of EU27 imports.
Among the EU27 Member States, Germany (27 bn euro or 43% of the total) was by far the largest exporter to China in 2006, followed by France (8 bn or 13%) and Italy (6 bn or 9%). Germany (43 bn or 22%) was also the largest importer, followed by the Netherlands1 (31 bn or 16%) and the United Kingdom (29 bn or 15%). All Member States recorded trade deficits with China in 2006. The largest were observed in the Netherlands1 (-28 bn), the United Kingdom (-24 bn), Germany (-16 bn) and Italy (-12 bn).
More than half of EU27 exports to China in 2006 were machinery and vehicles2 and one fifth were other manufactured articles2, while these two groups accounted for nearly 95% of imports. At the detailed level, the main EU27 exports to China were aircraft and motor cars, while the main imports were computers and parts, mobile phones and digital cameras.
Germany, United Kingdom and Belgium main EU27 trading partners of India
Between 2000 and 2006, EU27 trade in goods with India grew by around 80%, with exports increasing from 14 bn euro to 25 bn and imports from 13 bn to 23 bn. As a result the EU27 deficit in trade with India rose from 1 bn in 2000 to 2 bn in 2006. In 2006, India accounted for 2.1% of EU27 exports and 1.7% of EU27 imports.
Among the EU27 Member States, Germany (6.3 bn euro or 26% of the total) was the largest exporter to India in 2006, followed by Belgium (4.6 bn or 19%) and the United Kingdom (4.0 bn or 16%). The United Kingdom (4.5 bn or 20%) was the largest importer, followed by Germany (3.9 bn or 17%), Belgium and Italy (3.0 bn or 13% each). The largest surplus in trade with India in 2006 was observed in Germany (+2.5 bn) and the largest deficit in Spain (-1.2 bn).
Around 80% of EU27 exports to India in 2006 were machinery and vehicles and other manufactured articles, while other manufactured articles accounted for more than 60% of imports. At the detailed level, the main EU27 exports to India were unworked diamonds and aircraft, while the main imports were worked diamonds and clothes.
EU27 Member States' trade in goods with China
million euro
|
Exports
|
Imports
|
Balance
|
|||
2000
|
2006
|
2000
|
2006
|
2000
|
2006
|
|
EU27
|
25,863
|
64,101
|
74,632
|
195,038
|
-48,768
|
-130,937
|
Belgium1
|
1,340
|
2,921
|
4,011
|
10,204
|
-2,671
|
-7,282
|
Bulgaria
|
12
|
62
|
74
|
770
|
-62
|
-708
|
Czech Republic
|
72
|
318
|
755
|
2,606
|
-683
|
-2,288
|
Denmark
|
424
|
909
|
1,429
|
3,417
|
-1,005
|
-2,508
|
Germany
|
9,459
|
27,426
|
17,126
|
43,312
|
-7,667
|
-15,885
|
Estonia
|
7
|
211
|
164
|
332
|
-157
|
-120
|
Ireland
|
166
|
874
|
741
|
1,767
|
-574
|
-893
|
Greece
|
33
|
124
|
757
|
1,819
|
-724
|
-1,694
|
Spain
|
553
|
1,713
|
4,136
|
12,116
|
-3,583
|
-10,403
|
France
|
3,424
|
8,052
|
8,158
|
15,839
|
-4,734
|
-7,788
|
Italy
|
2,380
|
5,703
|
7,028
|
17,962
|
-4,647
|
-12,260
|
Cyprus
|
1
|
9
|
129
|
232
|
-128
|
-223
|
Latvia
|
0
|
16
|
26
|
153
|
-26
|
-138
|
Lithuania
|
2
|
15
|
89
|
369
|
-88
|
-355
|
Luxembourg
|
68
|
215
|
89
|
3,525
|
-21
|
-3,310
|
Hungary
|
44
|
617
|
1,031
|
4,307
|
-986
|
-3,689
|
Malta
|
2
|
53
|
61
|
106
|
-59
|
-53
|
Netherlands1
|
1,116
|
3,339
|
8,705
|
30,972
|
-7,589
|
-27,633
|
Austria
|
586
|
1,288
|
842
|
2,500
|
-257
|
-1,213
|
Poland
|
107
|
609
|
1,500
|
3,571
|
-1,393
|
-2,961
|
Portugal
|
53
|
214
|
382
|
773
|
-330
|
-559
|
Romania
|
93
|
174
|
189
|
1,738
|
-96
|
-1,564
|
Slovenia
|
16
|
56
|
149
|
305
|
-133
|
-249
|
Slovakia
|
10
|
175
|
191
|
742
|
-181
|
-566
|
Finland
|
1,462
|
1,970
|
935
|
2,946
|
527
|
-976
|
Sweden
|
2,043
|
2,246
|
1,859
|
3,909
|
185
|
-1,663
|
United Kingdom
|
2,391
|
