China-EU_Relations_Reassessing_the_China-EU_Comprehensive_Strategic_Partnership

According to data from Eurostat, the EU’s exports to China grew by 15.3 % on
average in the years 2003–2012, higher than the average growth rate of imports
from China—12.8 %. Though China became the fastest-growing market for exports
from the EU, the ever-increasing exports from the EU to China still lagged behind
the extensive exports from China to the EU. In 2012, the EU’s trade deficit with
China accounted for 34 % of the China-EU trade, significantly lower than the
largest deficit (52 %) in 2008; however, China was still the largest source of deficit
for the EU’s foreign trade.^17
In order to address the China-EU trade surplus, we cannot merely focus on
superficial data; instead we should carry out an analysis from the perspective of
economic globalization since statistical data concerning bilateral trade cannot cor-
rectly reflect complicated trade relations.^18
In fact, the uppermost factor leading to the sharp imbalance in China-EU trade
(a similar case also occurred in the China-US trade imbalance) was readjustment of
the global value chain resulting from China’s accession to the WTO. This read-
justment is embodied in the following two aspects.
First, East Asian economies shifted their large-scale production capacity to the
Chinese Mainland. Against the background of globalization, with the impact from
China’s labor cost advantage and its capability for attracting foreign investments,
massive processing trade entered the Chinese Mainland from East Asian countries
and territories including Japan, South Korea, Taiwan (China), etc. resulting in an
explosive growth of China’s exports after China’s accession to the WTO, and on

Year

China-EU trade balance

From Eurostat From China Ministry of Commerce

Fig. 3.5 The China-EU trade balance (2002–2012).SourceThe data regarding the EU came from
Eurostat, unit: 100 million EUR; China’s data came from the Chinese Ministry of Commerce, unit:
100 million USD

(^17) The result was calculated by the Author according to data from Eurostat.
(^18) One report issued by the European Union Institute for Security Studies also held a similar view.
See Zaborowski ( 2006 ).
3 China-EU Economic and Trade Relations 79