4,791
|
14,077
|
28,745
|
-11,687
|
-23,954
|
Total Extra-EU27
|
849,739
|
1,165,223
|
992,698
|
1,360,590
|
-142,959
|
-195,367
|
China / Total
|
3.0%
|
5.5%
|
7.5%
|
14.3%
|
|
|
EU27 trade in goods with China by product
million euro
|
Exports
|
Imports
|
Balance
|
|||
2000
|
2006
|
2000
|
2006
|
2000
|
2006
|
|
Total
|
25,863
|
64,101
|
74,632
|
195,038
|
-48,768
|
-130,937
|
|
|
|
|
|
|
|
Primary products:
|
2,018
|
5,894
|
3,498
|
5,970
|
-1,480
|
-76
|
Food & drink
|
439
|
885
|
1,525
|
2,809
|
-1,086
|
-1,924
|
Crude materials
|
1,417
|
4,908
|
1,571
|
2,578
|
-154
|
2,330
|
Energy
|
162
|
101
|
402
|
583
|
-239
|
-481
|
Manufactured goods:
|
23,234
|
56,686
|
70,611
|
188,459
|
-47,376
|
-131,773
|
Chemicals
|
2,421
|
6,100
|
2,805
|
6,268
|
-385
|
-169
|
Machinery & vehicles
|
16,528
|
38,083
|
27,739
|
93,912
|
-11,211
|
-55,829
|
Other manuf’d articles
|
4,285
|
12,503
|
40,066
|
88,278
|
-35,781
|
-75,775
|
Other
|
611
|
1,521
|
524
|
609
|
87
|
912
|
EU27 Member States' trade in goods with India
million euro
|
Exports
|
Imports
|
Balance
|
|||
2000
|
2006
|
2000
|
2006
|
2000
|
2006
|
|
EU27
|
13,678
|
24,603
|
12,846
|
22,728
|
832
|
1,874
|
Belgium1
|
3,467
|
4,624
|
1,732
|
3,029
|
1,735
|
1,595
|
Bulgaria
|
12
|
26
|
13
|
38
|
-1
|
-12
|
Czech Republic
|
84
|
317
|
81
|
133
|
3
|
184
|
Denmark
|
166
|
265
|
203
|
395
|
-37
|
-130
|
Germany
|
2,084
|
6,324
|
2,298
|
3,857
|
-213
|
2,467
|
Estonia
|
2
|
12
|
9
|
8
|
-7
|
3
|
Ireland
|
110
|
154
|
119
|
198
|
-9
|
-44
|
Greece
|
45
|
50
|
126
|
489
|
-81
|
-440
|
Spain
|
212
|
543
|
748
|
1,722
|
-535
|
-1,178
|
France
|
1,031
|
2,631
|
1,266
|
1,820
|
-235
|
811
|
Italy
|
1,007
|
2,170
|
1,626
|
2,984
|
-618
|
-814
|
Cyprus
|
2
|
4
|
29
|
35
|
-28
|
-30
|
Latvia
|
1
|
6
|
5
|
22
|
-4
|
-16
|
Lithuania
|
4
|
15
|
19
|
19
|
-15
|
-4
|
Luxembourg
|
8
|
27
|
10
|
13
|
-2
|
14
|
Hungary
|
20
|
105
|
71
|
118
|
-51
|
-13
|
Malta
|
1
|
2
|
15
|
17
|
-15
|
-15
|
Netherlands1
|
549
|
1,129
|
929
|
1,890
|
-380
|
-761
|
Austria
|
131
|
407
|
97
|
177
|
34
|
230
|
Poland
|
52
|
161
|
152
|
282
|
-99
|
-121
|
Portugal
|
25
|
29
|
170
|
238
|
-144
|
-209
|
Romania
|
40
|
191
|
31
|
172
|
9
|
18
|
Slovenia
|
18
|
35
|
24
|
55
|
-6
|
-21
|
Slovakia
|
57
|
21
|
25
|
39
|
32
|
-19
|
Finland
|
318
|
330
|
66
|
114
|
252
|
217
|
Sweden
|
310
|
1,072
|
223
|
354
|
87
|
718
|
United Kingdom
|
3,920
|
3,953
|
2,759
|
4,510
|
1,161
|
-558
|
Total Extra-EU27
|
849,739
|
1,165,223
|
992,698
|
1,360,590
|
-142,959
|
-195,367
|
India / Total
|
1.6%
|
2.1%
|
1.3%
|
1.7%
|
|
|
EU27 trade in goods with India by product
million euro
|
Exports
|
Imports
|
Balance
|
|||
2000
|
2006
|
2000
|
2006
|
2000
|
2006
|
|
Total
|
13,678
|
24,603
|
12,846
|
22,728
|
832
|
1,874
|
|
|
|
|
|
|
|
Primary products:
|
944
|
1,357
|
1,928
|
3,307
|
-983
|
-1,950
|
Food & drink
|
57
|
263
|
1,207
|
1,471
|
-1,150
|
-1,208
|
Crude materials
|
463
|
927
|
680
|
818
|
-217
|
109
|
Energy
|
424
|
167
|
40
|
1,017
|
383
|
-850
|
Manufactured goods:
|
11,795
|
22,602
|
10,848
|
19,252
|
947
|
3,350
|
Chemicals
|
1,276
|
2,198
|
1,141
|
2,377
|
135
|
-179
|
Machinery & vehicles
|
4,067
|
10,421
|
1,206
|
2,917
|
2,861
|
7,503
|
Other manuf’d articles
|
6,452
|
9,983
|
8,502
|
13,957
|
-2,049
|
-3,974
|
Other
|
939
|
644
|
70
|
170
|
869
|
474
|
EU27 surplus in trade in services with China and India
In 2006, the EU27 exported 12.3 bn euro of services to China, while imports of services from China amounted to 10.6 bn, meaning that the EU27 had a surplus of 1.7 bn in trade in services with China. China accounted for just under 3% of total extra-EU27 trade in services.
In 2006, the EU27 exported 6.6 bn euro of services to India, while imports of services from India amounted to 5.1 bn, meaning that the EU27 had a surplus of 1.5 bn in trade in services with India. India accounted for just around 1.5% of total extra-EU27 trade in services.
EU27 trade in services with China
million euro
|
Credit
|
Debit
|
Net
|
|||
2005
|
2006
|
2005
|
2006
|
2005
|
2006
|
|
Total
|
11 129
|
12 328
|
8 858
|
10 624
|
2 271
|
1 704
|
of which:
|
|
|
|
|
|
|
Transportation
|
3 765
|
4 505
|
3 508
|
4 776
|
257
|
-271
|
Travel
|
1 308
|
1 608
|
2 306
|
2 170
|
-998
|
-562
|
Other services
|
5 845
|
6 214
|
2 774
|
3 655
|
3 072
|
2 559
|
Total extra-EU27
|
404 394
|
447 395
|
346 219
|
380 331
|
58 175
|
67 064
|
China / total extra-EU27
|
2.8%
|
2.8%
|
2.6%
|
2.8%
|
|
|
EU27 trade in services with India
million euro
|
Credit
|
Debit
|
Net
|
|||
2005
|
2006
|
2005
|
2006
|
2005
|
2006
|
|
Total
|
5 277
|
6 595
|
4 694
|
5 143
|
583
|
1 452
|
of which:
|
|
|
|
|
|
|
Transportation
|
2 221
|
2 202
|
1 214
|
1 427
|
1 007
|
775
|
Travel
|
662
|
811
|
1 655
|
1 413
|
-993
|
-602
|
Other services
|
2 340
|
3 569
|
1 817
|
2 292
|
523
|
1 278
|
Total extra-EU27
|
404 394
|
447 395
|
346 219
|
380 331
|
58 175
|
67 064
|
India / total extra-EU27
|
1.3%
|
1.5%
|
1.4%
|
1.4%
|
|
|
EU27 net investor in China and India
The EU27 invested 3.7 bn euro in China in 2006, with Chinese investment in the EU27 of 2.1 bn, a net outward flow of 1.6 bn. In 2006, the EU27 invested 1.6 bn in India, with Indian investment in the EU27 of 0.1 bn, a net outward flow of 1.5 bn.
EU27 FDI* flows with China and India
(million euro)
|
China
|
India
|
||
2005
|
2006
|
2005
|
2006
|
|
EU27 FDI in China / India (outward)
|
5 928
|
3 704
|
2 239
|
1 580
|
China / India FDI in the EU27 (inward)
|
441
|
2 135
|
567
|
99
|
Net EU27 FDI flows (outward minus inward)
|
5 487
|
1 569
|
1 672
|
1 481
|
* FDI: Foreign Direct Investment
- Dutch imports, and therefore the trade deficit, are over-estimated because of the “Rotterdam effect”, where goods destined for the rest of the EU arrive and are recorded in harmonised EU external trade statistics in Dutch ports. This then has a positive effect on the external trade balances with China/India of those Member States to which the goods are re-exported, as these shipments would be recorded as intra-EU trade with the Netherlands, rather than extra-EU trade with China/India. To a lesser extent, Belgian trade figures are similarly over-estimated.
- Machinery and vehicles includes power generating and industrial machinery, computers, electric and electronic parts and equipment, road vehicles and parts, ships, airplanes and railway equipment.
Other manufactured articles include leather, rubber, wood, paper, textiles, metals, building fixtures and fittings, furniture, clothes, shoes and accessories, scientific instruments, clocks, watches and cameras.
Source: Eurostat